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Wednesday, November 24, 2010

The List of Requirements to Open Overseas Bank Accounts

Cathay Bank in Chinatown, Massachusetts, Unite...Image via Wikipedia

Clients should understand that opening offshore corporate accounts is not a simple process, and it may appear to be onerous, bureaucratic and time consuming. All I can say is: don't despair! You'll get there in the end!

Banks are under enormous pressure to conduct detailed and ongoing due diligence on offshore clients. In most circumstances to open the account you will need:

· A reference from your existing bankers

· Certified copy of passports of all signatories, officers and owners

· Proof of residence of all signatories, officers and owners (typically a utility bill)

· Business plan and cash flow forecasts, with supporting documentation, if available

· Documentary evidence of source of funds to be deposited

The business plan is especially important. The bank can be expected to verify this and will then monitor the account on an ongoing basis to ensure that the business activity is consistent with the profile. Documentary evidence of specific transactions (for example copies of invoices or contracts) may be requested, especially in the case of large transactions (such as real estate business). It is always advisable to notify the bank in advance of unusual transactions or sudden changes in volume, or of changes to the core business which may occur over time.

Please understand that due diligence procedures are part of global business today. If your banker sees a well-administered company and has a good two-way channel of communication with its management, that will help build the foundations of an excellent and flexible business relationship with your bank.

To receive the best advice on where to open an overseas bank account for your business development in 2011 please visit www.qwealthreport.com


Alexandra Listerman


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