Is being a director an additional compliance risk?

[Meta]

Imagine you open a personal bank account, being asked about your job you answer: Director/CEO.
Does it entail more questions regarding your company? Articles of incorporation requests? KYC not only for you but for your business?

Should one appoint himself to be not only Director, but also Head of Marketing / Web Developer / Trading Representative / whatever makes sense for the business?

What's your experience?

Regards.

 

[CoinMaster]

I don't understand the question please elaborate.

 

[Sols]

If you state that you are director of a company, you might be asked to provide documents proving that fact, and additional KYC on the company itself.

If you state that you're an employee, they might instead ask for an employment agreement. If the bank later finds out that you were a director of the company this whole time, it's at the bank discretion what they do. Some just tell you to update your profile and provide documents. If there are no other aggriviting circumstances, that's the most common consequence. Some might offboard you for having provided false information.

It's not exactly uncommon for freelancers to form a company to work as a web developer, and in forms like that state that they're a web developer, not realizing that they're technically a director and the company is the web developer. Happens a lot.

 

[daniels27]

From my experience.

For opening a bank account. And I am taking about a retail bank account with acceptable funding which is between 5000 and 500k. They won't ask anything. If they do, run!

For a private wealth management account at a US institution, expect to have a compelling answer where the money comes from. Trading, company etc. it not an answer as it does not cover where the initial finding was from. I do not recommend telling the truth. Tell them that you inherited some money and then made it through investment in stocks/funds/crypto and show them some performance report from the last few years with the biggest gain. We are talking about north of 10M and such salaries or crypto gains are rare. If this is the case, better come with a compelling proof is any kind as the compliance team does need it.

For a credit card, expect to be asked for income proof. If your are a director etc. you create payslips W2 forms or what is normal locally. I do not recommend telling that it is your company as it is a hassle for the compliance guys as they are better handling payslips.

 

[Meta]

I don't understand the question please elaborate.

I was asking if having your job title as Director more problematic for banking than anything else. Apparently, it may be. So if you open a retail bank account with smaller balances, it makes sense to also appoint yourself as not only Director, but also for some other job.

If you state that you are director of a company, you might be asked to provide documents proving that fact, and additional KYC on the company itself.

If you state that you're an employee, they might instead ask for an employment agreement. If the bank later finds out that you were a director of the company this whole time, it's at the bank discretion what they do. Some just tell you to update your profile and provide documents. If there are no other aggriviting circumstances, that's the most common consequence. Some might offboard you for having provided false information.

It's not exactly uncommon for freelancers to form a company to work as a web developer, and in forms like that state that they're a web developer, not realizing that they're technically a director and the company is the web developer. Happens a lot.

Thank you, @Sols! Your replies are always very valuable. I guess one can be both a director and a web developer with an employment agreement depending on the laws of the country.

For opening a bank account. And I am taking about a retail bank account with acceptable funding which is between 5000 and 500k. They won't ask anything. If they do, run!

For a private wealth management account at a US institution, expect to have a compelling answer where the money comes from. Trading, company etc. it not an answer as it does not cover where the initial finding was from. I do not recommend telling the truth. Tell them that you inherited some money and then made it through investment in stocks/funds/crypto and show them some performance report from the last few years with the biggest gain. We are talking about north of 10M and such salaries or crypto gains are rare. If this is the case, better come with a compelling proof is any kind as the compliance team does need it.

For a credit card, expect to be asked for income proof. If your are a director etc. you create payslips W2 forms or what is normal locally. I do not recommend telling that it is your company as it is a hassle for the compliance guys as they are better handling payslips.

Right, thank you, first hands experience is the most useful. So I would go with being employee for retail bank accounts if amounts are reasonable for salary and with being director otherwise.