What are the reasons for bank account closure?

Now to open a Hong Kong bank account is not so easy, their own application to open an account, do not buy financial management and do not find an agent to recommend, basically can not open a bank account. For those who have already opened a bank account, many times they do not pay attention to maintenance in daily use, and are likely to face the risk of their bank account being closed.

Hong Kong bank accounts are closed for the following reasons:

1.The account is not used for a long time

If a bank account is not used for a long time and there is no transaction record, it will be listed as a “zombie account” by the bank (refers to a bank account that is not used for a long time and is not cancelled), resulting in forced closure.

2.Failure to process bank investigation letters in a timely manner

Due to the control of financial risks, the bank will issue an investigation letter to the account holder every year in order to update the account background investigation information in a timely manner. If the bank does not reply and submit the required information within the prescribed time, the account will also be forcibly closed.

3.Deal with sensitive areas

Sensitive areas are mostly political unrest or economically underdeveloped countries, if there is a transaction with such countries, then the bank will suspect that the source of funds for the transaction is abnormal, involving illegal acts, resulting in the closure of accounts.

4.Account amount quickly in and out

Some customers after receiving the money, often in the first time to transfer out, in fact, it is best to stay for a few days, otherwise at the same time to transfer in and out, it is easy to be noticed by the bank, and suspected of money laundering, so as to be frozen.

5.The Hong Kong company does not conduct annual audit and audit in accordance with regulations

The annual audit documents of the Hong Kong company, as well as the tax declaration documents, are the necessary documents for the bank to conduct regular spot checks every year. If the bank finds that the Hong Kong company has not conducted annual audit or audit tax return, it will directly freeze the bank account.

6.The account is lent to others for collection and payment
If you lend money to others without knowing the source of their funds, in case you are engaged in a black industry, you will be jointly and severally liable in addition to having your account forcibly closed.

7.Frequent public to private transfers

Normally, the company account will rarely have a transaction relationship with the personal account, if the company account frequently transfers money to the private account, and the amount is large, then it will be very likely to attract the attention of the bank, thereby freezing or closing the bank account.

If you have any questions, please contact BiyaPay team!