Hong Kong Monetary Authority Orders Banks to Review Mainland Investment Accounts

Hong Kong Monetary Authority has instructed banks to initiate a review of investment accounts opened by mainland users, focusing on identifying and closing accounts opened with false documents and clearing inactive accounts. According to Odaily, the review of accounts opened with false documents will cover those established since January 2023 and is to be completed within three months, with problematic accounts to be closed within six months thereafter. The review and clearing of 'inactive accounts' will also commence in the next three months. Banks are required to identify investment accounts held by mainland investors that have zero balance and no transaction activity in the year leading up to May 22, 2026. These accounts will undergo a Know Your Customer (KYC) data confirmation process, and customers will be required to make a series of declarations according to new investment account opening regulations. If these procedures cannot be completed, the accounts will be closed within six months.