One of our articles have discussed and narrated how several banks in Hong Kong are leaning towards rejecting almost every client that falls under their ridiculous high standards. Most of the time, their criteria are hard to meet, or even match. That’s why most of applicants are left with no choice but to accept the fact that they are rejected.
First of all, in order to lower the possibility of rejection, you need to prepare yourself and your business. Companies, entrepreneurs, start-ups and SME’s, notwithstanding their size has to go over the prescribed requirements, policies and mandates of banks. This approach is to save you money, time and efforts.
Even though the horizon for some businesses and companies are oblique, we feel that it is NOT IMPOSSIBLE. This is why we have made a compilation of various things you can do in order to prepare you and your company from bank scrutiny and secure a fighting chance of that seal of approval.
We would like to set thing straight, these tips and words of advices are based on our actual experiences in dealing with various banks in Hong Kong.
STEP 1: Simplify Your Corporate Substance
Oftentimes, companies and entrepreneurs will make super complicated structure of business in terms of ownership and layering that it actually affects the overall business acumen of your company. To avoid this, simply define your purpose and outline the UBO structures.
You can use several solutions to this, which would involve offshore companies such as BVI, Seychelles, Samoa and other credible jurisdictions. Only thing left is to structure this solution properly in order to avoid any undue tax issues and operational problems.
STEP 2: Solidify Your Business Portfolio to the Bank
Think of this through this manner.
You are simply strengthening your business proofs to evidence that you are running a legitimate company. In basic terms, ensure that your business is legit and will operate in Hong Kong with a justifiable purpose, as well as being supported with specific business licences with no hidden agenda whatsoever.
Comply with KYC protocols in the bank, whether it be Customer Due Diligence (CDD) or Enhanced Due Diligence (EDD). Always bear in mind that these processes are normal and conventional.
Most importantly, beef up on company presentations, client portfolio database, product catalogue, online present boosting, as well as other business company operation proofs in order to give a safety net on your approval.
Basically, anything that can help the bank to get a better understanding about your company and the industry that you are operating from.
STEP 3: Optimise your Financial Transactions
Making sure that your origin of funds is important to avoid any suspicion on your agenda in opening a bank account.
Assure the bank by being cooperative and compliant that you are not a security risk in terms of AML-CTF matters and other illicit purposes. As much as possible, refrain from venturing into high risk and high value commodities including precious stones and metals.
Another thing to also do, is to avoid high volume, multiple or frequent transactions for service type of dealings solely for the purpose of procuring funds to a single beneficiary or otherwise.
Make certain that you will provide all pertinent details about your suppliers and customer information or data such as business cards, email correspondences, contracts/agreements, as well as quotations and invoices in order to bulk up on your business and assure the bank that you are a legit business person with a legitimate purpose.
STEP 4: Do Not Corroborate with High-Risk or Sanction Countries
This part is really important, review the current FATF, SDN and other global sanctions databases in order to determine whether a business partner, client, or supplier is belonging to a high risk or sanctioned countries such as Zimbabwe, Sudan, Iran, Syria, and others.
Consider trying to run a background check on the controlling persons of your clients and suppliers in order to ensure that they do not have ties to a high risk or sanction countries.
STEP 5: Acquire Our Services
Perhaps the most important part of these article is we would like to let you know that we offer various services that includes bank account opening in Hong Kong, Singapore, Macau, and other offshore jurisdictions such as Malta, Mauritius and others.
To know more of what we can do to ensure that you have an increased chance of bank approval, Contact Us Now!