Prime Shan site

Prime Shan Asia Limited
Escrow Expert

We help our clients with their Escrow needs through our Hong Kong office.
‍
Our inhouse legal counsel will assist you to draft the escrow agreement and maintain the Escrow and act as independent Escrow Agent.

Licensed Trust Company under Section 77 of the Hong Kong Trustee Ordinance (permitted to provide escrow services)

Licensed TCSP service provider under the Hong Kong AML/CFT Ordinance (License number TC009193)

Escrow
‍Services

Escrow is the use of a third-party (Escrow Agent) to securely hold assets, funds or documents before they are transferred from one party to another, as a result of an underlying transaction or other obligation.

An Escrow Agreement is a legally documented arrangement that sets out all relevant terms and conditions relating to the deposit and release of the funds or assets held in Escrow and describes in detail the responsibilities of each of the parties involved.

An Escrow Agent is an independent third-party that holds the assets, funds or documents under the Escrow Agreement.

What is an Escrow being used for?

Escrows are useful for transactions where transfer of assets is involved and several obligations must be fulfilled before payment is released.

Examples of use of Escrow:

Property transactions

for example, an Escrow arrangement can be used to hold funds for a buyer’s deposit until the change of title is ready.

Litigation

the use of an Escrow arrangement can be used to demonstrate security for costs or to ring-fence contested funds pending judgement.

Crypto

act as an independent third party withholding payment until everyone fulfills their responsibilities in the transaction.

Mergers and acquisitions

an Escrow arrangement can facilitate proof of funds, the holding of funds to meet any retention or deferred payments pending satisfaction of the seller’s obligations, indemnification payments and compliance with regulatory requirements.

Financing

where funds are to be released over a pre-agreed period (for example, in the case of project financing) or in the context of a restructuring, an Escrow arrangement can provide assurance to all parties that the relevant funds are sufficiently ring-fenced.

Supply chain

a supply chain Escrow arrangement can be used on complex cross-border trades to mitigate counterparty risk or to allocate other risks such as delivery of perishable products.

Escrow Structure

Security

Escrow structures ensure that the parties do not bear the same risk as in open trade. Before any assets or documents exchange hands in a two-party transaction, the Escrow Agent ensures that both sides comply with the transaction documentation.

Escrow structures ensure that the parties do not bear the same risk as in open trade. Before any assets or documents exchange hands in a two-party transaction, the Escrow Agent ensures that both sides comply with the transaction documentation.

‍Set Up Steps

01

Onboarding

02

Verify compliance for both parties involved in the Escrow and assess the legitimacy of the underlying transaction and documentation.

03

Once the documentation for the underlying transaction is available, the Escrow Agreement will be tailored towards the transaction.

04

Once the Escrow Agreement is executed, the assets and funds can be transferred to the Escrow Agent.

Onboarding
Overview

We are excited that you have chosen to use Prime Shan Asia Limited to grow your business.

The onboarding process consists of interrelated and concurrent workflows involving Sales, Compliance, Accounting and Finance. These three groups are responsible for getting you up and running.

To ensure the onboarding process is as smooth as possible, you should gather relevant information about your business and provide it as soon as feasible.

Four critical pieces of information that are required to onboard include:

Flow of Funds

The flow of funds is the blueprint to set up an escrow.

What is a flow of funds diagram?

A flow of funds diagram represents step-by-step instructions for how assets move. It is a process map that shows where funds originate, how they move within systems, and where they terminate. Your flow of funds illustrates the money transfer process by sequencing actions (information flows) and transactions (monetary flows).

Example

How do you create a flow of funds diagram?

Contact us

info@psa-escrow.com

+852 9167 8120 (WhatsApp)

Workshop 21, 6/F iCITY, 111 Ta Chuen Ping Street,
Kwai Chung, Hong Kong

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PRIME SHAN
‍ASIA LIMITED.

Prime Shan Asia Limited
Escrow Expert

Escrow
‍Services

An Escrow Agent is an independent third-party that holds the assets, funds or documents under the Escrow Agreement.