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Banks in Hong Kong have followed strictly with the guidelines issued by FATF and OECD’s to combat money laundering and terrorist financing and tax evasion. In this regards, it isn’t easy to open offshore account in Hong Kong without substance. Like all of the banks in the world, banks in Hong Kong review the customers’ accounts regularly. Once an account is identified not operating in line with its Anti-Money Laundering (AML) guideline, it will be closed as an administrative protocol. Account will be closed when the following happens:
1. Deposit large amounts of cash. Different bank has different internal guideline for maximum amount of single deposit. i. If the account is relatively new and cash size of US$500,000 deposited without informing the bank properly. Bank officer may consider suspicious and reports to their compliance. ii. If the account is inactive but deposits a large amount of cash. iii. If the usual size of funds in the account is normally between the range of US$100,000-US$200,000, a sudden cash deposit of say US$500,000 has to be properly explained to the bank officer and/or elaborated by supporting documents to avoid closure.
2. Too frequent transactions. Too frequent in/out transactions or one large transaction disperses to various accounts at the same/similar time.
3. Transfer from sanction individual/entities. If an account receives remittance from individuals/entities under sanctioned by United Nation or US's OFAC, it is highly likely the account will be closed.
4. Abnormal fund size. If an account receives exceptional large funds size and the bank officer calls the account holder for explanation, the account would be closed if the reply to bank is unsatisfactory.
5. Criminal activity. If an account is involved in criminal affairs.
6. If the account activity is suspicious.
When the account will be closed, the customer can choose to transfer the money in advance, or simply closed by bank with issuance of a bank check or cashier’s check. However, if the account is involved in criminal affairs, the account will be frozen under the instruction of police and no transfer can be made by the account holder.
Whatsapp : (852) 6499 4686 Phone : (852) 2186 6936 Email : info@intershores.hk
Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice. |
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