Hong Kong banks reportedly require clients from mainland China who want to open new investment accounts to sign a declaration confirming the lawful source of funds, after Beijing launched a crackdown on cross-border investment, mainland media reported.
The declaration requires that the account holder confirm that all funds that support the investment activities and related settlements are from lawful sources outside of the Chinese mainland.
The investment account services are only available to Chinese mainland investors located in Hong Kong, like residing or working, the report said, adding that investment trading functions will be suspended for existing clients until the re-signing is completed.
Following Beijing's move, the Hong Kong Securities and Futures Commission and Hong Kong Monetary Authority have asked banks to obtain written investor declarations from clients to confirm the lawful source of funds when opening new investment accounts last Friday.
The declaration also showed that the bank can ask clients to offer relevant proof documents to comply with Hong Kong's regulatory requirements. If the clients fail to provide, the bank may refuse to offer related services, and existing services may also be terminated.
