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5 Things to Avoid HK Company Bank Account Frozen Risks

Whether you are going to open your very first bank account for your Hong Kong company or you have luckily opened a few corporate accounts already, to know what it takes to maintain your bank accounts is critical for your international business,especially with the CRS policies, banks are getting more and more strict with risk control and have more requirements and restrictions for account opening and use in business.
We know it may take a lot of time and fees to get your accounts finally opened and now your business benefit a lot from the efficient banking services, yet there are some risks of getting your accounts frozen or even closed if not use properly.

How can I prevent my bank account 

from being closed?

While there isn’t a guaranteed solution to prevent account closure, you can take a number of the following measures to decrease the chances of this happening:

 

 1. Maintain an active account Inactive bank accounts are at risk of closure. To avoid this, you should initiate an activity on your bank account, such as a deposit or withdrawal every six months to avoid suspension.

2.Maintain detailed documentation of uncommon transactions
Banks tend to flag the deposit or withdrawal of an unusually large amount of money which varies from your business’s normal commercial operations. While you can’t exactly warn your bank of large transactions that may come in and out of your bank account, be ready for questions. They may ask you to explain the transaction, show the invoice and ask you about the other party. 
3.Maintain updated contact records
Ensuring that your contact details are up to date is very simple yet especially important to avoid your Hong Kong corporate account from closing. If they can’t reach you, they will close or freeze your account. 
4.Issue an audit report Remaining compliant with Hong Kong’s accounting policies is crucial to your company’s future success, as any suspicion may affect your reputation with banks. While annual audits are compulsory by regulation, they can add another layer of credibility to your transactions – which is definitely a huge benefit, especially in the eyes of the bank!
5.Don’t trade with suspicious companies from sanctioned countries or regions
Well to lower the risk, banks may freeze or close your account if any transactions are found to be made with companies from politically sensitive or sanctionedcountries or regions, some of which are in banks’ blacklists. So watch out for this issue, be careful about who are you are trading with. 

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