About Third Party Deposits at Interactive Brokers Hong Kong (IBHK)

What are Third Party Deposits?

Third Party deposits originate from or are drawn upon an account at a financial institution titled in a name other than that of the receiving IBHK account holder(s).

Please note that if you make a deposit to your IBHK account from a jointly-owned bank where not all bank account owners are owners of the aforementioned IBHK account this will be considered a third party deposit1 as required by the Hong Kong Securities and Futures Commission ("SFC"). This is reflected in Q26 of SFC's published FAQ regarding anti-money laundering and counter-financing of terrorism requirement (link).

Does IBHK accept Third Party Deposits?

IBHK does not generally accept third party deposits, as these are more susceptible to acts of fraud and money laundering.

Does IBHK Ever Make an Exception and Accept a Third Party Deposit?

Per regulatory guidance, IBHK only accepts third party deposits in very rare situations. Exceptions are made only after carefully considering the reason(s) for the third party deposit and a thorough review of the required documents to support the third party deposit. The most frequent exceptions arise from situations such as:

  • A deposit from a joint account where the IBHK client is one of the joint account holders.

  • A deposit from a spouse or other direct family members.

IBKR does not charge fee on returning deposit, bank fee may be imposed at bank's discretion.

What Information is Required by IBHK to Approve a Third Party Deposit?

At a minimum, the client must provide the following:

  • Identity proof of the third party

  • Relationship proof with the third party

  • An explanation for making the third-party deposit

Additional information, including an explanation of the source of funds and background financial information, may be requested by Compliance during the deposit review.

IBHK reserves the right to reject any third party deposit. You are strongly discouraged from making third party deposits to minimize any inconvenience and prevent delays in processing your deposit into your IBHK account.

1To illustrate, where A and B jointly own a bank account and transfer funds from that joint bank account to the following:

  • A's individual IBHK account - this would be considered as third party deposits

  • A's or B's individual separate IBHK account - this would be considered as third party deposit

  • A's and B's jointly-owned IBHK account - this would not be considered as third party deposits