If you have a high-risk or innovative business, deal with precious metals, non-standard goods, have a trust or are a trustee, and want to conduct financial transactions securely and reputably, payment systems are ideal. Let us explain what payment systems are, and you can get a complimentary consultation with us to get set up with one.
A payment system (or payment service provider) is an organization that provides financial services similar to the ones that you can find in a traditional bank. At the same time, payment systems are generally less demanding to prospective clients, although they do still check that all requirements are met regarding compliance. This compliance means they are still credible and trustworthy institutions.
We invite you for a free consultation on setting up an account with a payment system suited to your own goals.
Who needs to use payment systems?
Having a payment system should be especially interesting if you have a company that works in high-risk areas, from the point of view of traditional banks. Such high-risk areas include:
- Crypto Exchanges
- FOREX trade
- ICO-related activities
- Payment Service Provision
- E-Wallets
- Offshore Company Formation Agents
- Trusts and trustees,
- Companies engageing in precious metal trade and storage
- Online stores trading in non-standard goods and services
- Other similar high-risk or innovative companies
A payment system may come to the rescue of any company that experiences problems with opening a business account in a traditional bank.
Why choose a payment system over a traditional bank?
Banks often deny services to start-ups whose business models they do not understand due to their innovative nature, but that’s not the case with payment systems.
Why is that? The banks that service non-resident clients especially experience high pressure from regulatory authorities. In particular, those from the USA and the EU. These banks are forced to enhance their transparency, and take considerable steps for know your client and anti-money laundering procedures, and reduce risks for financial misdemeanors. This can lead to problems for legal, but non-traditional companies.
Without a doubt, the world financial authorities pursue benign goals. However, sometimes they will deny service to a potential client unfairly, due to some sense of uknown, even if the client is operating in a fully legal manner.
FOREX traders, cryptocurrency exchanges, BADS traders, electronic money systems, and similar companies look suspicious in the eyes of the banks, who cannot take risks. Such companies may well be playing by the rules and have bold plans for the future development but the impossibility of opening a corporate bank account is a huge obstacle.
Even if the company has a national license (such as a crypto license in Estonia, for example), it can conclusively prove the legality of its income, and it has a spotless reputation at home, there is no guarantee that it will be able to set up a bank account abroad.
Even if you have succeeded in opening a foreign bank account for your company, it can be closed any time for an unknown reason. A slight suspicion of financial machinations that has been caused by a rumor or a change in the political relationships between the bank and the company’s countries can easily lead to account closure.
Some jurisdictions have had to change their non-resident banking legislations drastically under the pressure from the international regulatory authorities or political and economic crises. For example, Latvia radically changed its laws to target money laundering and terrorism, in line with EU standards, after a financial crisis. If a crisis occurs, your banking capabilities may become limited inadvertently.
Nevertheless, people want to do business and they need financial accounts in order to do that. Thus, they have to look for alternative solutions and they find that payment systems can provide secure services of higher quality than those provided by traditional banks.
What are the benefits of the payment system we recommend?
We are going to suggest other payment systems to you that:
- React to your queries in a timely manner
- Work stably
- Provide a wide spectrum of services including rapid SWIFT transactions, currency exchange opportunities, and individual IBANs.
- Accept many clients, including high-risk ones
- Protect your privacy
- Are legally compliant with AML and KYC
There is one more important characteristic that payment systems possess. They do not automatically exchange their clients’ financial information with the fiscal authorities, unlike many banks. This considerably enhances your privacy.
This does not cancel the need to check the clients’ compliance with the anti-money laundering requirements, however. Payment systems are licensed financial institutions that are monitored by their home country’s authorities. Some payment systems that we work with have licenses from several national governments, which makes them ascertain that their clients are law-abiding citizens indeed. Thus, they will first conduct all the necessary due diligence checks and then open an account for you.
We have been in close cooperation with various payment systems for years and we know exactly what requirements each of them puts forward to prospective clients, in particular, to the companies that work in high-risk business areas. With our help, you will receive precise answers to the questions about the cooperation conditions that this or that payment system can offer.
We invite you to make use of a FREE consultation of choosing a payment system for your high-risk non-resident business. Please answer the questions below so that we can understand your company profile and suggest two or three payment systems that are going to serve your purposes in the best possible ways.
Fill out the questionnaire: Choose payment systems for high-risk businesses
02 June 2020 