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The foreign bank account is closed! What to do? Is there a chance to replace it?

2018-08-28

Some owners of offshore companies have faced trouble in the form of closing accounts or blocking funds until it becomes clear where they came from. In addition, tax confirmation is required. In 2018 it became more difficult to work with foreign accounts of non-residents. This is due to the appearance of the Compliance organization. The requirements set by it must be observed.

Observance of established norms

There are certain requirements for bank compliance that must be met. Initially, they do not seem difficult for most people, but not always the conditions are met, especially when it comes to establishing the history of capital and its confirmation.

This is not due to the availability of money received illegally. Few persons kept track of the movement of funds, and few citizens have official documentation, which confirms the growth of income.

What are the requirements of Compliance:

- The availability of reliable information about beneficiaries - the place of residence, all actions in the biography are legal, the person must conscientiously pay taxes, etc;

- Have documentation confirming the legality of the appearance of capital;

- Fulfillment of tax obligations, accounting, audit, activities should be legal, compliance with the charter, etc.

As a result of the introduction of the rules, many state owners have problems - the account for non-residents can not open in many countries, there is a risk of freezing of finance, oppression of offshore companies has intensified. One solution is to create a trust.

Advantages of the Trust

The trust is an agreement with a trust company. The duty of trust is to conduct customer compliance. When a decision is made against a person, the organization must conduct an audit in accordance with the company's policy.

Which rules should be observed for the successful passage of the audit:

- All financial transactions must be accounted for and controlled;

- Operations with finances should be legal;

It is important to have an official confirmation of income, payment of tax payments, legality of actions.

When a trust company agrees to serve a person, it carries risks to bank compliance.

So, transferring funds to the trust, a person is obliged to pass a check in the company that is responsible to the bank for the fact that the funds are of legal origin.

The client must be ready to undergo a check, give reliable information about the origin of capital. This will help to avoid difficulties in the future, as false information is quickly checked.