Category Bank Introduction

Top 3 reasons why Hong Kong banks reject applications

Banks reject applications

Do you have plans in opening a bank account in Hong Kong? well were telling you now it’s not a walk in the park. Banks reject application more often these past few years, and we’ve seen this personally due to the influx of clients going in at our doorsteps to ask for help in opening their bank account in Hong Kong because they were rejected by other banks.

To put a reality into this, we have compiled several factors that will affect the application for a bank account in Hong Kong, and what are the real reasons why most of these banks are rejecting these applications.

Nationality

This may sound fishy but this is not an exaggeration, nor it is an unfair disadvantage. A lot of people belonging to high risk countries can find it hard to open a bank account in Hong Kong, and this is already expected by the people themselves. Under this predicament, controlling persons of a company is also affected by this since directors, shareholders and authorized signatories are part of the corporate substance and their nationality could also be a hindrance into the application process. Aside from this, companies and businesses who have clients and suppliers in high risk countries could potentially be a problem in the application process.

If you do not meet the criteria for a low risk client with significant financial assets, then you will eventually be rejected by any bank in Hong Kong. Oftentimes, even if you meet or go beyond the required initial deposit by most banks, it’s still not a guarantee that you can secure a bank account approval.

Applicants belonging to high risk countries (e.g. Iran & North Korea) and monitored jurisdictions will find it hard or even impossible to secure an approval. Just to give you a bird’s eye view and some example, as of February 2020 these countries are belonging to the FATF increased monitoring list:

  • Albania
  • The Bahamas
  • Barbados
  • Botswana
  • Cambodia
  • Ghana
  • Jamaica
  • Mauritius
  • Myanmar
  • Nicaragua
  • Pakistan
  • Panama
  • Syria
  • Uganda
  • Yemen
  • Zimbabwe

Anti-Money Laundering and Counter Terrorism Financing (AML-CTF) has something to do with this situation, since there is significant chance that nationals who belong to these countries are more prone to committing money laundering activities and terrorist financing. In fact, some banks in HK have a pre-existing list of nationalities that are banned from applying for a bank account.


    Vauge, unusual & high risk business activities

    Your business activity can play a big role in your approval. Most banks in HK are keen on onboarding clients belonging and engaging in trading activities since they deem this form of business as an ideal and favourable entity, considering that this form of business activity possesses a lot of credible business documents that would be easily justified by way of import or export proofs, bill of lading, supplier agreements and plenty of other things.

    Just like nationality, high risk business activities can block your chances of securing an approval since some industries are well regulated, if not considered to be extremely risky. Business activities such as:

    • forex trading,
    • bitcoins / cryptocurrency,
    • oil,
    • gas,
    • precious metals and stones,
    • as well as mining activities,
    • online gambling / casinos

    are considered to be high risk. These industries are marked high risks due to their perilous nature and tendency to lean on AML-CTF issues. However, this should not discourage you, because if you haven legitimate documentation that supports your business activities as a legit entity with a valid business activity then this could help you in the process, and all you have to do is to acquire an exceptional service provider just like us to guide you through the process since we know which bank accepts or rejects clients depending on their industry.

    Insufficient or weak documentations

    Documentations to evidence that you have a legitimate business is a primary factor, if not, a very important aspect of the application. You will need to present undisputable and credible proofs to show and validate that your business is running a lawful business. The requirements would range from company/business invoices, client contracts, supplier agreements, updated bank statements, company presentations, and other strong proofs or documents that would evidence that you are running a legit business. In general, the stronger your documentations are, the higher the chances of securing an approval.

    Once you collate all your documentations, the bank will then evaluate all the submitted data and perform Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) to dig out any irregularities. This practice is common and a standard with Hong Kong banks.

    For companies falling under the category of newly incorporated entities would have a different process to undergo since the burden of proof that you have a credible business relies upon your ability to provide evidence that you will be running a lawful company.

    Our thoughts

    The process may be hard but we have a solution in all issues pertaining to the rejection of applications in Hong Kong banks. Regardless of your current situation, we can create a solution for you and your business that can help you secure an approval with any banks in Hong Kong since we know which banks works best for any type of clients. We have the experience and first-hand knowledge to know which banks could work with you and give you an approval depending on your nationality, business activities and documents. In other words, we can align our clients to the bank that will surely approve their application since we know what these banks are looking for, and what kind or types of clients it onboards.

    To increase your chances of getting an approval for a bank account in Hong Kong, feel free to Contact Us!


      Offshore Banking in Singapore

      Offshore Banking in Singapore

      Just like Hong Kong, Singapore has grown into a giant economy that the world respects as a major financial hub in the global stage. Perhaps its best asset is being one of the best banking sector in the globe because of its technologically advance economy that puts a lot of detail into their financial industry. As of late, Offshore Banking in Singapore become easier with 111 commercial banks, 49 merchant banks, 45 banks with representative offices, and 37 of whom are offshore banks. Apart from this, Singapore has a stable economy with a secure political environment, with durable laws and regulations that regulates their banking policies.

      Singapore as a whole has an attractive tax schemes for companies and entrepreneurs. In fact, it is vital to say that Singapore has no capital gains tax, and no taxes are imposed on other valuable articles such as deposits or even investments.

      Singapore bank account holder’s benefits from multi-currency accounts which makes it very convenient for them in terms of doing international business transactions without having to worry about the settlement account for those invoices. To take advantage of this, it’s possible in Singapore to diversify your capital in multiple currencies in an offshore bank account. This way, you will be able to reduce your currency risks, but also have a convenient way to use other currencies in your personal or business purposes.


        Contrary to what others say that offshore accounts are hard to access, this is not true in Singapore. Once you have your offshore account in Singapore you can easily access your account, and with just a few clicks away you can make international wire transfers and access your online banking facilities anywhere around the world since majority of banks in Singapore are flexible globally.

        International entrepreneurs are encouraged to open an account in Singapore since it allows structuration of offshore company that would get low tax rates and a special startup taxes for the first 3 years of operation would normally benefit with a large reduction on their taxes.

        Ultra-High-Network-Individuals who plans to enter Singapore can avail of several financial facilities for bank accounts and financial services ranging from offshore investment accounts, trusts and mutual funds.

        Offshore banks in Singapore are allowed to do business outside of the country but not within local businesses or locals. Moreover, offshore banking in general in the country covers the usual banking transactions such as deposits, savings accounts, time or fixed deposits, international debit/credit cards, withdrawals, letters of credit and online banking.

        Singapore banks also offers tons of top notch banking products and services to suit the needs of an international entrepreneur and a multinational business.

        In terms of tax benefits, Singapore has an existing Double Tax Agreements (DTA’s) with several countries, in which as to date, it has about 90 DTA’s. Under this setup, companies and entrepreneurs can avail of tax reliefs and tax reductions when they put forward the DTA’s.


          How to open an offshore bank account in Singapore?

          Similar in Hong Kong, Singapore banks requires a bank introduction company to help you in your applications for bank account opening. This is where we come into play, we specialized in bank introduction, company incorporation as well as tax optimization that would benefit a business and a company in the long term arrangement. You would be very interested to know that during our incorporation process, we can come up with a good setup that will greatly reduce your tax burdens if you shift your banking and company activities in Singapore. Always remember, there is no zero tax solution in Singapore and it’s almost impossible to do that without doing something illegal.

          If you are planning to open a bank account in Singapore, we offer packages that covers incorporation of companies in Singapore as well as bank account opening in the country. Contact us today so we can assist you easily!


            Offshore banking in Dubai

            Offshore banking in Dubai

            Dubai one of the major financial centers in the middle east. It is also regarded as an offshore jurisdiction with tax advantages, a stable economy and a globally competitive banking system. In terms of the country’s political and economic environment, the country is very stable in this directions. The country is easily one of the foremost offshore banking jurisdictions that has very high zero-tax privileges on foreigners and its citizens.

            Dubai has been known to protect the account holders of banks in their country. They have implemented good measures to assure that the assets and wealth being injected by investors and account holders are secured and held in a high confidentiality standard.

            Most expats who are entering Dubai is due to the fact that it’s one of the best locations to go in terms of infrastructure, lifestyle, entertainment and overall standard of living. But more than this, the country is known for being the primary destination of westerners who are burdened with heavy tax impositions by their governments.

            You would be particularly interested to know that Dubai is home for some of the biggest banks around the world, which would include:

            • HSBC offshore,
            • Abbey National Offshore,
            • ABN Amro,
            • Dresdner,
            • Barclays.

            All these banks have their international office in the country.


              Opening an account in Dubai

              The whole process of the bank account opening is dependent upon several factors, including the bank, your status whether you are an employee, an entrepreneur or a non-resident. However, here are the most common banking requirements in Dubai:

              • Personal identifier such as passport, national id, and a driver’s license.
              • Proof of billing (bank statement, electrical bill and other proofs that shows your actual residence)
              • Proof of income or revenue
              • Source of wealth proofs
              • A valid visa
              • Some banks would look for emirates ID however, since the process would normally be lengthy, banks would then resort to asking for the application forms instead.
              • Other requirements for companies and business are more stringent.

              Typically, opening a bank account in Dubai would prefer a UAE resident permit holder and an incorporated company on any of the free trade zones. Although these are not a requirement, it is just advisable since the process will be quicker.

              Non-residents in the country normally is given and can only acquire a savings account with an international debit card. It is up to the bank whether your risk profile and client value is enough to be eligible and availing other perks that the bank can offer such as correspondent banking and other optimized services in the bank.


                Advantages of a bank account in Dubai

                To name a few, here are some of the best benefits that you can enjoy if you go offshore in Dubai:

                • High security banking standards
                • Strict banking practices
                • Stringent bank secrecy protections
                • Multicurrency accounts in EUR, USD, GBP, CHF, YEN and AED
                • Direct bank wire transfers
                • Correspondent banking – IBAN and BIC
                • Asset management and diversification of asset/wealth portfolio
                • Direct access to Swift system
                • Merchant services

                Since Dubai is a tax haven in a direct sense, here are also some of the services that international entrepreneurs, business or companies can benefit from:

                • Asset Protection
                • Private Bank Accounts
                • Wealth Management
                • Portfolio Managers
                • Tax Consultation
                • Asset Management
                • Account Managers
                • Personal Financial Strategies
                • Inheritance Planning
                • Account Managers
                • Company Formation

                Although the Dubai would prefer on-boarding residents in the UAE, non-residents have all other options to choose from.

                The whole process of the application procedure for bank account opening is reliant upon the bank that you are applying, since they all vary in their individual requirements. Normally though, a personal bank account can be opened within a week, and a corporate bank account would take up to 4-8 weeks to complete altogether for other service providers. Also, chances of rejection is higher with the other service providers. However, if this service is outsourced from us, we can easily ensure that the process is shortened a bit and you can also have an opportunity to incorporate your company by that time. And should you move for an offshore company.

                Just food for thoughts, here are some important pointers to remember when going offshore in Dubai:

                • Offshore bank account opening in Dubai is quite fast and not too lengthy. Potentially, it could be done within 1 week if you have the right service provider or if your profile is attractable to banks.
                • Offshore banking in Dubai can be easily accessible to worldwide. Transactions such as wire transfers, payment processing and balance inquiry can all be managed through your online banking.
                • Dubai has a very lax rules on fund transfers.