High-risk business: options for opening an account abroad in 2020

High-risk business: options for opening an account abroad in 2020

A business that generates good income at the lowest cost is most often associated with an increased level of risk for both its owner and regulators. Entrepreneurs engaged in such a business and willing to enter the international market often face opposition from regulatory and banking structures who may see these businesses quite risky, because nobody in a foreign country wants to risk with them. It is a little easier to open an account for high-risk business in 2020 than it was a few years ago because the world is changing long with economics and politics. What used to be considered too brave is now perceived as normal.

The main types of high-risk business

  • Operations with cryptocurrency (bitcoins, altcoins, etherium, Ripple, Litecoin, Dash, Nem);
  • Activities related to gambling and online casinos;
  • Organization of dating sites;
  • Brokerage and intermediary activities;
  • Operations on the foreign exchange market.

There is a perception that high-risk business is always directly or indirectly related to fraud or money laundering, so foreign banks in most cases refuse to open incorporate accounts for such companies without explanation. This "policy" on the part of financial institutions over the last few years led to many high-risk companies starting to open accounts in offshore zones, and thus investing a solid amount of money in the economy of these jurisdictions.

Now, the situation is changing, and EU and Asian countries interested in international investments and additional financial "injections" into the economy are reviewing their positions. The world community has officially recognized the fact that crypt currency cannot be used to finance terrorism, so the sanctions imposed on banks working with these types of electronic money have been significantly eased.

Nevertheless, it is still not easy to choose a jurisdiction in which it is possible to open an account for a high-risk business. The only right solution in such a situation would be to get the support of IT-OFFSHORE professionals. Costs of paying for specialists' work will do more than paying off with money saved on the procedure of business registration, opening a corporate account, and tax benefits.

Where to open an account for a high-risk business

  • In a classic bank loyal to this kind of entrepreneurship;
  • In a non-bank (a new type of bank, which fully operates online);
  • In a payment system.

And if the payment systems have one serious drawback (high probability of complete blocking of the account and funds on it for an indefinite time due to any compromising information), then non-banking is considered the most progressive and comfortable for entrepreneurs. In fact, they are a full analog of classic financial organizations, which are more tolerant of clients. The activity of non-banks is based on the use of the latest IT-technologies, so their products are easy to use and provide 24-hour access to accounts.

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