Payments from Russian clients - will a pro-Russian payment system resolve the issue?

[Samman Kaseeb Sleiman]

UK and US Ltd/Llp/Llc.

I've mostly been using UK Ltd up till now, and I've had Wise connected to it.


Now I'll need to be able to receive payments from Russia **as well**, and at times.


Do I understand correctly that what I'll have to do is simply choose a payment system that works with Russia? That is, I can apply for, for instance, Advcash.com **as a business** (UK/US Ltd/Llc) and then, via AdvCash receive payments from russia clients, from Russia? With no problem? And the fact that I'll be using UK and US Ltd/Llp/Llc for that won't matter?


Will there be any issues in regards to accounting of my companies?


---

Or perhaps open a brand new UK or US Ltd/Llc and use it only for russian clients, with appropriate payment systems?

Last edited: Jun 23, 2022

 

[Forester]

If I were you, I would avoid UK or US jurisdiction for trading with Russia at all. Russia is under UK and US sanctions and problems for your business (even if it is perhaps not under sanctions) can arise anytime.
I.e., set up a new company, under jurisdiction that do not impose sanctions, and use it only for russian clients, with appropriate payment systems.

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[Jerry1911]

Forester said:
If I were you, I would avoid UK or US jurisdiction for trading with Russia at all. Russia is under UK and US sanctions and problems for your business (even if it is perhaps not under sanctions) can arise anytime.
I.e., set up a new company, under jurisdiction that do not impose sanctions, and use it only for russian clients, with appropriate payment systems.
Click to expand...

That's exactly what I'd do and I think it's the best solution right now. Curious to see what other members think...

 

[Samman Kaseeb Sleiman]

Forester said:
I.e., set up a new company, under jurisdiction that do not impose sanctions, and use it only for russian clients, with appropriate payment systems.
Click to expand...

So THIS is when a Belize or Scheyshelles company, and banking there, would finally come in handy, huh?


Otherwise, where else? A company that's easy and *cheap* to set up, preferably with an ability to set it up remotely, and which won't have any problem due to the sanctions of UK, US and EU .

 

[Forester]

Samman Kaseeb Sleiman said:
So THIS is when a Belize or Scheyshelles company, and banking there, would finally come in handy, huh?
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For example...

Samman Kaseeb Sleiman said:
Otherwise, where else? A company that's easy and *cheap* to set up, preferably with an ability to set it up remotely, and which won't have any problem due to the sanctions of UK, US and EU .
Click to expand...

For forming a new company it its better to start a new thread here
https://www.offshorecorptalk.com/forums/offshore-company.13/It belongs there, and attracts more proper attention...

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[Sols]

Samman Kaseeb Sleiman said:
So THIS is when a Belize or Scheyshelles company, and banking there, would finally come in handy, huh?
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No, those banks are whipped into compliance by their correspondents banks. A bank in Belize or Seychelles isn't going to risk having their USD, EUR, and GBP correspondent accounts pulled just to facilitate some sanctions-dodging.

You need banks in countries with currencies that are actually somewhat useful.

What people are doing right now is transacting via banks in Kazakhstan, Turkey, and other countries that haven't snactioned Russia. They usually set up local companies but the banks will for very good, large clients accept foreign companies. There are usually one or two currency conversions taking place, for example RUB to KZT and KZT to USD. If you're on a tight budget, this won't work. It's for big volume (millions at a time).

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This is the probably the answer to your question.

 

[Samman Kaseeb Sleiman]

Sols said:
No, those banks are whipped into compliance by their correspondents banks. A bank in Belize or Seychelles isn't going to risk having their USD, EUR, and GBP correspondent accounts pulled just to facilitate some sanctions-dodging.
Click to expand...

How's a bank from Belize or Seychelles different from a bank from Kazakhstan or Turkey, in regards to sending to/receiving from payments Russia and compliance? Neither Belize, nor Seychelles haven't imposed any sanction on Russia either.

By the way, Belize or Seychelles probably won't have accounts in RUB anyway.


---
My budget for now is low. And I'd use a company for working with russian clients only, and only when they'd want to work officially.

Then I could set up a company in Armenia, as the easiest option? But that'll probably require a physical office, huh?

 

[Fred]

Sols said:
No, those banks are whipped into compliance by their correspondents banks. A bank in Belize or Seychelles isn't going to risk having their USD, EUR, and GBP correspondent accounts pulled just to facilitate some sanctions-dodging.

You need banks in countries with currencies that are actually somewhat useful.

What people are doing right now is transacting via banks in Kazakhstan, Turkey, and other countries that haven't snactioned Russia. They usually set up local companies but the banks will for very good, large clients accept foreign companies. There are usually one or two currency conversions taking place, for example RUB to KZT and KZT to USD. If you're on a tight budget, this won't work. It's for big volume (millions at a time).
Click to expand...

Adding here UAE as jurisdiction and AED/SAR/CNY as Currency with Dubai Banks.

Samman Kaseeb Sleiman said:
How's a bank from Belize or Seychelles different from a bank from Kazakhstan or Turkey, in regards to sending to/receiving from payments Russia and compliance? Neither Belize, nor Seychelles haven't imposed any sanction on Russia either.

By the way, Belize or Seychelles probably won't have accounts in RUB anyway.


---
My budget for now is low. And I'd use a company for working with russian clients only, and only when they'd want to work officially.

Then I could set up a company in Armenia, as the easiest option? But that'll probably require a physical office, huh?
Click to expand...

You would need to invest at least 10.000 USD to get something done no matter which option you are looking into.

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[lostguy]

@Fred you mean you can support a setup with Russians as UBO ?

 

[Fred]

lostguy said:
@Fred you mean you can support a setup with Russians as UBO ?
Click to expand...

Sure.

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[Samman Kaseeb Sleiman]

Fred said:
You would need to invest at least 10.000 USD to get something done no matter which option you are looking into.
Click to expand...

That's not true for the options I've mentioned.

 

[Fred]

Samman Kaseeb Sleiman said:
That's not true for the options I've mentioned.
Click to expand...

What you have mentioned is no option at all - Advcash can receive EUR SEPA transactions only and no SWIFT payments from Russia.

Russians can create an account and deposit Crypto then send but that's the same like they send you directly Crypto.

You are like "Hi guys wanna spend 100% for getting payments from Russia for Business Purpose - if even any" well welcome to reality - Russia is in war with Ukraine / Western Countries and got sanctioned - there is no "just a bit business with Russia" when even Russians itself are getting disconnected from Visa/Mastercard - moving over to Dubai just for having again access to the financial fiat system without interruption.

@Sols and myself mentioned to you the ways to go - come on Seychelles and Belize? 10 years ago maybe but nowadays you even don't get normal payments through with such jurisdictions.

Anyway we mentioned you the truth - everything else is time waste but that's your business call.

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[Forester]

Samman Kaseeb Sleiman said:
How's a bank from Belize or Seychelles different from a bank from Kazakhstan or Turkey, in regards to sending to/receiving from payments Russia and compliance?
Click to expand...

They evidently use different correspondence banks (if banks in Kazakhstan use any, they might have a direct connection with Russian banks via their branches). I am not well oriented in Belize & Seychelles issues but I believe @Sols re: this matter...

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[Sols]

Samman Kaseeb Sleiman said:
How's a bank from Belize or Seychelles different from a bank from Kazakhstan or Turkey, in regards to sending to/receiving from payments Russia and compliance? Neither Belize, nor Seychelles haven't imposed any sanction on Russia either.
Click to expand...

Comes down to geopolitics and sizes of economies. Banks in Kazakhstan and Turkey can stand on their own, at least more so than banks in Belize and Seychelles. Some Kazakh and Turkish banks hold RUB accounts. You can then sell RUB for KZT or TRY, and then from KZT/TRY to major international currencies.

Belize and Seychelles might not have imposed sanctions but the correspondent banks they are heavily (if not fully) reliant on are in jurisdictions that have.

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This is the probably the answer to your question.

 

[inector]

Sols said:
correspondent banks they are heavily (if not fully) reliant on are in jurisdictions that have
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Small expansion of this thread:

Assuming a Russian individual opens a Turkish / Kazakh bank account, but he opens KZT / TRY account (and not USD / EUR)

He transacts only in KZT / TRY , so there are no correspondent banks like JP Morgan, Commerzbank, etc.

Is the bank still taking any risk by offering those accounts to the Russian individual (which are not USD / EUR)?

 

[Forester]

inector said:
Small expansion of this thread:

Assuming a Russian individual opens a Turkish / Kazakh bank account, but he opens KZT / TRY account (and not USD / EUR)

He transacts only in KZT / TRY , so there are no correspondent banks like JP Morgan, Commerzbank, etc.

Is the bank still taking any risk by offering those accounts to the Russian individual (which are not USD / EUR)?
Click to expand...

Well...
IMO:
If it is an international bank then the answer is yes.
If it is a local Kazakhstan or Turkey bank then it is difficult to answer without some insider information what is the current position of local goverment and respective banking regulator. My guess would be probably no in the case of Turkey and no clue in the case of Kazakhstan...

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[Martin Everson]

inector said:
Is the bank still taking any risk by offering those accounts to the Russian individual (which are not USD / EUR)?
Click to expand...

Yes 100%.

The US correspondence bank terms and conditions the bank signs up to when opening a correspondence account in USD applies to their entire banking operations and not just use of USD. It's the reason why when the HK PM was sanctioned by US she had to be paid her HKD salary in cash as no bank in HK could offer her an account in any currency as they had to follow US sanction rules as they all work with USD. The same logic applies to EUR's and EU sanctions.

Bottom line is you need a bank that does not work with EUR or USD period.

HK leader unable to use credit cards, banking services after US sanctions​

https://www.straitstimes.com/asia/e...nctioned-hong-kong-leader-has-no-bank-account

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