Regulatory admission and bank account purpose are two separate determinations
A licence demonstrates that a specific entity is permitted to carry out specific activities, whereas a bank must assess entering into a specific account relationship with that company. The UK FCA's guidance on risk management states that banks need to assess risk on a customer-by-customer basis and cannot simply treat an entire industry as unacceptable; at the same time, relationships whose risks cannot be effectively managed should not be established or maintained. It follows that independent bank review and the avoidance of indiscriminate exclusion can coexist.
A common problem is that the materials tell different stories
Suppose the licence materials describe corporate remittance, the account opening form states software subscription revenue, yet the fund flow diagram shows the platform exchanging stablecoins on behalf of merchants; the bank then cannot determine what account is actually being requested. In other cases, the entity holds a licence, but the scope of permission, target countries or customer industries do not match the intended use in the application. Contracts, websites, financial forecasts and application forms should be checked for consistency, rather than repeatedly deleting words such as "crypto" to reduce visibility.
First confirm what can be supplemented; do not ask the bank to commit to an outcome
You may ask the bank to clarify whether materials are still missing, whether there is a suitable product or industry team, and whether there is an internal review channel. A bank may not be able to disclose all of its risk judgments or review details, and an applicant cannot infer specific problems from a single reference to "compliance reasons". HKMA circulars encourage banks to improve account opening processes for specialised industries and fair access to basic services; enterprises may raise specific process questions on that basis, but the circulars cannot be interpreted as mandating approval of account opening.
Supplementary materials should focus on verifiable risk controls
Useful supplements include the industry and country distribution of customers, samples of source-of-funds verification, on-chain risk handling procedures, segregation of customer funds, and escalation mechanisms for unusual transactions. If the bank expressly does not support this type of account, continuing to repackage the same application may not be effective, and an institution that accepts the genuine model should be sought. Where trading has already begun, it is also necessary to assess whether customer obligations can be performed while the account is unavailable, and reliance on employees' or shareholders' personal accounts for temporary receipt of funds is not permissible.
Recommended actions
- Organise the rejection or supplementary-material communications, distinguishing supplementable facts, product limitations and risk decisions.
- Align the business description across the licence, website, user contracts and account opening forms.
- Submit verifiable control samples; if no match can be found, seek an appropriate bank without concealing the business.
Information note: This article provides general information and does not replace legal advice based on specific facts.
References
- De-risking: managing money-laundering risk — UK Financial Conduct Authority (FCA)
- Access to banking services for corporate customers (circular dated 27 April 2023) — Hong Kong Monetary Authority
