The free movement of capital, which is the basis of the global economy in modern realities allows depositing funds in a bank in any country worldwide. Thanks to this opportunity the business costs are significantly reduced, and the use of unique investment tools has also risen to the forefront. However, like any financial transaction, the procedure of opening a bank account abroad is a potentially risky move. In this article, we will talk about how not to stumble on various obstacles and the benefits of foreign banking.
What is necessary to know about opening an account with a foreign bank?
Apparently, opening a bank account in a foreign bank is not so difficult. But if everything was so simple, then the lawyers would be left unemployed. Following are 5 main points you should know if you are planning to open an account abroad:
· Two types of accounts: savings (personal) and current (corporate) are available for non-residents.
· The amount of financial resources that will be held in your personal account is a subject of great importance for foreign banking institutions. The same thing can be said about the number of proposed transactions.
· It is necessary to determine the size of the down payment before opening a financial account in a foreign bank.
· When opening a corporate account, be prepared that you will be asked to provide information about your business, as well as the source of origin of your income.
· Carefully read the rates of the banking institution for all types of services provided.
It should be noted that most European banks make rather high capital requirements for non-residents, from 500 thousand to 3 million Euros. These financial institutions include banks in Switzerland, Austria, Andorra, the United Kingdom, Monaco, and Luxembourg. It is also necessary to remember that banks are interested in a large number of transactions. Accordingly, the more they are, the more favorable conditions for the investor.
To open an account and have good cooperation with a foreign bank is quite realistic. The main thing is to fulfill several basic requirements of the bank:
Provide the bank with all the necessary documents. This requirement applies not only to the procedure for opening an account, but also to further work with the bank. However, the better you tell and describe your business partners to the bank at the very beginning of cooperation, the easier it will be later.
Proof of the legal origin of your funds. Banks do not want charges of complicity in money laundering, so the legality of funds is more relevant than ever. The legality of the origin of funds can be requested not only when opening an account, but also at any time for any large amount incoming to your account.
Compliance with Bank Policy. This item is closely connected with customer’s activities in a particular region, as well as with the type of business he runs.
Benefits of opening a foreign bank account
Among the advantages of opening an account with a foreign financial institution, is necessary to the following points:
· the opportunity to use offshore zones, which significantly reduces the cost of business activity;
· guaranteed high level of savings security;
· the opportunity to invest in foreign high-yield income projects.
Depending on the objective, it is necessary to choose the right foreign financial institution. Not sure how to do this? We will help you.
Our experts will select several options that will best suit your goals and capabilities. Call now and get professional legal advice regarding the depositing of your finances in foreign banks.