Opening a correspondent account for a fintech company or bank

Opening a correspondent account for fintech companies is required in order to be able to fully conduct operations. Managing a financial business is associated with a certain nuancе - establishing correspondent relationships with credit institutions of other countries is necessary in order to perform clearing operations.

An account is an analog of a clearing account that can be used by a financial institution. It is used to make transfers between banks. They are required so that transactions can be made.

Possible difficulties

Setting up your own bank offshore is relevant to those who are not suited to the restrictive conditions of traditional financial institutions. Such institutions are classified as risky if they engage in the following activities:

• Conducting non-banking operations related to finance;
• Extending microloans;
• Working in forex;
• Companies working with cryptocurrencies.

In some countries it is possible to create your own offshore bank with the appropriate license. However, if you do not open a correspondent account in 2021, the institution will not be able to fully operate. Registration of the license alone will not give access to the central banks of other countries or payment systems.

The actual filling of a company's activities may vary depending on the correspondent accounts opened for the bank. Many large financial institutions often refuse to set up accounts for new fintech startups. The most common refusals are given to those, who registered in the classic offshore.

Where to open an account

There is no one-size-fits-all approach to creating a successful international bank or financial company. In order to be able to fully operate, correspondent accounts will need to be set up for financial institutions.

A number of private trust organizations in Nevis are opening such accounts, including for cryptocurrency transactions. They are authorized to provide exchange services for trading such currency.

To increase the chance of opening an account with major international banks, you will need to describe your client's activities, planned transactions, and country of origin in detail. A lot depends on how exactly the information will be provided and how detailed it will be. In order to clarify in more detail the nuances of the procedure and choose the country for registration, please contact our specialists at IT-OFFSHORE.