Bank account opening under high-risk business in the EU and abroad

Opening a high-risk business bank account

Allows companies to manage finances, comply with regulatory requirements, and conduct transactions in multiple jurisdictions despite the increased risks of their operations. Irish Company helps high-risk businesses successfully open a bank account by providing an assessment of opportunities and full support from application to account opening.

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Reliable Bank account

One of the first objectives each company aims to obtain after the incorporation is a reliable Bank account for the business. A corporate account for any type of legal entity is a crucial instrument and nowadays to start the collaboration with a financial institution could be a complicated milestone. Tricky scenario if the owner or director of the company is not a resident of the country where the business is intended to be handled or the operating activities itself fall under “high risk”. Gofaizen & Sherle has established long-term interrelation with numerous financial institutions and aware of their internal onboarding policy. Depending on the corporate structure, business activity and risk level, we can outrightly identify the probability of success in the case of specific banks or introduce you to the right financial institutions, lead you through the steps for the successful account opening and even take care of the whole process from the application part to the actual business account opening on your behalf

What are bank accounts for high-risk businesses?

A high-risk trading account

or high-risk bank account, is a specialized financial instrument designed to support business operations in industries with a higher risk of financial loss. These risks often arise from the market environment and the nature of transactions, including a high frequency of disputed payments, fraud, or chargebacks, especially in sectors such as online gambling, pharmaceuticals, tourism, and cryptocurrency services.

Key requirements for a high-risk bank account:

In-depth customer verification (KYC) process. Banks conduct a thorough analysis of each business to confirm its legitimacy and financial stability.
Given the increased risks, banks may impose high transaction and account maintenance fees.
Banks may require account reserves to cover potential chargebacks and disputed transactions.
Enhanced security measures include the use of additional checks and advanced technologies such as 3D Secure to minimize the risk of fraud.

Advantages of using bank accounts for high-risk business:

Access to niche markets These accounts offer opportunities in lucrative but risky sectors that standard bank accounts do not usually have access to.
International trade Accounts make it easy to accept payments in multiple currencies, facilitating global business expansion.
Advanced fraud protection Utilizing the latest technology enhances the security of financial transactions.

Thus, a high-risk trading account not only helps to meet financial challenges in complex industries but also provides the necessary flexibility and support for business expansion and risk management. These accounts are a key tool for companies seeking to grow sustainably in a high-risk environment.

Practice areas

Expertise in Fintech Compliance

Virtual assets trade and exchange
Sales of goods/services to high-risk countries
Gambling and online casinos
Sale of medicines
Internet auctions
Sale of firearms
Sale of jewelry
Lending and leasing
Telemarketing
Adult content
Investments, remittances

Other criteria which considered as “high risk”

The shareholders and/or directors of the company are non-residents of the European Union
The company has existed for less than a year
The company is experiencing financial difficulties
The owner of the company provided inaccurate information about the activities of the business and legal address
The company and the owners have a unsatisfied credit rating

Pre-approval for successful high-risk banking services.

Pre-approval is a key step for companies operating in high-risk industries. Not only does it provide access to specialized financial services, but it also ensures the trust of banks and payment institutions. The process involves a thorough review of all aspects of the business, from analyzing market risks to assessing financial stability and transparency of operations.

Obtaining pre-approval allows companies to prepare for success in a market where it is important not only to attract customers but also to maintain strict standards of banking safety and regulatory compliance. With a positive pre-approval, companies can immediately start collecting the necessary documents, significantly increasing the chances of successfully opening a high-risk business bank account. In case of rejection, the opportunity is provided to quickly reorient to other banks without additional time costs.

Advantages of pre-approval

Empower your customers with the convenience of a crypto debit card, allowing seamless spending of cryptocurrencies anywhere debit cards are accepted. We provide end-to-end solutions, from card issuance to regulatory compliance.

Pre-approval allows you to know the bank’s opinion on the possibility of opening an account before preparing and certifying all documents, which saves time and money in case of rejection.
Clients get a clear idea of the bank’s requirements and can assess their chances without the risk of unjustified expenses.
The possibility to apply to other financial institutions in case of a negative decision minimizes financial and time losses.

This service is particularly relevant for companies in high-risk sectors such as cryptocurrencies, online gambling, the adult industry, and precious metals and stones trading, as well as companies involved in investment activities and large cash transactions.

Pre-approval acts as a catalyst for an efficient and transparent process of opening high-risk bank accounts, minimizing uncertainty and facilitating more strategic planning for banking and financial transactions. This makes the service an invaluable tool for business leaders seeking to optimize their operations in a challenging financial environment.

Preparatory scope of works

Our methodology includes an integrated approach in opening a corporate account for the company. The project will be kicked off after a thorough analysis of the Client needs and compared to financial institution requirements. The preparatory scope of works prior to application submission include the following:

Analysis of the needs
Analysis of the company legal setup and business model (operating activities)
Provision of the best-fit financial institution list for further application submission
Consultation on the optimal corporate structure to meet banks expectations (if necessary)
Assistance in preparation/adjustment and formalization of business plan and description of operating activities
Provision of recommendations on the list of necessary documents to be collected for filing an application

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How we do it

Match

Identification of the company activities, the risk level of the business, legal structure and background of the company major actors. Match, search and proposition of the most suitable 2-3 financial institutions.

Execution

Preparation of the documents and filling out applications based on the requirements of selected Banks. Introduction to the Bank clerks.

Post-onboarding support

After the provision of the approval from the Bank, our consultants will support in any future communications and requests.

Sequence of delivering the results

As a result of the first workshop, Irish Company will be introduced with information about the corporate structure and legal setup of the Client company. Also, expectations towards preferred financial institutions and jurisdiction of choice to open a corporate account are discussed.

According to the legal structure and expectations, a long list of banks is prepared, onboarding requirements and procedures are presented to the Client. Afterward, 2-3 most suitable options to proceed were identified.

Corporate documents (AoA, utility bill, notarized passport) are collected and the applications for account opening were filled within 2-3 Banks.

The Client introduced to the Bank. Negotiations with Bank clerks are initiated and all the documents were submitted.

Support with on-going communication with Bank representatives provided until full onboarding of the Client is completed.

If the Client fails the verification and onboarding process within the selected Bank, Gofaizen & Sherle is committed to conducting the process all over again.

While communicating with Clients, we deeply understand the importance of such a necessary and significant aspect in every business as a corporate account as well as the difficulties met to open one. Many decent organizations which considered to be in a high-risk category are struggling and got stuck on this step, which forces to shut down their companies because of the impossibility to carry on without the right solution for their business. Gofaizen & Sherle are ready to assist with the right banking solution for any company worldwide at all risk levels.

FAQ

What is considered a high risk bank account?

A high-risk business bank account is designed for businesses whose activities are associated with a high probability of financial loss, fraud, or controversial transactions, such as gambling, cryptocurrency, or adult content trading.

How much will a high-risk bank account cost?

The cost of opening and maintaining high-risk bank accounts can vary greatly depending on the bank, the country, and the specific activities of the company. These accounts typically include higher service fees, and transaction fees and may require additional reserves in case of disputes. To calculate the exact cost, contact Gofaizen & Sherle.

How long will it take to open a high-risk bank account?

Opening a bank account for a high-risk business usually takes between 3 days and 3 weeks, but the time can vary depending on many factors. These include the stringency of the bank’s checks, the completeness and accuracy of the documentation provided, and the specific nature of your company’s business.

Will there be access to online banking?

Yes, high-risk accounts usually provide access to online banking, allowing you to manage your finances over the Internet. However, additional security measures may be in place to protect against fraud and unauthorized access.

What are the differences between high-risk accounts?

High-risk bank accounts differ depending on the industry of the business. For example, cryptocurrency accounts require strict AML and KYC measures, gaming accounts are tailored to meet licensing requirements, and accounts for adult websites often include additional security measures due to the risk of chargebacks. Choosing the right account requires understanding the specific needs of your business.

Are there any restrictions on transactions in high-risk accounts?

High-risk accounts may have restrictions such as transaction limits and delays in processing due to increased security checks. Banks also require stricter customer identification and verification of the origin of funds, which is important for KYC and AML compliance. Restrictions may be imposed on international transfers, especially to higher-risk countries.

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