Aug 26, 2019

Can banks ask where your money comes from?

Private clients

All data, information and documentation collected in the process of knowing the client, and in accordance with the business policy of a bank, are treated as business secrets. If a person wishes to open an account with a bank, the bank is obliged to establish and verify the identity of that person on the basis of documents, data or information collected from reliable and credible sources. In order to gather more information, the banks employees may ask additional questions. Identification of clients is important not only because it is prescribed by law but also because of the protection of clients and the bank from fraud (falsification of documents in order to illegally take other people’s funds from bank accounts is a constant trend and banks best protect the assets of their clients and themselves by devoting themselves as much as possible to verifying the identity of the client).

Corporate clients

Because of all of this, the answer to: “Can banks ask where your money comes from?” is YES. The banks will ask you where your money comes from.  But, a simple answer from you will not be enough. They will need some kind of proof, because they do not want to be involved in any kind of illegal actions and/or actions that may cause them to lose their license or reputation since they are the only ones that hold responsibility. There are banks that are more or less flexible with their requirements regarding the documents they need in order to open a bank account for a client, but most of them will ask for documents such as: invoice for transactions, proof that services are really provided, proof that goods were really delivered etc.

On the other hand, some banks like to work with clients that come from high-risk business activities (trading, gambling, e-gaming etc.). Banks that accept high-risk businesses will require documents as well, but in some cases they can be even more flexible – but this is not a rule. Offshore Pro Group does cooperate with these kind of banks. For example, a bank in Dominica is a really reputable bank with a European pedigree, and is specifically focused on clients with high-risk business activities. Of course, high-risk business activities do not mean that you are doing something wrong or illegal, but every bank is obligated to check each client separately to be sure. As previously mentioned, E-gaming is a high-risk business activity, and as we all know, you can play games under normal conditions without doing anything illegal. SO this is just an example.

Offshore Pro Group is here to help you find the right bank in order to open an offshore bank account, but we do not take clients that maintain any sort of illegal business activities.  We will gladly explain to you what documents are needed and all the steps in the process of opening of an offshore bank account.  We will do our very best to make the whole process as easy and convenient for you and exclude all problems regarding problems that may occur during bank transfers and/or of opening the account.

For legal entities, the Bank is obliged to establish and verify the identity of the legal entity, legal representative, as well as the beneficial owner.

The beneficial owner is a natural person or more persons who owns shares, voting rights on the basis of which he participates in the management or capital of the legal entity. The real owner is also a natural person who has a predominant influence on business management and decision making.

The most significant novelty of the law in relation to corporate clients refers to the obligation of the Bank to regulate the procedure according to which it determines whether a party or a legal entity that appears in the ownership structure is the so-called offshore legal entity. An offshore legal entity is a foreign legal entity that does not perform or is not allowed to perform production or trade activities in the state in which it is registered. Additionally, if the party in whose ownership structure the so-called offshore legal entity, a party with a complex ownership structure, the bank is obliged to obtain a written statement from the representative of the party or its beneficial owner on the reasons for such a structure.

Offshore Pro Group has been in the financial consultancy business for years and we will gladly help you find the best financial solutions if you decide to seek our advice. Please write to us to or use WhatsApp or our live chat to get in touch with us. Whatever communication means you choose, we will be able to suggest the solution that will fit your personal outlooks and your individual investment preferences best!