Georgian banks closing business accounts?

[JonnyStekkino]

Hi there,

Recently I got a mail from TBC Bank saying that my company business account will be closed after only 3 bank transfers in (high amount, 30k$ each time)
Anyone had a similar experience and can share his experience with Georgian banks?


Which one is better to avoid this kind of stuff? Bank of Georgia, Terabank, Liberty Bank, etc..

 

[Martin Everson]

First of all what line of business is your company in?

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JonnyStekkino]

IT Development services / Advisory

 

[Martin Everson]

Is it crypto related and are you a non-resident? Perhaps they fallen out with non-resident business and are de-risking.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JonnyStekkino]

is not crypto, but yes, I'm currently non-resident even if I live there full time

 

[bastard]

had to come to this sooner or later.

Can this be discussed with them or it was a final note?

 

[Martin Everson]

I would just accept their decision and move on. Thats why its important to keep multiple accounts for any company.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JonnyStekkino]

Martin Everson said:
I would just accept their decision and move on. Thats why its important to keep multiple accounts for any company.
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Yes Indeed is what I'm doing, I will try Bank of Georgia.
I would just try to reduce the risk of this happening again also with other major banks, otherwise I will be forced to use small shady banks or to move outside of Georgia.

 

[bastard]

Martin Everson said:
Thats why its important to keep multiple accounts for any company.
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true, very true

JonnyStekkino said:
Yes Indeed is what I'm doing, I will try Bank of Georgia.
I would just try to reduce the risk of this happening again also with other major banks, otherwise I will be forced to use small shady banks or to move outside of Georgia.
Click to expand...

supply with EMI's i.e. Intergiro, Wise, Paysera and even Mister Tango could be alternatives.

 

[GegaKan]

Were you getting funds from local accounts or the deposits were from international bank accounts?

 

[JonnyStekkino]

GegaKan said:
Were you getting funds from local accounts or the deposits were from international bank accounts?
Click to expand...

European banks only.

 

[GegaKan]

did you have attempts to cash them out or move to an offshore account?

 

[JonnyStekkino]

GegaKan said:
did you have attempts to cash them out or move to an offshore account?
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nope, always left the money in their account, also paying everything local (apartment rent, employees etc..)

 

[GegaKan]

Well, that is odd ... are you handling Tax and Legal Compliance yourself? What was the official communication by the bank? did you receive any formal communication from the revenue service or any governing bodies?

 

[Martin Everson]

JonnyStekkino said:
I would just try to reduce the risk of this happening again also with other major banks, otherwise I will be forced to use small shady banks or to move outside of Georgia.
Click to expand...

By the way were you transacting in dollars? Dollars transactions are high risk for non-US banks - I have discussed this in other threads. It could explain them wanting to de-risk and close dollar clients down.


P.S Georgia has also been trying for years even when I lived there to de-dollarize the financial system to ensure stability.

https://forbes.ge/dollarization-in-georgia/

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[cuno]

What banks can be opened accounts at in Georgia? remote please?

 

[JackAlabama]

Martin Everson said:
By the way were you transacting in dollars? Dollars transactions are high risk for non-US banks - I have discussed this in other threads. It could explain them wanting to de-risk and close dollar clients down.


P.S Georgia has also been trying for years even when I lived there to de-dollarize the financial system to ensure stability.

https://forbes.ge/dollarization-in-georgia/
Click to expand...

Accurate. Best to use EUR or GBP for sending internationally between two non-USA countries or the currencies concerned (not always possible).

 

[GegaKan]

Martin Everson said:
By the way were you transacting in dollars? Dollars transactions are high risk for non-US banks - I have discussed this in other threads. It could explain them wanting to de-risk and close dollar clients down.


P.S Georgia has also been trying for years even when I lived there to de-dollarize the financial system to ensure stability.

https://forbes.ge/dollarization-in-georgia/
Click to expand...

You're right, but it must be applicable to the loan system and not for commercial fields. Considering the re-export options and that majority of large companies are involved in export/import, keeping funds in foreign currency is common, as long as the accounts are not used as a bridge, no money is kept on the account, or funds are received from shady sources, the sole reason that funds are kept in foreign currency should never be a reason for account closure.