Nominee shareholder & director to sign bank agreement?

[Delaware-company]

If a nominee director and shareholder is inserted in a offshore company can they be used to sign bank account opening agreements?


What about merchant account will they sign them as well?

 

[JohnLocke]

Bank agreements may be OK if one provide a reference letter that proves the client can be trusted! Merchant account you will need to find a company which don't know the risk involved in order to accomplish this.

 

[Delaware-company]

So bank account is okay but not merchant account can you elaborate a little about why it is impossible to have the nominee director to sign the merchant agreement?

 

[JohnLocke]

Merchant account and bank account is most often with 2 different banks, so the latter has other regulations to apply to than the first one, this due to Visa and Mastercard regulations.

 

[fernadex]

What is the difference between Merchant account and bank account?

 

[JohnLocke]

Merchant account = Credit Card Processing | Bank Account = Day to Day banking, Wire Transfers etc.

 

[EliasIT]

The risk to get TMF'et with a merchant account underwriting is higher than with a bank account I guess it is the reason for why no nominee director will sign any Merchant account agreement to process credit cards.

 

[Belarious]

What is TMF and why it is more risky for a Nominee director of a Offshore company to sign a merchant agreement than a bank agreement?

 

[JohnLocke]

Terminated Merchant File, it has a new name now, however, it is a Black List of merchants hold by Visa and Mastercard for merchant who have breached the regulations of the same and who owns either the Acquiring bank, payment processor or the local bank money for the transactions processed. Once on this list you will almost never get off it! Thats the main reason for why no Nominee director which knows about how things works in the acquiring business will sign any merchant account application. It is the personal name, address and company that get "banned" / black listed.

 

[pesto]

Isn't it the same with a regular bank account I mean if you cheat a bank one way or another they will black list you?

 

[JohnLocke]

Not really the same, the TMF list is one of the hardest to get rid of again.

 

[bitotan]

If a nominee director and shareholder is ******ed in a offshore company can they be used to sign bank account opening agreements?
What about merchant account will they sign them as well?

The nominee director will sign the bank application as director of the company, however, you will still need to sign to have access to the account.

 

[cosmo]

I understand that I have to sign to access the bank account but will this not reveal my information when opening the account to local tax auth. ?

 

[JohnLocke]

Not really, you will want to have a look at this post which describe a case similar to yours. Offshore Company Forum - Open bank account in Cyprus, personal or corporate?

 

[cosmo]

If no nominee director is wanted nor shareholder we can still apply for bank account with bank right?

 

[JohnLocke]

If you don't need a Nominee director or shareholder for your offshore company then it is okay, the nominees are not mandatory and you can still open a bank account for the company.