Advantages of Expert Facilitation in Opening Non-Resident Accounts (Banks and Payment Systems)

Going international in business and/or the desire to protect assets involve setting up non-resident financial accounts abroad. The procedure is quite legal both for companies and individuals. To file a successful application, the potential client needs to take into account the legal and taxation specifics of the chosen jurisdiction, and the requirements of foreign banks. The purpose of the article is to discuss why it is a winning strategy to rely on expert facilitation in setting up non-resident accounts with foreign banks and payment systems.

Purposes of setting up  non-resident accounts with foreign financial institutions

Thanks to the developed fintech system, individuals, entrepreneurs, freelancers, and companies can open accounts not only with banks but also with payment systems. The choice of a bank or a foreign payment system is based on the ultimate purpose of the account.

Bank accounts abroad are mostly opened for the following purposes 

• for money storage
• to reduce currency and inflationary risks
• to simplify payment settlements in business 
• to lower tax costs
• to increase the guaranteed amount of reimbursement of deposits in case of bank bankruptcy
• to receive royalties from customers
• for asset protection and diversification
• to enhance the privacy and banking secrecy
• to invest, buy securities, gold
• to move abroad for permanent residence
• for property acquisition abroad
• to obtain a second passport
• for business registration/redomiciliation.

Accounts with payment systems are used for the following purposes:

• personal/corporate transactions
• fast inbound and outbound foreign exchange transfers
• payment for services, goods, raw materials
• connection to acquiring services
• currency conversions
• transactions in the forex market
• storage and execution of operations with cryptocurrency
• SEPA, SWIFT, CHAPS, FPS fast payments
• access to mass payments services. 

Advantages of setting up non-resident accounts with European (foreign) banks and payment systems

Accounts with European banks or with foreign payment systems are indispensable financial instruments. They ensure the security, structuring, and growth of corporate profits. Their advantages include the following benefits:

• all bank transactions are performed remotely
• access to 30+ popular currencies
• enhanced privacy
• fast and secure payment settlements
• the ability to remotely open personal, corporate, savings, investment, and brokerage accounts
• use of European/offshore bank cards for personal, corporate purposes
• possibility of cooperation with high-risk clients, including those from island jurisdictions
• opening of a personal IBAN account
• access to payments in the SEPA area
• merchant account opening
• acquiring connection
• launch of a payroll card program
• multiple access to accounts
• convenient online banking
• customer support in several languages
• higher prestige and credibility.

Availability of an account abroad increases the stability and serves as a must-have financial tool for companies engaged in foreign economic activity.

What should one consider when setting up  non-resident accounts?

In reality, some nuances are important to consider and understand at the stage of selection of the jurisdiction, bank, payment system, and type of account. If their selection is unjustified, a private individual or company will run the risk of being refused to open an account or of facing the blockage of the account by the bank. Here is what you should consider when analyzing a financial institution.

# 1 criterion – the choice of jurisdiction, bank/payment system

Although bank accounts have similar modes of operation and are serviced relatively similarly, the specific process of opening them depends on the selected jurisdiction. For example, accounts in Hong Kong and Singapore are most often opened for businesses from Asia.

Bank accounts in Switzerland, Luxembourg, Macedonia are used for the accumulation and growth of capital. 

Entrepreneurs, freelancers, developers, firms related to trade, logistics, import/export, and production prefer to open accounts in Lithuania, UK. High-risk businesses prefer to open accounts in the Commonwealth of Dominica or Nevis.

Therefore, when choosing a jurisdiction, a foreign bank, or payment system, you should take time to study legislative, tax requirements, as well as terms of account maintenance, tariff policy, and affordable functionality.

# 2 criterion – the set of documents

The package of basic documents required for opening a personal account includes the applicant’s passport, a documented proof of residence address, and proof of the legal origin of funds. Legal entities, in addition to the documents of the UBO, the director, and the administrator of the account are required to submit the incorporation documents.

However, this list of mandatory documents is not exhaustive. The point is, the tightening procedures and policies aimed at fighting tax evasion and terrorist financing have aggravated the requirements set for potential customers.

Compliance departments of foreign banks and payment systems have the right to request additional documents from the client to conduct a more detailed study of their personality, the specifics of the business, the nature and origin of the capital, the nature of transactions.

# 3 criterion — account mode and functionality

The mode of operation of a foreign bank account defines the achievement of the goals expected from the financial instrument. Moreover, incorrect maintenance and use of the account may attract the attention of the compliance department and, in case of suspicious transactions, lead to the blockage or closing of the account.

The functionality of the settlement/corporate account depends on the correct execution of transactions and the specifics of currency payments. To ensure that the foreign accounts could meet your expectations, we recommend you to use the services of expert facilitation in opening bank accounts.

What are the gains of non-resident clients using expert facilitation in their banking?

A foreign bank account can yield benefits to its owner, provided competent selection and analysis of the client’s profile have been performed from the very beginning. This can be achieved with an expert’s support. The expert’s facilitation in different matters and arrangements increase the chances of a positive decision of the financial institution about the setting up of a financial account. Before starting the process of cooperation with the banking institution, the expert will need to undertake the following:

• analyze the legal, tax, and financial situation of the client
• study the corporate structure of the company
• perform the selection of the jurisdiction, foreign, European, or offshore bank/payment system
• examine the client’s documents, financial statements; check the dates and accounts for transactions, including the dates of valuation of payment documents
• specify the final list of the required documents for opening an account
• get ready to represent the client’s interests in the bank 
• prepare the client for the web-based interview
• help register a company in the chosen jurisdiction
• verify and prepare the necessary financial statements
• if necessary, arrange the professional translation and certification of the documents
• promptly update the client about the current state of affairs.

The cost of the integrated legal facilitation in setting up of personal/corporate foreign bank accounts depends on the chosen by the client services, options, jurisdictions, and is estimated on a case-by-case basis after the private web-based consultation.

Setting up bank accounts outside the country of citizenship/business operations requires a lot of time and effort, and sometimes this process is more challenging than starting a company from scratch. 

For over 10+ years of work, we have managed to establish strong banking relationships with conventional banking institutions, payment systems, and new banks around the world. 

If you need to know more about available banking options, you are welcome to request fee-based facilitation in your opening of accounts with foreign banks and payment systems. To book your FREE consultation, please write to our e-mail address given at the top of this page.