Hong Kong is definitely well known for its banking infra-structure. There is no restriction for fund flow into or out of Hong Kong bank accounts. The identity of account holder and transaction information are also subject to very high standard of confidentiality. Comparing with some kind of offshore bank account available in certain country, the benefits include :
- No risk of service being terminated - banks offering offshore bank account service may not having formal approval from local government.
- Clear location of bank account - the accounts are opened in Hong Kong. But some offshore bank accounts are in cities, such as Shenzhen or small offshore islands. Client may never have the opportunity to visit the bank.
- Lower minimum bank account balance - in Hong Kong, the minimum bank account balance can be as low as HK$ 3,000. Below which a monthly administrative service fee of around HK$ 50 will be charged. However, minimum balance of most offshore bank accounts is around US$ 5,000 and corresponding service fee is around US$ 50. The difference in service fee is 7 times.
- Cash deposit and withdrawal is possible - client may deposit and withdraw fund by cash or by transfer via any Hong Kong branch office of banks. However, for most offshore bank accounts, only wire transfer is acceptable.
- Available to all nationality - in China, foreign banks offer service of offshore banking for foreigners and foreign companies (such as a Hong Kong company), however, in case of a company, banks request that majority of the shareholders are foreigners.
Therefore, most clients are willing to open bank accounts in Hong Kong where he can visit and carry out transaction.