While Hong Kong banking system has enjoyed non-interference from the political system to guarantee business operators the best environment, they also want to maintain a good name.
They are interested in knowing you more and ensuring that all your transactions are free from fraud. To run your business more effectively, you need to maintain good status with the banks. In this post, Hong Kong bank account: Why you have to maintain a good status with our bank; we review the most effective tips to utilize.
Why do you need to maintain good standing with your bank?
Many people might be asking why go another step after opening a bank account? Is a bank not meant to simply deposit and withdraw funds? Well, things are changing rather fast.
Many banks in Hong Kong are verifying all the accounts by seeking more information about their clients. They are even sending letters to clients to ensure that all the directors of the companies are legitimate. If you get the notification asking for the verification, it is important to reply with all the details required to avoid getting into problems with your transactions.
Avoid paying suppliers in risky locations
While the work of the bank account is to make payments across the globe, you should exercise caution. If you are sending cash to nations that are restricted, the chances are that it could raise the red flag. Even if the client is legitimate, the banks are becoming more curious, and you could soon get a warning for such deals.
If you must deal with such clients in restricted areas, you have to keep all the records, especially on supplies and invoices to demonstrate the transaction is legit. If you must keep sending money to high-risk countries, consider using a different form of money transfer such as Money Gram that is independent of the bank account.
Maintain a healthy balance
If you want to avoid a monthly fee in most banks, you are required to maintain about 50,000 Hong Kong dollars. For people living below the minimum balance, they are outside the banks’ interest.
While banks will encourage clients to open and operate with them as much as possible, those with very low balances are considered a liability. If your bank balance is getting very low, the banks will start getting pricey and could lower chances of getting the operational license renewed.
Ensure all contact details are up to date
Though you might be living as a digital nomad, well, many banks do not like the idea. What they want is a stable address in a respectable area of the world. When you opened the account for the first time, the stable address you provided does not need updating so much.
However, if you need to update the contact info, ensure to keep it first world. The regulator insists that every bank must know its customers more for assurance that you are legit. Well, do not want to get a horrifying phone call informing you that the account has been terminated and need to go to Hong Kong to claim funds.
Ensure that funds into the account are coming from good sources
Just like the banks are concerned about where your money is going, they also want to know about your sources.
If you have clients in high risky countries wiring lots of cash, chances are it could be proceeds of fraud, human trafficking, drugs, or even theft. Here, you will need to keep all the transactions well recorded and where possible provide details of other businesses such as the certificate of registration and nature of operations.