Transfer "Stopover" in HK Bank Account - Any risk?

[Dondi]

Hi all,

Let's say a transfer from Mainland China is making a stopover in a HK account before being transfered to the final second HK account;

Is there any risk involved for the owner of the first HK account? Let's say the stopover would be 2-3 weeks and the amount in the lower six figure range.

Will the owner of the first HK account be taxed or have to report to his/her country of citizenship?

Sorry for the cryptic enquiry, hoping someone has some experience in this area or a general idea of the risks/responsibilities involved. Not as shady as it seems.

BR


D

[jimbo]

Might raise a flag for money laundering

[pin]

Owner Iranian or Mexican by any chance?

[vmlinuz]

That Ayatollah Sanchez is a generous fellow, spreading his banking all over the place...

[Gruntfuttock]

I believe the trigger for at least a cursory look for money laundering is US$10,000. So if it's more than that and the account isn't one that normally deals in large international transfers then there's a small risk that someone at the HK bank might notice and question the source of the money, but for a one off of a couple of hundred thousand HK dollars it's highly unlikely.

In any case there's no linkage between bank accounts and tax (unless you're already under investigation and court order) - the only issue is money laundering, and if you have a reasonable explanation for the source of the money then that should be no problem.

[bibbju]

I believe the trigger for at least a cursory look for money laundering is US$10,000. So if it's more than that and the account isn't one that normally deals in large international transfers then there's a small risk that someone at the HK bank might notice and question the source of the money, but for a one off of a couple of hundred thousand HK dollars it's highly unlikely.

Not entirely true...USD 10k is a US requirement, not HK. However, any transaction which appears out of the ordinary and is not consistent with the usual behaviour of the account could be considered suspicious.

As for tax, it depends on citizenship. If the end recipient is a US citizen, there's a potential liability.

[jayinhongkong]

You might've been better off last week before HSBC and Standard Chartered got put under the magnifying glass. ^_^

[Dondi]

Thank you all for some good input!

I am aware of this 10k USD issue for Americans, that's one thing that made me curious.
Basically, this is the story:

Individual 1 is expecting a payment from China.
Payment has to go to a HK Bank account.
Individual 1 doesn't have a HK acoount, but will open one in let's say 3 weeks.
Individual 2 offers to let the transaction rest in his/her HK account during the 3 weeks.
When Individual 1 opens the HK account (same bank), Individual 2 transfers the money and that's it.

I understand the money laundry issue, but it's such a small amount and a one off, so hopefully not a problem. But like pointed out above, now when the HK banks are in trouble it may be a different story.

Thanks guys!

[MandM!]

How are you transferring? Are you getting HKD or RMB. Cash, ATM, wire? RMB to HKD has 20k daily limit.

Shouldnt be a problem but if you are US citizen then need to fill out some forms.

You know whether the money is honest or not too. No need to worry if you are doing everything properly. HK banks dont really care about transfers.

Sent from my GT-I9100 using GeoClicks Mobile

[Dondi]

Thanks, didn't know about the 20k daily limit.

The transaction is payment for a job, so nothing dodgy. Don't know which currency.
Individual 2 just wants to make sure there's no unexpected liability.

Thanks again!