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Nominee director asks for my bank access
- Thread starter inector
- Start date
Nominees are not regulated by any law. If you want to do things properly, it does make sense that the director has access to the bank account, but this is not advisable unless you trust him.
The bank however should be able to monitor the account and block transfers that are not for legitimate business purposes.
An easy solution would be for setting up a joint signature on the account.
The bank however should be able to monitor the account and block transfers that are not for legitimate business purposes.
An easy solution would be for setting up a joint signature on the account.
Some banks allow you to create a user who only can view transactions but not operate.
My bank lets you put a different password to login and to approve transactions.
My bank lets you put a different password to login and to approve transactions.
Please note that in most jurisdiction the provision of nominee services is regulated, for example in Cyprus we have the Administrative Service Providers Law, and you do have an obligation for transaction monitoring.
He mentioned that it is required by Money Laundering Act, so can't really say no to this, but can't find any info online either.
Does it mean he has to sign every transaction as well with me? Sounds like a headache.
This is the goal, not sure if Credit Suisse (UBS) / some big banks in CH allow this.
You must have made him nervous, or he is not aware of what business you are doing! We don't have problems with that sort and would not accept it either. There is no legislation about it - the problem is - the man is nervous that he will get caught and shake the bars!
You should get in touch with him and explain your business, make things transparent for him!
You should get in touch with him and explain your business, make things transparent for him!
Does the service providers law explicitly cover nominee directors?
you should be able to setup various types of joint signature access. For example, the director could have read only access (but it would look strange to the bank), or he/you could have single signature powers up to a certain amount
If he also is listed as a director and the entity in his name has a bank account they will usually require 'viewing rights' as explained above. This is normal for Western jurisdictions.
Again, this does not necessarily mean that he can just steal all of your money. Usually it is something like viewing rights + that they will need to 'accept' payments larger than a pre-specified amount (e.g. 10k, meaning that he will also need to sign off on such transactions).
Again, this does not necessarily mean that he can just steal all of your money. Usually it is something like viewing rights + that they will need to 'accept' payments larger than a pre-specified amount (e.g. 10k, meaning that he will also need to sign off on such transactions).
There is no need for a specific law regarding nominee directors here as the CSP will simply be obliged to follow AML / CTF regulations, meaning that if they provide the nominee director (which I am pretty sure they do as you will need a trust/CSP license to provide such a service) they will need to know what is going on on your bank account (of the entity in question).
I'm dying here!
My mom once (unsuccessfully) tried to get me to sell my H1 Hummer (circa 2002) so that she could buy air conditioning units for her Church. Her Church had, at that time, over 8000 parishioners. The parishioners couldn't be bothered each with $15...I guess
@inector - did you get the not-so-hidden message?
A nominee UBO (not director) tried to steal money from my company, so imagine what could go wrong with a nominee director. I only trust imaginary people now.
Obv. this depends on your relationship to the nominee and how trusted the service might can be considered.
I had a lawyer in Malta as a nominee for a company held within the Trust of the Law Firm.
He demanded viewing rights for bank accounts aswell, which obv. is understandable since he won't risk his reputation being damaged by being involved into fraudulent activities for a couple of bucks.
Even most EMIs offer "viewing access" for team members nowadays, it might be a little difficult though to explain a bank why the "director" only has viewing rights.
I had a lawyer in Malta as a nominee for a company held within the Trust of the Law Firm.
He demanded viewing rights for bank accounts aswell, which obv. is understandable since he won't risk his reputation being damaged by being involved into fraudulent activities for a couple of bucks.
Even most EMIs offer "viewing access" for team members nowadays, it might be a little difficult though to explain a bank why the "director" only has viewing rights.
what if the nominee does not have access to the bank account? In such a case he should be quite in the clear should the real director do some shady stuff since its clear who used the bank account.
The nominee director — like any director— has potential personal liability in case of wrongdoings. That's why they are invoking the Money Laundering Act as reason for having access.
The nominee probably has a liability insurance, but the insurance only kicks in if they reach certain conditions of being able to ensure basic oversight of the company.
@anotherone - you are great, sometimes things can be so simple but you don't see them! Thanks for that, it solves a few of my headaches with nominees.
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