Hong Kong Banks Divulge Client Data

September 15, 2018 Taxation in Hong Kong

Hong KongHONG KONG – The majority of Hong Kong financial institutions have divulged detailed data about their international clients for an international data swap.

New media reports in Hong Kong indicate that approximately 1 700 financial institutions have submitted details about their clients for international information exchanges.

The information exchanges are part of the mandatory international program called the Automatic Exchange of Financial Account Information in Tax Matters (AEOI).

The AEOI initiative has participating members in 149 countries around the world, and involves the annual exchange of information about individuals with financial accounts held in jurisdictions other than their main jurisdiction.

The exchanged information includes balances, pay-outs, dividends, and other data which may have an impact on tax obligations.

There are currently more than 1 800 financial jurisdictions in Hong Kong, and the approximately 96 per cent of them have submitted data about their international clients for the exchange.

The clients are resident in 75 jurisdictions, however, Hong Kong currently only has exchange agreements with 50 of them.

The first exchange of information under the AEOI is set to happen by the end of September.