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Money laundyr bank regulations - HKWJ Tax Law

Money Laundering Controls on Banks

Tax evasion and money laundering have been major concerns to most of the governments for years. In order to strengthen the control over money laundering activities through the banks, the Hong Kong Monetary Authority (the ‘HKMA’) has recently requested the banks in Hong Kong to closely look into their clients.

In particular, the bank’s clients tax positions and liabilities are now reviewed. This anti money laundering check determines whether proper tax filings have been performed and whether tax liabilities have been settled in Hong Kong and overseas when applicable and according to the tax residency and double taxation agreements.

Therefore, as a result of a new guidance paper issued by the HKMA, it is expected that the following new requirements will probably be introduced to Hong Kong banks in the near future:

  1. Perform money laundering checks on their new clients, in particular any irregularities in tax reporting; and
  2. Launch reviews on the business and transactions of their existing clients, thereby assessing the risks of their clients including any tax frauds in all jurisdictions concerned.

How can HKWJ help?

Due to the above, it would be advisable to review your tax position and ascertain any potential tax risks with our tax assessors.

The HKWJ Group is a one-stop holistic service provider and advisor to help your business grow. Within the Group, HKWJ Tax Law & Partners assists with financial administration, such as payroll, bookkeeping and accounting, as well as tax and legal matters. At Triple Eight, within the HKWJ Group, we provide a wide range of professional and corporate services, such as company secretarial services and company incorporation.

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