As a platform for the management of public funds, banks have a responsibility to cooperate with the government to actively combat money laundering and other illegal activities. One of the most drastic measures is the freezing of accounts, which makes it impossible for the person or legal person to make withdrawals or transfers. Although Article 105 of the Basic Law guarantees the right to property of private and legal persons, banks may freeze accounts in certain circumstances. Here are a few reasons why a Hong Kong bank may freeze an account:
- Suspicion of money laundering (frequent and large money flows)Even if you are not directly involved in money laundering, if the police find that there are suspicious transactions in your account, the bank may temporarily freeze the account according to the police request. For example, if you have a regular flow of large sums of money from unknown sources into and out of your account, the police may suspect that these funds are involved in money laundering. Usually, banks will check with customers before freezing accounts and will only take action if they can’t eliminate suspicions. Courts will generally not allow an account to be frozen without sufficient evidence.
- According to the government’s directive, banks may freeze the accounts of individuals suspected of endangering national security, not only by freezing the accounts, but also by confiscating the relevant assets.
- Accounts that have not been used for a long time and have been idle for a long time may be restricted, but they are usually not completely frozen. To unfreeze, simply go to the bank in person with your identification documents and make sure to manage your account regularly.
- Failure to respond to bank contact The bank will update the customer’s information on a regular basis, and failure to contact the account holder multiple times may result in the account being frozen. The workaround is to visit the bank in person to update the information.
