Hong Kong Monetary Authority mandates banks to complete screening for fake-document accounts dating back to January 2023 within 3 months

Odaily reported that the Hong Kong Monetary Authority (HKMA) has required banks to initiate account screening for investment accounts opened by mainland Chinese users, focusing on identifying and closing accounts opened with fake documents and cleaning up dormant accounts. The scope of the fake-document account screening covers accounts opened since January 2023, with the screening to be completed within 3 months and problematic accounts to be closed within 6 months after the screening is completed.

The screening and cleanup of "dormant accounts" will also begin in the next 3 months. Banks must identify cases where investment accounts held by mainland investors have had zero balances and no transaction activities in the year prior to May 22, 2026. For such accounts, banks must re-confirm KYC (Know Your Customer) information and require customers to make a series of declarations in accordance with new regulations for opening investment accounts. If these procedures cannot be completed, the accounts will be closed within 6 months. (Caixin)