Opening a bank account abroad has become very difficult these days. Unlike in the past, more jurisdictions have become more aggressive in filtering people who are involved in scam and tax evasion.
This does not simply apply to those who are opening bank accounts, but also extends to people who already have a bank account. Many people with bank accounts in Macau have been complaining that their bank accounts are being terminated even though they have been in operation for a long time. This brings us to the question; why bank account termination Macau? The following are the main reason why banks are terminating accounts in Macau.
Failing to respond to inquiries from banks
Following the passing of CRS by OECD countries, other jurisdictions have joined the train to help curb tax evasion. Since 2014 when OECD passed the CRS (common reporting standards) frameworks, banks have taken up the role of gathering more details about their clients. They have been asking clients to provide more information about and tax compliance back at home. If these and other account related inquiries go unanswered, the banks may decide to close your account.
Transferring a lot of money outside the pre-indicated levels
When banks allow people to open and run offshore accounts, they ask about the nature of transactions and the quantities of cash that will be handled. If the levels you outlined are surpassed, and no explanation is given, the account is at a risk of getting terminated. For example, if you have indicated the personal salary is US $3000 and commit to saving $1500 in the offshore account every month, the bank wants to the rate maintained at that level. If the account suddenly receives US $1,000,000 and no explanation is given, it becomes suspicious.
Being linked to fraud and scams
Many banks want to maintain the best brand image in the globe. Therefore, banks will close any account that is associated with fraud and scams the moment it is detected. For example, if you have an account in a Macau bank and the news back at your home is that you are involved in scams, the bank will close the account. Therefore, you should try as much as possible to stay away from scams or being associated with scammers.
Having clients in countries that are blacklisted by Macau
If the bank account is corporate, it will get terminated immediately the bank realizes some clients are located in blacklisted countries. Financial institutions bank account termination Macau is initiated immediately if the holder has anything to do with dangerous states such as Syria and Somalia. These are nations that could easily make cash associated with piracy, terrorism, and fraud to get access to Macau.
Going against the Macau laws
The Macau laws outline the expected code of conduct for all companies and people who run accounts in its jurisdiction. If you go against any of these laws, neither the Macau administration nor the banks in its jurisdiction will want to get associated with you. The bank account termination Macau will commence immediately in such a situation.
Bank account termination in Macau has become a common thing in the recent past. Whether it is a personal or corporate account, the holders should ensure they operate within the provided legal framework, reply to any query on time, and stay connected to the institution all the time.