Wealthy Chinese move offshore money to US banks as Beijing's tax net widens

Private bankers report rising demand for US accounts since July tax on overseas trusts, despite warnings that transfers leave a trail

By LineZotpaper

Published23 October 2026

Read Time3 min

Wealthy Chinese, rattled by Beijing's widening hunt for offshore wealth, are shifting money from Singapore and Hong Kong into US bank accounts, where it sits beyond the reach of the automatic reporting framework that feeds financial data back to Chinese tax authorities. Private bankers and lawyers report a surge in inquiries since Beijing imposed a 20% tax in July on income from overseas trusts.

Since Beijing imposed a 20% tax in July on income and gains from offshore trusts owned by Chinese tax residents, private bankers and lawyers say inquiries from wealthy Chinese clients about opening US bank accounts have grown markedly. Assets previously parked in Singapore or Hong Kong are being shifted further from Beijing's reach.

"It has become relatively prevalent," said Keith Tan, chief executive of Singapore-based Golden Acacia Capital, who helps Chinese clients manage offshore portfolios. His clients began planning exits to the US in July, and some had accounts set up in less than two months. "The hurdle is not that high for Chinese clients to open American accounts and transfer assets there." Tan said wealthy clients tend to choose large private banks, while smaller accounts go to regional banks or online brokers.

The US sits outside the Common Reporting Standard, the OECD framework under which more than 100 jurisdictions automatically share financial account data. Banks in Singapore and Hong Kong are expected to report China-linked accounts to Beijing; American banks have no such obligation. Non-resident clients who open US accounts can also find investment vehicles with reduced or no tax-filing obligations to the IRS, said James Wang, chief executive of Blue Brick Consulting Group, a private-client tax advisor.

Bankers in New York describe surging demand. A New York-based wealth-planning advisor who works with Chinese family offices said some banks had shortened the timeframe for clients to meet minimum capital commitments before accounts are subject to closure. The advisor spoke anonymously about bank processes. Low-tax states such as Nevada and Florida have become popular destinations, Tan said.

Lawyers caution the route may be temporary. Clifford Ng, a partner at Zhong Lun Law Firm in Hong Kong, said money held offshore had probably already been reported to Beijing through CRS, and a transfer from a Singapore or Hong Kong bank to a US one would be visible on its way out. "Hiding is not tax planning," he said. Cris Cao, a Beijing-based partner at W&H Law Firm, said a record of the transfer "alone is enough for the tax authorities to levy tax."

There is also the question of access. "Nearly no sizeable money onshore will be able to leave the country from now on," said Jingkuan Lin, a private banker at Bank of Singapore, who expects the offshore banking industry to be limited to serving capital already outside China.

Analysis

Why This Matters

The flight of offshore wealth from Singapore and Hong Kong to the US shows Beijing's tax enforcement now reaches beyond its borders, reshaping where Chinese capital is held.
US banks and low-tax states such as Nevada and Florida stand to gain inflows, while Singapore and Hong Kong wealth hubs face an exodus of business.
The trend tests the limits of global tax transparency, because the US does not participate in the automatic information-sharing system that most other major financial centres use.

Background

China's tax authorities announced in July that income and gains from overseas trusts owned by Chinese tax residents would be taxed at 20%. The move prompted a scramble among lawyers and clients to calculate liabilities, unwind trusts, sell shares or borrow to cover bills. The US is one of the few major financial centres outside the Common Reporting Standard, the OECD framework for automatic exchange of financial account data, though it operates its own reporting regime under the Foreign Account Tax Compliance Act.

Key Perspectives

Wealthy Chinese clients and their advisors: The US offers a practical refuge: no CRS-based information sharing with Beijing, investment vehicles with light IRS reporting, and banking systems comfortable with non-resident clients. Lawyers and tax advisors: The move may not work. Transfers from CRS-covered banks leave a record that Beijing can see, and Chinese tax law still requires residents to declare worldwide income. "Hiding is not tax planning." Chinese authorities: They have already asserted the right to tax offshore trust income at 20%, and officials point to transfer records as grounds to levy tax even after money reaches the US.

What to Watch

Whether US banks tighten compliance standards for Chinese clients as demand grows, or whether the shortened minimum capital timelines signal a cooling of appetite.
Whether Beijing responds with new disclosure requirements or finds ways to obtain US account data.
Whether mainland capital controls tighten further, cutting off new outflows and limiting the offshore shift to money already outside China.

Sources

Wealthy Chinese move offshore money to U.S. banks as Beijing’s tax net widens · US Top News and Analysis

Checked

9 claims in this story checked against 1 source: 7 supported.

Show each claim

SupportedWealthy Chinese are moving offshore money to US banks as Beijing’s tax net widens.US Top News and Analysis: “Wealthy Chinese rattled by Beijing's widening hunt for overseas wealth are turning to a once-familiar refuge for their money: the U.S.”
SupportedPrivate bankers and lawyers report rising inquiries about US accounts since Beijing’s July tax announcement on overseas trusts.US Top News and Analysis: “Private bankers and lawyers who work with Chinese clients say inquiries about opening U.S. bank accounts have grown in the months after Beijing imposed retroactive taxes on offshore wealth in July”
SupportedThe July tax is 20% on income and gains from overseas trusts owned by Chinese tax residents.US Top News and Analysis: “Authorities said in July that income and gains from overseas trusts owned by Chinese tax residents would be taxed at 20%”
SupportedUS accounts are outside the automatic CRS reporting framework that shares financial data with Chinese tax authorities.US Top News and Analysis: “The U.S. sits outside the Common Reporting Standard, or CRS, the OECD framework under which more than 100 jurisdictions automatically share financial account data. While banks in Singapore and Hong Kong are supposed to report China-linked accounts to Beijing, American banks have no such obligation.”
SupportedKeith Tan said, “It has become relatively prevalent.”US Top News and Analysis: “"It has become relatively prevalent," said Keith Tan, CEO of Singapore-based Golden Acacia Capital”
Partly supportedCris Cao said a record of the transfer “alone is enough for the tax authorities to levy tax.”US Top News and Analysis: “"There was a record of it being transferred out," Cao said, and "that alone is enough for the tax authorities to levy tax."”
Partly supportedBankers in New York describe surging demand for US accounts.US Top News and Analysis: “U.S. banks are straining to keep up with the rise in demand, according to a New York-based wealth-planning advisor who works with Chinese family offices. "With inquiries surging, some banks have shortened the timeframe for clients to meet required minimum capital commitments"”
SupportedClifford Ng warned that a transfer from a Singapore or Hong Kong bank to a US one would be visible on its way out.US Top News and Analysis: “Money held offshore has probably already been reported to Beijing through the CRS and would "have shown up in China at some point," Ng said, so a transfer from a Singapore or Hong Kong bank to a U.S. one would be visible on its way out.”
SupportedJingkuan Lin said, “Nearly no sizeable money onshore will be able to leave the country from now on.”US Top News and Analysis: “"Nearly no sizeable money onshore will be able to leave the country from now on," said Jingkuan Lin, a private banker at Bank of Singapore”