This article will discuss how you can open a UK based bank account for your Scottish Limited Partnership (SLP) entity. So keep reading on. A Scottish Limited Partnership (SLP) is a type of business structure that combines features of both a traditional partnership and a limited liability company. It is a legal entity that exists separate from its partners, providing a degree of limited liability for those involved. SLPs are governed by the law of Scotland and are commonly used for various business purposes. Why Scottish Limited Partnership Is Effective? Scottish Limited Partnerships (SLPs) are popular for several reasons that evolve around tax, limited liability, privacy and ease of use. First and foremost, main attraction of SLP is that all partners have limited liability, which means that personal wealth of partners is protected from debt and liabilities. Secondly, SLP is able to get into contracts, conduct business or own assets as any other normal company. The structure of SLP also allows its partners freely define their rights and responsibilities in a partnership agreement, which can be highly customized. In addition, SLPs benefit from not being subject to income tax. Profits and losses of SLP is being past individually to the partners who then have a duty to report on those. This is obviously advantageous for tax planning exercises. Let’s not forget the ease of forming such SLPs that are much easier than forming a regular company. Moreover, SLPs are also know for their confidentiality benefits that allow them not to fully disclose some peace’s of information to the Register of Companies. Why It Is Hard To Open A Bank Account For Scottish Limited Partnership (SLP)? Opening a bank account for Scottish Limited Partnerships (SLPs) has become more challenging in recent years, and this is largely due to concerns related to transparency, money laundering, and financial crime. SLPs, like other corporate entities, have been associated with money laundering activities. The privacy features of SLPs, such as the ability to maintain the identity of beneficial owners confidential, have raised concerns among financial institutions and regulatory authorities. The SLP structure is scaring the banks in a sense of reputational risks. If banks are associated with entities that are later found to be involved in illegal activities, such as money laundering, their reputation can be damaged and regulator might impose huge fines or restrict their business. The use of SLPs for purposes such as tax evasion or money laundering has led banks to be cautious about accepting them as clients. The lack of standardized reporting requirements for SLPs is another challenge for banks that burdens their risk assessment procedures with these entities. In the similar vein, Common Reporting Standard (CRS) and the Automatic Exchange of Information (AEOI), require financial institutions to share financial account information with tax authorities. The privacy features of SLPs may conflict with the transparency expectations of these reporting requirements. Due to all these challenges, banks may be more selective when considering whether to open accounts for SLPs. How To Open A Bank Account For SLP? Opening a bank account for a Scottish Limited Partnership (SLP) is a process that involves several steps. However, it's important to note that the process might be more challenging than opening an account for a regular business structure. Choosing a bank that is SLP friendly is a hard part for sure. Not many traditional banks want to touch SLPs and if they do, the due diligence process might not scare you by the depth but rather the time it will take to open an account. Many SLPs benefit from working with digital so called neo-banks. IF you would like to get an up to date list of digital banks that are opening bank accounts for SLPs then do not hesitate to reach out to us and we will send it to you via email. Once the bank is selected, speaking with the bank is also a task on its own. Banks do want to understand the activities of companies they onboard to a very detail. Be prepared to explain the partnerships activities and investments/assets that it holds, especially the flow of funds. More commonly requested documents during the bank account opening application are these: -Certified copy of the SLP's Certificate of Registration -Partnership agreement -Proof of identity for all partners (passport, utility bills, etc.) -Business plan or overview of the partnership's activities -Proof of the source of funds for the partnership However, the due diligence process will take some time, and follow up from compliance will come. We advise SLP clients to be patient and answer all the questions in as much detail as possible. Some banks may want to ensure that the SLP has genuine business activities and substance. Be prepared to provide information about the partnership's operations, clients, and suppliers. Onboarding team might ask for supporting documents such as agreements, invoices or bank statements. Be prepared for that too. Once the account is approved, you will likely need to agreements and T&C’s and fulfil any remaining requirements to complete the account opening process. Do not forget to collect online banking access credentials and account manager contact details so that you can receive timely help and assistance later on. Once again, if you would like to get our help in getting connected with several SLP friendly banks, fill out the contact form and we will get back to you within 1-2 business days. Conclusion In conclusion, while the Scottish Limited Partnership (SLP) offers appealing features such as limited liability and flexibility, opening a bank account for an SLP has become more challenging due to concerns related to transparency and financial crime. Navigating this process requires careful consideration of SLP-friendly banks, meticulous due diligence, and a recognition of the evolving regulatory landscape to ensure a successful account opening.

If you are wondering how or what banks can enable your business receiving payment from CIS countries, then keep reading on as we are going to discuss this topic in great detail. Receiving payments from CIS (Commonwealth of Independent States) countries can pose challenges for reasons such as currency exchange and fund transfer controls, payment infrastructure, documentation requirements and economic/political stability. It's important to note that the specific challenges may vary depending on the country and the nature of the transaction. Why CIS Economies Are Important In A Global Trade? The economies of the CIS countries are important for global economics for several reasons. First and foremost, CIS countries are rich in natural resources such as oil, natural gas, minerals and agricultural products (scale of output too). These resources contribute significantly to global commodity markets and are vital for various industries worldwide. As mentioned already, the scale of commodity export is comparatively huge and thus creates inflows of funds into these countries that later on are used to create economic output domestically by fostering imports, services, industrial and other sectors. In recent years, CIS countries are being recognised for fast technological development, outsourcing of IT services, research and innovation. As global markets become increasingly interconnected, diversifying economic ties with Asia, Europe and America are diversifying these economies into services and manufacturing, that are supplying global markets. Similar story is with investment potential, some CIS economies are considered emerging markets with growth potential. Investors and businesses often seek opportunities in these markets for higher returns, contributing to global economic growth. Why It Is Important To Receive Payments From CIS Countries? Receiving payments from CIS countries can be important for several reasons, depending on the nature of your business or financial activities. If you are a business looking to expand your market reach, receiving payments from CIS countries allows you to tap into a sizable and diverse consumer base that is ready to purchase goods and services. For businesses involved in industries such as energy, mining, or agriculture, receiving payments from CIS countries might be related to selling important machinery that enables these producers and extractors to innovate in their industries and other regions collecting revenue on inventory sold. Moreover, if you are engaged in collaborations, partnerships, or joint ventures with companies or entities in CIS countries, receiving payments is an integral part of the business relationship. It facilitates smooth and ongoing cooperation, contributing to the success of joint ventures and partnerships. The tourism or hospitality sector is also receiving payments from visitors or clients from CIS countries. It represents revenue from tourism-related activities, including accommodation, dining, and entertainment. Recently popular and expanding field is culture and education. Receiving payments from CIS countries may be tied to collaborations, exchanges, or educational services. All in all, receiving payments from CIS countries is important for businesses and individuals engaged in international trade, investment, and collaborations. Why It Is Challenging To Receive Payments From CIS Countries? Receiving payments from CIS countries can present challenges for various reasons. Number one is regulatory complexity. CIS countries often have complex regulatory frameworks governing international transactions. Some CIS countries may have restrictions on currency exchange or capital controls that make it difficult to convert local currency into other currencies for international payments. The payment infrastructure in some CIS countries may not be as developed or efficient as in other regions. Limited access to electronic payment systems or delays in banking processes can hinder the smooth transfer of funds. Differences in banking systems and practices in the processes for international wire transfers and other financial transactions may not be standardized across all countries, leading to delays and complications. Finally, political tensions and international sanctions may affect trade relationships and financial transactions with certain CIS countries. Compliance with international sanctions can add to number of difficulties, especially in the recent example of sanctioned Russian banks, that were switched off the SWIFT system thus freezing both domestic and foreign capital in the country. Of course, there are some industries, product and services that are not sanctioned but most of the global banks refuse to accept payments from Russia or any other sanctioned jurisdiction creating obstacles for businesses that operate in unsanctioned areas of economy. However, it doesn’t mean it is impossible, knowing banks that can accept and receive such payments is key in operating in such economic landscape. If you would like to get to know banks that are working with payments from CIS countries and can solve your difficulties, contact us and we will share a list of such banks. How To Receive Payments From CIS Countries? Receiving payments form any CIS country involves familiarizing with the regulatory landscape of the specific country you are dealing with and the existing payment methods, that might be some local rails besides SWIFT. Secondly, it is important to understand the local currency and availability to receive payments in it. Some CIS countries have pegged their local currencies to USD therefore USD payment can be requested for goods or services as it is easy to exchange between a local currency and the USD with a local bank. One more thing to consider – sanctions. Be ready to comply with receiving banks due diligence and AML controls, that also involves sanction checks. It is extremely important to have required documentation in place, such as invoices, agreements or even licenses. And most importantly, you have to open a bank account with institution that can leverage their correspondent banking network and receive payments from CIS countries. If you would like to receive an up to date list of banks that can open an account with CIS currencies, do not hesitate to contact us . Conclusion In conclusion, while receiving payments from CIS countries presents challenges due to regulatory complexities and political tensions, it is crucial for businesses seeking diverse markets and international collaborations.

If you are wondering how to open a business bank account remotely, then keep reading on as we are going to uncover the simple steps. Opening a business bank account remotely is something that a lot of entrepreneurs is looking for but not easy to find. Many traditional banks will require owners to come for a branch visit and sign physical pieces of paper for the account to be approved. However, there are several banks that accept clients and open bank accounts for them completely remotely and here is the full guide to it. Why Opening A Business Bank Account Remotely Is So Hard Opening a business bank account remotely is challenging for several reasons, and the specific difficulties may vary depending on the country, regulatory environment, nature or industry of the business who is opening and so on. It is important to understand that many traditional banks are both lacking in technological innovation and digitalization and are very strict with compliance. Generally, financial institutions are required to comply with various regulations, anti-money laundering (AML) laws and Know-Your-Client (KYC) requirements. Remote onboarding processes need to meet these compliance standards, which all banks adhere to but traditional banks choose to identify their clients (again, the KYC) by them visiting the bank’s branch instead of doing it online. In addition, banks need to assess the risk associated with each business account and remote applications may be seen as riskier due to the potential for fraudulent activities. Banks often have strict risk management policies in place, and remote onboarding may not align with these policies. Moreover, making the application and opening processes remote might increase the risks of fraud. Banks must balance the need for security with the desire to provide a seamless customer experience. Where Can I Open A Business Bank Account Remotely? In this digital age there are several financial institutions that offer opening business bank accounts remotely. Keep in mind that the availability of remote account opening services may vary by region and may change over time. To your surprise, there are traditional banks that have developed online services and can open a business account fully online. For example, HSBC Bank in the UK offer such possibility. However, traditional banks are still fairly slow in serving customers through their digital platforms. For this reason many business choose FinTechs and Neo-Banks. And we agree with this strategy in most of the time. Digital banks that leverage the correspondent banking networks of top tier banks and have developed mobile and desktop platforms that are easy to use are good choice for remote business bank account opening. However, not all digital banks are equally good or would take applicants fully remotely. To make this easy for you we keep updating a list of digital and traditional banks that take remote applications from business globally (except the sanctioned jurisdictions). If you would like to receive it, just fill out our contact form and we will share it with you via email. How To Open Business Bank Account Remotely - Easy Steps Preparing for a remote business bank account application and onboarding process involves gathering the necessary documentation, understanding the requirements of the chosen bank or financial institution, and ensuring that you meet all the criteria. Here's a general guide to help you prepare: 1. We encourage you to evaluate several banks and choose according to your research and general requirements for payments or currencies, that may vary per bank. If you are looking to study more on this topic, please see our article here . 2. Banking regulation is very similar across the globe therefore the documents they require for account opening are also similar, here is a list of commonly required documents that you should prepare in advance: · Memorandum and Articles of Association; or Articles of Incorporation · Certificate of Registration/Incorporation; · Share certificate(s); or Any commercial registry document containing information on the beneficial ownership · An ownership organisation chart; · IDs for all Ultimate Beneficial Owners · Proof of the trading address: Bank statement or Utility bill (water, electricity, gas, landline phone) dated within 3-6 months. · Business plan or explanation of business nature · Purpose of the account, expected monthly volumes, currencies and countries involved – explanation letter or document. This part is very important as your commercial terms will be based on your business nature/volumes/operations. · VAT registration, if applicable. 3. Sign the agreements and all relevant paper work. Once done, you should be ready for follow up compliance as many banks need to renew their client accounts yearly. 4. Get the account manager for your account and keep her contact details saved as you may want a quick help once a problem occurs. 5. Check the technology capability, such as mobile app, API integrations, several levels of authorization capability and so on. If you might have any other questions in regards to opening business bank account, you may reach out to us and we will try to help you as much as we can. Benefits of Opening a Business Bank Account Remotely Opening a business bank account remotely offers companies speed, flexibility, and global accessibility without the need for physical travel. Many digital banks and EMIs now allow entrepreneurs to complete the entire process online, from submitting documents to video verification, often within a few days. This is particularly valuable for international founders or businesses expanding abroad, as it eliminates the need to visit a branch in another country. For example, a startup registered in Estonia can open a multi-currency IBAN account in Lithuania remotely, gaining access to SEPA and SWIFT payments without leaving their home base. Remote onboarding also saves costs, accelerates market entry, and provides businesses with immediate access to essential banking tools like online dashboards, virtual cards, and FX services, making it a preferred choice for modern, digital-first companies. Conclusion In conclusion, navigating the complexities of opening a business bank account remotely requires careful consideration of the challenges posed by traditional banking systems, compliance requirements, and risk management. However, there are digital banks ready to do business fully remotely.

If you are wondering how to get access to faster payments for your company, then keep reading on. This article will help you to understand Faster Payments better and find the right bank for access to FPS system. The Faster Payments system in the UK is a way to send money quickly and securely. It allows near-instant electronic transfers of money, enabling business to make payments or transfers 24/7, including weekends and holidays. The Faster Payments in the UK works through electronic communication between banks and other financial institutions within the Great British Pound (GBP) monetary system. FPS-UK-Payments Why Faster Payments Are Important For Business? Faster payments are beneficial for businesses in the UK because they provide quick and efficient money transfers, allowing companies to manage their finances in real-time. This speed of money transfers can improve cash flow, facilitates faster settlement of transactions, especially when business has a high velocity, and enables businesses to respond rapidly to financial needs. For non-UK companies, leveraging the Faster Payments system can be beneficial in several ways. Firstly, Faster Payments facilitate swift cross-border transactions, enabling non-UK companies to efficiently conduct business with their UK counterparts. Being fast and efficient in turn increases the trust of business counterparts and timely payments are highly appreciated as it helps the cashflow management. Secondly, having access to Faster Payments can lead to cost savings. Often banks would make money transfers in GBP via SWIFT, which is a costly payment method. The efficiency of the FPS system and having a UK based bank account may help minimize transaction costs for non-UK companies to a very minimum. Moving on, utilizing Faster Payments can provide a competitive edge, especially in industries where speed is a critical factor. Lastly, having a UK based bank account can offer a broader spectrum of benefits rather than just FPS. For example, having several bank accounts allow businesses to seek banking cost optimization and increased trust in their trading partners. Difference Between CHAPS and FPS Payments In the UK, CHAPS (Clearing House Automated Payment System) and FPS (Faster Payments Service) serve different purposes for transferring funds. CHAPS is designed for high-value, time-critical transactions , such as property purchases or large corporate payments, with no upper limit on the amount and same-day settlement if instructions are made before the cut-off time. However, it comes with higher fees and is mainly used by businesses and institutions. FPS, on the other hand, is tailored for everyday payments , offering near-instant transfers (usually within seconds) 24/7, but with a maximum transaction limit (currently up to £1 million, depending on the bank). In practice, a company might use CHAPS to complete a £5 million acquisition payment, while relying on FPS to pay staff salaries or vendors quickly and at a much lower cost. How To Get Access To Faster Payments? Access to Faster Payments is typically facilitated through banks or financial institutions based in the UK. So first step is to open a bank account in the UK with a GB IBAN. You can find more information on how to do that in our article here . If you are looking to open a bank account in the UK right now, reach out to us and we will provide you with an up to date list of digital banks that can support FPS for a non-UK company. Once you have a bank account in the UK, enroll in online banking services provided by your bank. This is often a prerequisite for using Faster Payments, as transactions are typically initiated through online channels. Moreover, if your business has a high volume of payments, you might want to check for Mass-Payments functionality and API integration. Do not forget to ensure that your business complies with any regulatory requirements related to Faster Payments. Your bank may request specific documentation or information regarding some of your payments, such as invoices or contracts that support purpose of those payments. Lastly, keep yourself updated on any changes to the Faster Payments system. Banks may introduce features or fixes that can positively or negatively affect your business operations. Conclusion In this article, we explored how non-UK companies can gain access to the Faster Payments system (FPS) for efficient cross-border transactions. By opening a UK-based bank account, enrolling in online banking services, and ensuring regulatory compliance, businesses can leverage FPS to improve cash flow, minimize transaction costs, gain a competitive edge, and foster trust with UK counterparts.

If you are looking to open an account with Electronic Money Institution (EMI) and wondering how to choose the right one, then keep reading on.   Here is a comprehensive guide that will assist you in selecting, analysing, and choosing the best EMI. What Is an Electronic Money Institution (EMI)? An Electronic Money Institution (EMI) is a licensed financial entity authorized to issue electronic money and provide a wide range of payment-related services. Unlike traditional banks, EMIs typically do not offer full lending facilities but focus on payments, currency exchange, and digital money issuance. Today, some of the most popular jurisdictions for obtaining an EMI license include Lithuania, the United Kingdom, Malta, Cyprus, and France, as these countries provide regulatory frameworks aligned with EU directives and offer passporting rights across the European Economic Area (EEA). In practice, EMIs enable businesses and individuals to open multi-currency IBAN accounts, process cross-border payments, issue payment cards, and even integrate on/off ramps for cryptocurrencies or stablecoins. For example, a fintech company in London might use an EMI license to provide prepaid debit cards and EUR/GBP accounts for freelancers, while a Lithuanian EMI could focus on offering international IBANs and SEPA Instant transfers to e-commerce businesses across Europe.   What To Check Once Choosing An EMI?   There are numerous EMIs nowadays across various jurisdictions, all offering the same thing: multi-currency accounts.   However, not all are equally good, and it is crucial to choose wisely since they will be handling your money. To help you in this process, we have compiled a list of tips:   Money safeguarding: Inquire about where the EMI is safeguarding client funds (bank name, country, currencies). A reputable EMI will have bank accounts for safeguarding funds at top-tier banks such as Barclays, Citi, HSBC, Goldman Sachs, etc. If it is an unknown bank or in a high-risk country, it is advisable to avoid such a provider. Also, check if client funds are segregated on your EMI's balance sheet.   Regulation: It is important to check where the EMI is licensed. If it is in a small, less developed country (for example, Moldova), it implies risk. Also, investigate whether the EMI has ever encountered regulatory issues. For instance, if a particular EMI was fined by the regulator for money laundering or lack of KYC practices, it is recommended to avoid it. Because the next day the EMI might lose a license and your funds will be stuck.   Security: Evaluate the overall platform security, authorization tools, and encryption. With an increasing number of fraud cases, even with banks, modern hackers exploit security loopholes to transfer client funds.   Exchange rates: Foreign exchange rates and payment fees are crucial considerations. The reason for choosing an EMI over a traditional bank is to save money or have an account in different jurisdiction than the company is registered in. Transaction fees should be transparent, and for better negotiation, provide your current pricing with the bank and request a reduction. For FX fees, check the current spot rate in the market to understand the spread provided to your business. Compare with other providers to identify the most competitive rate on a selected currency pair.   If you would like to get a list of most price competitive EMI, reach out to us and we will send you an up to date list.   Payments technology: Investigate the technological capabilities of the EMI's payment platform. Pay attention to login security, reporting functionality, and available audit trails. The ability to store beneficiary details is essential to avoid repeated entries. Beneficiary email notifications are another useful functionality, informing payees that a payment has been made to them.   Currency Capability: Check the full currency offering of the EMI. Inquire about the list of currencies they can execute payments and exchanges in, as well as hedge. A reputable EMI should support more than 50 currencies.   Payments capability: Understand the full list of countries to which the EMI can send payments and the list of currencies the platform can accept payments in. A good EMI will have a wide range of cross-border payment routes and will be able to deliver or receive from at least 50 countries.   Testimonials: Request client testimonials, especially from a relevant industry. Any well-established EMI will have satisfied clients who can vouch for their services. Alternatively, you may check reviews on Trustpilot or alternative platform. Please also bear in mind, that there are always dissatisfied customers who leave reviews regardless. If they are not specific and just complaining over some simple things, ignore these type of feedbacks. How To Find A Good EMI?  As mentioned earlier, there a plenty of EMI’s. But we suggest to look in the most regulated and banked countries such as UK, Germany, Netherlands, Australia, Hong Kong, Singapore, etc.   To save your time, we can recommend you payment providers that can fit your business needs. Do not hesitate to reach out to us and we will send an up to date list.   We have helped hundreds of companies worldwide to find the best payment and FX options based on their business operations specifics and payment destinations.   Usual payments partner that we work with is able to:   ·      Provide single multi-currency IBAN for all payments and FX. ·      Allows to receive payments in 30+ different currencies ·      Allows to send payments in 50+ currencies to 120+ countries ·      Allows to make mass-payments by integrating via API or uploading an excel spreadsheet ·      Gives access to effective currency hedges ·      Supports exchange of currencies using reasonable and competitive pricing ·      Process automation via API integration ·      Provides cost-effective solution for low value international payments ·      Supports payment control and audit trails ·      Streamlines beneficiary management and compliance processes ·      Gives a relationship manager ready to help finding best solution and answer your questions     Should You Keep Your Money With An EMI For A Longer Period Of Time?   Unlike with the bank, your money with EMI is not insured. Although EMIs are required to safeguard client funds with a licensed bank overnight, this safeguarding is not entirely equivalent to the insurance that banks provide.   Certainly, a highly reputable EMI will secure client funds with a Top Tier Bank. Nevertheless, it is crucial to inquire before opening an account. Our EMI partners ensure the safety of client funds with banks such as JP Morgan, Goldman Sachs, Barclays, Citi, Lloyds, and similar institutions.   We recommend using an Electronic Money Institution only for the intended services, such as foreign exchange or cross-border payments. This implies pre-funding the account with the EMI to facilitate currency exchange or international payments. It is not advisable to keep money for an extended period with an EMI unless it has an excellent reputation.   Conclusion   In conclusion, we have addressed the key factors to contemplate before selecting an EMI (Electronic Money Institution). We trust that this guide will assist you in your decision-making process!

If you are looking to open a bank account for a Trust, then keep reading on, as we are going to deep dive into the next steps.   A trust is a legal structure designed to hold and oversee assets for the benefit of specific beneficiaries. The trust involves three key roles: the Settlor, who establishes and contributes assets to the trust; the Trustee, responsible for managing the trust and adhering to its terms in the trust document; and the Beneficiaries, who receive the benefits, such as income or eventual distribution of the trust assets. This fiduciary arrangement ensures that the trustee acts in the best interests of the beneficiaries, creating a structured framework for asset management and distribution.     Why Trusts Are Effective?   Trusts are highly popular and useful for several reasons. Primarily employed in estate planning, trusts offer a structured mechanism for the efficient distribution of assets, helping individuals specify how their wealth should be handled after their passing.   Additionally, trusts provide a level of privacy and flexibility not always afforded by other methods of wealth transfer. Their nature allows individuals to tailor the terms to meet the unique needs of their beneficiaries, adapting to changing circumstances over time. Trusts also serve as effective tools for asset protection, enabling individuals to shield assets from creditors and legal claims, ultimately preserving wealth.   Furthermore, trusts play a crucial role in tax planning. They offer opportunities to minimize estate taxes, gift taxes, and wealth transfer taxes. Various types of trusts provide avenues for strategic wealth transfer, taking advantage of tax exemptions and deductions.   Trusts are also valuable for managing incapacity allowing for the seamless management of assets if the settlor becomes unable to do so. Beyond individual benefits, trusts support charitable giving through vehicles like charitable trusts, facilitating donations to charitable causes while potentially offering tax advantages.   Overall, the adaptability and diverse applications of trusts make them popular in instances of financial planning, wealth preservation, and charitable causes.   Main Forms of Trusts   Trusts come in two main forms: revocable and irrevocable. A revocable trust allows the individual creating the trust, known as the settlor, to make modifications or revoke the trust entirely during their lifetime.   However, this flexibility diminishes upon the settlor's death, at which point the trust typically becomes irrevocable.   In contrast, an irrevocable trust, once established, generally cannot be altered without the consent of the beneficiaries. This type of trust is frequently utilized for purposes such as tax planning and asset protection. The irrevocable nature provides a level of permanence and security, aligning with specific long-term goals outlined in the trust agreement.   How Are Trusts Regulated?   Trusts are subject to regulations that vary across jurisdictions, often falling under the purview of trust law.   The legal framework governing trusts outlines the requirements for their creation, administration, and dissolution. Regulations typically stipulate the roles and responsibilities of the key parties involved, such as the settlor, trustee, and beneficiaries.   Specific rules may govern the permissible purposes of trusts, the types of assets that can be placed in trust, and the conditions under which trusts can be modified or terminated.   Additionally, trust regulations may address taxation aspects, including reporting requirements and potential exemptions. Compliance with trust regulations is essential to ensure the validity and effectiveness of trusts while providing a legal structure that balances the interests of the trust's creators and beneficiaries within the broader legal and financial landscape.   Challenges For Opening Trust Bank Accounts   Opening a trust bank account can pose several challenges due to the complex nature of trusts and the need to comply with various legal and financial requirements.   One challenge is the documentation process. Banks typically require a copy of the trust agreement, identification documents for trustees, and the trust's taxpayer identification number (TIN). Ensuring that all necessary paperwork is provided can be cumbersome process, especially if the trust is complex or involves multiple parties.   Additionally, some banks may be hesitant to open trust accounts for certain types of trusts or for trusts with international components due to increased regulatory scrutiny and compliance concerns. This is more relevant to trusts that are based in tac heaven or offshore jurisdictions, where banks are even more reluctant to open accounts.   Trusts with intricate structures or those involving assets with uncertain values may also face challenges during the account-opening process. Overcoming these challenges often requires clear communication between the trustee, legal advisors, and the bank to ensure all necessary information is provided and all regulatory requirements are met.   How To Open A Bank Account For A Trust?   To open a bank account for a trust is not an easy task, which requires preparation and diligence throughout. However, we have composed a guide of general steps that are applicable globally:   1. Documentation: collect all necessary documentation, including a copy of the trust agreement, the trust's taxpayer identification number (TIN), and identification documents for the trustee(s). Ensure that the documents are complete and accurate.   2. Select a bank: choose a bank that offers trust accounts and is willing to work with the type of trust you have. If you would like to get an up to date list of trust friendly banks in the EU, UK, Switzerland and other jurisdictions, reach out to us and we will share it via email.   3. Start the onboarding process: reach out to the chosen bank or get an introduction using our help and inquire about their specific requirements for opening a trust account. After the introduction call, banks usually ask to project the volumes or describe the flow of funds, to propose pricing. After commercials are agreed, the initial onboarding pack will be requested. As per first step, we highly suggest to have most crucial documentation ready in advance as it might save time in onboarding.   4. Respond with necessary information: after submitting the required documentation to the bank, you will receive follow up questions from onboarding or due diligence team. Responding to these requests is absolutely crucial as it may impact the approval or rejection of account opening application. We highly advise to respond with necessary information with a high degree of details around it, so there is no room for speculation or assumptions. Common mistake is short answers that lead to account rejection, due to the fact that compliance team cannot fully verify or understand some aspects of the trust or its purpose.   5. Comply with regulations: be prepared to comply with any additional regulations or requests from the bank. This may include anti-money laundering (AML) checks, background checks, or other due diligence procedures.   6. Fund the account: once the account is approved, fund it with the initial deposit. This may involve transferring funds to the account to cover expenses or related party payments. Another mistake is not to use the account as intended in the application forms, which may result in account closure or introduction of monthly fees. Logic behind is that banks have to invest into the due diligence and account opening procurers while making no revenue after all of that.     7. Day to day use tips: keep track of the trust account and adhere to any ongoing requirements from the bank. Moreover, seek for a relationship or account manager as it will improve the day to day use of the bank account. And lastly, account manager can be a gateway to more services such as FX dealings, reporting, cost cutting and so on.   Once again, if you would like to receive our insights or get introduced to a trust friendly bank, get in touch and we will be happy to assist.   Conclusion In conclusion, the global guide emphasizes the meticulous documentation, careful bank selection, and proactive engagement required to successfully open a bank account for a trust, considering the complexities of legal frameworks and regulatory compliance. Trusts, valued for their versatility in estate planning and asset protection, demand strategic navigation of challenges, such as compliance hurdles and potential bank reluctance in offshore jurisdictions, making clear communication with legal advisors and financial institutions crucial for achieving varied financial objectives.

If you are looking to open a bank account for Foundation, then keep reading on as we are going to discuss easy steps to get it done.   A foundation is a legal entity established to support charitable, educational, religious, or other philanthropic purposes. Foundations typically manage and distribute funds or assets to further their specified mission.   Why Foundations Are Effective? Foundations are effective because they offer a practical and structured way to channel wealth into impactful initiatives while maintaining flexibility and control. For businesses and high-net-worth individuals, a foundation can act as a dedicated vehicle to manage charitable giving, ensuring funds are deployed strategically rather than through ad-hoc donations. They also provide significant tax advantages, making it easier to allocate larger sums toward long-term projects. For example, a corporate foundation might focus on funding education programs in regions where the company operates, aligning philanthropy with business values while strengthening its brand reputation. Foundations also benefit from professional governance and asset management, ensuring donations are not only preserved but actively grown, allowing them to fund initiatives for decades. In practice, this makes foundations one of the most reliable ways to build a sustainable legacy, maintain donor intent, and maximize measurable impact.     Challenges For Opening Foundation Bank Accounts   Opening a foundation bank account can be challenging due to stringent documentation requirements, complex regulatory compliance, and the need to prove charitable status for tax benefits.   Financial institutions conduct due diligence, scrutinizing the foundation's purpose and financial stability, potentially causing delays. Compliance analyst typically try to dig beyond the good looks of the foundation to understand who and how is truly benefiting from such legal set-up.   Additionally, identifying authorized signatories can pose obstacles. Banks usually try to understand who will be authorized to perform financial transactions and how the flow of funds will look like.   The changing regulatory landscape and limited banking options for smaller or new foundations add further complexities such as anti-money laundering practices, and tax regulations are subject to periodic updates and revisions.     How To Open Bank Account For A Foundation?   Opening a bank account for a foundation requires thorough preparation and diligence. Here is a general guide applicable globally:   Documentation: gather all necessary documentation, including a copy of the foundation's charter and incorporation documents, its taxpayer identification number (TIN), proof of address, bank account statement if available, trustee resolution, description explaining the purpose of the account opening, AML documentation if applicable. Ensure the completeness and accuracy of the documents.   Select a bank: choose a bank that offers accounts for foundations and is willing to work with the specific type of foundation you have. For an up-to-date list of foundation-friendly banks in the EU, UK, Switzerland, and other jurisdictions, contact us for assistance.   Start the onboarding process: reach out to the chosen bank or get an introduction through our assistance. Inquire about their specific requirements for opening a foundation account.   After the introduction call, banks typically ask for volume projections or descriptions of fund flows to propose pricing. Once commercials are agreed upon, the initial onboarding pack will be requested. Having crucial documentation ready in advance is recommended to expedite the onboarding process.   Respond with necessary information: after submitting required documentation, expect follow-up questions from the bank's onboarding or due diligence team. Responding to these inquiries is crucial, as it can impact the approval or rejection of the account opening application. Provide detailed information to avoid speculation or assumptions. Short answers may lead to account rejection due to the compliance team's inability to fully verify or understand certain aspects of the foundation or its purpose.   Comply with regulations: be prepared to comply with any additional regulations or requests from the bank, such as anti-money laundering (AML) checks, background checks, or other due diligence procedures.   Day-to-day use tips: monitor the foundation account and adhere to any ongoing requirements from the bank. Establish a relationship with an account manager to enhance the day-to-day use of the bank account. An account manager can also serve as a gateway to additional services such as foreign exchange dealings, reporting, and cost-cutting measures. Best Jurisdictions for Foundation Banking When it comes to banking for foundations, certain jurisdictions stand out for their stability, regulatory clarity, and access to international financial services. In Europe , Switzerland and Luxembourg are leading choices, offering strong reputations for asset protection, multi-currency accounts, and expertise in managing philanthropic structures. Foundations there often bank in EUR, USD, and increasingly CHF, with access to wealth management services, investment advisory, and global payment rails. In the Caribbean, Cayman Islands and Panama remain popular for international families and corporates seeking tax-efficient structures with access to USD banking. Meanwhile, Singapore has emerged as a hub for Asian foundations, offering accounts in USD, SGD, and EUR, combined with robust private banking and custody solutions. Across these jurisdictions, the most in-demand services include multi-currency IBANs , FX management , safeguarding accounts, and investment-linked banking — all essential to ensure that foundations can manage cross-border donations, preserve capital, and maximize long-term impact.   Conclusion   Opening a foundation bank account requires careful preparation, adherence to documentation requirements, and clear communication with financial institutions. Navigating regulatory complexities and aligning with the bank's policies are crucial. A well-documented and transparent approach not only facilitates initial account opening but also establishes a successful and enduring financial partnership with the chosen bank.

If you are looking to open a bank account for your MSB, then keep reading on as we are going to uncover the next steps for operational and clients’ money accounts.   A Money Services Business (MSB) is a financial entity providing services related to money transfer, including money transmitters and currency exchanges. In Canada, MSB’s are regulated and licensed by FINTRAC.   Why MSB Needs An Operational Bank Account?   Operational account enables MSB to segregate own funds from customer funds and ensuring that the business is running smoothly.   An operational account is often used to cover business expenses such as payroll, office lease or rent, utilities and any other typical business expenses.   Operational accounts will never be used to hold or transact in clients funds. For clients funds, MSBs must open two different accounts: safeguarding account (to keep clients funds separately from its own money) and clients’ money accounts (to process transactions on behalf of their clients).   Opening an operational account for MSB is a straight forward process and requires a regular corporate onboarding preparation that consist of gathering company documents, identifying UBOs, getting POAs and POIs, and potentially a few more steps.   If you are looking to open an operational bank account for your MSB, get in touch with us and we will share MSB friendly banks list with you.   Opening A Safeguarding Account for MSB   A safeguarding account is a designated bank account used by MSBs to separate and safeguard customer funds from the company's operational funds, ensuring the protection and return of customer funds in the event of the institution's insolvency.   Safeguarding account can be only opened with a traditional bank holding a banking license. For the Canadian MSBs, it is fairly straight forward with opening a safeguarding account in Canada. However, it is often a struggle to get approved for a safeguarding account in the EU, UK or Asia. Our team is working with several banks across the globe to ensure that Canadian MSBs can open multi-currency safeguarding accounts and if you are looking for one, get in touch with us to proceed.   Opening A Clients Money Account Or Correspondent Account For Canadian MSB   The most important bank accounts that MSBs need are client money accounts or also so called 3rd party payments accounts (or often called correspondent accounts).   These accounts ensure that MSB is able to exchange currency, receive payments in and send payments out on behalf of their clients this way providing the intended services that clients signed up for.   Often MSBs will need to have at least several such accounts to ensure a global coverage and multi-currency capability. This is especially true if MSB is serving not only clients from Canada but also from abroad.   Often a newly established MSBs can first open pooled accounts only because of the lack of track record in their business. Pooled account have all the same capability as described above with a drawback of allowing clients to transact in the MSB name instead of individual named IBAN.   Correspondent accounts (often called PaaS or BaaS) will allow MSB to issue named client IBANs (accounts) and allow clients to transact in their own company name.   Moreover, we highly recommend to seek for clients money accounts that are supported via API connectivity for easier scalability and efficiency in conducting your money services.   If you are looking to open a client’s money account for your MSB, get in touch with us and we will share a list of MSB friendly banks via email. Also you may find a complete guide on how to open client money accounts here .   Lastly, we would like to share a standard onboarding pack for Canadian MSB’s, that you should be aware and prepared for:   •          Certificate of Registration or Incorporation •          Memorandum and Articles of Association; or Articles of Incorporation •          Official list of directors and shareholders •          IDs for all UBOs and all authorised signatories •          Proof of business trading address •          Licence number from FINTRAC •          Last Audited Accounts or alternative business bank statement •          AML/KYC/CDD policies •          Latest external AML audit report •          Management information: AML governance arrangements, sample CDD files and customer risk assessment data. •          External AML audit which might need to be completed yearly   There might be more specific requests depending on a chosen bank and we would highly advise to comply with banks requests and provide as much detail as possible to guarantee the successful onboarding of your MSB. How Canadian MSBs Can Leverage Stablecoins in Payment Rails Canadian Money Service Businesses (MSBs) can integrate stablecoin payments such as USDT or USDC into their existing payment rails to improve speed, reduce costs, and expand global reach. By offering clients the ability to send or receive stablecoins alongside traditional payment methods, MSBs can facilitate faster cross-border transfers compared to SWIFT or wire transfers, which often take several days. Stablecoins settle on-chain within minutes and can then be off-ramped into CAD or other local currencies through regulated exchanges or crypto-friendly financial institutions. For example, an MSB serving clients sending remittances from Canada to Asia could use stablecoins to settle liquidity quickly, while still providing recipients with fiat payouts in their local currency. This hybrid model enables MSBs to diversify payment options, stay competitive in a digital-first market, and attract customers who value speed, transparency, and lower fees.   Conclusion   In conclusion, establishing and managing bank accounts for a Canadian Money Services Business (MSB) involves navigating various account types, each serving specific purposes. From operational accounts ensuring smooth business operations to safeguarding accounts protecting customer funds and client money accounts facilitating currency exchange and global transactions, the process requires adherence to regulatory standards and documentation.

If you are looking to open a bank account for Small Payment Institution (SPI or Small PI) then keep reading on, as we are going to cover the basic steps and banks that can do that for you.   Small Payment Institution is a licensed financial institution concept that is popular in the EU and UK . An SPI typically refers to a type of financial institution that is authorized to provide payment services but on a smaller scale compared to full-scale banks. How SPIs Differ from EMIs? A Small Payment Institution (SPI) is a lighter version of an Electronic Money Institution (EMI), designed for startups or smaller operators entering the payments space. SPIs face lower capital requirements and simplified licensing, making them faster and cheaper to set up. However, they also come with stricter limitations, such as capped monthly transaction volumes (e.g., €3 million in the EU) and restricted cross-border capabilities. In contrast, EMIs have higher regulatory and capital obligations but can issue electronic money, provide multi-currency IBANs, and operate across the EU with full passporting rights — making them better suited for scaling businesses.     Why SPI Needs An Operational Bank Account?   Operational bank account is vital for SPI to segregate its own balance sheet from clients funds. This means an operational bank account is essential for day-to-day business operations. It enables the SPI to pay operational expenses, such as salaries, rent, and other overhead costs.   An operational bank account is not allowed to be mixed and used with customers money based on regulatory requirements.   Naturally, the client funds will be kept in a safeguarding account and transactions on behalf of the clients will be carried out using clients’ money accounts or also called: third party payment accounts, omnibus accounts, correspondent accounts and so on.   Opening an operational bank account for SPI is a straight forward process and requires a regular corporate onboarding preparation that consist of gathering company documents, identifying UBOs, getting POAs and POIs, and potentially a few more steps.   Why SPI Needs A Safeguarding Account?   A Small Payment Institution needs a safeguarding account to comply with regulatory requirements and ensure the protection of customer funds.   Regulatory authorities often mandate that payment institutions maintain a clear separation between their operational funds and the funds held on behalf of customers. The safeguarding account serves as a designated repository for customer funds, offering a layer of financial security.   In the event of the SPI going into special administration (insolvency), the safeguarding account ensures that customer funds are distinct and can be returned to customers, safeguarding their interests and enhancing overall financial transparency and accountability in the payment services sector.   However, not many banks are willing to engage into safeguarding client funds on behalf of payment institutions, therefore opening such accounts can be challenging.   Our team is working with several banks that can onboard SPI’s for safeguarding accounts with several conditions, if you would like to explore, get in touch with us .   Why SPI Needs A Clients Money Account Or Correspondent Banking Provider?   Small Payment Institutions needs a Clients Money Account to be able to receive and send payments on behalf of their customers while also exchanging currencies.   Regulatory authorities mandate the segregation of customer funds from operational funds to ensure the protection of clients therefore establishing a Clients Money Account allows SPIs to adhere to these regulatory requirements, providing a special account that is purposely set-up to carry out client transactions only and nothing else.     Furthermore, a Clients Money Account enhances operational efficiency by streamlining the management of customer transactions. It provides a centralized platform for processing payments, tracking inflows and outflows related to customer funds, and maintaining accurate records.   Additionally, SPIs may opt for correspondent banking relationships to extend their financial reach, particularly in cross-border transactions. These relationships offer access to a broader financial network, enabling SPIs to leverage the services and infrastructure of larger banks for more efficient settlement of transactions, currency exchange, and overall operational capabilities.   When our team is helping SPI’s to establish new partnerships we often recommend having several banks or payment providers for Clients Money Accounts so that maximum coverage is achieved. If you would like to receive an up to date list of SPI friendly banks, reach out to us and we will share via email.   Conclusion   In conclusion, setting up and overseeing bank accounts for a Small Payment Institution (SPI) entails navigating diverse account types, each designed for distinct purposes. These range from operational accounts that facilitate seamless business operations to safeguarding accounts dedicated to protecting customer funds, and client money accounts that support currency exchange and international transactions. This entire process necessitates strict adherence to regulatory standards and comprehensive documentation.

If you are looking to open a bank account for your EMI, then keep reading on as we are going to walk you through different account types and how to get them.   An Electronic Money Institution (EMI) is a financial entity that is licensed to issue and manage electronic money. EMIs provide services similar to traditional banks but focus specifically on electronic transactions. They are regulated entities that must adhere to specific regulatory requirements to ensure consumer protection, financial stability, and the integrity of the electronic money system.   Why EMI Needs Operational Bank Account?   Electronic Money Institution (EMI) requires an operational bank account for its own transactions, distinct from client transactions, due to a variety of operational and regulatory considerations. In other chapters we will discuss safeguarding and client money accounts and why EMI needs them.   This dedicated operational account is essential to cover the EMI's day-to-day operational expenses, including salaries, rent, and technology costs such as banking core, cyber security, cloud and so on.   Moreover, maintaining distinct accounts facilitates effective risk management and contingency planning, allowing the institution to allocate resources for business development, emergencies, and strategic initiatives without impacting customer deposits. For example, international EMI might have multi-currency expenses to cover and multi-currency revenues booked from client transactions, therefore it will need a separate FX line to manage FX risk and convert back revenues to have a base currency accounting standards met.   The operational bank account serves as the financial backbone for payment processing, settlements, and interactions with other financial institutions, for example covering monthly fees or any other fees arising from long term commitments, any gains or losses from client transactions as well.   Even more, we have seen in our experience that some EMIs use their own balance sheet to maintain several foreign currencies in different operational accounts and sell those currencies to their customers on demand, instead of using client money account to send those orders for execution in the market.   Opening an operational bank account for EMI is a straight forward process, very similar to opening a corporate bank account for any business. Banks will seek to identify UBOs, directors, understand the purpose of the account and similar information.   If you are looking to open an operational bank account for EMI, reach out to us for EMI friendly banks list.   Why EMI Needs Safeguarding Account?   Electronic Money Institution (EMI) needs a safeguarding account to fulfill regulatory requirements and ensure the protection of customer funds.   The safeguarding account is a dedicated account where customer funds are held, and it acts as a protective measure to ensure that these funds are not used for the EMI's own operational expenses and also provides a clear segregation in case of EMI insolvency or special administration. Regulators require that all client funds has to be held in safeguarding accounts overnight and cannot be held with other EMIs or non-credit institutions.   Alternatively, in the EU EMIs can also hold client funds overnight in government bonds or treasuries that are often regarded as safeguarding alternatives and offer high level of credit security. Investment banks, brokerage houses and traditional banks can offer this option via investment account opening.   Safeguarding arrangement enhances consumer protection, provides confidence and aligns with regulatory standards aimed at preventing misuse or misappropriation of customer funds.   Our team is collaborating with several banks in the EU and UK that are providing safeguarding accounts to EMIs and if you would like to explore safeguarding account opening options, reach out to us .   Opening a safeguarding account is almost identical process as to opening a client money account which we will discuss next.   Opening Client Money Account Or Correspondent Banking Account For EMI   Opening a client money account or correspondent banking account is a crucial step for an Electronic Money Institution (EMI) in managing customer funds and facilitating financial transactions.   A client money account is typically used to perform transactions on behalf of customers by receiving payments in, sending payments out and exchanging currency (or sometimes hedging currency as well).   Typically, client money accounts are pooled account type which allows EMIs to transact only in their name while not issuing separate unique vIBANs to their clients to prevent layering and unaccounted risks.   Correspondent banking accounts, on the other hand, establish relationships with other financial institutions to facilitate transactions, settlements, and international transfers while offering unique vIBAN issuance in the clients name. EMIs often need correspondent banking relationships to access the broader financial network and provide higher level of services to their end clients. However, correspondent banking relationships are extremely hard to achieve for EMIs unless they are establish in the market for years and have a clean, transparent and pristine track record and no fines from regulators together with sizeable transaction volumes.   Based on our experience helping EMIs to open client accounts and correspondent accounts, we often suggest to start with client money accounts first as it is much easier to get. In addition, have multiple client money accounts helps to diversify risks and abilities to receive and send bunch of different currencies, get better exchange rates and ensure overall end client satisfaction.   If you would like to receive a list of EMI friendly banks that could open client money or correspondent bank accounts, reach out to us and we will send it to you via email.   Lastly, we would like to share a standard onboarding pack for EMI’s, that you should be aware and prepared for:   •          Certificate of Registration or Incorporation. •          Memorandum and Articles of Association; or Articles of Incorporation. •          List of UBOs and directors. •          POI (ID’s or passports) for all UBOs and all authorised signatories, preferably together with a selfie. •          Proof of business trading address (POA), not older than 3 months. •          Licence number from regulatory body, for example FCA in the UK. •          Last audited accounts and a business bank statement (not older than 3 months) •          AML/KYC/CDD policies or Wolsferbg’s Questionnaire •          Latest external AML audit report or alternatively commiting to perform a fresh audit within 3 months from account approval. Moreover, external AML audit might be required every year or so. •          Management information: AML governance arrangements, sample CDD files and customer risk assessment data. •          Banks often require to disclose the purpose of the account, planned volumes and currencies. We do suggest to be as accurate as possible as it might impact commercials going forward.   Depending on the selected bank, there could be additional and more detailed requirements. It is strongly recommended to fully adhere to the specific requests of the chosen bank. This approach is pivotal in ensuring the smooth onboarding process for your EMI and increasing the likelihood of a successful outcome. Why EMIs Need Banking Redundancy For Electronic Money Institutions (EMIs), access to stable and reliable banking partners is the backbone of their operations. Every client deposit, vendor payment, and payout ultimately flows through a banking channel. However, in today’s regulatory and risk-sensitive environment, relying on a single banking partner exposes EMIs to serious operational risks. Banks can suddenly decide to “de-risk” a sector, freeze accounts for enhanced due diligence, or delay payments due to compliance reviews. Even temporary disruptions can have devastating consequences: delayed client withdrawals, unsettled merchant payouts, and reputational damage that erodes trust with regulators and end users alike. Banking redundancy provides a safety net. By maintaining multiple accounts across different banks and jurisdictions, EMIs can seamlessly reroute payment flows if one partner encounters issues. For example, a UK-based EMI serving EU merchants might primarily process transactions through a Lithuanian bank. If that partner suspends new onboarding or delays SEPA payouts, the EMI can instantly switch flows to its secondary German or Irish account. This ensures merchants still receive settlements on time, preserving confidence and avoiding regulatory complaints. In practice, redundancy isn’t just about backup — it also allows EMIs to optimize services by comparing FX spreads, settlement times, and fees across multiple partners. The most resilient EMIs treat banking redundancy as part of their risk management strategy, ensuring uninterrupted service and long-term business sustainability in an industry where trust and speed are everything.   Conclusion   In conclusion, successfully navigating the process of opening a bank account for an Electronic Money Institution (EMI) involves careful consideration of various account types and compliance with regulatory and operational necessities.

If you are looking to open a bank account for CFD brokerage then keep reading on, we are going to cover steps and best banks to do so.   CFD Brokers as any other financial services providers need to open several types of bank accounts in order to conduct their business in line with regulations and their own internal goals.   Why CFD Brokerage Needs Operational Bank Account?   A CFD brokerage requires an operational bank account for key operational purposes such as managing margin requirements, and covering operational expenses such as salaries and technology costs.   The operational bank account also plays a vital role in regulatory compliance, providing a transparent record of financial activities that enables the brokerage to meet specific standards and reporting obligations set by regulatory authorities.   Opening an operational bank account for CFD brokerage is a straight forward process, very similar to that of opening regular corporate account. The bank will seek to understand its corporate structure, identify UBOs and understand the purpose of the account. However, once opening client money accounts, collection accounts or safeguarding accounts, the enhanced due diligence will be required.   If you would like to explore operational bank account opening for your CFD brokerage, get in touch with us and we will share some banks that are open for such business.   Why CFD Brokerage Needs Safeguarding Account?   A CFD brokerage requires a safeguarding account for the protection and segregation of client funds. Regulatory authorities often mandate that CFD brokers establish such accounts to ensure a clear demarcation between client funds and the brokerage's operational capital.   Safeguarding account plays a special role in the event of the brokerage facing financial difficulties or insolvency, the funds in the safeguarding account remain separate from the broker's assets and can be returned to clients, protecting them from potential losses.   Safeguarding accounts can only be provided by credit institutions and that is what causes the challenges for CFD brokerage regardless of their licensing jurisdiction. Traditional banks often do not want to take risk of having CFD brokerages onboard for any types of accounts, let alone safeguarding accounts due to high risk of potential losses on behalf of their clients.   However, it is possible to open safeguarding accounts, especially in the European Union where some specialized banks are slowly opening doors and letting in this type of clients. If you would like to get a list of CFD brokerage friendly banks that can consider opening safeguarding accounts, get in touch with us .   Opening Collection Account Or Client Money Account For CFD Brokerage   Collection accounts and client money accounts are crucial for CFD brokerages as they serve as a cornerstone for allowing clients to deposit and withdraw money from the trading platform.   Clients want to have an ability to deposit and withdraw in their local or convenient international currency, which demands a CFD brokerage to provide collection accounts that meet such standard. In addition, having an ability to collect and payout in a multi-currency fashion helps in acquiring international clients and maintaining the deposit and withdrawal costs under the check.   Nowadays, client wish to deposit and withdraw also in crypto not only fiat. New solutions are coming to the market where banking platforms can host and facilitate both: crypto and fiat currencies under the one roof. This helps CFD brokerage especially in serving clients that are from underbanked jurisdictions. Such clients would have to incur enormous costs depositing funds with the brokerage while crypto stable coins allow them to do so seamlessly and cost effectively.   If you would like to open collection and client money accounts for both fiat and crypto currencies, reach out to us and we will supply you with a list of CFD brokerage friendly banks.   On the other hand, the dedicated accounts contribute to increased transparency, facilitating audit trails and regulatory oversight, especially when clients funds are being separated from the own brokerage capital.   Moving forward, onboarding CFD brokerage for client money accounts by default requires enhanced due diligence from the bank side. Different banks tend to have different understanding about enhanced due diligence, however we would like to share some insights on what kind of documents you should prepare:   -       General pack of incorporation documents -       UBO and director identifications (POA and POI) -       Copy of relevant licenses and POA of the business -       Last audited accounts -       AML/KYC/CDD policies or Wolsferbg’s Questionnaire or both -       There is a high chance that bank will seek to receive an external AML audit -       AML, CDD and customer risk assessment data files   These are crucial pieces of documentation that banks want to analyse internally.   Even more, we do highly suggest to first start the commercial discussion before the onboarding as pricing structure might not be in line with management expectations and time can be wasted while onboarding the business for nothing.   From our experience, it is always better to establish several banking relationships as banks tend to close CFD broker accounts with a short notice and having several options are always handful. Also, having several banking providers will enable you to cater to a broader network of currencies and payout capabilities hence serving a broader base of clients. How CFD Brokers Can Use Stablecoins for Deposits and Withdrawals CFD brokerages are increasingly adopting stablecoins like USDT and USDC as an efficient way to collect client deposits and process withdrawals. Stablecoins allow brokers to bypass delays and high fees associated with traditional bank wires or card payments, making the funding process faster and more cost-effective for both the broker and its clients. For example, a trader in Asia can deposit USDT into the broker’s designated wallet within minutes, with the broker then crediting the client’s trading account instantly. Similarly, withdrawals can be processed in stablecoins, enabling clients to receive funds quickly and securely, often within the same day. By integrating crypto-friendly banking or EMI partners, brokers can also off-ramp stablecoins into fiat (EUR, USD, GBP) to manage operational expenses, liquidity, or hedging strategies. This approach not only expands payment options for global clients but also enhances transparency and accessibility in markets where traditional payment rails are limited.   Conclusion   In conclusion, the process of opening bank accounts for CFD brokerages involves navigating regulatory requirements and understanding the distinct purposes of operational, safeguarding, and collection/client money accounts. Undertaking enhanced due diligence is paramount, and establishing multiple banking relationships is advisable for resilience and broader service capabilities.

If you are looking to open a bank account for your VC Funds then keep reading on, as we are going to cover the basics steps and VC friendly banks.   A venture capital (VC) fund is a pooled investment vehicle managed by a venture capital firm. It raises capital from various investors and invests these funds in startup and early-stage companies with high growth potential.     Why It Is Hard To Open A Bank Account For VC Fund?   Opening a bank account for a venture capital (VC) fund proves challenging due to a combination of regulatory complexities, extensive due diligence procedures, and risk management considerations.   VC funds are subject to intricate structures and high-value transactions that sets a benchmark of risk that banks have to take into account. Banks scrutinize these funds closely to ensure compliance with anti-money laundering measures and to manage potential risks associated with the volatile nature of venture capital investments.   Some of the risks in question are illicit funds used in those early investments, especially when crypto currencies are involved, also some of the portfolio companies turning to be frauds and wasting not only VCs money but other investors money and putting banks on the spotlights that facilitated those transactions.   Additionally, the lack of a proven track record especially when VC fund is newly established can be a factor, complex fund structures involving multiple SPVs, and the international nature of many VC operations further contribute to the difficulty in establishing banking relationships.   Why Venture Capital (VC) Fund Needs Operational Bank Account?   A venture capital (VC) fund requires an operational bank account for several critical reasons.   Firstly, the operational bank account facilitates transactions, including the transfer of capital from investors to the fund and the subsequent deployment of funds for investments in start-up and early-stage companies. The operational bank account is essential for handling various financial transactions such as receiving returns on investments, managing expenses, and distributing profits to investors.   Moreover, the bank account is crucial for maintaining transparency and accountability. It allows for clear tracking of financial activities, enabling the fund managers to provide accurate and up-to-date financial reports to investors.   If you would like to get an up to date list of VC friendly banks, reach out to us and we will send you the details via email.   Steps To Open A Bank Account For VC Fund   To open a bank account for a VC fund, the first crucial step is to carefully choose a bank experienced in handling the unique needs of VC funds and well-versed in the associated regulatory landscape. For that step, as mentioned previously, you may contact us for assistance.   Once the legal structure of the fund is determined, including the completion of necessary legal documentation and obtaining required licenses, the fund's organizers should compile essential information about the fund's structure, investment strategy, and key personnel.   Subsequently, the commercials will be agreed upon and due diligence process will start. During the due diligence process, the fund will need to provide comprehensive documentation covering its processes of KYC and AML, investment prospectus or policy, identifications of key personnel and decision makers and the track record of the management firm. Completing the bank's checks and answering questions from their analysts is vital.   After the bank reviews the application and conducts its due diligence, approval is granted, and the VC fund's bank account is opened. It is advisable to get to know your accounts relationship manager and familiarize with all additional services the institution car provide.   Finally, having several bank accounts is recommended as banks tend to change their client acceptance policies and risk appetite and may close already active accounts, which can disrupt the operations of the fund. Best Countries for Opening a Bank Account for a VC Fund When setting up a bank account for a venture capital (VC) fund, jurisdiction matters as much as the banking partner you choose. In Europe, Luxembourg and Ireland are top choices due to their established fund ecosystems, access to EU investors, and strong regulatory frameworks. Both countries offer a wide range of banks familiar with managing VC and private equity structures. In the UK, London remains a hub for global capital flows, with banks and EMIs providing multi-currency accounts and SEPA/Faster Payments access. For international VC funds, Switzerland and Singapore are especially attractive thanks to their reputation for financial stability, private banking expertise, and investor-friendly policies. In practice, the best country often depends on where your investors are located and how your fund is structured — for example, a Delaware VC fund investing in European startups may still opt for an account in Luxembourg or Ireland to simplify EUR-denominated capital calls and distributions. Checklist for VC Funds Investing in the Crypto Space If your VC fund is allocating capital into crypto startups or digital assets, your banking setup requires extra preparation to avoid account rejections or disruptions. Here’s a practical checklist: Choose a Crypto-Friendly Bank or EMI – Work with providers that openly support funds investing in blockchain and digital assets. Contact us for a list of such providers. Prepare Detailed Compliance Documentation – Include AML/KYC policies, risk assessment frameworks, and investment mandates that clearly explain your crypto exposure. Use Multi-Currency and Multi-IBAN Accounts – This ensures you can handle both traditional investor contributions in EUR/USD and potential crypto-related flows. Set Up On/Off Ramp Partnerships – Establish relationships with regulated OTC desks or EMIs to convert crypto proceeds into fiat efficiently. Maintain Banking Redundancy – Have at least one backup banking partner to ensure uninterrupted operations if your primary account faces restrictions. Stay Transparent with Your Bank – Regularly update your relationship manager on your crypto-related activities to build trust and reduce perceived risks.   Conclusion   In conclusion, opening a bank account for a venture capital (VC) fund is a complex process and requires preparation. The outlined steps emphasize the importance of careful bank selection, meticulous documentation, and ongoing communication with relationship manager.