Detailed interpretation: If funds are transferred from a local bank account in Hong Kong to a securities firm, they can generally be considered as legal overseas funds I happened to see a friend asking in the comment section, so I talked about this issue together. If funds are transferred from a local bank account in Hong Kong to a securities firm, they can generally be considered as legitimate overseas funds "refers to the first level of judgment at the receiving end of the securities firm. Because the Hong Kong Securities and Futures Commission requires mainland investors to use their own accounts opened in licensed banks in Hong Kong or qualified jurisdictions for settlement, and all subsequent deposits and withdrawals must be made through these bank accounts. That is to say, what the securities firm sees is that the money comes from the customer's own Hong Kong bank account, without being directly transferred from the mainland account or third-party payment. This can meet the requirements of "designated bank account" and "overseas settlement account" at the securities firm level. The Appendix B of the Hong Kong Securities and Futures Commission explicitly requires mainland investors to declare that their funds come from legal sources outside the mainland, and requires securities firms to ensure that deposits are only made through their own Hong Kong licensed bank or qualified jurisdictional bank accounts. So from the perspective of securities firms, if funds are transferred from my Hong Kong bank account to a securities firm, the securities firm can consider it as an important compliance basis, which is not a problem. However, this does not mean that the money entering the Hong Kong bank is not a problem, because securities firms default to banks doing AML. Therefore, when funds enter banks in Hong Kong, they may be required to do AML. AML at the bank account level involves checking the customer's identity, source of funds, transaction purpose, suspicious transactions, account flow, etc. when opening an account. In other words, if you can smoothly deposit money in a Hong Kong bank, theoretically it is compliant. Why is it called a theory? Because the investigation is still ongoing and has not yet ended, especially with recent regulatory changes that essentially require banks and securities firms to re-examine past accounts. Overall, Hong Kong banks are not a cure for overseas funds, but a poison, especially when it comes to breaking away from CRS. To open an account and deposit money in Hong Kong, one must be prepared to pay taxes.