In this review, we will reveal which financial institutions are recommended for working with offshore companies in the current year, and also describe in more detail how to open an account in the payment system for offshore jurisdictions.
Due to the great difficulty of opening accounts for offshore companies in the current year, when it comes to choosing a bank, we would like to advise you to choose the easiest option.
Gradually, you can open new accounts in banks. This year the most optimal solution is not a bank, but a payment system.
In this review article we want to consider financial structures and their possibilities from the point of view of not theory but practice. Hundreds of banks to choose from, which open an account for several hours or days will be gone. These times have passed.
FIRST ACCOUNT: PAYMENT SYSTEM IN THE EUROPEAN UNION.
The banks of Latvia, Cyprus and other EU countries have now left the offshore market.
It is best to start a new business activity this year from an account in a payment system with a license in the European Union. It will provide the necessary tools for the business, which customers often want to get from the banking structure itself.
If you are a non-resident company, then it will be somewhat more problematic for you to open bank accounts.
Therefore, our advice is to start with a faster solution that would help you to start an entrepreneurial activity and the ability to accept payments.
For customers who have a need to make payments within the EU, the payment systems and accounts in the IBAN will help to quickly and efficiently make all the necessary operations.
Payments within the EU pass with very high probability without difficulty and very quickly, moreover, minimal expenses are spent on it, and sometimes even for free.
Payment systems are connected to SEPA / Target payment systems without intermediation through the Central Bank of their country – just like banks.
When choosing a payment system or a bank in the EU, you need to remember which banking structure specifically contains the accounts of your business partners.
Business partners are arguing for the circumstances that prompted you to open an account in a particular financial institution. The best solution for opening an account in a European bank or payment system will be to register a company in one of the European countries.
Non-residents – beneficiaries, can also open a personal bank account in any European country – in this regard, almost nothing has changed.
At the moment, there are very few European banks and payment systems that can open an account for a company from an offshore jurisdiction, but there are still some.
This year, there were a lot more questions about doing business, banks and payment systems began to ask a lot more questions and demand more documents both to the beneficiaries of the companies and to the companies themselves.
Offshore companies and similar companies (for example, partnerships) have been added with the requirement to prove the absence of shell company signs.
When opening an account in one jurisdiction, we advise to open accounts in another jurisdiction – this is needed in case the bank of one country for some reason stops servicing your company or its work with non-residents is stopped by the regulator of jurisdiction.
In February of 2018, unpleasant events occurred related to claims by the United States Treasury Department against numerous Baltic banks.
ABLV large bank had to be liquidated, other Latvian banks were able to retain their positions, but the clearance of new non-resident clients has become more limited.
Also, they can no longer work with companies from offshore jurisdictions or impose restrictive requirements on states that can be approved as new bank customers.
Also, it is obligatory that the Substance corresponds to – confirmation of the expediency of the existence of a company in a registered state (office, telephones, employees, website).
Among European countries there are more than 10 payment systems, which differ little from banks. With them, the person receives the same tools for working with payments and cards, as well as when opening a regular account.
For companies that you order from us, we offer maximum assistance in opening an account in the payment system.
All of the above is a continuation of the pan-European anti-offshore campaign, when regulators of European countries began to require banks of their jurisdictions to reduce the serviced volumes of non-resident companies, primarily from traditional offshore countries.
In the second half of last year, tariff plans for payment services in USD currency rose sharply for non-residents. This situation manifested itself in almost all Baltic banks.
Experts attribute such a course of things to the fact that the operating costs of servicing offshore transactions are increasing.
The catalyst for this state of affairs was the regulatory initiative in March 2018, connected with the legal prohibition at the level of processing financial transactions of shell companies: foreign firms that make up the lion’s client share of the Latvian banking circle.
The term “Shell Company” is described in the first article of the Latvian Law “On Prevention of Money Laundering of Proceeds from Crime and the Financing of Terrorism”: a shell company is a company which has no actual activity and commercial value (or it is insignificant), and company has no office space.
Now, clients have to argue with documents that their firms are not “shell” and they are valuable, for example, they have assets, trademarks and corporate rights, they rent office space and conclude long-term contracts, they have reports on their activities and a public website works on the Internet.
And all these “signs” appeared not quite recently, but accompanied the company throughout the entire period of its operation.
Eternity Law International specialists will help you open an account in more than 100 banks and 30 payment systems worldwide. Get expert advice.