KNOW-YOUR-CUSTOMER QUESTIONNAIRE REQUEST BY YOUR COMPANY BANK ACCOUNT

BANK ACCOUNT

2021-01-11

Recently many Chinese Clients holding a Hong Kong Limited were enquiring about their company bank accounts. Banks has been asking to fill out KNOW-YOUR-CUSTOMER (KYC) questionnaires or even informing them that their accounts will be frozen up or closed down within next few months.

These Chinese Clients came panic and asking what do they need to do. At this moment, with all the travel limitations, it is very difficult to travel to Hong Kong to meet bank officer and sort the problem out. Here, we would like to list out the few reasons why banks are asking for all there.

1/ New Compliance

Since 1st March 2018. Company Registry (CR) come out with new compliance enforces Anti-Money Laundry and Counter-Terrorist Financing. Banks required to know their clients’ transactions with much more details.

2/ Inland Revenue Department Rules

Many of them been fling zero on Profit Tax Returns. However, these companies actually are active with bank transactions. Which the Hong Kong Inland Revenue Department Rules require them to arrange yearly accounting and auditing by Certified Public Accountants.

3/ Misunderstood of “Offshore Company”

Companies sometimes misunderstood that they are off-shore (from Hong Kong) companies. As all their business activities are outside Hong Kong. Therefore, they thought being offshore means nothing needed to be reported or to arrange any accounting and auditing work. 

Hong Kong IRD stated that any offshore companies need to arrange accounting and auditing every 12 months together with submitting Audit Reports.

4/ Role of Company Secretary

Your appointed Company Secretaries did not aware of the significant controller registry or even file annual return to Company Registry of HK on timely manner.

So, if you have the same issue, please contact us ASAP.

You may want to read: WHAT IS KYC ( KNOW YOUR CUSTOMER) ?

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