Opening bank accounts abroad is getting increasingly challenging with each passing year. Serbia, once a haven for such activities, is now clamping down. Today, non-resident banking applicants, both individuals and companies, are facing heightened difficulties there.
This trend stems from the aftermath of the 2008 financial crisis when large countries realized the urgent need to bolster their tax revenues. In response, they implemented stricter financial oversight measures. Specifically, these nations initiated de-offshorization, introduced new methods for verifying capital sources, and intensified the crackdown on tax evasion and funding of terrorism.
As a result, banking services for foreign applicants have become increasingly scrutinized, leading to a notable decline in applications. This is hardly surprising, given the complexities and, in some cases, the impossibility of opening a bank account overseas.
Accountable for their clients’ actions, banks now bear the brunt of ensuring total compliance. Missteps may result in severe penalties, from hefty fines to license revocations and even imprisonment for top executives and compliance staff.
The current banking climate is marked by heightened vigilance, particularly towards new and foreign clients, resulting in a high likelihood of service denial.
To improve your prospects of securing services from foreign banks and to protect against undue risks, we’ve introduced an efficient preapproval service. With it, you can obtain the bank’s preliminary agreement to serve you, contingent on their thorough understanding of your business model or personal income structure.
Your path to foreign bank partnership with the preapproval advantage
Each bank operates under a unique set of rules and requirements, just as each client has distinct preferences and expectations. We strive to harmonize these elements to facilitate a long-term, successful partnership with a foreign bank.
With Serbia Wealth, you’ll seamlessly select a suitable bank and determine the ideal account type for your needs. Following your positive decision, the preapproval service is available to secure preliminary approval from the bank in question.
The advantages of obtaining preapproval are manifold:
- It allows you to apply to two different banks at the same time.
- A preliminary decision is typically delivered swiftly, i.e., from three to ten business days.
- Preapproval requires only a minimal set of documents.
- There is no necessity for original documents as electronic scans are enough.
- Costs associated with document legalization and postage are reduced since electronic versions are accepted.
- Should one bank deny service, there is no need to reassemble and re-legalize documents for another application, thus saving on costs.
- If the bank grants preapproval, the fee for our service is absorbed into the overall cost of account opening.
Please note that a bank’s preapproval does not guarantee the eventual opening of an account upon submission of all application documents. Nevertheless, obtaining preapproval significantly reduces the likelihood of service denial, as it provides the bank with preliminary knowledge of your personal or business profile. It is crucial to meticulously prepare your application documents and promptly address any inquiries or requirements from the compliance department.
Preapproval procedure in detail
To benefit from the above preapproval service, you’ll have to complete a number of steps, starting from the submission of a special application form online. Please note that you have the option to request a paper version. You are free to do it on your own or with the help of the consultant who guided you in selecting a bank during your free consultation.
Once you have filled out the form, send it back to us for a thorough review. After confirming that all details are complete and accurate, you will be asked to pay for the service, which allows us to initiate collaboration with the bank.
Subsequently, the bank will evaluate your application and make a decision.
On average, it takes us two business days to review your completed form. The bank’s compliance department will then require three to ten days to evaluate your application.
Should service be denied by the first bank, we will proceed with the second one, thus saving your resources.
If the bank agrees to proceed, you must gather all necessary documents and forward them to the above financial institution for review. The bank’s administration will then deliberate and reach a final decision. Please note that the account opening is a separate service, incurring its own fees. However, the preapproval fee may be offset against the cost of opening the account.
Preapproval for peace of mind
The preapproval service may not be necessary for every company or individual. For instance, if we identify a bank that frequently services businesses similar to yours, the likelihood of service denial is minimal, and you may proceed directly to account setup with that bank.
However, if you value efficiency and wish to guarantee a smooth process, obtaining preapproval is beneficial. It is a simple procedure that will save you both time and money should complications arise.
Preapproval is essential if you select a bank independently, i.e., without expert guidance. It provides a prompt preliminary response, preventing the potential long wait and eventual disappointment of a rejected application.
Preapproval is crucial for businesses engaged in high-risk economic activities:
- IT and other hi-tech companies with complex business structures.
- Entities issuing bearer shares.
- Firms with gambling licenses, say, online casinos and poker rooms.
- Businesses in the adult industry.
- Companies trading in medications and biologically active dietary supplements (BADS).
- Equity trading firms.
- Businesses involved in the precious metals and jewelry sector.
- Companies focused on the extraction and sale of natural resources.
- Investment entities in development and construction.
- Companies and individuals planning substantial cash withdrawals.
- Charitable organizations.
- Enterprises that transact in cryptocurrencies and electronic money.
The above preapproval service is not available for companies involved in certain activities, as the banks we collaborate with categorically refuse to open accounts for them:
- child adoption services
- production or distribution of child pornography
- trade in live animals
- sale of human body parts, fluids, or remains
- trafficking materials infringing on copyrights, trademarks, or other forms of intellectual property
- manufacture of homemade armor
- dealing in goods and services from countries under sanctions
- conducting licensed activities without the necessary license.
If you are interested and feel like the preapproval service above may be beneficial for you, don’t hesitate to contact Serbia Wealth directly for a free consultation!
