In 2024, international banks are meticulously vetting potential non-resident clients. This scrutiny is a response to international regulatory demands, aligning with worldwide policies on de-offshorization and anti-money laundering.
While there are opinions that modern banking has become overly restrictive, they don’t change the reality. The intensity of due diligence checks is unlikely to diminish in the foreseeable future.
Unfortunately, factors may lead to the rejection of banking services for you or your company. These range from the nature of its business activities and the nationality of the company’s beneficiaries to the domicile of your partners. The application process requires gathering numerous documents and completing extensive paperwork, and even then, there’s no guarantee of approval.
To mitigate the rejection risk, act wise: seek professional guidance in selecting a bank and request preliminary approval for your service application.
Significance of pre-approval in foreign banking
The pre-approval service from International Wealth is a valuable opportunity to save both your time and finances when you seek banking services from foreign institutions.
Gaining pre-approval for your application is advantageous regardless of the outcome. If pre-approval is granted, you will proceed with preparing your document package. However, keep in mind that the bank’s Compliance Department must still conduct a thorough review of all submitted documents.
If your application receives pre-approval, it means that the bank’s officers have reviewed your personal or business profile and are satisfied with the information provided.
Should the bank decide against pre-approving your application, you can redirect your efforts to alternative options, avoiding the futile pursuit. This also allows you to save on costs associated with document translation, legalization, and courier services. Thus, the pre-approval service is beneficial, irrespective of the final decision.
Pre-approval ABC
During the process of selecting the right foreign bank to set up your account, you’ll need to complete various banking forms. Once you’ve chosen the banks for pre-approval application, your consultant will review the forms to make sure all necessary information is provided. Upon confirmation, you will receive an invoice for the pre-approval service.
After payment, the International Wealth team will engage with the selected banks to request pre-approval on your behalf. We will process your application within 2 business days. How long it will take to get pre-approval from the banks varies, but typically, banks respond within 3 to 10 days.
The pre-approval service is essential for businesses in sectors deemed high-risk by banks. It’s important to recognize that finding a bank eager to provide services may be a challenging task that requires considerable time, money, and effort, especially if your business operates within a high-risk domain. These business types are always required to seek pre-approval:
- innovative technology enterprises (including IT companies) due to their complex business structures
- companies issuing bearer shares
- gambling entities (e.g., online casinos, betting platforms, and poker rooms)
- adult industry businesses
- pharmaceutical firms
- securities traders (dealing with currencies, stocks, bonds, binary options, etc.)
- merchants of precious metals, stones, and jewelry
- natural resource extraction companies
- real estate investors and developers
- retailers that use payment systems
- entities planning significant cash withdrawals
- non-profit organizations
- cryptocurrency operators
- individuals and beneficiaries from the USA, CIS, Japan, China, and countries sanctioned by OFAC & FATF.
The above pre-approval service is beneficial for people and business owners who want to make sure they will be able to open a bank account abroad without wasting their precious time or money. It’s the right pick if you want a guarantee that the bank will say yes before you start gathering and sending all the needed paperwork. This way, your effort will certainly pay off.
However, please be advised that International Wealth does not offer its pre-approval and account opening services to individuals or entities in the following sectors:
- child adoption services
- child pornography
- trade of live animals
- sale of human body parts, fluids, or remains
- distribution of copyright-infringing materials
- charitable organizations operating as pyramid schemes or using multi-level marketing
- manufacture of homemade weapons
- goods or services originating from sanctioned nations
- conducting licensed activities with no proper licensing.
From pre-approval to final decision: maximize your chances of success
Unfortunately, even with pre-approval from the bank administration, there’s no absolute certainty of obtaining a corporate account in a foreign bank. The application process abroad invariably involves two distinct stages.
Initially, a bank officer will evaluate your business model to ensure it aligns with the bank’s internal criteria. At this stage, a fundamental decision is made regarding whether it is feasible to offer you the services. This evaluation is part of the pre-approval service you engage in upon payment. While pre-approval suggests a favorable outcome, it is not a guarantee of the bank’s final approval. However, pre-approval does improve the likelihood of service acquisition due to the bank’s preliminary acceptance of your business model.
Later on, the bank’s Compliance Department conducts a thorough security review. Advancing to this phase depends upon receiving pre-approval and settling the fees for the account opening services. Should you secure pre-approvals from multiple banks, the International Wealth team is ready to assist in establishing numerous accounts for your company overseas.
FYI: The bank’s final decision will depend on how accurate your information is and if you meet all their rules for new customers. We can’t promise that our help means you’ll get a bank account abroad. The bank always has the last say.
In this context, please remember 2 important things:
- The pre-approval service we offer is tailored exclusively for the opening of current accounts, both personal and corporate, with foreign banks. It does not extend to merchant account setups.
- Accuracy and honesty are imperative for the information provided on the pre-approval application forms. Be aware that the bank reserves the right to request further documentation to verify the information you’ve submitted, either during the service application assessment or after the account is operational.
On a final note
In the world of international banking, there are always risks and rewards. Even if you meet all requirements, there’s still a possibility of being denied the service you need.
To reduce this risk, seek professional help to select the right bank and obtain pre-approval for your service application. Benefit from this proactive approach to be sure you’ll hit a home run!
