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Report: HK Banks Tighten Grip around Mainland Clients Opening Savings and Investment Accounts
Banks in Hong Kong are tightening scrutiny on clients from mainland China seeking to open savings and investment accounts, Bloomberg reported, citing people with the knowledge of t...
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Report: HK Banks Tighten Grip around Mainland Clients Opening Savings and Investment Accounts
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Banks in Hong Kong are tightening scrutiny on clients from mainland China seeking to open savings and investment accounts, Bloomberg reported, citing people with the knowledge of the matter.

Some large Chinese-funded banks operating in Hong Kong have purportedly suspended the opening of investment and wealth management accounts for mainland residents. Banks have also reportedly raised the threshold for mainland applicants to open savings accounts and strengthened due diligence requirements.

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Meanwhile, Hong Kong regulators have instructed banks to introduce new declaration clauses for prospective clients, requiring them to confirm that funds for investment accounts originate from outside mainland China.

The enhanced scrutiny comes as Beijing authorities launch their most aggressive crackdown to date on illegal cross-border transactions. Last Friday (22nd), the China Securities Regulatory Commission (CSRC) imposed fines totaling more than USD330 million on three online brokers operating without licenses.

On the same day, the Securities and Futures Commission (SFC) ordered Hong Kong brokers to review their client onboarding procedures. The Hong Kong Monetary Authority (HKMA) last week issued a five-page circular requiring banks to close investment accounts opened using problematic or forged documents.

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A spokesperson for the Hong Kong Association of Banks (HKAB) said the banking sector will comply with the latest guidance from relevant regulators to ensure account opening procedures remain compliant and operate efficiently.

Overall, the guidelines have limited impact on the account opening process. The SFC and the HKMA did not immediately respond to requests for comment.

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