Held to a Higher Compliance Standard

Banks operating in Hong Kong not only need to determine the source of funds, but also the legitimacy of funds. This is a stricter standard than what is required by US regulators. There have been instances where certain banks have not been able to satisfy themselves about the legitimacy of funds, forcing them to shed such customers.

Also heard at IIBLP’s Trade Based Financial Crime Workshop this past July in Hong Kong: My understanding is that US bankers don’t pay attention to beneficiary names, but rather account numbers. Often in the US, beneficiary names and account numbers don’t match. And it’s not a regulatory requirement that they do.

US bankers: Agree or disagree?

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