GENERAL BANKS’ REQUIREMENTS WHEN ACCOUNT OPENING
Each bank implements the “Know Your Client” policy in its operations, following which they wish to get to know and understand completely the persons and companies they are establishing business relationship with, so that they can be sure the transactions they perform for the benefit of the customer are always correct.
The bank customers should be ready to provide the information describing the customer business to the maximum possible extent. In order for principles of cooperation between the bank and its customers to be successfully implemented, the customers should be open to cooperation with the bank and willing to provide all information requested by the bank.
Only successful cooperation can result in the bank’s confidence about the customer’s reputation and financial status, and provide the customer service personnel with precise information on customer wishes and demands, thus ensuring the bank’s ability to offer exactly the services the customers need.
To open a bank account, as a rule, banks ask to provide the following information:
· The estimated amount which will be kept in the account (for investment accounts)
· The annual, monthly account turnover
· The estimated average monthly number of and the purpose of incoming-outgoing transactions (company name, country, for what products/services)
· The source of origin of funds - you need to provide supporting documentation (financial statements of a company, tax returns, contracts of provision of services/works and other documents-proofs of income)
· The detailed description of business of a client specifying a web site, all associated companies, business partners
· What transactions on account are expected in future, the amount of investment (for investment accounts)
The list of documents most frequently required by banks when opening accounts for corporate clients:
· The Certificate of Incorporation
· The Memorandum, Articles of Association of a company or other statutory document on establishment of a legal entity
· Relevant corporate documents containing information about shareholders, directors, registered office address
· Share certificates
The document proving the current status of a company at the moment, for example, the Certificate of Good Standing, if the company was incorporated for more than 1 year ago
· The Power of Attorney for opening and management of account
· Documents of directors, shareholders: a full set of corporate documents for legal entities and/or copies of passports, utility bills with reference to the residence address for individuals
· Documents of the administrator of the account: copies of passports (international and internal), utility bill with reference to the residence address or registration in the passport, the letter from a banking institution confirming the reliability of their reputation (Reference Letter), CV.
The above lists are tentative - they can vary depending on the type of the account being opened, the country of incorporation and the legal form of the legal entity opening the account, as well as the requirements of a particular bank.
Most banks require the presence of a certain minimum balance in the account and it should be taken into account when account opening.
Some banks open accounts remotely – for them it is enough to talk with a client by phone or skype, but most banks still require a personal meeting with a client.