EMI Account question!

[curiousmarv]

hi, related question (I hope not too offtopic): How can you sleep tight with using only an EMI as business account? Are you not worried... every company, also EMIs, can get bankrupt (for whatever reason) anytime and an EMI can also shut your account down at any time (for also, whatever reason). I could get any information about this situation on most EMI's (it's like a secret or unknown risk) ?!

 

[Tamarind]

therealmarv said:
hi, related question (I hope not too offtopic): How can you sleep tight with using only an EMI as business account? Are you not worried... every company, also EMIs, can get bankrupt (for whatever reason) anytime and an EMI can also shut your account down at any time (for also, whatever reason). I could get any information about this situation on most EMI's (it's like a secret or unknown risk) ?!
Click to expand...

Hard to answer, these are Licensed Financial Institutions, with little or limited oversight, but also lose a license from issuing authority in a blink of an eye if they are seen in anyway working without complying to regulations or helping any kind of laundering, so yes, they will rather shut you down then risk that. Its also a know fact EMI's are used for bit of a gray economy and biz, so while Internet technologies have facilitated any idiot to open an EMI, most good ones follow strict rules.

 

[negon]

There is no one that has the answer. However, banks can go the same way the risk to use an EMI is higher for obvious reasons. However, you will have to split your money and even withdraw it frequently either to CASH or to your bank account!

 

[Okanda Fernando]

That's why you need to find good incorporation company and advice before establishing your company under EMI. With good company you will get trusted EMIs no need to worry about it.

 

[jryan54]

I know that my EMI account is only used as a pass through for money...not the final destination for it. So it really depends on hwo you have your structure set up. But yes, you are right...there is certainly more risk using an EMI for offshore banking.