Bank account opening service provider(s)?

[Midas Gordiusson]

I'm looking for a service provider who can help open up bank account(s). But the provider needs to know the details of how "their" bank(s) interpret and implement CRS & AEOI - not just publicly available information.

Objective is to set up a bank account for an offshore family office (passive NFE), where the account signatory is the investment advisor and should not be interpreted as an account holder / UBO by the bank.

 

[mnschwarz]

I'm looking for a service provider who can help open up bank account(s). But the provider needs to know the details of how "their" bank(s) interpret and implement CRS & AEOI - not just publicly available information.

Objective is to set up a bank account for an offshore family office (passive NFE), where the account signatory is the investment advisor and should not be interpreted as an account holder / UBO by the bank.

A big part of that will depend on your structure. And are you using a nominee account signatory? I'm looking to do the same at the moment. Will let you know if I have any luck.

 

[Midas Gordiusson]

A big part of that will depend on your structure. And are you using a nominee account signatory? I'm looking to do the same at the moment. Will let you know if I have any luck.

Judging by your forum entries we have the same structure from the same provider (whose banking proposals are lacking insight). I would prefer not to use nominee account signatory. While I'm able to identify many interesting banks, there are not so readily available insights as to how they implement CRS, which for me is a crucial piece of the puzzle. LeuPay looked great initially due to € accounts, SEPA and strong online solutions. But I've been told that they report anyone somehow associated with the account as account holders per CRS, even if they're not actually the UBO. Do you have any lead option(s)?

 

[mnschwarz]

@Midas Gordiusson have you thought about banking in the US (assuming you're not an American citizen/resident)? Just a passing thought but after looking at a list of jurisdictions that haven't signed the AEOI agreement, the US stands out.

 

[Midas Gordiusson]

@mnschwarz US will definitely work as I'm not American. Check this list to see what DTAs/TIEAs the US has signed with what jurisdiction and here to see that the US has no (zero) activated AEOI relationships. But that's just postponing/avoiding the question, and it's possible the US may sign more TIEAs and even join reciprocal AEOI one day. I think a more stable solution would be to find a bank in a reputable jurisdiction whose CRS/AEOI implementation correctly represents the reality of the account holder / UBO, and doesn't overreport every individual whose name is associated with the account.

Have you found a good US banking solution for offshore IBCs? I've found great brokerage that accepts IBCs (e.g. Interactive Brokers) but not yet looked at banking.

 

[mnschwarz]

@mnschwarz US will definitely work as I'm not American. Check this list to see what DTAs/TIEAs the US has signed with what jurisdiction and here to see that the US has no (zero) activated AEOI relationships. But that's just postponing/avoiding the question, and it's possible the US may sign more TIEAs and even join reciprocal AEOI one day. I think a more stable solution would be to find a bank in a reputable jurisdiction whose CRS/AEOI implementation correctly represents the reality of the account holder / UBO, and doesn't overreport every individual whose name is associated with the account.

Have you found a good US banking solution for offshore IBCs? I've found great brokerage that accepts IBCs (e.g. Interactive Brokers) but not yet looked at banking.

I don't see the US joining AEOI anytime soon as they have FATCA. But indeed something may change in the future negating the solution. That being said, things are always changes in this space and it's also quite possible your chosen bank updates their CRS policies to begin reporting all account holders. I would say the later is more likely.

Getting through CRS policies of individual banks has been difficult. It seems a lot of staff aren't exactly sure of it all themselves yet & many banks seem to be going overboard with the KYC info to ensure compliance. I think the safest approach (albeit possibly more difficult) is to obtain residency in a non-AEOI or a territorial taxed jurisdiction. This is the approach I've taken. If you find another solution for our structure without residency being an issue, please do let me know.

 

[Midas Gordiusson]

@mnschwarz did you identify a good US banking solution?

 

[mnschwarz]

@mnschwarz did you identify a good US banking solution?

No but I haven't really been looking either. You'd need to contact individual banks and ask if they accept offshore corporations.