Bank Account Opening
Harmonization of regulation for international banking and finance grew in importance over time. Technology and liberalization of trade and foreign direct investment furthered economic globalization and allowed global value chains to create end-products with intermediate products originating in different countries. Sovereign states all around the world stepped into this opportunity and invite international professionals to set up a country within their jurisdiction. Bank account opening is a logical next step after the incorporation of an international company.
The possibility of forum shopping allows businesses and their beneficial owners to choose for a corporate location best fit to their needs. Offshore financial centers collaborate with traditional jurisdictions to provide for an efficient ecosystem that facilitates international trade without many restrictions. International uniformity of result is difficult to achieve where foreign companies penetrate local markets and gain a competitive advantage over local market players. As such, there is a constant conflict between local laws and frameworks in offshore financial centers and the rules imposed on businesses in host countries. Sovereignty of the jurisdiction overrules company laws in other countries. Therefore Gibraltar companies may need to comply with additional measures before they can trade or transact in foreign countries.
Gibraltar companies and trusts, as well as individuals with a locally confirmed status as high net worth individual, need banking facilities to conduct business activities. International bank account opening is not as easy as it once was. Since financial institutions are considered the gatekeepers of the financial system, compliance departments may request additional information for the bank account opening procedures, to maintain the account, and for periodic review purposes. Transactions that fall outside the scope of the acceptable business profile of the client may require supporting evidence to justify the transaction.
Bank account opening for Gibraltar companies and trusts begins with the choice for the most effective jurisdiction. This choice should be based on distinct and unique business related factors. Once the appropriate jurisdiction and the financial institution are decided, general bank account opening procedures include background information of the beneficial owner, and a verification of the company and its internal structure.
Financial institutions that serve non-resident customers and offshore companies have a distinct risk profile. Although such banks are often better capitalized, the risk of large capital outflows is equally substantial. Beneficiaries of Gibraltar (offshore) companies and trusts must realize that the stability of financial institutions does not only depend on its financial position and non-resident customer base but is also connected with the compliance with internationally acceptable standards for conduct. The result is that financial institutions may be forced to close for regulatory violations. Accordingly, the beneficiary of a Gibraltar (offshore) company or trust should make a calculated risk assessment and base their ultimate decision on veritable information to avoid future challenges.
Gibraltar Bank Account Opening
Bank secrecy and financial privacy are paramount for most bank customers. Further confidentiality can be obtained by using an international business corporation, offshore company or trust. Nominee directors and shareholders can execute several important duties, create additional substance, and facilitate the companies legal and financial matters.
Gibraltar companies and trusts owned and managed by non-resident professionals can choose to open a bank account anywhere in the world. The reputation of Gibraltar as an established and recognized financial center enables international financial institutions to be favorable towards Gibraltar companies and trusts. However, the vulnerability of the global financial system against abuse requisites the implementation of advanced customer due diligence protocols. As such, Gibraltar companies and trusts have a good position, but bank account opening is not guaranteed. Approval of the account opening depends on the credentials of the beneficiaries, and the internal organization and activities of the company.
Beneficiaries of Gibraltar companies and trusts in need of a bank account can contact us by completing the contact form below. Our distinct approach towards bank account opening allows global professionals to open accounts with international private banks, offshore banks and systemically important financial institutions. In exceptional circumstances whilst evaluating all the options, we may introduce customers to Electronic Money Institutions for part of their business.
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