Bank Accounts

Similar to other financial centres in the globe, banks in Hong Kong do not have an identical list of information required for account opening as they formulate policies according to their strategies and risk assessment appetite. Apart from local legislation and requirements, banks also need to comply with international requirements mandated by their overseas authorities or head offices. It is not uncommon that account opening requirements varies. Moreover, apart from local requirements, some banks also need to comply with the requirements or standards mandated by their head offices or overseas authorities. The account opening requirements of these banks may therefore vary. For...

An offshore bank account is an account set up in a country outside of the home country of the account owner. Such a bank account is usually set up after the offshore business setup process is completed, as it is often more convenient and faster to open a bank account after offshore company incorporation. However, it is not compulsory to have an offshore company having an offshore account. Benefits of an offshore bank account 1. More privacy and security Having an offshore bank account implies that there is more privacy and security for the company. Offshore banks are not allowed to disclose any information about the company to the public. 2. Greater tax benefits Different...

Traditional banks are wary of cryptocurrency businesses because of the high risks and volatility brought about by cryptocurrencies. Finding crypto-friendly banks for corporate bank account opening is important for your cryptocurrency business. While many large banks are still sceptical about digital currencies and technology, there are increasingly more banks that are receptive to cryptocurrencies. Crypto-friendly banks aim to provide their customers with lower transaction fees for moving from crypto to fiat currencies, and vice versa. Some of the key features your cryptocurrency business should look for in a corporate bank account include: 1. Ease of use 2. Security 3. ...

There are tremendous reasons in holding a portion of your savings at a safe, stable bank out of your home town: 1. Many foreign banks are much healthier than their Western counterparts who usually have razor-thin capital and tight liquidity. 2. Foreign banks typically make it easier for you to diversify your currency exposure, so that you don’t bet your whole savings on a shaky fiat currency that can be devalued overnight. 3. Foreign banks are further from your home government’s reach. Capital controls, exchange controls, asset freezes etc. become irrelevant when you bank in a safe foreign jurisdiction. Problem is, it's becoming increasingly difficult to open a...

Different bank has its own policy to accept clients. Below business activities are usually considered as prohibited or high risk activities that may not be accepted by onshore/offshore banks: 1. Production or trade in weapons and munitions, radioactive materials. 2. Production or trade in tobacco, pharmaceuticals subject to international phase outs or bans. 3. Production or trade in pesticides/herbicides subject to international phase outs or bans, wood or other forestry products from unmanaged forests. 4. Production or trade in ozone depleting substances subject to international phase out. 5. Production, trade, storage or transport of significant volumes of...

“Fintech is the future. The British Virgin Islands is the appropriate home for Bank of Asia because the BVI is at the forefront of delivering high quality technological and innovative offshore services. We are proud to be the first bank to be licensed by the BVI in more than two decades and we plan to change how people bank using innovative technology, products and better customer service, not only here in the BVI but also globally,” chairman Carson Wen said. Bank of Asia wants to tap into the growing needs of offshore companies as the world’s first fully digital global cross-border bank and the first digital bank in the British Virgin Islands. It is using the BVI as...

Seychelles company formation with bank account is one of the rising popular options among various foreign investors. The island is located off the eastern coast of Africa in the Indian Ocean and the jurisdiction of Seychelles is often associated and commonly known to be popular tourist destinations, with its main economic activities revolving around tourism and fishing. In an effort to transit itself into a financial services hub, Seychelles maintained a pro-business stance and passed the Seychelles Investment Act which makes foreign investors who wish to incorporate in Seychelles possible but restrictions are placed upon industries that are active with local businesses such as taxi or...

In September 2017, Hong Kong Monetary Authority issued a warning circular to financial institutions for a more balanced approach in examining foreign investor application, being a good news to tightening requirements in recent years when the banking industry adopted the risk avoidance approach to simply reject non-residents applicants who may potentially hit the regulations of Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT). Key Notes to Account Opening in Hong Kong Bank does not entertain walk-in account opening. Make appointment with bank and be prepared. Major directors, shareholders and bank signatory(ies) are required to physically meet the bank officer in...

CRS (Common Reporting Standard), is a global standard for the exchange of financial account information to combat tax evasion and improve tax compliance around the globe. As of 20 May 2018 102 countries has committed for implementation. Under CRS, financial institutions in the participating countries must collect and analyze certain information in order to determine tax residency of account holders. The information collected at the particular country may be shared with its Revenue Administration. The local Revenue Administration then may report these information to other relevant CRS jurisdictions. Which Countries are Within the Scope of CRS? 1. Committed Countries - Commenced...

Bank of China, Hong Kong is a commercial bank regularly used by businessmen. We would like to let you know what is the backbone that makes up its compliance and their usual documentation required. Backbone for FI's Compliance in Hong Kong Effective from 1 April 2012, Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance, Cap. 615 (“AMLO”) laid down the anti-money laundering backbone to financial institutions (FIs) in Hong Kong and imposes FIs’ customer due diligence (CDD) requirements. Summarized below AMLO and HKMA guidelines for FIs in Hong Kong : AMLO Guidelines Screen Out Undesirable Parties The following individuals...

A “virtual bank” in Hong Kong is defined as a company which delivers banking services primarily, if not entirely, through the internet or other electronic delivery channels. It does not refer to a licensed bank which makes use of the internet or other electronic means as an alternative channel to deliver its products or services to customers. In a keynote speech delivered during the Annual Banking Conference of the Hong Kong Institute of Bankers, Mr Norman Chan, Chief Executive of the Monetary Authority in Hong Kong (HKMA) September 2017 outlined how the HKMA will take lead and help the banking sector to rise to a higher level by the convergence of banking and technology. ...

Offshore banking refers to the deposit of funds by a company or individual in a bank that is located outside their national residence. Although the term implies that these banks are located on islands, many offshore banks are, in fact, found in onshore locations, such as Panama, Luxembourg and Switzerland. The history of offshore bank accounts originated for the same reason that even now they continue to attract citizens from different parts of the world: the necessity of reducing the tax burden, starting with hoe national governments deal with pressuring, with more and more force, the wealthiest people and also those who are not. Offshore world specialists remember that everything...