Gone are 1990s, when Latvian and Swiss banks accepted investments in suitcases of cash. 2000s are no more, when opening an account was done by submitting the signed forms as a fuzzy fax message. Effectively, the 2010s are also behind, when the account was opened within a week with a personal visit and signing a stack of forms at the representative office of a Cypriot bank.
These days if you are planning to establish a non-resident company and a foreign bank account, do not be deceived by the advertising blurbs – it cannot be done without assistance of a qualified lawyer. Foreign banks, in addition to usual paperwork, demand a business plan, confirmation of source of funds, business ties with the jurisdiction of the company as well as to jurisdiction of the bank (“substance”) and the completion of the compliance control of planned activity as well as prospective counterparties. In particular cases, banker’s tour of the future client’s office is mandatory.
In addition, once the account is opened, it is no case of sitting back – every transaction is subject to strict supervision by the bank, and primary documentation may be requested at any time. The account can be for suspended or even arrested, and its replacement is to be ensured.
Account arrest is a huge blow to business activity, and migrating of the business to cash is also not acceptable, especially when working with foreign contractors
Financial activities involving opening an account with payment system providers require research and understanding of the terms of their legal offer, the correct procedure for setting up and verifying the client.
VigoLex are eager to:
- assess the risks of payment systems providers and banks in Ukraine and abroad, prepare necessary documentation for opening an account or render consultations when opening an account personally;
- assist renewal of a blocked account, representation of claims to banks, which are in the process of liquidation or under a temporary administration;
- obtain pre-approval to open an account in the USA and EU, and to carry out negotiations and translations of the obligatory documents;
- fulfill necessary operations to confirm the origin of funds, maintain accounting records and prepare tax reports;
- complete compliance verification (KYC, AML) for entrepreneurs, ultimate beneficiaries (UBOs) when opening bank accounts .