Safest place to park money I receive to EMIs?

[friend]

I can only receive payments from my partners to EMIs but no banks. I do not trust EMIs and plan to use them only as transit accounts.
I have to wait 1 year, before I can withdraw this money as dividends. For this reason I need a safe place where I can park the money for 1 year.

Bitcoin seems to risky, stablecoins could be an option but I think it would draw unnecessary attention if anybody checks what I am doing.
I thought about buying some ultra safe stocks/etfs/bonds.

I would do this: Partner pays to my EMI account > money goes the next day into my business stock broker account > I buy some safe ETF > I sell the ETF when it's time to withdraw dividends from my company (after 1 year) > Money goes back to the EMI account and gets withdrawn to my local personal bank account as dividend.

What do you think about this? Any other ideas?

BTW I don't really have expenses in my business so I don't have a better use for that money.

 

[troubled soul]

For Stock Bond ETF
https://www.interactivebrokers.com/en/home.php
For Gold
https://www.royalmint.com/digital-investments/digigold/(government Owned entity)

For Crowdfunding Real Estate
https://estateguru.co/(You can find many alternative)

P2P lending
https://www.mintos.com/en
US bond
https://www.treasurydirect.gov/


Hope this help

Last edited: Apr 12, 2021

 

[friend]

Do you think the way I described will work and what do you think about this idea?

 

[troubled soul]

Why do not work??
Most are safe option .
What is yours problem ?
Can you provide detail what is worrying you??

Or I misunderstood something??

 

[Fred]

Keep in mind that some Brokers like Interactive Brokers don't allow any longer funds coming from EMI.

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[pipona]

Fred said:
Keep in mind that some Brokers like Interactive Brokers don't allow any longer funds coming from EMI.
Click to expand...

really? since when did IB make this change?

 

[Fred]

pipona said:
really? since when did IB make this change?
Click to expand...

Since SEC forced them to pay a 38m$ penalty in August 2020.

https://www.sec.gov/news/press-release/2020-178
Short time later they closed all Seychelles and Belize IBC accounts and blocked all transfers from Wise.

Before that Seychelles and Belize IBC with Wise Account could be used with Interactive Brokers.

The best replacement so far is the Dubai Company with Residence Visa and local UAE Business Bank Account.

Basically you have the exactly same attributes like with Seychelles or Belize IBC but you are able to get decent Banking.

Of course it costs you more but that's how it is- the ladder goes up each year and you need to switch sooner or later from the old school offshore jurisdictions to a reputable tier 1 offshore jurisdiction like Dubai.

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[friend]

Fred said:
Since SEC forced them to pay a 38m$ penalty in August 2020.

https://www.sec.gov/news/press-release/2020-178
Short time later they closed all Seychelles and Belize IBC accounts and blocked all transfers from Wise.

Before that Seychelles and Belize IBC with Wise Account could be used with Interactive Brokers.

The best replacement so far is the Dubai Company with Residence Visa and local UAE Business Bank Account.

Basically you have the exactly same attributes like with Seychelles or Belize IBC but you are able to get decent Banking.

Of course it costs you more but that's how it is- the ladder goes up each year and you need to switch sooner or later from the old school offshore jurisdictions to a reputable tier 1 offshore jurisdiction like Dubai.
Click to expand...

Was the problem with the offshore companies or with wise?
I recently deposited money to my personal interactive brokers account, using an EMI. No problems so far.

 

[evildoer93]

Trading212 is still accepting deposits from EMIs and debit cards issued by EMIs.

 

[Fred]

friend said:
Was the problem with the offshore companies or with wise?
I recently deposited money to my personal interactive brokers account, using an EMI. No problems so far.
Click to expand...

Both.

Many clients were even not able to open the Interactive Brokers Account with EMI Statement only.

Maybe for personal account and small money they accept it but for sure for 200.000 EUR + transfers they reject all common EMI - no matter if Revolut or Wise.

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[friend]

Fred said:
Both.

Many clients were even not able to open the Interactive Brokers Account with EMI Statement only.

Maybe for personal account and small money they accept it but for sure for 200.000 EUR + transfers they reject all common EMI - no matter if Revolut or Wise.
Click to expand...

Well that sucks then. Any other ideas on where I could park the money?

@evildoer93 Trading212 is not safe in my opinion. Any other solutions?

 

[Fred]

friend said:
Well that sucks then. Any other ideas on where I could park the money?

@evildoer93 Trading212 is not safe in my opinion. Any other solutions?
Click to expand...

You can try with Swissquote, Saxo Bank and Flatex.

Honestly speaking we have the most experience with IBKR as this is what most clients requesting and it's working perfect with local UAE Businessa Bank Accounts.

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[bizniz]

Fred said:
Keep in mind that some Brokers like Interactive Brokers don't allow any longer funds coming from EMI.
Click to expand...

I think this is fake news. Maybe they blocked a few EMIs, maybe Wise... but it is impossible that they put a blanket ban on EMIs. How would they ever separate it? They have someone there googling the license type of every SEPA financial institiution from where funds are received? Not very realistic. I don't think it would even be legal to do that.

To answer the original question, though, I highly recommend physical gold. For many reasons. Physical gold dealers will certainly not reject funds from an EMI.

 

[Fred]

bizniz said:
I think this is fake news. Maybe they blocked a few EMIs, maybe Wise... but it is impossible that they put a blanket ban on EMIs. How would they ever separate it? They have someone there googling the license type of every SEPA financial institiution from where funds are received? Not very realistic. I don't think it would even be legal to do that.

To answer the original question, though, I highly recommend physical gold. For many reasons. Physical gold dealers will certainly not reject funds from an EMI.
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They run for every large deposit separate security checks that can take 1-2 days.

This was introduced step by step over the last months. So as soon as they explored that it's an EMI they start rejecting it. I can't speak for any single EMI - the big ones for sure.

It's not that difficult - the majority of EMI is located either in UK or Lithuania.

@jackfrost even mentioned it several times.

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[JohnLocke]

Fred said:
It's not that difficult - the majority of EMI is located either in UK or Lithuania.
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yes that's a shame, still there are a few in Sweden like Intergiro which we may not want to trust or at least be cautious so there are others around, most of them I found to be amateurish, not sure, it's just a feeling.

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[friend]

Fred said:
Both.

Many clients were even not able to open the Interactive Brokers Account with EMI Statement only.

Maybe for personal account and small money they accept it but for sure for 200.000 EUR + transfers they reject all common EMI - no matter if Revolut or Wise.
Click to expand...

So if I open an account (I have an EU company, no offshore stuff) they might block the EMI payments but they won't close my account right? In the worst case they just deny the payments?

 

[Fred]

friend said:
So if I open an account (I have an EU company, no offshore stuff) they might block the EMI payments but they won't close my account right? In the worst case they just deny the payments?
Click to expand...

Yes - that's our experience.

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[Frank Funk]

Fred said:
Keep in mind that some Brokers like Interactive Brokers don't allow any longer funds coming from EMI.
Click to expand...

So you can go EMI > Normal bank > IBKR.
Or am I missing something?

 

[Fred]

Frank Funk said:
So you can go EMI > Normal bank > IBKR.
Or am I missing something?
Click to expand...

Yes - that's the way to go.

I mean the issue is here with all the setups in dark grey jurisdictions without any reputation not getting anything beside of EMI Banking - like Seychelles, Belize etc.

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[lostguy]

you won't find something more safe than a real bank account!