Is OCBC in Singapore Closing Accounts of Mainland Chinese Users? How to Deal with the Money in the A

Recently, there has been news that the Oversea-Chinese Banking Corporation (OCBC) in Singapore is going to close accounts of all mainland Chinese customers. However, after further investigation, this news is not accurate.

In fact, OCBC has only closed accounts of those customers who opened accounts on their own through the APP, that is, digital banking users. Those who opened accounts through traditional methods, such as offline witnessed account opening, signing forms, telephone recordings, etc., have not been affected.

OCBC may have made this decision to improve business quality and reduce risks. Since OCBC raised the threshold for online account opening, many non-Singaporean customers have received notices. Simply put, only customers who work, study, or live in Singapore can continue to keep their accounts. If they fail to provide proof of their permanent address in Singapore within the specified time, their accounts will be closed.

For mainland Chinese users who still have accounts with OCBC, there are two options:

First, if they live or study in Singapore, they need to submit proof materials to the local branch.

Second, if they have a job in Singapore, they can transfer their salaries to OCBC and let the bank pay on their behalf.

Both of these methods must be completed within the specified time, otherwise the accounts will be closed.

From the bank’s perspective, this decision may be made for various reasons. Firstly, many non-Singaporean users mainly use the accounts for investment purposes, and there is usually little money in their bank accounts, which makes little contribution to the bank. Secondly, so many overseas users have also increased the bank’s management costs and Know Your Customer (KYC) risks. If not careful, the bank may also face huge anti-money laundering penalties. Therefore, closing accounts of overseas customers opened online may be a way for the bank to reduce risks and improve business quality.

However, this decision has also caused some controversies. After all, mainland Chinese users account for a large proportion among the customers being closed. This news has undoubtedly brought a considerable impact and confusion to many Chinese users. Then, why does OCBC implement such a strict account closing policy for Chinese users? How should we respond to this change? And how can we transfer funds out of OCBC?

The Background of OCBC’s Account Closing Policy

OCBC announced an innovative service in early November, allowing customers to transfer funds to WeChat Pay and Alipay apps almost in real time through mobile applications, becoming the first bank in the Asia-Pacific region to offer such a service. However, just a few days later, OCBC announced that it would no longer accept account opening applications from Chinese citizens. This policy change was unexpected, and the recent account closing notice has caught many Chinese users off guard. The main reasons for OCBC’s account closing policy this time include:

1.Regulatory Pressure

In August last year, a huge money laundering case involving 2.8 billion Singapore dollars occurred in Singapore, which is currently the largest money laundering case in Singapore. And all 10 people arrested held Chinese passports. This incident has brought huge pressure on Singapore’s financial regulatory authorities and also prompted OCBC to strengthen the account opening review for non-Singaporean residents.

2.Excessive Number of Account Openings

With the increase in the number of account openings, problems have also arisen. Some users’ accounts became empty accounts with no funds after opening, which not only increased the bank’s maintenance costs but also failed to bring valuable customers to the bank. Therefore, OCBC decided to close these accounts to reduce risks.

The Impact of the Account Closing Policy on Chinese Users

The impact of OCBC’s account closing policy on Chinese users is mainly reflected in the following aspects:

1.Account Closure

Users who fail to provide proof of their permanent address in Singapore within the specified time will have their accounts closed. This means that users will lose a convenient cross-border financial channel.

2.Difficulty in Fund Transfer

After the accounts are closed, users need to transfer funds to other bank accounts. However, due to the complexity of cross-border finance, fund transfer may face certain difficulties and challenges.

3.Impact on Cross-Border Payments and Investments

OCBC’s account closing policy will have a certain impact on Chinese users’ cross-border payment and investment activities. Users need to find suitable banks and financial platforms again to meet their cross-border financial needs.

How Can Mainland Chinese Users Respond to OCBC’s Account Closing Policy? How to Transfer Funds out of OCBC?

1.Transfer to Brokerage Accounts

If your funds are for investment purposes and you have a brokerage account, you can consider transferring the funds to the brokerage account. In this way, you can still buy stocks and funds to earn some returns.

The operation is simple. You can recharge Singapore dollars (SGD) in OCBC to the BiyaPay multi-asset trading wallet account, and then conduct currency exchange. Transfer the exchanged US dollars/Hong Kong dollars to the US and Hong Kong stock trading accounts, and you can conduct online real-time trading of US and Hong Kong stocks. However, it should be noted that the funds in your overseas brokerage account cannot be directly withdrawn to mainland Chinese bank accounts, but can be withdrawn to accounts in Hong Kong or other countries.

2.Receive Payments via WeChat and Alipay

Now, there is no handling fee for OCBC to transfer funds to WeChat or Alipay wallets, and the operation is also simple. You just need to log in to the OCBC mobile banking, click on “Transfer and Payment”, and then enter “Overseas Transfer”. Select “Add New Payee”, and then choose WeChat (WeChat Pay) or Alipay. Then enter the mobile phone number and the pinyin of the name, and pay attention to verification. After submission, you need to wait for 12 hours before you can transfer funds.

During the waiting period, you need to make some preparations. If you use Alipay to receive payments, you need to enter the cross-border remittance section of Alipay and submit the receiving information for flash collection. If you want to use WeChat, you need to go to the WeChat Remittance mini-program of WeChat official, click on “I Want to Receive Payments”, and create a receiving business card. These processes are all simple, mainly involving identity verification, filling in information, and signing agreements. After the waiting period of OCBC expires, you can transfer the money back.

3.Use Appropriate Remittance Tools for Easy Transfers

(1) Use Wise for Easy Transfers!

Wise supports transfers in multiple currencies and covers many countries and regions around the world. It uses a remittance network different from the traditional SWIFT telegraphic transfer. 80% of remittances can be received within 24 hours, and 35% of remittances can receive funds instantly.

Step 1: Download and register a Wise account. Add Singapore dollars (SGD) as the balance currency in the Wise account.

Step 2: Select PayNow as the funding method. In the Wise application, select “PayNow” as the funding method and obtain the PayNow QR code provided by Wise.

Step 3: Transfer funds by scanning the PayNow QR code through OCBC. Open the OCBC App, select “Transfer and Payment”. Select “PayNow” and scan the QR code provided by Wise. Confirm the transfer amount and complete the transfer operation.

Step 4: Instant arrival and zero handling fee. After the transfer is completed, the funds will arrive in your Wise Singapore dollar account immediately, and the transfer fee is zero.

(2) Use BiyaPay for Online Remittances and Investments!

BiyaPay is an international wallet for multi-asset transactions, including global payments and receipts, international remittances, as well as major investment services such as US and Hong Kong stocks, options, and digital currencies. It supports more than 30 legal currencies and real-time exchange rate inquiries and exchanges for more than 200 digital currencies. It adopts the method of local transfers on a global scale, has no quota limit, has low fees, and ensures that funds can be remitted and received on the same day.

Step 1: Download the BiyaPay App, register and conduct identity authentication.

Step 2: On the “Overview” page, click on “Transfer In” - “Bank Account Recharge (Fiat Currency)”, for example, select the currency “SGD”.

Step 3: Enter the “Recharge Amount”, select the “Payment Account”, upload proof documents as prompted, and wait for review.

Step 4: After the review is passed, select the “Authenticated” account for remittance, upload a screenshot of the payment voucher, and the funds will arrive.

Step 5: After the Singapore dollars (SGD) arrive, you can conduct fiat currency exchange. You can invest in US and Hong Kong stocks under the same account. You can also choose to bind other overseas bank cards to the BiyaPay platform, recharge digital currencies (such as USDT) and exchange them into US dollars/Hong Kong dollars, and withdraw them to other brokerages for investment. You can also exchange fiat currencies into digital currencies to have more flexible control over funds and no longer have the trouble of fund deposits and withdrawals.

4.Scan to Consume

If you don’t have much money in your card and don’t want to go through a lot of trouble, you can also choose to scan the code to pay and consume in China or other countries that support Alipay. However, it should be noted that this may incur a handling fee of nearly 2%, which is not very cost-effective. So unless there is not much money in the card, this method is not recommended.

5.Direct Remittance to Mainland Chinese Banks

This method is not recommended.

Firstly, traditional bank remittances use the SWIFT channel, which is slow and has high handling fees. Secondly, when Singapore dollars arrive in mainland Chinese bank accounts, you need to conduct foreign exchange settlement and convert them into RMB. Foreign exchange settlement is a bit troublesome, especially when it comes to the use of funds. Generally speaking, it can only be for family support or employee compensation. If you have to use this method, the operation is not difficult. You just need to enter the overseas transfer section of the OCBC mobile banking, add a new payee, select a bank account, and then fill in the receiving information of the bank. However, it is best to call your opening bank first to ask about the SWIFT code and the SWIFT code of the intermediary bank, and confirm whether it can receive overseas remittances. After all, some small branches may not have opened foreign exchange business.

Alternative Options for Overseas Bank Accounts

Although OCBC’s account closing policy has brought certain troubles to Chinese users, Hong Kong bank accounts are still a worthy alternative option.

Hong Kong is the third largest financial center in the world and one of the freest trade and port cities in the world. Hong Kong banks are favored by businessmen from all over the world and provide more convenient and efficient services for enterprise trade settlement. Now, some mainstream Hong Kong bank accounts are relatively easy to open, such as Bank of China (Hong Kong), Industrial and Commercial Bank of China (Asia), China Merchants Bank Wing Lung Bank, HSBC, etc. Users can apply for online account opening and then go to Hong Kong to activate the accounts.

However, with the account closing policy of OCBC in Singapore, some users may be diverted to Hong Kong, which may lead to the tightening of the account opening threshold of Hong Kong banks. Therefore, it is recommended that users carefully understand the account opening policies and requirements of banks when choosing Hong Kong bank accounts so as to open accounts smoothly and enjoy cross-border financial services.

Finally, the editor would like to say that although OCBC’s account closing policy has brought a certain impact and trouble to mainland Chinese users, in the face of this change, we don’t need to be too panicked or anxious. By taking measures such as transferring funds in advance, learning about services of other banks, looking for alternative solutions, and paying attention to policy changes, we can effectively respond to this change and continue to enjoy convenient cross-border financial services. At the same time, Hong Kong bank accounts, as a worthy alternative option, will also provide mainland Chinese users with more cross-border financial choices.