Hong Kong Bank Account Glossary (50+ Terms, English–Chinese)

The checks a bank must carry out before establishing a business relationship and throughout it. In Hong Kong, Schedule 2 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) sets four measures: identifying and verifying the customer, identifying the beneficial owner, understanding the purpose and nature of the relationship, and verifying anyone acting on the customer's behalf. Singapore applies MAS Notice 626. (HK / SG)

The general term for a bank getting to know a customer's identity, background, occupation and transaction needs, often used interchangeably with CDD. KYC information is collected not only at account opening but also updated at periodic reviews, when details change or when transactions look unusual, and customers need to provide current information. (HK / SG)

The regulatory principle that the depth of due diligence depends on the risk posed by the customer, product, geography and channel. The HKMA expects banks to differentiate customer risk, take proportionate measures and avoid "one-size-fits-all" refusals; it is also the root reason why document requirements differ from bank to bank. (HK / SG)

The natural person who ultimately owns or controls the customer. Under Hong Kong law, a corporate customer's beneficial owner generally means a person who directly or indirectly owns or controls more than 25% of the shares or voting rights, or otherwise exercises ultimate control; banks must identify this person and take reasonable measures to verify their identity. (HK)

A matter that Schedule 2 of Cap. 615 requires banks to understand: why the customer is opening the account and how they expect to use it. Individuals generally answer with their occupation, source of income and intended use; companies must explain the nature of the business, main counterparties and expected transaction volumes. (HK)

Account opening completed without the customer meeting bank staff in person. The HKMA circular of 3 Sep 2026 requires remote onboarding to achieve identity authentication and identity matching, with account functions tiered by risk; paragraph 6.29 of Singapore's MAS Notice 626 requires due diligence to be at least as robust as face-to-face. (HK / SG)

Account opening through a mobile app or online channel, with identity verified by technology. The HKMA circular of 3 Sep 2026 replaces the two earlier circulars of 2019 and 2021, requires banks to review their remote onboarding arrangements comprehensively, and encourages risk-tiered account functions and transaction limits. (HK)

The two core principles of HKMA remote onboarding: identity authentication means using technology to confirm that an identity document is genuine and valid; identity matching means confirming that the applicant really is the person named on the document. The circular of 3 Sep 2026 specifically calls for safeguards against deepfake technology and money mule networks. (HK)

A person who holds or has held a prominent public function, together with their family members and close associates. Banks usually must apply enhanced due diligence to such customers, including verifying source of wealth and source of funds, obtaining senior management approval and stepping up ongoing monitoring. (HK / SG)

Additional checks applied to high-risk customers or situations, such as requesting more supporting evidence, verifying source of wealth, requiring senior management approval and reviewing more often. Common triggers include PEP status, links to high-risk jurisdictions, complex shareholding structures and unusual transactions. (HK / SG)

Where a specific sum or asset comes from, for example a deposit coming from salary, the sale of a property or dividends. Banks may ask for payslips, sale and purchase agreements or bank statements as evidence; how much they ask for depends on risk, and not every sum requires documents. (HK / SG)

How a customer's overall net worth was built up, for example through years of running a business, investing or inheritance. The Hong Kong Association of Banks' AML/CFT FAQ (30 Dec 2024 edition) explains that source-of-wealth information is generally collected only in higher-risk situations and is not needed for every customer. (HK / SG)

A common account format at Hong Kong retail banks that brings Hong Kong-dollar and foreign-currency savings, current and time deposits and, if activated, investment functions under one account. From 22 May 2026, for Chinese Mainland investors, the investment function of an integrated account is treated under the investment-account rules. (HK)

The measure of assets that a bank uses to assign account tiers and decide whether a below balance fee applies. It usually includes deposits and the market value of investments, and some banks also count specified insurance premiums or loan balances. The basis and calculation period (such as the average of the past three months or the previous calendar month) differ by bank; the fee schedule prevails. (HK)

A fee charged when the total relationship balance falls below the requirement for the account tier. The amount and waiver conditions vary by bank, tier and customer status, and some banks set separate thresholds for non-HKID holders; for a single-bank example see the major banks page, with the bank's website prevailing. (HK)

A service tier that Hong Kong banks set up for customers with higher assets, usually with a relationship manager and wider investment services. Published thresholds are mostly in the region of HK$1 million; for example, BOCHK Wealth Management requires a total relationship balance of HK$1 million or more (as at Oct 2026; the bank's website prevails). (HK)

The name Standard Chartered and other banks use for a tier above standard retail. Standard Chartered Hong Kong uses an average daily total relationship balance of HK$1 million over the past 3 months as the service fee waiver threshold; several Singapore banks set comparable tiers at S$200,000 to S$350,000 (as at Oct 2026; the bank's website prevails). (HK / SG)

A business line providing investment, credit and wealth succession services to high-net-worth clients, with thresholds far above retail wealth tiers and more extensive due diligence. This site explains the concept only; for private banking thresholds, services and fees see the sister site privatebank.hk. (HK / SG)

A licensed bank that delivers retail banking services mainly or entirely over the internet. The HKMA granted 8 virtual bank licences in 2019, all of which open accounts remotely; the guideline revised on 25 Oct 2024 renamed them "digital banks". Each bank decides whom it accepts and which documents it requires. (HK)

The first tier of Hong Kong's three-tier licensing system and the only tier that may operate current and savings accounts and accept deposits of any size and maturity from the public. Licensed banks are members of the Deposit Protection Scheme unless exempted, and their deposits are protected under the scheme's rules. (HK)

The second tier of Hong Kong's three-tier system, mainly engaged in merchant banking and capital market activities; it may accept deposits of HK$500,000 or more of any maturity (HKMA, page revised 2 Oct 2026). Its deposits are not protected by Hong Kong's Deposit Protection Scheme. (HK)

The third tier of Hong Kong's three-tier system, mostly engaged in specialised activities such as consumer finance and securities; it may accept deposits of HK$100,000 or more with an original term of at least 3 months (HKMA). Its deposits are not protected by the Deposit Protection Scheme; the everyday savings and current accounts of ordinary retail customers are generally held with licensed banks. (HK)

The collective term for licensed banks, restricted licence banks and deposit-taking companies authorised by the HKMA under the Banking Ordinance. HKMA circulars on account opening and AML are usually addressed to "all authorized institutions". (HK)

An authorized institution registered with the SFC to carry on regulated activities such as dealing in securities, that is, a bank that conducts investment business. The HKMA circular of 22 May 2026 requires registered institutions to apply measures similar to those for licensed corporations to Chinese Mainland investors' investment accounts. (HK)

A non-bank firm licensed by the SFC to carry on regulated activities such as securities dealing and asset management, for example a securities house. The SFC's account-opening controls circular of 22 May 2026 is addressed directly to licensed corporations, while banks are required to apply similar measures through the HKMA circular. (HK)

A tiered account service for businesses launched by the HKMA in 2019, focused on basic functions such as deposits, withdrawals and local and cross-border remittances, for which banks may apply a narrower scope of due diligence. According to an HKMA article of 27 Apr 2023, about 13,000 had been opened since launch. (HK)

An account with no customer-initiated activity over a long period. Annex 1 to the HKMA circular of 22 May 2026 requires all banks to review Chinese Mainland investors' dormant investment accounts with a nil balance (no assets on that date and no customer-initiated transactions in the previous 12 months); those not reactivated may be closed within 6 months. Securities firms apply the measure at the SFC's request. (HK)

The instant payment system launched by the HKMA, fully operational from 30 Sep 2018, which accepts a mobile number or email address as a proxy ID; from Dec 2020 an HKID number can also be registered as a proxy, limited to payments from organisations such as salaries. (HK)

Singapore's instant transfer service, which uses a mobile number, NRIC/FIN or company UEN as a proxy ID for real-time transfers between participating banks; its role is similar to that of FPS in Hong Kong. (SG)

Singapore's government digital identity and personal data platform. Eligible users (citizens, permanent residents or FIN holders aged 15 or over) can use Singpass to authorise a bank to retrieve their Myinfo data and open an account online; non-residents without a Singapore pass cannot register. (SG)

An account used to buy and sell investment products such as securities and funds. According to a footnote in the HKMA circular of 22 May 2026, for banks this includes both standalone investment accounts and the investment function of integrated accounts; Chinese Mainland investors opening new investment accounts must complete additional measures. (HK)

As defined in the SFC circular of 22 May 2026: an individual investor who uses a PRC Resident Identity Card and/or passport as proof of identity, as shown in the firm's records or account-opening documents. The definition covers individuals only; the Appendix B measures do not apply to corporate and institutional clients. (HK)

The declaration a Chinese Mainland investor must sign when opening a new investment account, confirming that the funds come from lawful sources outside the Mainland; that they have no account closed or suspended because of suspicious or forged documents; that they will report changes in their information within 7 business days; and that they understand the firm may disclose information at the request of law enforcement or regulators. (HK)

A Hong Kong securities trading surveillance regime introduced on 20 Mar 2023. Intermediaries must assign each client a Broker-to-Client Assigned Number and, after obtaining express consent, submit client identification data; clients who do not consent can receive only very limited Hong Kong securities services. (HK)

The unique number an intermediary assigns to each client under the Hong Kong Investor Identification Regime, submitted with each Hong Kong securities order so that the regulator can match trades to individual investors. The same client has a different number at each intermediary. (HK)

A closed-loop arrangement allowing Greater Bay Area residents to invest across the boundary in wealth management products offered by banks on the other side. Version 2.0 took effect on 26 Feb 2024 and raised the Southbound individual quota to RMB 3 million; the SFC has made clear that Southbound clients do not need to follow the 2026 Appendix B measures. (HK / Mainland)

The mutual market access scheme linking Mainland and Hong Kong exchanges, through which Mainland investors can trade designated Hong Kong stocks via Southbound trading at Mainland brokers, with closed-loop settlement of funds. The HKMA circular of 22 May 2026 notes that eligible investors may be directed to such channels or to Cross-boundary Wealth Management Connect. (HK / Mainland)

The travel document Mainland residents use to visit Hong Kong and Macao, which Hong Kong banks often accept as one of a Mainland applicant's identity documents, usually alongside the Mainland Resident Identity Card. The endorsement types and supporting documents accepted vary by bank; check with the bank. (Mainland)

The annual amount of foreign currency a Mainland individual may buy on presentation of their own valid identity document, totalling the equivalent of US$50,000 per person per year (SAFE, Implementing Rules of the Administrative Measures on Individual Foreign Exchange). SAFE rules provide that purchased currency may not be used for capital-account items not yet opened up, such as buying property or investing in securities overseas, and that quotas may not be lent or borrowed. (Mainland)

A register that, from 1 Mar 2018, Hong Kong local companies formed under the Companies Ordinance (Cap. 622), other than listed companies, must keep, recording significant controllers such as those holding more than 25% of shares or voting rights; non-compliance can attract a level 4 fine of HK$25,000 plus HK$700 a day. (HK)

The register of registrable controllers that Singapore companies must keep; significant interest generally means holding more than 25% of shares or voting rights. ACRA has operated a central register since 30 Jul 2020, and companies must lodge changes with it within 2 business days of updating their own register. (SG)

The document issued by the Companies Registry when a company is formed, proving that it was lawfully incorporated and showing its name, number and date of incorporation. It is the basic identity document for a corporate account, and banks usually also ask for a Companies Registry search report to check the latest directors and shareholders. (HK)

A document usually issued by the registered agent of an offshore company (such as a British Virgin Islands company) listing the current directors, shareholders, registered office and similar details. The HKMA's reference list for corporate accounts includes this type of document, and banks usually require a recently issued one. (HK)

The certificate issued by the IRD's Business Registration Office showing that a business has been registered; it must be displayed at the place of business and renewed on time. Banks usually require a valid Business Registration Certificate to open a Hong Kong corporate account. (HK)

The unique identification number the Singapore government issues to companies and other business entities, used in dealings with government agencies; it is also the core identifier when a bank opens a corporate account or registers a PayNow proxy. (SG)

An international standard developed by the OECD under which financial institutions identify non-resident accounts, report them to the local tax authority, and the information is exchanged with the account holder's jurisdiction of tax residence. Hong Kong's legal framework took effect on 30 Jun 2016, and from 1 Jan 2020 the number of reportable jurisdictions rose from 75 to 126, including the Mainland. (HK / SG / Mainland)

The form an account holder signs at account opening, declaring every jurisdiction of tax residence and the corresponding TIN. Under section 80(2E) of Hong Kong's Inland Revenue Ordinance, knowingly or recklessly making a statement that is false or misleading in a material particular may lead to prosecution and a fine of HK$10,000; in Singapore, deliberately giving false tax residence information is punishable by a fine and imprisonment. (HK / SG)

The number a jurisdiction of tax residence uses to identify a taxpayer, which must be entered for each jurisdiction on a CRS self-certification. According to China's submission to the OECD, for Mainland individuals who use a Resident Identity Card as proof of identity the TIN is the ID card number; for passport users it is issued separately by the tax authority. (HK / SG / Mainland)

The OECD's standard for reporting and exchanging information on crypto-asset transactions. Hong Kong's bill was gazetted on 22 May 2026 and, as at 24 Oct 2026, was still awaiting LegCo scrutiny; if passed, it is proposed to take effect from 1 Jan 2027. (HK)

The OECD's revised CRS, which widens reporting scope and requires self-certification of all jurisdictions of tax residence. Hong Kong proposes to implement it from 1 Jan 2028 (bill under scrutiny); Singapore applies it from 1 Jan 2027, with exchanges expected from 2028. (HK / SG)

The statutory scheme administered by the Hong Kong Deposit Protection Board. From 1 Oct 2024 it protects up to HK$800,000 per depositor per member bank, covering Hong Kong-dollar and foreign-currency deposits; structured deposits, time deposits longer than 5 years and offshore deposits, among others, are not protected. (HK)

The scheme administered by the Singapore Deposit Insurance Corporation, protecting each depositor's Singapore-dollar deposits at each member institution up to S$100,000 in aggregate (from 1 Apr 2024); foreign-currency deposits, structured deposits and investment products are not covered. (SG)

A product that links a deposit to a derivative, with a return that depends on the performance of exchange rates, interest rates or indices and is therefore uncertain; with some products, principal may also be at risk. It is not protected by Hong Kong's Deposit Protection Scheme, nor covered by SDIC in Singapore. (HK / SG)