The Hong Kong Monetary Authority (HKMA) reminded banks on April 27 that there is no one size fits all when it comes to anti-money laundering (AML). Banks should not make opening an account unnecessarily difficult.
There has been a wave of companies opening bank accounts in Hong Kong to take advantage of business opportunities, and “comments” about the difficulties in the process have followed, wrote HKMA vice-president Arthur Yuen. Yuen linked the increase in activity to the end of the pandemic. While conducting anti-money laundering due diligence, banks "should also treat customers fairly and increase corporate access to basic banking services through transparent, reasonable and efficient procedures," Yuen wrote. Also: "There are no legal and regulatory requirements prohibiting banks in Hong Kong from providing banking services to virtual asset (VA)-related entities."
On the contrary, the Hong Kong government has policies to promote the development of the virtual asset industry and has a regulatory framework to protect investors. While some virtual asset businesses pose higher AML risks than others, the Hong Kong banking industry will gain a better understanding of the industry over time so: “We expect regulated virtual asset service providers (VASPs) to have a reasonable process to successfully apply for bank accounts.”
Yuen promised to issue a circular containing guidance and best practices, and will hold a roundtable on April 28, "Banking and VASPs Exchange Views." Hong Kong is striving to become the world's cryptocurrency hub and is seen by some as a possible benefit of a growing anti-cryptocurrency crackdown in the United States. The region is the first jurisdiction in Asia to offer access to cryptocurrency exchange-traded funds. Proposals to license retail cryptocurrency exchanges are in a consultation period, with guidelines for exchanges Expected to be published in May .
