[URGENT] Frozen bank account - They allow 1 last transfer. Best option?
- Thread starter Yaneek
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Worst case here - bank could ask to provide proof of source for company money and how company take it.
Since, cyprus bank closed your account, it seems to me that style of business of your company is not clear for them, so you could stuck in same situation as with original problem.
It's a quite popular method to︀ avoid AML, so, banks will sure asks details about loan and your connection to the︁ company and why they give you loan (with all paper documents that should confirm this︂ loan)
Since, cyprus bank closed your account, it seems to me that style of business of your company is not clear for them, so you could stuck in same situation as with original problem.
It's a quite popular method to︀ avoid AML, so, banks will sure asks details about loan and your connection to the︁ company and why they give you loan (with all paper documents that should confirm this︂ loan)
I don't know in which country you live, but in France the Tax administration love statistics (They are even capable of to calculate how much you have to spend in a casino for get the money you claim that you win by gambling), so I guess it's the same for your tax administration.
What is the probability that a random guy of your country get a loan by a offshore company who will be disolve the next month ? Does it seems to be credible in court ? Or in a statistic way ?
What is the probability that a random guy of your country get a loan by a offshore company who will be disolve the next month ? Does it seems to be credible in court ? Or in a statistic way ?
It's all depends on 2 things:
1. laws on your local country. for example, at my country, at law level *any* connection to the offshore company cause to deep investigation of this type of connection for question of aml, tax avoid, etc. So, in case you got loan from somebody, you need to proof it with some paper. But when this *somebody* is offshore company, you need to proof it with 10 times more different papers and you as a person going to︀ be permanently on the list of people *who act with offshore and could avoid taxes*.︁
2. Internal policies of bank that will receive money from your offshore company.
Some banks︂ could just denied such type of transaction or ask for documents that you will be︃ not able to provide. Just see topics about rietumu bank for understand how banks is︄ acting to offshore business nowadays.
But nobody know what will be for sure at exact︅ your case. Things are very different between countries, banks, type of your business in offshore,︆ etc.
1. laws on your local country. for example, at my country, at law level *any* connection to the offshore company cause to deep investigation of this type of connection for question of aml, tax avoid, etc. So, in case you got loan from somebody, you need to proof it with some paper. But when this *somebody* is offshore company, you need to proof it with 10 times more different papers and you as a person going to︀ be permanently on the list of people *who act with offshore and could avoid taxes*.︁
2. Internal policies of bank that will receive money from your offshore company.
Some banks︂ could just denied such type of transaction or ask for documents that you will be︃ not able to provide. Just see topics about rietumu bank for understand how banks is︄ acting to offshore business nowadays.
But nobody know what will be for sure at exact︅ your case. Things are very different between countries, banks, type of your business in offshore,︆ etc.
After reading all comments, talking to a few of my contacts and talking to a tax advisor it seems I have these option left:
1) Declare the money and pay dividend tax. (recommended by my tax advisor - I am afraid of getting on some blacklist if I do this. Also I don't know what to do with the money I withdrew in the past)
2) Sell an asset to my company. (recommended by my contacts)
3) Sending the money to mistertango and buy bitcoin (not recommended by anyone because of the high amount)
What should I dooooooooo?
1) Declare the money and pay dividend tax. (recommended by my tax advisor - I am afraid of getting on some blacklist if I do this. Also I don't know what to do with the money I withdrew in the past)
2) Sell an asset to my company. (recommended by my contacts)
3) Sending the money to mistertango and buy bitcoin (not recommended by anyone because of the high amount)
What should I dooooooooo?
What issues are you aware of with Cyprus banks? My UAE offshore︄ company banks in Cyprus and so far I had no problems. Yes they ask for︅ invoices from both sides when paying or receiving large sums, but that would be normal︆ banking practice. But interested to know what problems you have experienced or know of and︇ the OP reason for bank taking this action.
First, I do not use them for business account (maybe for business accounts they have different situation).
I only move part of my income, from business, to the cyprus bank personal account.
And the last︀ couple of years they going to ask more and more questions.
For proof of funds︁ they do not happy with only invoices. They like to have contracts, agreements, information about︂ payer company, details of cooperation, etc.
Coming to the bank branch I always see the︃ other clients like me, that just provide documents and information about proof of funds for︄ money.
Generally I know people who was asked for close accounts(situation similar to Yaneek), which︅ is going to think me that cyprus banking just going to be very regulated, compared︆ to previous time.
I only move part of my income, from business, to the cyprus bank personal account.
And the last︀ couple of years they going to ask more and more questions.
For proof of funds︁ they do not happy with only invoices. They like to have contracts, agreements, information about︂ payer company, details of cooperation, etc.
Coming to the bank branch I always see the︃ other clients like me, that just provide documents and information about proof of funds for︄ money.
Generally I know people who was asked for close accounts(situation similar to Yaneek), which︅ is going to think me that cyprus banking just going to be very regulated, compared︆ to previous time.
Thanks for the clarification. Yes they have asked me for contracts but usually the invoices have been sufficient. Reading again the OP mail he said that his company was about to expire. I suppose for a business account this would be quite an issue, so perhaps that is the reason they are requesting the funds to be moved.
I did once have a personal account in the Isle of Man and they were always asking for detailed information about the source of funds, contracts, agreements etc. Eventually after I had sent them all they requested, they told me they were going to close my accounts︀ anyway. Similar to OP they gave me 30 days to move the funds. I still︁ do not know why!
I did once have a personal account in the Isle of Man and they were always asking for detailed information about the source of funds, contracts, agreements etc. Eventually after I had sent them all they requested, they told me they were going to close my accounts︀ anyway. Similar to OP they gave me 30 days to move the funds. I still︁ do not know why!
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