International money transfer laws in Hong Kong
Hong-Kong is considered one of the largest financial Hubs in the world alongside places such as Singapore and cities such as New York and London. With the reputation of being a global financial heavyweight, the laws around money transfers are set up to encourage and nurture businesses operating in Hong-Kong. There are multiple ways to transfer money in and out of Hong-Kong but each method will be subject to various money transfer laws.
Hong-Kong currently maintains a fully convertible currency, the HKD (Hong Kong Dollar), as well as boasting the freedom of no capital controls. You can freely send money to and from Hong Kong, regardless of whether you’d like to transfer all your savings or to send small sums back home.
Remittance Rules
The International Financial Action Task Force on Money Laundering requires any remit or exchange of an amount equal to or above HK$8,000 to be certified by the sender producing an identity card or travel document, as well as a valid address and telephone number. The identity along with the address and number will be recorded and retained by the remittance agent or money changer. The same applies when receiving an amount equal to or exceeding HK$8000.
Without verification, the remittance agent is required by law to prohibit any transaction amounting HK$8000 or above.
Cryptocurrency policy
In light of recent events in China and Hong Kong, Cryptocurrency policy may be subject to change in Hong Kong in the near future. At the moment Cryptocurrency ownership and trading is subject to laws regarding any digital asset by the SFC (Security and Futures Commission). Hong Kong does not restrict ownership of cryptocurrencies for businesses and individuals, providing the assets were acquired in good faith.
ATM and Cash Withdrawal
ATM withdrawals in Hong Kong are subject to various rules, some being dependent on the specific banks. The average maximum withdrawal amount at an ATM is around HK$20,000 and are subject to fees if they are converting currency from a foreign account as well as any ATM fees charged by the provider.
Bank wire transfer limits and fees
International bank wire transfers in Hong Kong must exceed the minimum HK$1000 amount ($50 USD) but are not capped by a maximum amount. Fees on international Bank wires can be costly using some services with many starting at $50 to set up the transfer with a further HK$120-HK$240 depending on the service used as well as an additional HK$40 for it to be processed on the same day.
An alternative way which is much more cost effective is to use an e-wallet like STICPAY. Through its local bank wire feature, STICPAY will execute the transaction at a fee of HK$30 +2% with no extra fees, wiring your money in 1–2 business days.
STICPAY Local Bankwire Feature in Hong Kong
A local bank wire allows you to receive funds to your local bank account in your own currency, a feature that is provided by STICPAY. By using this system, you can save time and money as it erases the need for an intermediary bank. Using an intermediary bank would cost you 2–3 days processing time and higher transfer fees (5%), whereas with STICPAY’s local bank wire feature it’s a one-day process time and fees are much lower (1~2%).
To find out more about STICPAY’s local Hong Kong bank wire service click here
Originally published at https://sticpay.com on November 1, 2021.
