Hong Kong banks ask dormant mainland investor accounts to declare source of funds

Huoxing Finance reported that some banks in Hong Kong have begun requesting source-of-funds declarations from certain existing investment clients from mainland China, with key deadlines set at August 20 and September 12. Clients who fail to submit by August 20 may see their investment services suspended, while missing the September 12 deadline could lead to termination of those services. Based on reporters' checks, several licensed institutions in Hong Kong—including HSBC Hong Kong and Hong Kong branches of mainland Chinese banks—have recently rolled out similar procedures. The measures are said to be aimed mainly at accounts that have been inactive for a long period. An HSBC spokesperson said the bank manages investment client relationships in line with applicable regulatory requirements and has invited certain mainland investors to provide self-declarations confirming that information on file under "Know Your Customer" (KYC) and customer due diligence remains accurate and valid. The spokesperson added that the latest declaration requirement applies only to HSBC's investment services clients and is intended to ensure services continue without interruption. Market sources said the move is based on the Hong Kong Monetary Authority's circular issued on May 22, released in parallel with a Securities and Futures Commission circular, rather than any new policy or regulatory guidance. (Yicai)