In recent years, withCRS(Common reporting standards) in more and more countries/Regional implementation, governments around the world to further strengthen the financial supervision. Hong Kong has also enacted the Combating Money Laundering and Terrorist Financing (Amendment) Ordinance, which was enacted at2018years3Effective in January. Many Hong Kong companies have had their bank accounts frozen or even closed. There are usually several possible reasons why a bank account is closed.

1Bank account is not active, almost no money in and out, commonly known as zombie account;

2Few normal business transactions in the bank account;

3Seldom business to the company, and frequent transactions with personal accounts;

4Help others go astray, there is no corresponding real transaction;

5In compliance review for banks, documents related to contracts, invoices, bills of lading, insurance and other transactions cannot be provided as evidence;

6For the routine annual inspection of bank accounts, the audit report of the latest year cannot be provided.

In order to reduce the risk of bank account closure, Hong Kong companies need to pay attention to the above aspects. The company should do real and legal international business, keep the account moderately active, complete the relevant documents for transactions, do not help others go off the account, reduce the transactions with personal accounts, and timely complete the annual audit report. At the same time, Hong Kong companies can open2-3In order to avoid the occurrence of only accounts are frozen and affect the normal operation.

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.