Setup for account to receive wires from individuals.

[fblbatt]

Hello.

I have a client who has 2-3 m a month turnover, 2-3 incoming remittances a day incoming from private individuals. Sums anywhere from 5k to 0.5 mil. Sending out daily as lump sum to a corp. account in Asia. They don't want an offshore account due to credibility issues, so we used to set up corporate accounts with nominee directors in Hong Kong, Taiwan, Macau, China. Most account raise compliance concerts within 6 months doe to high amount of incoming from individuals. Usually it's not the Asian bank initiating concerns but the corresponding bank. It's getting harder and harder to service this client, Hong Kong is almost impossible to open these days, China cracked down on OBU (Offshore Business Unit) accounts, Taiwan has very few English speaking local service providers. Right now we are getting by with buying existing accounts in HK (Mostly HSBC and Hang Seng banks) with Chinese nominees and opening with our nominees in Dubai, but looking for new options/solutions. I am not sure an EMI or PSP can service these kinds of volumes. Any ideas/offers/solutions will be appreciated.

 

[negon]

Usually if you speak with the bank that handles the banking for your client it isn't a problem.

Have you looked into Cyprus banks? what business is your client into?

At some point EMI could be a possible solution at least to open mass accounts however, I believe it is going to be to complicated to administrate and maintain all these accounts long term?

 

[fblbatt]

They are pushing a financial service without a license. All the accounts we opened for them were presented to the bank as an import/export business to justify large amounts incoming from clients and also it is fairly easy to provide supporting dox for equipment or materials (contract, invoice, bill of landing etc.). The incoming payments don't have any detail, just a number on a message to the beneficiary. Mostly accounts get blocked for "administrative reasons" after a while even if we are talking with the bank. Just too risky for the bank it seems.


Regarding the EMI. Opening accounts in bulk and managing them is not a problem. We have a team that got pretty good at that over the years. I m just wondering can an EMI or a PSP handle 100k a day and for how long. And what happens if the funds get blocked, do they get returned to the client (wich is fine) or they get released based on provided documentation (which is also fine). A scenario that is not fine is that they get blocked entirely.

 

[negon]

I was already thinking if this was unlicensed.

Well, I know AdvCash is doing fine with larger amounts, but how they handle it if there are any complains from corresponding banks, I don't know. It would be worth to try to setup some business accounts with them, same for WorldCore and test it.

What about Cyprus banks have you looked into the options there?

 

[fblbatt]

We offered Cyprus to our clients but they mentioned that they tried it before with a different provider and had major compliance issues. Also it is within the EU and banks seem to communicate much bether within the EU then over completely different jurisdictions. For AdvCash and WorldCorp for corporate account opening what corps work best? I can incorporate pretty much anywhere to get an account opened. What do you think in your experience? Also what are the expenses and timeframe to get the account opened and confirmed? If they can be opened in a week for example I could just get a new one opened every 2 weeks and replace the old one.

 

[negon]

You may use a simple Seychelles or Belize corp. for that purpose. Takes less than 1 week to get approved if you have all documents at hand.