What amounts are safe to deposit with EMI's?
- Thread starter MikeRoss
- Start date
Those are very different EMIs.
Wise is profitable and one of the largest on the market. High value transactions are not a problem as long as you can back them up with supporting documents. They do not have a very high risk appetite, so make sure your business activities fall in line with their AUP.
Advcash seems to focus on high-risk clients and has a reputation for tolerating activities which require significant skills to effectively manage without risking regulatory sanctions and losing correspondence relationships.
Intergiro has problematic owners/history.
Koalapays has problematic owners/history.
Assess the risks based not only on whether an EMI is an EMI. Not all EMIs are the same.
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This is the probably the answer to your question.
Wise is profitable and one of the largest on the market. High value transactions are not a problem as long as you can back them up with supporting documents. They do not have a very high risk appetite, so make sure your business activities fall in line with their AUP.
Advcash seems to focus on high-risk clients and has a reputation for tolerating activities which require significant skills to effectively manage without risking regulatory sanctions and losing correspondence relationships.
Intergiro has problematic owners/history.
Koalapays has problematic owners/history.
Assess the risks based not only on whether an EMI is an EMI. Not all EMIs are the same.
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This is the probably the answer to your question.
It shouldn't be problems with Wise if money comes from the same company's bank account, that has an account with Wise? I would just deposit money from bank acc to Wise acc
Best to speak to the EMI beforehand before any transfer rather than structure the transfers. Once they detect structuring you may have your account blocked. In general although your money maybe segregated even with a sh1tty EMI you run the risk that your money could be blocked with them for inexcess of a year like what happened to Epayments users.
At end of day keep large amounts either in a quality EMI like Wise or a real bank.
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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
Transactions receive a risk score based on nearly every possible detail about the transaction. While internal transactions within an institution are generally lower risk, you're still subject to an automatic system that scores your transaction. If the risk score is high enough, it can and will be held in review while supporting documents are requested.
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This is the probably the answer to your question.
What supporting documents? Company moves money from one account to another, both belonging to the company: from company's bank acc to company's EMI acc.
Wise might still ask where the money originally came from.
EMIs are arguably safer than banks, since EMIs are required to maintain 100% reserves. These reserves are checked frequently, leaving very little room for EMIs to get creative with your money. The obvious drawback is this makes it harder for them to make a profit since they can't issue credit.
In a very oversimplified way, you could say:
- EMI: funds are safe, but the institution itself might struggle.
- Bank: funds only protected up to deposit insurance (if any), institution has more options to remain solvent.
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This is the probably the answer to your question.
Great! Thanks for the answer.
So, if the EMI struggle I should expect to lose my money or that they will return to my bank account and dissolve?
So no EMI has an insurance like FDIC ?
If an EMI goes under, your funds are still kept safe in a special account that creditors cannot access. You will get your money out.
EMIs do not have a deposit insurance, because funds are already kept at 100% reserve.
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This is the probably the answer to your question.
After reading horror stories like TransferWise holds money since early January 2019 I'm worried about holding money with Wise. As nobody knows what could trigger them freezing my account for long...
From what I've read, several people in the forum use it without problems as long you have the documents supporting your operations. As mentioned above.
I see six and seven figure amounts flowing through Wise on a monthly basis with some customers. But don't use Wise if your business activities fall outside of their AUP/Acceptable Use Policy. If you are unsure, speak with them in advance.
Freezing accounts and holding balances is not in the best interest of a financial institution. It's a guaranteed financial loss and reserved for customers/transactions that have significant risk indicators. Sometimes the wrong decision is made, but the systems are so well honed nowadays the false positives rates are very low.
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This is the probably the answer to your question.
Freezing accounts and holding balances is not in the best interest of a financial institution. It's a guaranteed financial loss and reserved for customers/transactions that have significant risk indicators. Sometimes the wrong decision is made, but the systems are so well honed nowadays the false positives rates are very low.
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This is the probably the answer to your question.
Well, I've got an account with Wise already, successfully went through KYC. I have agreements and invoices to prove the origin.
However, it may be hard to to prove the origin of money that company has accumulated through years of operation. Should I provide invoices for like 5 last years as a proof so I could deposit larger amounts from company's bank acc?
However, it may be hard to to prove the origin of money that company has accumulated through years of operation. Should I provide invoices for like 5 last years as a proof so I could deposit larger amounts from company's bank acc?
In that case, you'd normally just provide financial statements for the last fiscal year or something to that effect.
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This is the probably the answer to your question.
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This is the probably the answer to your question.