Opening an account abroad. How to open an account abroad
Many Russians are wary of the domestic banking system and seek to open an account abroad. However, before concluding an agreement, it is necessary to clearly understand which bank can be considered foreign.
Credit and financial institutions operating in Russia, which were opened by international banking groups, or banks with foreign capital cannot be classified in this category, since they are issued a license for the right to carry out activities central bank Russia, and their work is fully regulated by Russian law. In addition, the reliability and resilience of such financial institutions is incomparable with those of the parent companies. Therefore, citizens of the Russian Federation wishing to open a deposit abroad must choose an organization with foreign jurisdiction. At the same time, Russians do not have to leave their country: some banking institutions allow sending documents by mail.
What to look for
Citizens who plan to place money abroad on condition of anonymity may face difficulties. As part of the total fight against dirty money, foreign credit and financial institutions have significantly tightened requirements for customers, so it is quite difficult to ensure complete anonymity of the deposit.
For example, the legislation of the Republic of Cyprus prohibits the opening of numbered bank accounts. In addition, if in favor of the client was carried out remittance By the sender, about which there is no information or only his code is available, Cypriot bankers are entitled to transfer funds after receiving full information about the person who transferred the money from the correspondent bank.
What does the law say about it
Can a Russian citizen open a bank account abroad? Yes, current legislature does not provide for a ban on storage by residents of the Russian Federation Money on bank accounts abroad. Moreover, in recent years, the procedure for opening deposits has been significantly simplified. If earlier, in order to carry out this operation, it was required to obtain a special permit from the Central Bank of the Russian Federation, today most Russians can become a client of a credit and financial institution operating under a foreign jurisdiction (with the exception of categories of citizens defined Federal law No. 79-FZ).
At the same time, the legislation clearly defines the cases when a Russian citizen has the right to place funds abroad. This is:
- opening a deposit for the purpose of accumulating personal funds;
- investment.
Placement of funds for the purpose of maintaining entrepreneurial activity is prohibited.
There are some restrictions in relation to the states with banking institutions which are allowed to cooperate. Countries where you can freely place funds are members of international organizations Organization for Economic Co-operation and Development (OECD) and Financial Action Task Force on Money Laundering (FATF).
The opening of deposits by residents of the Russian Federation in banks of countries that are not members of these organizations is carried out in accordance with the procedure established by the Central Bank of the Russian Federation. Ordinance No. 1411-U of March 30, 2004 contains a requirement for preliminary registration of such accounts. However, the procedure for registration itself is still missing. Therefore, if you are formally guided by the rule "everything that was not prohibited is allowed," RF residents can place money in banking institutions that are under any jurisdiction. However, there is a risk that the court may interpret this situation somewhat differently.
The procedure for opening accounts in foreign banks
You don't have to go to business school to decide where to open an account. It is necessary to carefully study the features of the chosen jurisdiction, the proposals of foreign credit and financial institutions, familiarize yourself with their reputation, data on their stability, credit ratings and forecasts. Having chosen the appropriate option, you should start opening a deposit. You can do this yourself or with the help of special agencies. The cost of agency services can range from several hundred to several thousand dollars.
There is no time frame for the operation - the procedure for registering a deposit can last from one week to several months.
Citizens who are independently engaged in registration must collect required package documents, fill out registration forms (in a foreign language) and personally visit the bank. After checking the submitted package of documents, the financial institution will notify the citizen about the possibility or impossibility of opening a deposit.
Persons who have used the services of intermediaries do not have to travel abroad and visit the bank in person. Investors must provide the agency with a package of necessary documents and samples of their signatures, certified by the consulate of the country under the jurisdiction of which the selected bank is located.
At the same time, cooperation with intermediaries does not at all mean that the depositor does not have to go through an interview with representatives of a foreign financial institution. Many banks provide for communication with a potential client by video link or telephone. The contributor may also be required to provide letters of recommendation from foreign business partners.
Required documents
The list of documents required to open a deposit from a resident of the Russian Federation may vary and depends on each specific bank. The average package of documents includes:
- the depositor's passport, as well as his family members (spouse and children);
- a certificate of the amount of income received for the last 6-12 months;
- a certificate on the composition of the family;
- a certificate stating that the depositor is not under investigation, issued by the police.
The most stringent requirements for potential clients are put forward by the financial institutions of the United Kingdom. UK bankers may be required to provide many additional documents, including paid receipts for utilities, where the actual address of residence and the name of the depositor are indicated, as well as letters of recommendation on the reliability of a citizen, written by his employer or a Russian bank.
Who is considered a resident under foreign exchange law
Foreign currency residents of the Russian Federation are: persons who are Russian citizens, as well as stateless persons who have received a residence permit and citizens of other countries permanently residing in Russia.
Obligation to notify about opening an account
Residents of the Russian Federation who have placed their funds in banks located in other countries are required to notify the authorities about the opening of accounts. tax service... Notification of the transaction must be sent within a month from the date of opening the deposit. There is also a requirement for mandatory notification of the tax authorities within a month of closing an account.
Citizens can send reporting documents:
- personally visiting tax office;
- by postal letter with acknowledgment of receipt;
- online via Personal Area on the FTS website (electronic signature is required).
The requirement for mandatory notification of the tax authorities was enshrined in legislation several years ago. Nevertheless, to date, this norm does not fully work, since until now a unified procedure and form of notification have not been developed. Therefore, some depositors, at their own peril and risk, ignore the requirement and do not report information about foreign accounts to the Federal Tax Service.
Cash flow statement
Residents of the Russian Federation who have opened a deposit abroad are obliged to provide the tax authorities with a statement of cash flows on the account. This report reflects the balances at the beginning and end of the calendar year, as well as the amounts credited and debited from the account. Apply any additional documents not required for the report. However, in addition to the report, tax authorities may require the depositor to provide a bank statement detailing the funds received as a result of various transactions. This document will allow you to determine how many thousand rubles were transferred to certain legal entities.
Administrative responsibility (responsibility for non-submission or delay in submission of documents)
Residents of the Russian Federation who did not notify the Federal Tax Service about opening an account in a foreign financial institution or filed a notice out of time, as well as citizens who did not submit or submitted a report on the movement of funds with a delay, may be held administratively liable. The amount of fines is:
- for failure to submit a notification - from 4 to 5 thousand rubles;
- for violation of the deadline for providing notification - from 1 to 1.5 thousand rubles;
- for failure to submit a report - from 2 to 3 thousand rubles;
- for violation of the deadline for submitting a report - from 300 to 3 thousand rubles.
Who is prohibited from opening accounts abroad
In order to ensure national security In Russia, Federal Law No. 79-FZ of 27.07.2004 prohibits certain categories of citizens from keeping funds in banking institutions located outside the country. These categories include:
- persons who hold high public office;
- members of the board of directors of the CBRF;
- top managers of state-owned companies;
- citizens appointed to office by decree of the President, government and the Prosecutor General of the Russian Federation, and other categories.
Minor children and spouses of the persons referred to in Article 7.1 are also subject to the ban.
Persons who violate the ban are subject to release from their posts or dismissal from work due to loss of confidence.
Where and how can you open an account
Residents of the Russian Federation, who are not subject to the ban, are given the right to open deposits in foreign banks under any jurisdiction. The most popular banking jurisdictions among Russians are:
- Cyprus;
- Latvia;
- Switzerland;
- Hungary;
- Czech Republic;
- Montenegro;
- Hong Kong;
Foreign banks
Many financial institutions operating abroad set minimum limits on the amount of deposits placed by citizens of other countries. Practice shows that serious banks rarely open deposits for foreign clients depositing less than $ 50 thousand on the account, and Swiss financial institutions specializing in private banking are open for cooperation with persons who deposit at least $ 100 thousand.
Bilderlings
An alternative to placing deposits in foreign banking institutions can be opening a European and British account with individual bank details (IBAN) c. The innovative fintech platform, which offers various types of banking services, operates under an electronic money issuer license issued by the British financial regulator FCA. Having a license gives you the right to open accounts, process payments and use other financial instruments. At the same time, unlike traditional banking institutions, Bilderlings does not use client funds to issue loans and finance its own activities.
The main advantages of Bilderlings are high quality service and high speed of service. While opening an account for a resident of the Russian Federation by a foreign bank can take from a week to several months, a similar operation in Bilderlings takes no more than one business day, and also does not involve the provision of a large package of documents.
Account holders with Bilderlings can accept and make unlimited payments from all over the world (over 100 countries), as well as carry out transactions for the exchange of euros, dollars and other currencies at the interbank rate (21 currencies in total).
How the Russian authorities view it
The simplification of the procedure for opening deposits by residents of the Russian Federation in foreign banking institutions can be regarded as loyalty from the authorities. At the same time, the outflow of funds from the Russian financial system not welcomed by the government. Despite the legal permission, currency operations can be considered by the Federal Tax Service as potentially risky, which is why this issue is constantly under the control of the tax authorities.
Is it profitable to have an account abroad
What preferences does opening a deposit in a foreign bank give Russians? Statistics will help to get an answer, including this question. In Switzerland, which is one of the most popular banking jurisdictions, no more than 60 credit and financial institutions have ceased their activities since the beginning of the 21st century, while in Russia over the past 8 years alone, over 400 banks have gone bankrupt. At the same time, the Swiss authorities and the authorities of European countries promptly respond to the emergence of problem situations in banking institutions and immediately use effective tools to keep banks afloat.
It should also be noted the guarantee of confidentiality, the orientation of foreign bankers towards long-term cooperation with clients, an individual approach to each depositor and the quality of asset management.
Opening a foreign account with Bilderlings: step by step instructions
To open an account with Bilderlings, a depositor needs to register on the website, specifying an email address, phone number and access password. Next, the depositor should fill out an online application form, and then submit to in electronic format minimum package of documents, which includes:
- A copy of your passport.
- A copy of the document confirming the place of residence.
Also, the depositor must send an electronic photo (selfie), in which he is captured with his passport.
Opening an account is carried out after the depositor has provided all the necessary documents and takes no more than one business day.
Where to get legal advice
You can get a comprehensive consultation on opening an account after registering on the Bilderlings fintech platform. Each registered user has a personal manager who is ready to answer any financial questions.
You can also contact Bilderlings representatives by phone, email and in social networks... Customer service is not handled by a chatbot or a call center employee, but by a highly qualified financial specialist.
The scandal around the Panama Archives is not abating in the world - during the information leak it turned out that politicians and businessmen were withdrawing money to offshore companies of this country. Among them were acquaintances of Vladimir Putin. that these people have withdrawn from the country about 2 billion dollars.
Not only influential people can place money abroad: many banks work with non-residents, however, the conditions for them are somewhat different from the rules for citizens of the country. The rates on deposits of European banks are much lower than in Russia, and it is not very convenient to transfer money from country to country. However, Russians still carry money to Western banks, not trusting Russian credit institutions and fearing the introduction of new barriers to the conversion of rubles into foreign currency. The Village learned about the specifics of opening foreign accounts and spoke with one of the depositors.
Where and how you can open an account
Not all banks are ready to open ordinary current accounts for foreigners. Many of them require that such a person has a residence permit in the country or other justification for the need for an account, such as the presence of real estate. For example, most Scandinavian banks - Swedbank, DNB - also do not open accounts for Russian citizens without reason. The same is typical for Singapore. “And, for example, in the UK, even if you have a student visa, it is almost impossible to open an account,” says Alexey Pospekhov from Futur Capital. “For this, several start-ups in the field of finance are now being launched, aimed at“ migrants ”, which include Russian citizens."
According to Pospekhov, almost the only bank in Latvia that actively works with Russians in both business and personal finance is Rietumu Banka. “They have their own processing and a lot of other goodies,” he notes. Remote opening of an account there will cost 250 euros - then the card will be delivered to Russia by courier. From it you can transfer money to the card of other European banks, as well as to Russia by SWIFT system... In addition, the bank helps foreigners to obtain a residence permit in Latvia.
The Baltic States are perhaps the only place in Europe where a Russian can open an account with small amount... In other countries, there is a high entry threshold for opening a deposit by foreigners - from 50 thousand euros. The list of credit organizations that are ready to work with you expands significantly if you are ready to deposit more than 100 thousand dollars into your account. Famous banks such as Credit Suisse, UBS, Barclays will be ready to place more than a million from a foreigner without a residence permit on the account, says Konstantin Ziyatdinov, head of the international projects department of the Prime Advice consulting group. More democratic conditions are offered by Chinese banks - for example, Bank of China or ICBC. To open an account, you will need only 20 yuan (about 200 rubles), and the entry threshold does not exceed a thousand yuan, says Oleg Tkach, financial director of MTVK Greenwood.
The permission to open an account is issued by a bank manager abroad. And he may have many different reasons why he may not give it. Almost always it is necessary to prove that the funds were received legally. There are situations when one manager refuses to open an account, and when considering the application later, another manager approves him, says Vladimir Knyazhitsky, General Director of Fast Lane Group of Companies in Russia and the CIS. Therefore, when opening an account, Russians need to understand that this is a rather long process that requires a personal visit (most likely, more than one). In some cases, you can open an account with a power of attorney, for example, for a lawyer. But it is imperative to clarify the conditions for closing: in many banks, it is possible to close a deposit only in the office where the account was opened, or at least in the same country. When choosing a bank, it is also worth clarifying what deposit guarantees the country gives and what minimum deposit balance the bank wants to see (for non-residents, it is usually high).
How the Russian authorities view it
“Russian residents can freely open accounts and deposits in any foreign banks... The only thing that needs to be done is to notify your tax office about this fact within 30 days after opening the account, otherwise you may be fined up to 5 thousand rubles, ”says Konstantin Ziyatdinov. After opening an account, you must annually provide a tax simple statement of cash flows (in fact, four digits - the balance at the beginning and end of the year and the amount of debits and credits for the year).
Unfortunately, Russian currency legislation severely restricts the list of transactions for which funds can be credited to such a foreign account of an individual, complains Ziyatdinov. Failure to comply with these requirements entails draconian fines ranging from 75 to 100% of the amount of the transaction not provided for by law.
How beneficial is it
“Withdrawing cash is generally a big headache, despite the so-called SEPA,” says Pospekhov. Single European Payment Area is a single European payment area that includes the euro area, as well as Hungary, Poland, Czech Republic, Romania, Bulgaria, Sweden and Denmark. If you have opened an account in Italy and are withdrawing money in Sweden, a commission may be charged in accordance with the bank's rules.
For interest-free withdrawal Pospekhov advises using Russian cards and accounts. The same Sberbank has ATMs in many countries of Eastern Europe - no commission is charged for withdrawing money from them. You can also use Citibank's services. “This is the largest international bank, it is represented in more than a hundred countries of the world and also does not charge ATM fees from its cards,” says Oleg Tkach, financial director of MTVK Greenwood. In his opinion, the benefits of deposits abroad are questionable. Depositors here pay not only for opening an account, but also a tangible income tax... In Switzerland, for example, it is 35%.
"Interest on deposits is absolutely negligible by Russian standards," says general director Fast Lane Group of Companies in Russia and the CIS Vladimir Knyazhitsky. This can be 0.25% per year, and if the account currency is not native to the country, then interest is often not charged. So, make money on bank deposit in developed countries it is almost impossible - rather, it will be small losses in the form of commissions for transfers and account maintenance, sums up Knyazhitsky.
But opening accounts in foreign banks is rarely dictated by the goal of obtaining increased profitability or getting a better level than in Russia. banking services... Rather, it is about confidentiality and independence from the Russian banking system and the associated “country” risks, says Alexander Lukin, partner of RB Partners. For example, many opened accounts out of fear that the authorities would impose restrictions on cross-border transfers and currency conversions. In addition, foreign accounts provide access to international investment products, and when buying and maintaining real estate, you can avoid conversion losses.
Inna Alekseeva
CEO of PR Partner
Personal experience
Last year, I opened an account as an individual in two Spanish banks, I chose those that allow me to do this without an ID card, that is, roughly speaking, I opened an account as a non-resident.
I was considering giving birth to my second child in Barcelona, so I needed about 10 thousand euros on my account. The bank has requested information about my wages in Russia - I translated and notarized the 2-NDFL certificate, as well as the dividend certificate. Then, for a whole year, I transferred one thousand euros to the bank every month to show my reliability. If I want to transfer a large amount, for example 90 thousand euros for studying at a business school, then I will also need a certificate explaining where the money comes from.
The bank employees immediately warned me that if I want to unexpectedly withdraw the accumulated amount, I cannot do it without justification, where and why. In my case, the justification could be an invoice and a certificate from the local hospital-maternity hospital. In the same way, you can pay for a business school, language courses, travel around the country, etc. I didn't need the bill yet, but if anything, it works.
Most often, businessmen open accounts in foreign banks. But not only them - there are enough individuals among those who decided to withdraw their honestly earned funds abroad. For example, almost 15% of depositors of "bourgeois" banks are ordinary citizens who have obtained a mortgage abroad. There are also enough students who have gone to study at European universities. It is more convenient for them to be served in local credit institutions than to do business with domestic ones.
Why is invoicing abroad good?
Foreign banks are more reliable. This is an axiom that entrepreneurs do not dare to challenge even now. They seem even more reliable and safe after the winter crisis, when the Russian banking sector suffered serious losses. What if this happens again? Of course, a similar collapse could happen in Europe, but the likelihood is low.
The high level of confidentiality is another big plus. Don't want greedy tax officers and other official and unofficial robbers to be aware of your financial affairs? Hide these cases abroad. The advice is relevant for both entrepreneurs and individuals.
Well, perhaps the main advantage is prestige. A foreign bank account is an indicator of “successful success”. And just to receive a notification in English about the receipt of funds is very pleasant.
Which bank to choose?
When choosing, pay attention to several factors:
- the reliability rating must be at least "A";
- adequate (not too biased) requirements for the depositor - abroad very meticulously check the origin of money;
- service cost - if you are not a dollar millionaire, 1000 euros per year for service (plus commission, notification by mail and other options) in Swiss banks is unlikely to be affordable for you;
- convenience of replenishment - it is desirable that the bank supports as many ways as possible of crediting money from individuals and legal entities to the account;
- availability of additional functions and opportunities (for example, investing in pension funds or in securities reliable and successful companies).
It is difficult to advise a specific bank - it all depends on what you want to receive. Swiss banks traditionally considered elite. Austrian, German and Danish - the most "stable" and reliable. In the banks of the Baltic states, they communicate with clients, incl. in Russian, and the cost of service is low. The most difficult thing is to open an account with a British credit institution - they will require a whole volume of documents from you and they will double-check everything carefully and for a long time (and then they will still refuse).
Do I need to go to another country?
In theory, there are representative offices of foreign banks in Russia. In practice, however, their relationship with the "parent" credit institutions is minimal or even nominal. But it is still worth contacting such branches with a request to open an account abroad. There is a chance that they will help you at least with advice (especially if you plan to invest from 10,000 dollars or euros at a time).
The above applies primarily to Western European banks. If you are going to contact one of the Baltic states, no problem - just come to their Moscow office. And you can also use the services of intermediary firms that will take most of the worries on themselves. They can arrange a personal meeting for you with representatives of the bank (in the same Moscow).
But if you have chosen a serious European organization and decided to do everything personally, you will probably need to go to the West. Foreign bankers do not welcome persons who send applications with documents by mail.
Maybe through intermediaries?
The market is full of companies with which you can open an "overseas account". They have established contacts with banks, and they also organize negotiations with foreign managers, help with the execution and translation of documents, and take over all the routine processes. It is convenient - you can just pay and wait for the notification of the signing of the agreement with the bank. There is only one problem - there are a lot of fraudsters among such “intermediary” legal entities. Fraudsters can also open an account for you, but then the truth will be revealed, and Europeans react extremely nervously to such schemes.
You need to be especially careful when choosing an intermediary company if you are a businessman planning to withdraw funds offshore. As a rule, unscrupulous firms attract customers at low prices. But the payback is harsh - in case of failure, you will lose all funds spent on opening an account. Reputable firms will never work abroad with a "third-party" offshore.
A little more about offshore
In any case, you will need a company registered abroad. Many of the offshore companies, by the way, are created only for conducting account transactions and owning foreign assets. The easiest option is to buy a ready-made legal entity. Contact a specialized intermediary firm, and within a day you will receive a notification about the transfer of the company to your ownership. And you can register your LLC on an offshore. This will be a great solution if you are really going to do business abroad.
Option for individuals
What if you are an ordinary citizen, you have no relationship to business, and you decided to open an account in a foreign bank on your own? First, contact the bank of your choice (the easiest way to do this by e-mail) and specify what documents they require. List binding papers looks something like this:
- Russian and foreign passports;
- income statements;
- information about the composition of the family, the activities of household members and other related persons (Europeans do not like officials and politicians);
- certificate of no criminal record;
- a letter of recommendation from a client of this bank (and preferably from several).
All these papers must be translated into English and certified by a notary. They must be submitted either to a representative of a foreign bank in Russia (if it is possible to agree on this), or directly to an office abroad. The terms for opening an account by an individual depend on the laws of the country and the internal rules of the bank. In the worst case, you will have to wait about a month, at best - just a couple of days. When the account is opened, be sure to send a notification to your native IFTS (30 days are allotted for this).
That's all, from now on, the account abroad can be used at your own discretion (but exclusively for personal purposes). The Central Bank will no longer be able to dictate its terms to you, and this - you must agree - is great!
25.06.2018
Foreign banking for non-resident clients in recent times became a constant source of news. And if some of them turned out to be quite predictable (especially for those who in one way or another used the services of foreign financial institutions over the past years), then others will have to get used to.
If earlier banks fought for a future client, offering the best conditions, and clients could afford to choose from a variety of options, now banks carefully select a “suitable” client, taking into account a variety of factors - from the jurisdiction of the company to the business biography of its beneficiary and the legality of origin. his funds. Under pressure from international organizations and national regulators in the field of banking services for non-residents, there is a constant “tightening of the screws”.
Nevertheless, a foreign bank account has been and still remains an indispensable tool in international business, since the task of opening a bank account arises for almost everyone who registers a business abroad or expands its boundaries. Therefore, further - about everything in order.
Why do you need a foreign bank account?
Corporate account in a foreign bank is required for convenience of calculations companies with their business partners (customers, suppliers), accumulation monetary assets, payment of mandatory payments, maintenance salary projects, use of corporate bank cards, etc. Such an account can be opened both in the same country in which the company is registered, and in another country or countries.
One of the most important advantages of opening a foreign account specifically for a foreign company (and not for an individual) is no currency restrictions stipulated by Russian legislation for foreign currency residents of the Russian Federation. For foreign companies do not apply obligations to notify the tax authorities about opening a foreign account, submitting reports on the movement of funds on the account, as well as restrictions on crediting funds to the account.
For citizens personal foreign account needed in case of employment or obtaining a residence permit abroad, owning foreign real estate and in many other cases. In addition, many clients simply decide to keep and / or invest part of their funds abroad in order to preserve or increase their personal or family capital. Only for some categories of citizens (senior officials, civil servants) the opening of foreign accounts and the use of foreign financial instruments is prohibited by law.
The main disadvantage of a personal foreign account is its very limited functionality. The currency legislation of the Russian Federation allows residents of the Russian Federation to credit to such an account only those categories of funds that are directly named in the law, referring all other operations to illegal. Such restrictions are lifted only if the person loses the status of a currency resident of the Russian Federation.
Account types
Foreign banks usually offer checking and / or savings accounts.
Estimated accounts are intended for regular transactions involving frequent crediting and debiting of funds on the account, which is necessary when the company conducts normal operating activities (trade in goods, provision of services, etc.). Some accounts can work in the settlement mode, however, they require maintaining a constant minimum balance on the account in a certain amount or placing an investment portfolio.
Savings (investment) accounts are opened for the purpose of preserving and / or investing the client's funds and, as a rule, cannot be used for current settlement operations.
How to choose a foreign bank?
Currently, choosing a bank to open a current account for a foreign (especially offshore) company is becoming an increasingly difficult task. It depends on many factors, starting with the ownership structure of the company and the type of its activity, and ending with the specifics of the policy of the national banking regulator.
Here are just a few of the questions that should be answered by choosing foreign bank:
- does this bank work with companies (including from offshore jurisdictions) and individuals- by non-residents?
- Does the bank offer checking accounts (i.e. accounts for frequent incoming and outgoing transfers)?
- Will this bank accept for servicing a client with this type of activity, with these beneficiaries, with these business partners and directions of payments?
- In what currencies can payments be made (this depends on the availability of an appropriate network of correspondent banks) and are there among them the currencies you need?
- what are the bank's tariffs?
- what are the ratings, reputation, financial indicators and the prospects of this bank?
- and much more.
Therefore, in order to choose a foreign bank for opening a corporate or personal account abroad, we recommend that you contact only those specialists (professional intermediaries and bank agents) who know the current (and constantly changing!) Situation in the field of opening accounts and can objectively assess the chances of opening an account. taking into account all the factors inherent in a particular client and bank.
In which country to open an account?
For the purpose of opening corporate accounts for foreign (including offshore) companies, banks can be divided into three main groups:
1. Banks of Europe. Basically (except for Switzerland, Liechtenstein and Montenegro) these are banks of the member states of the European Union, which are subject to the requirements of the pan-European regulator - the ECB. Within this group, the following should be highlighted:
- banks of the Baltic countries (Latvia, Lithuania, Estonia);
- banks of Cyprus;
- banks of Central Europe (Poland, Hungary, Czech Republic, etc.);
- banks of Western Europe (Austria, Liechtenstein, Luxembourg, Switzerland);
- other banks (Montenegro, etc.)
Banks of this group continue to be popular when opening corporate accounts for foreign companies. Many of them have Russian-speaking customer support.
However, for most European banks (as well as for any others), more and more time-consuming processing of applications for opening an account, a request from the applicant for various additional information, as well as (especially for Western European banks) rather high tariffs are characteristic. And, most importantly, the banks of most of these countries today moved away from the practice of opening and maintaining accounts offshore companies (for example, it is now impossible to open an account in a Latvian bank for an offshore company or for an offshore partnership such as LP or LLP).
Only a few banks, despite the general negative attitude towards offshore companies, continue to consider opening investment accounts of offshore companies on favorable terms for the bank (namely, investing in bank products or maintaining a significant minimum balance), of course, if the client fully meets all other requirements.
2. Banks of Asia(Hong Kong, Singapore).
Asian banks in general are focused on business, one way or another working in the Asian region or with partners from it. They are also characterized by a general trend towards deoffshorization and strengthening of due diligence procedures.
Today, Hong Kong banks have practically refused to open accounts for residents of Russia and other CIS countries or companies with beneficiaries from such countries. In order to open an account in a Hong Kong bank, a face-to-face interview with a Bank manager in English or Chinese is always required without the help of an interpreter (directly in Hong Kong). At the same time, banks consider only those companies that have a real office in Hong Kong (it should be borne in mind that such companies are subject to taxation in Hong Kong).
To date, only Singapore companies can open an account in banks in Singapore, and their directors and shareholders must be residents of Singapore. The director must exercise real authority over the management of the company and have exclusive access to its bank account.
A relative disadvantage of Asian banks is also more complex communication between the bank and the client, due to the lack of Russian-language support, as well as a significant difference in time zones (which is relevant for the European part of Russia).
3. Offshore banks(Saint Lucia, Mauritius, Seychelles, Saint Vincent and the Grenadines, etc.).
Offshore banks are banks in offshore jurisdictions that have traditionally specialized in serving non-resident clients. However, today such banks not only do not have any significant advantages over banks from onshore countries, but also lose to them - primarily because of their offshore image and extremely limited possibilities for settlements with certain countries and in certain currencies.
The fact is that most developed countries have a negative attitude towards offshore banks, which complicates the establishment of correspondent relations with them and prevents payments. In particular, for this reason, recently, offshore banks (with the exception of banks in Mauritius) have been experiencing difficulties with settlements in US dollars. Therefore, if you need to pay in USD, as well as with American / European / Russian partners, opening an account in an offshore bank is usually not advisable.
On the other hand, the procedure for opening an account in an offshore bank today practically does not differ from similar procedures in other banks. As elsewhere, the client is obliged to submit the required package of personal and / or corporate documents as part of the due diligence and know-your-customer procedures. An application for opening an account can be considered for a long time. An offshore bank, like any other, will refuse to open an account if the potential client does not comply with the bank's policy and the client's risks for the bank are exceeded. During settlement service Offshore banks can, as regularly as regular banks, request supporting documents for current customer transactions.
We also add that foreign banks should not be confused with banks with foreign capital operating in Russia, which, although they operate under the corresponding foreign brands, but, like any Russian banks, obey Russian legislation and the requirements of the Central Bank of the Russian Federation. Foreign banks about which in question here - these are banks located outside the Russian Federation and subordinate to the relevant foreign regulators. In Russia, such banks can operate only in the form of representative offices officially accredited by the Central Bank of the Russian Federation, which do not open accounts and do not carry out banking operations.
Procedure for opening an account in a foreign bank
In order to open an account in a foreign bank, you must:
- Choose a foreign bank.
- In person, visit the bank's office directly abroad, or meet with a bank representative or contact the authorized partners of the bank in your country. A number of banks (in particular, banks in Latvia, Cyprus, Switzerland, Mauritius, Saint Lucia) allow you to open accounts remotely (without going to the bank). In other cases, a personal visit of the future account manager to the bank branch is required (typical for banks in Poland, Hungary, Hong Kong, Singapore, etc.).
- Fill out bank forms and provide a full set of documents required by the bank. If necessary, also provide any additional documents and explanations.
- Wait for the decision to open an account.
Each bank has its own requirements for the form and content of the client's documents. However, generally speaking, the following is required from the client (opening an account for the company):
First, a set of corporate documents (originals or certified copies - depending on the requirements of a particular bank).
Secondly, information about the activities of the client's company, including:
- a description of the business of the company to which the account is opened (often also copies of contracts and invoices confirming the declared activity);
- data on counterparties for incoming and outgoing payments;
- estimated parameters of work on the account (annual turnover, number and frequency of operations, etc.).
The activities of the client's company within the framework of one opened account must be completely understandable bank, legal and more or less homogeneous(ideally, one account - one activity). The declared activity must be similar to the existing resident business of the beneficiary of the company.
Thirdly, the client provides information about the beneficial (that is, the actual, ultimate) owners of the company. This information includes:
- personal identification documents;
- proof of residence address;
- data on the sources of income (this can be any documents confirming the legal sources of the origin of funds: a certificate from the place of work, an employment contract, data on entrepreneurial activity, savings, etc.);
- bank statements and statements;
- letters of recommendation from significant business partners;
- the names and activities of existing resident (for example, Russian) companies of the client (including links to their websites, other materials);
- resume with data on education and career (as noted above, it is important that the beneficiary has work / business experience in the area that is declared as the main activity of the company for which the account is opened).
Recently, banks have been paying special attention not only to data about the client (applicant) and his beneficiary, but also about his partners, which should be as clear and transparent for the bank as the future client himself. For example, if your counterparty is a British partnership (LLP, LP), then the bank may be interested in who and what is behind it, up to clarifying the resident business of the beneficiaries of such a partnership. Further, the presence of the counterparty in any sanction lists, or even just contact with third parties from such lists, may become a reason for refusal to open an account.
The period for consideration of an application for opening an account at the present time may be from 2 months or more... There is no accelerated application procedure. At the same time, there are no guarantees that the account will necessarily be opened.
If the application is approved, the client is assigned an account number, the means of access to the Internet account management system, bank cards (if necessary) are issued.
Compliance. Due Diligence. Know-Your-Customer
These foreign words have long been familiar to everyone who had to open foreign accounts and fill out bank questionnaires.
Banking compliance is the bank's internal procedures for identifying and assessing the conformity of a client, based both on information provided by the potential client himself and obtained from other sources available to the bank. The Bank collects and analyzes such information in accordance with the know-your-customer principle and, in a broader context, the due diligence principle applied not only in banking practice, but also in business in general.
Compliance with these principles is not a whim of the bank: it is due to the need to comply with the requirements of the national (and for the EU countries also - supranational) regulator and norms aimed at combating money laundering and financing of terrorism (AML / CFT). This work has always been carried out by banks to one extent or another, however, in the last decade, the “rules of the game” have changed dramatically in the direction of tightening. For example, the failure to provide the bank with the documents it requires confirming the origin of the funds received, or a sharp deviation of the grounds (nature) of payments from those that were declared when opening an account, may well become the reason for its closure.
A relatively recent innovation was the requirement to indicate the place of tax residency of the company and its beneficial owners (as well as their identification tax numbers and information about the active or passive nature of the company's activities) for the purpose of implementing automatic exchange of information according to the CRS standard.
Another complicating factor was the policy of anti-Russian sanctions. In connection with it, a Russian citizen can be refused to open an account either directly or foreign company, the shareholder or beneficiary of which will be a Russian, one way or another appearing in the sanctions lists.
Considering that banks' approach to customer compliance assessment has long ceased to be formal, when opening a foreign account, one must be ready to inform the bank not only standard information about the company for which the account is being opened, but also
- details of your existing resident business,
- identification and biographical data of the beneficial owners of the company (including detailed work experience),
- comprehensive information about the sources of origin of their funds,
- and other information required by the bank.
Therefore, adaptation to the new rules implies thorough and advance documentation of the operations of your foreign and resident business, personal income, sources of wealth, taxes paid, and not only while working with a foreign account, but also for several years preceding the moment when there was a need to open an account abroad.
The main trends in the field of account opening
So, the choice of reliable foreign banks ready to service the accounts of non-resident companies (especially offshore ones) is currently very limited and continues to shrink. Why? Here are some reasons:
- Refusal from offshore companies. Foreign banks reduce the share of offshore companies in their client portfolio or refuse to serve them altogether (and the criterion may be not only the offshore jurisdiction of the company, but also the lack of real economic content - such companies are called shell companies). Somewhere this will happen at the same time, somewhere - in stages. For example, in light of the well-known events related to the self-liquidation of the Latvian bank ABLV in the spring of 2018, many other banks have stepped up the purge of their portfolios from "unwanted" clients. In Latvia, the decision to stop servicing the accounts of shell companies was made at the legislative level. In the very near future, other countries may follow this example, first of all, Cyprus, where the introduction of new requirements for banks is expected in the summer of 2018.
- Business reality. Preference is given to companies whose country of registration coincides with the country of the bank, or companies with a real economic presence in their country (office, assets, personnel), financial statements and paying in it taxes, as well as those who have any connection with the country of the bank in which the account is opened.
- Clients comprehensibility and transparency. Banks strive to accept customers with a fully understandable business, transparent source of income and character cash flows, as well as with completely acceptable (for a number of parameters) beneficiaries and counterparties.
- Strengthening due diligence requirements. Such requirements continue to increase both in relation to potential and existing clients of foreign banks (in particular, on the identification of beneficiaries and documentary confirmation of transactions).
- Close to zero odds to open an account are foreign start-up companies (so far unable to confirm the relevant experience of previous activities and indicate counterparties), as well as companies representing "high-risk" business categories (for example, blockchain and cryptocurrencies, unlicensed forex, payment systems, gambling business, dual-use goods). destination, precious metals, etc.). Traditionally, banks are loyal (subject to other conditions) to international trade, forwarding and logistics activities, understandable IT projects, financial services licensed in EU countries.
- U.S. dollars. The situation with transfers in US dollars has deteriorated sharply (for example, Latvian banks, as well as a number of offshore banks, have completely refused to open accounts in this currency).
- Sanctions. Banks have increased their attention to various sanctions lists and relevant categories of individuals and companies. The presence of “sanctioned” persons among the declared beneficiaries or counterparties (or any connection with them) will result in a refusal to open an account.
- Clients from Russia. There is practically targeted discrimination against Russian clients (a kind of “presumption of guilt” is formed in relation to clients from Russia and other CIS countries). However, even such circumstances do not exclude the use of an individual approach and the search for acceptable solutions.
- Automatic exchange. In September 2018, countries of the "second order", including Russia, Switzerland, Austria and many classic offshore jurisdictions, enter the practical phase of automatic exchange of information on financial accounts according to the CRS standard. This means that data on personal and corporate bank accounts (primarily, accounts of companies with predominant passive income), the beneficiaries of which are residents of the Russian Federation, will be sent to Russia tax authorities countries that have agreed to such an exchange.
It is too early to predict its results, however, if the automatic exchange is fully implemented, it will be possible to talk about a completely different level of transparency. tax information in the world.
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