Opening a UK bank account for a high-risk business can be challenging due to strict compliance regulations, enhanced due diligence, and risk assessments imposed by banks. Many traditional banks refuse to onboard high-risk industries due to concerns about financial fraud, money laundering, and reputational risks.
However, high-risk businesses—including crypto companies, gambling firms, forex brokers, adult entertainment, and international trading businesses—still need reliable banking solutions to manage payments, process transactions, and scale operations.
This guide will walk you through:
✅ Which businesses are considered high-risk by UK banks
✅ The best UK banks and alternatives for high-risk businesses
✅ Alternative payment solutions for businesses rejected by banks
✅ How to improve your chances of approval
What Businesses Are Considered High-Risk by UK Banks?
Banks in the UK classify certain industries as high risk due to regulatory, financial, and reputational concerns.
Examples of High-Risk Businesses That Face Banking Restrictions:
❌ Crypto Businesses – Cryptocurrency exchanges, brokers, and wallets face AML (Anti-Money Laundering) compliance challenges.
❌ Forex & CFD Brokers – High-volume trading activity makes forex brokers a target for stricter financial monitoring.
❌ Gambling & Betting Companies – Online casinos and betting firms face high chargeback rates and regulatory scrutiny.
❌ Adult Entertainment – Businesses in escort services, webcams, and adult content often struggle with bank approvals.
❌ E-Cigarettes & Vape Companies – Some banks categorize tobacco and vaping businesses as high-risk due to regulatory uncertainties.
❌ Money Service Businesses (MSBs) – Businesses dealing with remittances, currency exchange, and money transfers face intense compliance requirements.
❌ Nutraceuticals & Supplements – Some banks flag CBD products, weight loss pills, and supplements as high-risk.
If your business falls into a high-risk category, choosing a bank that specializes in high-risk industriesincreases your chances of approval.
Top 3 UK Banks for High-Risk Businesses
Although most UK high-street banks (Lloyds, Barclays, HSBC, NatWest) avoid high-risk industries, some fintech banks and specialized financial institutions provide banking solutions for high-risk businesses.
1. Cashplus Bank – Best for Regulated High-Risk Businesses
✔️ FCA-Regulated UK Business Accounts
✔️ Supports international payments & multi-currency transactions
✔️ Accepts some high-risk industries with additional due diligence
✔️ Fast digital onboarding
Best For: Crypto businesses, forex brokers, international traders, and digital entrepreneurs.
2. ClearBank – Best for Payment Service Providers & Fintechs
✔️ Regulated UK clearing bank
✔️ Works with PSPs (Payment Service Providers) & high-risk industries
✔️ Supports CHAPS, BACS, and Faster Payments
Best For: Fintech startups, payment processors, and high-risk financial firms needing UK banking solutions.
3. Monzo Business – Best for Online-Only High-Risk Businesses
✔️ Fully digital UK business bank account
✔️ Supports instant UK payments & multi-currency transactions
✔️ Limited support for high-risk businesses but case-by-case approvals
Best For: Small businesses in high-risk industries needing a digital bank.
What to Do If Banks Refuse to Onboard Your High-Risk Business?
If the above mentioned banks continue to reject your high-risk business, there are still alternative financial solutions available:
1️⃣ Consider Offshore Banking – Opening an account with an international bank in a jurisdiction that accommodates high-risk industries can provide access to multi-currency business accounts with more flexible requirements. Look at Comoros Islands, Switzerland or Mauritius for private banking alternatives.
2️⃣ Use Alternative Payment Institutions – Electronic Money Institutions (EMIs) and specialized payment providers offer virtual business accounts, IBANs, and multi-currency solutions tailored for businesses facing banking restrictions. If you would like to get an up to date list of best Fintechs for high-risks industries, fill out our contact form with your details and we will send it to you by email.
3️⃣ Leverage Crypto-Friendly Payment Solutions – Some businesses use digital asset platforms to accept and process payments in cryptocurrency, allowing for seamless transactions that can be converted into fiat when needed.
4️⃣ Explore Peer-to-Peer (P2P) Payment Networks – Utilizing P2P financial platforms can help businesses manage transactions without relying on traditional banking intermediaries.
5️⃣ Consult with Banking & Compliance Experts – Working with financial consultants who specialize in high-risk industries can help improve compliance documentation, risk assessments, and overall approval chances when applying for accounts.
Many high-risk businesses combine multiple financial solutions, such as an alternative banking provider for fiat transactions and a digital payment platform for international transfers, to maintain financial stability and operational flexibility.
How to Increase Your Chances of Bank Account Approval?
If you're in a high-risk industry, getting a UK bank account approved requires strategic preparation.
1. Strengthen Your AML & KYC Policies
Why? Banks reject businesses that don’t follow Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
✔ Have a compliance program with customer verification processes.
✔ Provide clear transaction records & financial statements.
✔ Use third-party KYC verification tools like Onfido or Sumsub.
2. Be Transparent About Your Business Model
✔ Clearly explain how your business operates, generates revenue, and mitigates risk.
✔ Provide detailed business plans and compliance documentation to prove legitimacy.
3. Choose a Fintech or High-Risk Banking Partner
✔ Fintech banks are more flexible than traditional UK banks.
✔ High-risk merchant banks specialize in serving restricted industries.
If you’re rejected by a bank, work with a financial consultant who specializes in high-risk banking solutions.
Conclusion
Getting a UK bank account for a high-risk business requires careful planning, compliance readiness, and choosing the right financial institution. While most high-street banks reject high-risk industries, fintech banks and specialized payment providers offer alternative solutions.