New Requirement for Declaration of Lawful Source of Funds for Opening Investment Accounts In-Person at Certain Hong Kong Banks

According to Caixin Global, banks in Hong Kong and some of their customers reported that, starting May 26, certain Hong Kong banks have introduced a new requirement for customers opening investment accounts in person: signing a “Declaration on the Lawful Source of Funds,” confirming that all funds used for investment activities and related settlements originate from lawful sources outside mainland China. The report states that the newly introduced document is titled the “Cross-Border Disclosure Statement (Applicable to Investment Account Opening Applications),” and the adjustment was made to comply with local regulatory requirements. Mainland Chinese investors who opened accounts between May 23 and May 25 are also required to sign the updated declaration retroactively; until this is completed, their account’s buy transaction functionality will be suspended, although existing holdings and assets remain unaffected.