Challenges of Obtaining and Keeping Bank Accounts When Your Business is Classified as High Risk
Every business comes with its fair of share risks and can sometimes result in obstacles or challenges for simple day-to-day operations. For example, you run a global business and would like to consider opening a bank account in a foreign country.
In our latest chat series, ‘Spilling the Tea with Compliance’, our very own Chief Compliance Officer, Jani Gode along with CEO at SightSpan Inc., John Walsh, discuss tips to opening a foreign bank account in case your business or company is classified as high risk according to AML guidelines.
Watch the full episode below!
Here we’ll cover what to consider when trying to obtain a bank account for your high-risk business.
1. Find the Right Partner
Working with a trusted partner can make all the difference. As each banking firm has a certain type of culture, it’s important that you match yourself with a partner that shares the same type of culture as it can offer a smooth process when trying to obtain your bank account. When seeking a banking partner, it’s all about finding the right balance and a connection that works.
2. Be Proactive
Once the deal is signed and your partnership with the banking firm kicks off, it’s important to always be proactive and communicate clearly with them. Of course, the relationship goes both ways and each party should offer clear communication to one another. As a new client for the bank, you should have good document management skills and be able to provide required information in a timely manner when requested by the bank. Partnerships can easily and quickly go off the rail if either party send incorrect documents which then leads to wasted time and energy.
3. Build and Maintain a Relationship
Building a healthy relationship with your banking partner can’t be stressed enough. Something that is really common in this specific industry is the lack of communication between the payments business and the bank. As a business or company that wants to do everything possible to maintaining a bank account, you’ll have to find efficient and effective ways of working with your banking partner in order to run your payments smoothly. As banks and fintechs continue to see rapid changes in each of their industries, it’s vital to learn how to work together.
As both the payments and banking spaces continue to grow, it’s important that as a business you become leaner with your document management capabilities, as well as technical and human capabilities. Once you’ve established a deal with a partner, work together on how to manage risk more effectively so that your dialogue with your banking partner is less about how to overcome risk and more about reviewing transactions.
Remember, in order to keep the financial ecosystem as safe as can be, do your best to work together with your banking partner and both parties will be happier.