No one is safe from problems with banks, but it is in your power to minimize their likelihood. We’ve gathered below some indicators of an ideal client through the eyes of banking compliance.
Everyone decides for themselves how profitable it is to meet these criteria (since it requires certain costs), but each item is a significant plus in favor of the longevity of your bank account:
Keep records, regularly undergo an audit (ideally, register a company in jurisdictions where these procedures are mandatory).
This will not only help to remove all questions from tax services or banks, but also make your business more transparent and orderly.
Do not save money on your office
Despite the fact that not all jurisdictions require the opening of a real office with employees, its presence indicates the integrity of the organization. The same applies to local employees - do not forget to pay them the official salary and make the required deductions from it. This criterion is very rarely met by non-residents. However, compliance with it will significantly increase the number of banks where you can open an account.
Pay taxes so that the bank does not suspect you
No comments here.
Choose activities that the bank understands — for example, trade or logistics.
You should be prepared to provide all the primary documentation for the contracts (invoices, accounts, etc.) at the request of the bank or tax service. This is especially true for recently opened accounts.
Payments that are not related to the main activity should not be carried out too often (ideally, it is better not to make them at all).
So, crediting money to the account of a trading company to pay for investment in real estate looks, at least, unusual.
The account must be active
At least once a month, operations should be carried out. A six month “sleeping” account that suddenly receives large sums may cause unnecessary questions.
Tell the bank about your company (information should be publicly available)
The de facto standard is a working website of the company with contact information, details, registration numbers, etc. It is good if the website contains information about the company's activities and its business achievements. This will not only help in establishing business contacts, but also convince the bank of your trustworthiness.
Choose your business partners carefully
Always have a clear idea of who you are dealing with, regardless of whether you pay or are paid. Be careful with dubious transactions and counterparties, weigh risks.
Keep track of the sanctions list
Sign up for the FATF newsletter or similar newsletter. Paying to / from a sanctioned country or company can seriously damage your reputation, even if you can prove that you weren’t up to date with the list.
Do not abuse transit payments
Banks are suspicious of a large number of the same type of incoming and outgoing transactions with similar amounts. If this is inevitable, do not forget about the supporting documents - the bank has the right to request them even in past periods.
It is clear that real businesses rarely fit into the vision of an ideal customer, at least for banks. Few will be able to strictly obey all of the above rules. However, if your business meets at least half of the requirements from this article, then blocking your account does not threaten you.