SEY bank account closed. New bank needed to move funds.

[no1d]

Hi everyone,

Got some bad news this Friday.

My good old EU bank gave me a notice that they can't keep open the bank account of my Seychelles company. Now most likely this company will be closed, I was using it just just to keep funds for investments.

They gave me 3 months time to find a solution to withdraw the funds, its a high amount, 7 figures.

I see few possibilities:

- I hold a personal account with same bank and I'm think I can some of the funds there, is that a good idea, or they will report this account to my country when they see a high balance?

- Second option is to find 2-3 Swiss banks and split the money.

- Third is to take cash, but I'm a bit worried about traveling with so much cash to my home country.

Maybe a mix of cashout, Swiss banks and personal account is a better idea.

Looking forward for suggestions.

Thanks for help.

 

[Fred]

Hi @no1d ,

I assume you have your Residence in the EU and your Home Address is on the bank account on file as well?

Otherwise the reporting part you mentioned doesn't make sense. Under CRS both Business and Personal Accounts are reportable so in case you have some EU Home Country address on file with the Bank your Seychelles Ltd account should already have been reported.

The reporting doesn't change even with Switzerland Banks - it's even more likely with Switzerland Banks to get reported as they have much more non-resident banking then some EU country and are highly monitored by the OECD.

So get yourself a Residence Visa in the UAE through the Company Formation and open local UAE Business Bank Account and wire the money from the Seychelles Ltd EU bank account there.

Then you can even open Switzerland Bank Account for the Seychelles Ltd with UAE Residence on file. Even some UAE banks would open account for the Seychelles Ltd if you hold Residence Visa and mention 7 figures.

Please give more details as it doesn't make sense that you were not reported yet - or you have already a tax free residence but then again why would you care about reporting.

7 figure cash inside the EU in 2021 is pointless.

 

[no1d]

Hi Fred, thanks for response.

Yes my residence is in EU and I have UAE Visa through RAK company but no tax residence certificate. On bank file is my EU address, I asked to change it some time ago but that would had lead to a sooner account closure since they allowed me to hold the account because I'm EU resident.

Don't know why but I don't trust UAE banks holding all my funds. I've had an account with NOOR bank and it took over a month to have my accounts approved with DIB Bank.

I don't want to keep the Seychelles company, its pretty much useless.

I wish to be able to invest these funds right away in real estate developments in RO, already started a business but need to take this slow and I think it would be easier to do this from EU bank, less questions asked.

 

[Fred]

Your Seychelles Ltd. Business Bank Account with I guess an East European Bank got never reported?

Interesting.

I mean to have for a Seychelles Ltd. in 2021 an Bank Account within the EU with a real Bank is already crazy.

UAE Banks are pretty solid and all over good - well Noor Bank was till the very end the Bank that asked the less questions and substance and because of this the banking was annoying. They merged with DIB to make a big re-KYC and get rid of all the weak KYC companies. However your experience with ENBD will be a whole other once the account is open.

If you are a UAE Residence Holder a UAE personal Account is the easiest route to go in your case however with your 7 figures you get for sure a Switzerland Private Bank to onboard you as a UAE Resident.

 

[no1d]

Your Seychelles Ltd. Business Bank Account with I guess an East European Bank got never reported?

How do I know if it was reported?

The account is 10 years old but I've heard they started cleaning since last year.

What if I transfer the funds to my personal account in Dubai or Swiss, isn't better than holding through a company?
Since CRS applies anyway I see no need for an offshore company.

I have investor Visa, probably I need to rent something in order to have some bills on my name to show at the Swiss banks.

 

[Fred]

How do I know if it was reported?

Sounds stupid but with your mentioned 7 figures - when the tax authorities knocking at your door.

In developed EU countries like Germany, France etc. you face starting from 7 figures already jail.

However seems like in your case you didn't got reported - that's as crazy as the fact that you had till now SEY EU account.

Due to the Residence Visa, Emirates ID and local UAE phone no. on file no CRS reporting is triggered.

In case you have any doubts that the Residence Visa together with the bank account was setup in the past in a bullet proofed way - you can setup a Dubai Company that grants you the Residence Visa and setup the local UAE Business & Personal Bank Account in the right way - so you can park the money either under the Company or Personal Bank in the UAE without any CRS reporting triggered.

Swiss Private Banks usually accept just some handwritten permanent stay confirmation from a Hotel in Dubai when they here 7 figures. The in the forum well discussed Swiss Private Bank with remote opening was accepting this for example in the past without any issues. Bears of course higher risk then banking local in the UAE.

The key is your Residence Visa you have to open accounts with - otherwise you get reported like mentioned by you.

 

[no1d]

It shouldn't be reported because its an active NFFE entity, that's what they said, but maybe my gov is slow to react, who knows.

I had a good relation with this bank so I'm one of the last offshore company with active account.

Atm I have a RAK free zone company and DIB bank accounts initially they said it will be hard to activate for RAK FZE but they approved it the end.

@Fred, your suggestion is to register a new company in Dubai?

My plan is to split 40% to Swiss banks + 40% to UAE banks and 20% withdraw in cash.

What are the risk of withdrawing cash?

Sending funds to personal Swiss account is a good idea or is better to setup a new company in HK or SG with accounts in CH and UAE?
There won't be any business activity on a new company, only personal expenses and loans to other companies, so I find it useless.

Final goal is to invest all the money in my real estate development company.

 

[Fred]

Atm I have a RAK free zone company and DIB bank accounts initially they said it will be hard to activate for RAK FZE but they approved it the end.

@Fred, your suggestion is to register a new company in Dubai?

If you want to do the things right - yes this is my suggestion.

Having a working setup in Dubai nowadays with active Residence Visa and local UAE Business & Personal Account is always a smart choice.

Beside of the fact that it's close to impossible to get a Bank Account nowadays with a RAKEZ Company or living with the daily risk of getting the DIB account closed - you are overpaying for RAKEZ - I guess you pay something between 23-25k AED for the Business Trade License with 1 VISA slot renew. In Dubai it's 18k and you have the option to get banking with CIM Banque Switzerland (only Dubai & Abu Dhabi company). They will verify both your Dubai Company and Personal Account with Dubai Address without too many gymnastics.

Forget about cash if you want to utilise the cash for serious investments later on - for lifestyle credits why not - I'm a German living in UAE so spending lifestyle credits in cash is very common for me however depending on where you spend most of your time it can even for lifestyle credits be a problem look at Spain or Italy - everything aboth 1k EUR cash spend is a criminal offense.

 

[Silvio]

If you want to do the things right - yes this is my suggestion.

Having a working setup in Dubai nowadays with active Residence Visa and local UAE Business & Personal Account is always a smart choice.

Beside of the fact that it's close to impossible to get a Bank Account nowadays with a RAKEZ Company or living with the daily risk of getting the DIB account closed - you are overpaying for RAKEZ - I guess you pay something between 23-25k AED for the Business Trade License with 1 VISA slot renew. In Dubai it's 18k and you have the option to get banking with CIM Banque Switzerland (only Dubai & Abu Dhabi company). They will verify both your Dubai Company and Personal Account with Dubai Address without too many gymnastics.

Forget about cash if you want to utilise the cash for serious investments later on - for lifestyle credits why not - I'm a German living in UAE so spending lifestyle credits in cash is very common for me however depending on where you spend most of your time it can even for lifestyle credits be a problem look at Spain or Italy - everything aboth 1k EUR cash spend is a criminal offense.

Probably a silly question but what do you mean by "lifestyle credits"?

 

[Fred]

Probably a silly question but what do you mean by "lifestyle credits"?

Spending money on non-sense like clothes, cars, watches etc.

This can be still paid in cash without any questions at least in Germany and UAE - so far I couldn't see any KYC/AML at the cashier of Louis Vuitton when somebody spends 50k EUR for the newest collection.

 

[Silvio]

Spending money on non-sense like clothes, cars, watches etc.

This can be still paid in cash without any questions at least in Germany and UAE - so far I couldn't see any KYC/AML at the cashier of Louis Vuitton when somebody spends 50k EUR for the newest collection.

I understand, thanks for the explanation.

 

[jafo]

Hi everyone,

Got some bad news this Friday.

My good old EU bank gave me a notice that they can't keep open the bank account of my Seychelles company. Now most likely this company will be closed, I was using it just just to keep funds for investments.

They gave me 3 months time to find a solution to withdraw the funds, its a high amount, 7 figures.

I see few possibilities:

- I hold a personal account with same bank and I'm think I can some of the funds there, is that a good idea, or they will report this account to my country when they see a high balance?

- Second option is to find 2-3 Swiss banks and split the money.

- Third is to take cash, but I'm a bit worried about traveling with so much cash to my home country.

Maybe a mix of cashout, Swiss banks and personal account is a better idea.

Looking forward for suggestions.

Thanks for help.

Did you solve your issue?
If affirmative, would you mind sharing how?

 

[no1d]

Yes, the funds were moved to Barclays.

 

[Fred]

@no1d if you don't mind I would share some insights as well to give some indications here.

 

[no1d]

Its a fairly easy on-boarding process. I registered online through their IOM subsidiary. After a week they contacted me, I provided SoF documents and after few more calls the account was active in approximately two months. I've registered as UAE resident getting the visa through @Fred from DLS Dubai.