Preapproval: Simplifying Non-resident Banking

Financial institutions worldwide now scrutinize potential non-resident customers meticulously. They are compelled to do so due to the requirements of international regulatory bodies and global initiatives aimed at reducing offshore practices and combating money laundering.

It is true that contemporary banks have become significantly more thorough in their due diligence processes, even though such inspections make matters more complicated. Our experience indicates that due diligence procedures are unlikely to become less strict in the foreseeable future.

There are various factors that may cause the bank to reject the application from you or your company. Such factors include unfavorable business activities in which your company may be involved, citizenships of your company’s beneficial owners, the place of residence of your company’s partners, and other aspects that must be considered before applying for services from a foreign bank.

When pursuing banking services abroad, you have to invest a significant amount of time and effort in collecting documents and completing forms. Nonetheless, there is always a risk of rejection, even if you believe you meet all the prerequisites.

To improve your chances of success and minimize the risk of service denial, we advise you to seek professional assistance when choosing a bank and to consider applying for provisional approval of your application.

We encourage you to request a free consultation with us regarding the selection of foreign banks for account opening. We collaborate with numerous banks and payment service providers and have formed a comprehensive understanding of the criteria that prospective clients must fulfill for various financial institutions.

We extend an invitation to explore a new opportunity – our PREAPPROVAL service. It includes requesting a preliminary bank evaluation of your (or your company’s) profile. This assessment allows the administration of the bank to gain insight into your business model and methods of generating income, which supports their decision regarding the feasibility of offering you non-resident banking services.

Advantages of preapproval

The preapproval service offers a unique opportunity to save time and money when applying for a foreign bank’s services through the International Wealth portal. While preapproval doesn’t guarantee a bank account, it signifies that the bank has viewed your profile and business model favorably. If the bank preapproves your application, you can start preparing your document package. 

If the bank doesn’t preapprove your application, you can explore other options instead of wasting time and money on a hopeless case. This approach creates a win-win situation, regardless of preapproval results.

Cost of preapproval

We charge a €799 commission for personal bank account preapproval and €999 for corporate account preapproval. These are minimal fees for working with up to two banks. The final preapproval service cost depends on individual bank Compliance Department requirements.

If you obtain preapproval, you can deduct the service cost from the foreign bank account opening fee when you request the account opening within three working days of receiving preapproval.

In case all your preapproval applications are declined, typically in high-risk businesses, the commission is non-refundable. We prioritize honesty and never mislead clients. We will not suggest banks guaranteed to reject your service application. Moreover, we may refuse to provide preapproval if the chosen bank is deemed “hopeless”, as our reputation and your respect are more valuable to us than money.

How preapproval works

When choosing a foreign bank for account opening, you need to complete bank forms. After you select banks for preapproval, your consultant will review the forms. If the provided information is sufficient, you will be billed for our services. You can apply for preapproval even if your preferred bank is not among our partners.

After receiving the payment, our team will request preapproval from your chosen banks on your behalf. Processing your application takes approximately two business days. Bank response times may vary, but typically they range from three to ten days.

Who should use preapproval?

The preapproval service is essential for businesses that banks often decline as high-risk.  For such companies, finding a suitable bank requires extensive time, effort, and resources.

Preapproval may be particularly beneficial for businesses in high-risk areas, such as innovative technologies, bearer shares, gambling, adult content, pharmaceuticals, security trading, precious metals, mining, construction, cash withdrawals, charity, and electronic money. It can also be useful for individuals from specific countries.

Individuals and business owners with transparent expenditures and business structures looking to save time and money should also consider preapproval. If your profile is highly likely to get approval, we will not recommend this service, as it becomes unnecessary.

Exceptions

We do not offer preapproval and account opening services to businesses engaged in the following activities:

• Child adoption services;
• Child pornography;
• Live animals;
• Body parts, liquids, and remains;
• Copyright and trademark violations;
• Financial pyramids or MLM-based charities;
• Self-made weapons;
• Products or services from sanctioned countries;
• Unlicensed activities.

Does preapproval guarantee account opening?

Our services are optional, we recommend seeking professional assistance, but cannot insist on it. Preapproval does not guarantee obtaining a corporate account in a foreign bank but certainly helps save time and resources. Opening a foreign bank account involves two stages.

First, the bank assesses the business model and determines if it aligns with their requirements. Preapproval covers this stage, but we cannot guarantee a positive outcome. However, choosing a foreign bank carefully increases your chances.

In the second stage, the Compliance Department performs a security check, which starts after the payment of preapproval and account opening fees. If you receive multiple preapprovals, we can assist in setting up accounts with various banks.

With our assistance, you will complete bank forms, collect and legalize required documents, and potentially make an initial deposit. The bank’s ultimate decision depends on the accuracy of your information and compliance with their requirements. We ensure that preapproval service fees are deducted from account opening costs if the bank preapproves your application.

Conclusion

Preapproval simplifies the banking process for non-resident clients, offering benefits that outweigh costs. With careful bank selection and professional guidance, you can enhance your chances of opening foreign bank accounts hassle-free.