The events of the last 20 years have left many people wondering whether their hard-earned money is ever safe in home bank accounts. Many administrations are passing legislation that makes it easy for governments to access funds saved in banks. In some countries, administrations are taking control of the pension schemes, while central governments’ reserves fall below the recommended insurance levels.
Well, if you probably thought that these situations are too far, the chances are that you are already a victim. A lawsuit can easily come knocking and get your accounts frozen with the strike of a pen. When these issues are compounded with the instability of local currencies such as the recent impact of Brexit on the Great Britain Pound, people are left seeking alternatives. The solution is getting an offshore bank account.
One of the top jurisdictions to open a bank account is Hong Kong. It is a very stable region, and its banking system is admired globally. But even here, the chances of succeeding when opening a bank account remain very low. The following are five main ways of enhancing Hong Kong bank account success rate.
Make sure to demonstrate the right intent of opening a bank account
Banks in Hong Kong do not simply allow clients to open and start running accounts. Rather, they want to know why you want to open an account. If it is a personal offshore account, make sure to give a clear reason for it. For example, you might be interested in getting your savings to a bank that offers higher interest, makes regular trips abroad, or plan to open a business in the region in future.
Showcase the source of income
Hong Kong banks that operate want to know the source of the account holder’s income. If you are employed, make sure to provide the letter of appointment, bank statements, and other proof of job. This demonstrates that the cash is not from fraud, drugs, or scam.
Demonstrate compliance to local tax laws
When Hong Kong passed the CRS (corporate reporting standards) laws in 2016, it mandated the reporting institutions to identify reportable accounts (accounts at high risk of tax evasion) and report to IRD. This means that if all the accounts in a bank are reportable, the task is monumental. Now, banks are extra careful by filtering off all high-risk clients. Therefore, you should demonstrate compliance with tax laws back at home.
Demonstrate your clients and where they are located
If you are opening a corporate bank account, indicating the business clients’ origin can significantly raise Hong-Kong bank account success rate. All banks in Hong Kong will decline the account if the client comes from a non-cooperating jurisdiction such as North Korea and Somalia. Also, demonstrate you review business clients and only enter into business with them if they are from a cooperating nation.
Use expert services when opening a bank account
Though you can apply and get the bank account of choice in Hong Kong, the chances of success are very slim. The best thing is using expert services. These are expert professionals who have been in the Hong Kong environment for long, understand the changing demands, and ensure to make the best shot at it. If you pick great corporate services, the Hong-Kong bank account success rate can go up by more than 90%.