Many people decide to open an account abroad at some point in their lives, and some of them are turned down. What are the main reasons behind that? First of all, you may fail to comply with the bank’s internal security policy. The bank may impose restrictions on serving some categories of people or companies, for instance. You may be unaware of being on such a “blacklist”, but you will be denied the services by the bank.
In other cases, you may fail to open a bank account because you’ve made some mistakes. You have to meticulously prepare the package of documents you are going to submit to a foreign bank. Here are the typical areas where you may run into trouble:
- Bank’s internal policies
- Your financial history
- Sanctions/blacklists
- Origin of funds
- Customer identification
- Contents of the application documents
- Form of the application documents
Please read a more detailed article if you want to avoid a situation when you fail to set up a bank account abroad. In this post, we will take a look at what may go wrong in some of these aspects.
Sanctions/Blacklists
Banks, just like countries and international organizations, have their own blacklists. For example, they may restrict the provision of services to the nationals of some countries. What can go wrong?
- You have selected the wrong bank. Some banks have more stringent requirements for customers, while others are more relaxed. If you opt for the first category and the bank turns you down, it’s better to choose a more relaxed institution. As an alternative, you can engage a specialist to help you.
- You are a national of the “wrong” country. You may come from a sanctioned country whose nationals are denied banking services in the majority of institutions. If this is your case, you can try your luck with a payment system or a crypto exchange. In addition, you can get a residence permit in another country and open a bank account there.
Is there any way to find out in advance whether you will be accepted by the bank? You can use our convenient pre-approval service which will save you time, money, and effort. Click on the above link to contact an expert and find out more.
Origin of Funds
There are two important things you will have to do before you open an account in a foreign country. First of all, you will have to prove the legal origin of your funds. Second, you will have to provide the reason why you want to open a bank account abroad. What can go wrong?
- You cannot provide the reason for opening a bank account. Before you talk to the bank manager, please think of the reason for opening a bank account in a foreign country. If you can provide any supporting documents, like a company registration certificate, a residence permit, or a property ownership certificate, we strongly recommend that you do it.
- You provide outdated information. The banks will check whether the information you provide is true to fact. If you supply the information about a job agreement that has been canceled or a bank account that has been closed, don’t be surprised if you get turned down.
In the future, the bank may request proof of the lawfulness of your transactions, especially if a transaction seems “unusual” in some way.
Customer Identification
Customer identification procedures are mandatory if you are going to open a personal or corporate account. What may go wrong?
- You failed to appear at the interview with the bank employee. If you apply to open an account online, you may be invited for an online interview. Be sure to attend it and be on time as this step may be decisive.
- The Compliance Department found that the data in your application documents is wrong. As you probably understand, the bank does not believe everything it sees, so be prepared for checks. If they see discrepancies, they may get in touch with you or simply deny the services in the worst case.
- You did not take a “passport selfie”. Most payment systems want you to take a photo with your passport held close to your face. Be sure to provide it.
- You did not provide the verification code that the bank sent to your phone number. Please do that on time to avoid problems.
Customer verification is an essential part of KYC requirements that all reputable banks and payment systems strictly comply with.
Contents of the Application Documents
If the Compliance Department finds the following in your documents, you will be turned down:
- No apostille or consulate’s stamp. The requirements in various banks may differ. If they want you to apostille/legalize your foreign documents, please do so on time.
- Document translation without notarization. If you translate the document, make sure to have it certified by a notary.
- Documents without translation. Submitting documents in English is not a guarantee of the fact that they will be accepted as some banking institutions want you to provide translations into the local language. Please find out the particular bank’s requirements and follow them.
- Documents that have expired. Many banks have a standard requirement to provide proof of your residence address. This is usually a utility bill or a bank statement that is no older than 3 months. Make sure the document you file is valid.
- False information. When you provide dates and other figures in the application documents, please do not rely on your memory. Double-check all the information provided in numbers to make sure it is accurate.
Things To Be Avoided
Some standard things may result in the bank’s refusal:
- Handwritten text where the printed one should be provided (or vice versa). Some banks only accept printed documents, while others require some of them to be handwritten. Please follow the instructions carefully, including those related to the signature (it may be handwritten or electronic).
- Untidy appearance of documents. This applies even to electronic documents that may have blurred pictures or poor-quality scans.
- Corrections. In the majority of cases, these are unacceptable.
- Misprints. You are submitting official documents, so be sure to check them for grammar and spelling mistakes as well.
Want to know more about possible mistakes in the submission of documents to the bank? Please follow the above link to read more. And if you want to make sure your documents are properly checked and contain no mistakes, you can get in touch with a specialist who will help you.
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