28.09.2018. Current situation in Banking sector

News

We would like to shortly describe the situation with account openings for companies in currently most popular jurisdictions. As most probably you all are experienced in Latvia, Baltic States as well as in Cyprus it is challenging to open a bank account for typical offshore companies that do not require to prepare and file Financial Statements and limited partnerships. In Latvia we are currently working with Rietumu, LPB and Norvik banks that open accounts for clients having real trading activities of goods. Jurisdictions that can be used – Hong Kong, UK LTD, Cyprus, Singapore.

Regarding banks in Cyprus – the Central Bank of Cyprus’ procedures with shell companies is stricter even no final directive has been issued. However, they may examine requests for account allocation for companies registered in a jurisdiction in which the issue of audited Financial Statements is not required, if the company comply with ALL the following:
1) has proven physical substance in the country where registered, 2) has fully proven and legal economic activity, 3) can prepare audited financial statements when requested, 4) has a tax identification number, 5) the company has not been closed by any other bank for the reason Shell, 6) essential KYC information about the beneficial owner will be provided, 7) economic reason why operations is conducted in another country and bank accounts is opened in Cyprus.
Additional to the above, they require account statements and bank reference letter of the company with the bank, that the company was serviced so far.
Switzerland’s CIM bank is working with companies without nominee services, however, it is carefully studied the economic activity of the company.
Investment banks – if your company has amount starting from 300 000 EUR that you can invest in the bank investments products, it is possible to open a bank account in Liechtenstein, Gibraltar (from EUR 500 000) and Austria.
This is the perfect time for payment systems to enter the market, especially established in Lithuania such as Paysera from 2004 and new players from 2018 – Vialet and Satchelpay.

We will follow the latest news and overall situation and will keep you updated about the latest news.