The Hong Kong Institute of Chartered Secretaries (HKICS) -- Bank Account Opening Survey report

HONG KONG, Sept. 8, 2016 /PRNewswire/ -- The Hong Kong Institute of Chartered Secretaries (HKICS) following the launch of its HKICS Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Guidelines[1] in May 2016 surveyed its members, especially those working for corporate service providers, professional firms and businesses involved in bank account opening for customers and themselves as to the difficulties businesses faced with bank account opening in Hong Kong.

As widely publicised, the problem with bank account opening in Hong Kong relates to the AML/CFT due diligence by banks during the customer on-boarding exercise. HKICS members are recognised intermediaries for AML/CFT due diligence by banks in Hong Kong under the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (AMLO) and understands the need for banks to conduct due diligence in accordance with global AML/CFT requirements and concerns.

Nevertheless, by defining the exact nature and extent of the problem businesses faced in opening bank accounts in Hong Kong, this will provide important data points for all parties, including banks, regulators, HKICS and other relevant stakeholders, to provide constructive solutions to the problem of AML/CFT compliance for the collective good of Hong Kong as a place for doing business.

The survey was opened from 28 July to 19 August 2016 and drew 434 responses. In summary, the results were:

• 98% of the respondents thought that companies were having difficulties opening bank accounts in Hong Kong.
• 79% of respondents thought there was a serious or somewhat serious problem.
• 49% of respondents felt the stringent anti-money laundering and counter-financing of terrorism (AML/CFT) requirements were being used to keep away less revenue generating customers.
• Global, local and Chinese banks were cited indicating that the problem is prevalent and not isolated to a few banks. The top eight banks mentioned were HSBC, Standard Chartered Bank, Hang Seng Bank, Bank of China, DBS, Bank of East Asia, Citibank, and ICBC.
• 72 or 17% of those surveyed pointed out that while they could not open the bank account in Hong Kong, they were able to do so in another jurisdiction with the same bank.

Mr Ivan Tam FCIS FCS, President of HKICS explains that 'the HKICS survey is intended to generate the data points to deal with the problem which requires collaboration by banks, regulators and all relevant stakeholders including HKICS members as recognised intermediaries for AML/CFT due diligence by banks.' Mr Tam further explains that 'it is of utmost importance that Hong Kong does not lose out on its competitiveness or the ease of doing business to other jurisdictions and all stakeholders must work together to jealously preserve these strongholds of Hong Kong.'

The Bank Account Opening Survey report is available at the HKICS website: www.hkics.org.hk under 'Publications'.

For more information as to the AML/CFT efforts of HKICS, please read the AML/CFT Charter tab on the HKICS website: www.hkics.org.hk.

The Hong Kong Institute of Chartered Secretaries

(Incorporated in Hong Kong with limited liability by guarantee)

The Hong Kong Institute of Chartered Secretaries (HKICS) is an independent professional body dedicated to the promotion of its members' role in the formulation and effective implementation of good governance policies as well as the development of the profession of Chartered Secretary in Hong Kong and throughout Mainland China.

HKICS was first established in 1949 as an association of Hong Kong members of the Institute of Chartered Secretaries and Administrators (ICSA) of London. It became a branch of ICSA in 1990 before gaining local status in 1994.

HKICS is a founder member of Corporate Secretaries International Association (CSIA) which was established in March 2010 in Geneva, Switzerland to give a global voice to corporate secretaries and governance professionals.

HKICS today has over 5,800 members and 3,200 students.

For more information, please visit www.hkics.org.hk.

https://www.hkics.org.hk/media/news/attachment/NEWS_A_310441_Press%20release_HKICS_AMLCFT_Guideline%20and%20Charter%20(Eng).pdf