CHINA ENFORCE A STRICTER RULE ON THE AUDIT OF CORPORATE BANK ACCOUNT – PART 1

BANK ACCOUNT

2021-02-05

What is happening in China’s Corporate Bank Account?

In order to combat network criminal activities in China’s Corporate Bank Account such as telecommunications fraud and money laundering. Therefore, the People’s Bank of China has recently upgraded its supervision system. 

On the whole, the China corporate bank account holder should pay attention to the verification call or email from your corporate bank. However, if you are refusing to answer or unable to answer the call or to reply their email. It’s likely that the bank will put you under the un-reachable contact list. Probably the bank will freeze your company bank account. In fact, thousands of bank account were frozen due to unable to contact the bank account user.

Bank undergoes a strict investigation to the corporate accounts  

Banks are strictly monitoring to the customer identification and daily financial transaction. The investigations are focusing on below areas:

  • Opening the account in difference countries
  • Dormant with no activities
  • Inability to contact
  • Huge capital transition
  • Frequent night transactions
  • Suspicious account with unusual operations
  • The control measures activities including
    • Allow money inflow only, but no outflow;
    • No money inflow nor outflow;
    • Online banking activities amount overload

 Furthermore, companies may fall into the focus list with the following conditions 

  • Same owner has multiple enterprises, bank accounts and multiple company licenses in a single site.
  • The business registered address is “Independent declaration, domicile declaration”
  • 3-Non person: No China
  • ID, No residence permit and No social security identity.
  • The age of the corporate legal representative the initial bank account opening for company is too old or too young. (Below 25 or over 65 years old)
  • The address on ID card is a remote rural area in China, the mobile phone number is from difference city, and the company name is quirky.

For further information, please contact us. 

You may want to read: HONG KONG MONETARY AUTHORITY HONG KONG BANK ACCOUNT OPENING

 

 

 

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