The Hong Kong Monetary Authority (HKMA) has issued new guidelines urging authorised institutions to offer basic banking services to residents assessed as presenting higher compliance risks.
According to the regulator’s circular, the move aims to address financial inclusion by ensuring individuals who might otherwise be entirely shut out of the financial system maintain access to essential services.
This includes individuals residing in Hong Kong who are under investigation but have not yet been convicted of any offence.
The HKMA reminded banks to avoid a rigid, “one-size-fits-all” approach of denying accounts entirely.
Instead, the regulator advocates providing basic services, such as deposits and withdrawals, on a case-by-case basis with appropriate safeguards.
Safeguards and transaction limits
An annex to the guidance provides practical, risk-mitigating measures for managing these higher-risk profiles.
The HKMA recommends confining incoming funds to acceptable and verifiable sources.
The regulator specifically notes that salaries or official government disbursements are appropriate sources of funds. Banks are also advised to restrict outward payments exclusively to domestic channels or ordinary livelihood expenses.
Furthermore, institutions are encouraged to impose strict transaction limits on these specific accounts.
Finally, the guidance requires authorised institutions to establish formal review mechanisms.
This policy ensures a customer’s banking services can be systematically upgraded if their compliance risk profile improves over time.
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