HONG KONG, Sept 8 (Reuters) - Hong Kong's banking regulatoron Thursday urged financial firms to review requirements thathave made it virtually impossible for startups and smallcompanies to open bank accounts in the city.
Opening bank accounts has been one of the key issues holdingback the development of financial technology (fintech) companiesin Hong Kong as it competes with Singapore, Australia and Chinato lure investments in the sector.
The Hong Kong Monetary Authority (HKMA) on Tuesday alsolaunched a regulatory regime known as a "sandbox" for innovationin the banking sector, amid fears the city is losing ground toother markets.
The measures aren't aimed at helping facilitate the accountopenings of fintech companies specifically, HKMA Deputy ChiefExecutive Officer Arthur Yuen told a news conference, but to"make sure banks do not lean against anyone in particular."
In a circular to banks, the regulator said robust measuresto combat money laundering and terrorist financing wereimportant, but it expected banks to "refrain from adoptingpractices that would result in financial exclusion."
Some 20 banks out of the more than 150 under the HKMA'ssupervision have volunteered to be put on a list welcomingaccounts from startups and small-and-medium enterprises (SMEs).
Yuen didn't disclose the list of "startup friendly banks",but said HSBC and Standard Chartered were not on the list.
"We welcome the announcement of the HKMA's guidelines onaccount opening for businesses in Hong Kong and will study thesefurther. We share the Authority's commitment to ensuring thatSMEs in Hong Kong have ready access to banking services," aspokesman for HSBC in Hong Kong said in a statement.
StanChart didn't immediately reply to a Reuters request forcomment on why it didn't join the list.
Both banks have received billions of dollars in fines fromregulators overseas for anti-money laundering lapses. (Reporting by Sijia Jiang; Writing by Elzio Barreto; Editing byMark Potter)