Earlier we have already written about how the opening of a company with European incorporation can help your business, and the following post is aimed to show the advantages of corporate accounts transferring to European banks. If you still think that you have calculated all possible costs for maintaining corporate funds, and offshore banks are the best option, then we will try to explain what was possibly missed.
Argument 1: European bank is expensive to open and maintain.
Counterpoint: For sure, the cost of opening a corporate account in the EU is much higher than in “island” banks. But in return you get firstly, reliability and confidence of the safety of your funds, and secondly, a reduction of the transactions fees. The commission for SEPA transfers within the Eurozone is usually fixed and is rarely more than 10 EUR, while the transfer is guaranteed to be made within 1 business day. USD and other currencies transfers are also cheaper and faster due to the smaller number of correspondent banks in the sender-receiver chain. The explanation is simple – the larger and more reliable bank, the more it has correspondent contracts and the lower is the intermediary rate.
If you are planning or have already launched a payment processing on a website, then a European bank account will allow you to speed up withdrawals as soon as most of RegularPay solutions include providing a merchant account in European bank also.
Argument 2: I already have a company account. Why do I need to open one more?
Counterpoint: Let’s face it and answer to yourselves: how confident are you in your funds in an offshore bank which accounts are constantly monitored by the FATF for money laundering? Is it convenient to use online banking and support of a financial institution which time zone is +8 from you? And finally, what is safer – to keep all the money in one account or to diversify the assets for security? So, a corporate account opened in a bank in Europe, will allow you to partially deprive yourself in case of unforeseen situations and provide 24/7 access and control to your funds.
Argument 3: Confidentiality in European banks is lower than in offshore ones.
Counterpoint: In fact, the level of bank secrecy in all the banks of the world is approximately the same – just above zero. Any operation can be analyzed, the client can be included in the “gray” or “black” list because of suspicious transactions. Such control is a consequence of the fight against terrorism, criminal activity and money laundering.
On the other hand, the protection of your corporate data can be significantly increased if you open an account outside the country of incorporation. Banks and financial control services are anyway more interested in home assets, and the request of the regulator to issue financial information to a foreign bank is still a problem. In addition, a reliable bank with a history would prefer to strengthen the internal AML security during the initial verification of the customer, than to obtain a negative reputation when providing info about suspicious transactions to the Regulator.
Argument 4: I’ll have to visit the Czech/Latvia/Germany/etc. to conclude an agreement.
Counterpoint: The reliability and status of any European bank does not mean a stone age in the field of security and customer identification. Even the largest European financial institutions provide an option of remote account opening that can be paid for additionally. The customer identification is carried out through video communication, and the contract ready to be signed is sent by courier service.
Moreover our company is ready to help you in opening a bank corporate account, and all you need is provide the documents for approval by the bank, pass online verification and sign a contract sent by mail.