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HSBC has rejected my business bank account application

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  1. #1

    Join Date
    Sep 2014
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    HSBC has rejected my business bank account application

    Hello GeoExpat Folks!

    I got caught up in recent KYC (Know Your Customer) and HK ID requirement problem - and honestly I cannot wrap my head around it because I hear so many different truths from different sources... So here we go:

    1. I have set up a limited company in HK, though now I have a hard time with opening a bank account in HK. My company is a start-up.

    HSBC has bluntly rejected me without giving me the right to receive any feedback. - even though i faxed/emailed them plenty of extra documents that they asked for (CV, stamped proof of working for my previous employer etc.)
    For the whole meeting I basically had to prove them that i'm not a "lamb" - that I'm not there for money laundering etc. This kind of attitude was a shock to me. In this life there's not many occasions that one can feel so humiliated. (sic)

    CITIbank said that I cannot get an account with them because my company has been registered just two months ago, and their rules say that the company has to be open for 2 YEARS. After further pressure from me they have taken my application for the processing ( will know the result in 2 weeks).
    CITI has emphasized that they have to make sure that my company is a "real business", not a "dot com". (sic)


    Hang Seng. I'm still waiting for their decision, but the rep that was interviewing me said that I probably will get rejected because of not having a HKid. I was told that the best way to get a hassle-free account is to marry a local or let a person with HK id enter my company and receive 30% shares. (sic)
    ----------

    The whole situation is ridiculous. It's either chicken-egg problem where I can not do business without the account or cannot get the business account without doing business OR just rejection for sake of rejection and the fact that i'm not convincing enough in proving that i'm not a "lamb" ( pun intended to these "Know Your Customer" rules where I feel that i'm being accused of being a bad guy and I am a bad guy until I prove them wrong.)

    Any ideas how to tackle this problem? I'm a EU citizen with a Polish Passport. Residency is in UK. Business will be done mostly from the mainland China.

    I have supplied them with plenty of documents, company internal documents, company's website, our agents' business cards, my CV, stamped letter from previous employer. Damn, even always say that if they need any other proof/document then I will get it in no time!

    My explanation is like the reps who do the interviewing do not really know what KYC officers above check for. Could any elaborate if this way of thinking isn't flawed?

    Any help appreciated. Please join into the discussion, and leave some tips for the others, as after serious few-days googling there's not enough info out there.

    best regards,
    Daniel


  2. #2

    Join Date
    Dec 2012
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    What is the nature of the business?

    Where are your suppliers from?

    Where are your customers from?


  3. #3

    Join Date
    Mar 2007
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    13,099

    How to tackle is to cheat the stupid system.

    Let another person (nominee, friend, whatever) create the company, bank accounts and do all the initial startup and then transfer the company over to you along with making you the bank signatory.

    There are lots of lawyers and accountants in town offering such services.


  4. #4

    Join Date
    Dec 2012
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    Oh - I missed the residence bit. I'd imagine that this is a big bearing on their decision.

    You incorporated a company? How, if you're resident in the UK?


  5. #5

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    Dec 2012
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    Quote Originally Posted by HowardCoombs:
    There are lots of lawyers and accountants in town offering such services.
    Which lawyers?

  6. #6

    Join Date
    Sep 2014
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    Nature of business: sourcing products from Mainland China for UK/Poland customers. Mainly promotional products.
    Suppliers are from Mainland China, but we also look on some possibilities of exporting Poland's products to China.
    Customers are coming from UK/Poland


  7. #7

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    Mar 2007
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    Quote Originally Posted by iliketurtles:
    Which lawyers?
    Do a google for : hong kong nominee lawyer
    and you'll find plenty.

  8. #8

    Join Date
    Sep 2014
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    I already have set u this company and paid the hefty fee (8800 HKD). I don't trust these middleman companies because as for now I do not have my bank account opened yet, even though I paid them for their services... I would prefer to not set up another company.

    Though I understand your way of thinking and if no other way is possible then I do have a friend with a HK ID. You mean I should transfer the company into her name, let her open a bank account and then transfer back the company into my name? yeah? Again, it will take more time, some money to do such operation etc... I might use it as a last resort. Thanks for the idea.


  9. #9

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    Mar 2007
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    13,099
    Quote Originally Posted by dagnai:
    Nature of business: sourcing products from Mainland China for UK/Poland customers. Mainly promotional products.
    Suppliers are from Mainland China, but we also look on some possibilities of exporting Poland's products to China.
    Customers are coming from UK/Poland
    For what you have described, you do not need a HKG company - who advised you to create one in Hong Kong?

    You can (and should) get a different jurisdiction as HK company will require you to do audits and file

  10. #10

    Join Date
    Sep 2014
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    11

    To incorporate a company in HK or open a business bank account here one does not have to be a resident in HK. It's simply not a requirement, though it seems that after 2012- the banks here prefer when their customers have a HK ID - if I was to believe what was told to me at Hang Seng...


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