Poor crypto experience with Bankera

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Sols

Staff member
Mentor Group Gold
It is possible that Bank of Lithuania is tightening its grips on financial institutions, either to look less ridiculous or summoned by ECB.
Over the span of a few years, Bank of Lithuania went from being an unheard of regulator in a low-profile EU member state to by now having issued — depending on how you count — around 500 licenses. The Bank of Lithuania doesn't have even a tenth of the staff necessary to effectively oversee its licensees, although it's getting better. There have been management problems within the Bank of Lithuania as well for many years.

ECB has not been happy with Bank of Lithuania and Bank of Lithuania is passing this on in the form of very tight controls to its licensees. But it's possible to operate under strict financial regulatory controls and still do much better than Bankera.
 

Lamb75

New member
Over the span of a few years, Bank of Lithuania went from being an unheard of regulator in a low-profile EU member state to by now having issued — depending on how you count — around 500 licenses. The Bank of Lithuania doesn't have even a tenth of the staff necessary to effectively oversee its licensees, although it's getting better. There have been management problems within the Bank of Lithuania as well for many years.

ECB has not been happy with Bank of Lithuania and Bank of Lithuania is passing this on in the form of very tight controls to its licensees. But it's possible to operate under strict financial regulatory controls and still do much better than Bankera.
Agreed about understaffing of bank of Lithuania, when they didn’t understand a product they outsourced a third party to explain it to them (was the situation beginning of 2019). They may still do so as the entire thing relies on competitivity. Competitivity being a big problem in Lithuania this year with a 20% inflation rate and relying on unsustainably low wages. I think it was also a mistake for Lithuania to rely on Revolut to show the success of fintechs in Lithuania : it may succeed in the end (CEO says it was profitable in 2021, may get a bank licence in France - which would mean bank of France lost control of granting of licenses), but his tendency to look like a spoiled brat (giving lessons to FCA about how to work faster in the press…) is highly toxic. Who would want to deposit his money at a company managed by such idiotic looking individual if given an alternative choice ? Coming back to Bankera, it has a very special story together with Pervesk (the holder of the licence), which reserves it to desperate cases (by the way, I don’t really understand the companies who criticize Bankera for invoicing them 200 Euros to look at their case : if they are so desperate that they need to bank at Bankera, what is 200 Euros when there is a chance to get an account ?)
 

Konstanz

Entrepreneur
I find it funny when people say Bankera or other EMI is slow processing documents, ask lot of questions.
Why don't you all go to Deutsche bank and open accounts for your Dubai companies etc?
The answer is very simple, no high street bank would open accounts for you. That is why you bank with EMI's.
So be prepared to pay more and have more questions - simple as that.
 

Sols

Staff member
Mentor Group Gold
I find it funny when people say Bankera or other EMI is slow processing documents, ask lot of questions.
Why don't you all go to Deutsche bank and open accounts for your Dubai companies etc?
The answer is very simple, no high street bank would open accounts for you. That is why you bank with EMI's.
So be prepared to pay more and have more questions - simple as that.
Do you see any posts in this thread about Dubai companies wanting mainstream bank accounts? Do you see anyone complaining about having to answer questions or provide documents?

The concern raised here is specifically against the poor compliance with Bankera.
  • Bankera asks questions, but doesn't handle the answers in a manner comparable to many of its competitors.
  • They ask for unreasonable KYB on third-party businesses you transact with.
  • They ask for account opening fees and have a long, proven track record of simply losing track of applications.
  • They ask for proof of address and reject valid ones repeatedly.
There are things that Bankera is almost uniquely bad at.
 

acud

Mentor Group Light (Private use!)
I find it funny when people say Bankera or other EMI is slow processing documents, ask lot of questions.
Why don't you all go to Deutsche bank and open accounts for your Dubai companies etc?
The answer is very simple, no high street bank would open accounts for you. That is why you bank with EMI's.
You must have read the wrong thread. "People" (me included) are complaining about poor, amateur service which sets out to rip people off with obscene commissions, and about the circumstantial delegation (or further clamping down) of state-apparatuses enforcement responsibilities on EMIs/banks in LT.

Also, the idea was to inform other people, as to prevent them from treading on the same unfortunate path which is just a waste of their time and money.

So be prepared to pay more and have more questions - simple as that.
I'm ready to do that, however, in our case it didn't really help. Don't me wrong, I'm not necessarily against paying someone to accept and support my funny financial setup, but I mean seriously dude, there has to be some minimal level of service, no? Or is the fact that I'm using an EMI implicitly means I'm the lowest scum of the earth and I should be just treated as such? Be rest assured, I am not.
 

Gediminas

Offshore Tax Advisory
Mentor Group Gold
Commercial Service
Business Angel
To begin with, I know that there are other threads about this, however, for the purpose of future searchers, I thought it might be useful to open a separate thread, so that people know about the fact that this provider is indeed troublesome. Admins, if you find this out of the context of the acceptable rules, please feel free to delete this as it is not my intention to "trespass".

I wanted to open a corporate account with Bankera so that in order to interact with a crypto exchange. I paid the 450 euros "account review fee" which was already suspicious and waited. And waited. And waited....

It took a bit over a month to get the account verified, not before I was asked for any possible invasive detail. From contracts, deliverables, to an audit about my personal professional experience. Now an interesting detail is that between every push-pull exchange of emails would pass at least 24 hours of delay. Whether during verification or other later part.

After getting the account verified, I moved some parked money to the newly opened account, and then tried to wire some to an exchange. The transfer got stuck in a pending state for a couple of days, then the "payment monitoring" crew got on my neck. I was then asked to show proof that I own the exchange account (OK), satellite bank account statements (annoyance starting), proof of source of funds of the company, invoices, crypto wallet addresses, and last but not least, I was asked to demonstrate the source of wealth/funds of the company that I was billing with invoices. Yes, I was asked to prove the source of funds of a company I do not own or have anything to do with.

Explaining that this is not possible nor reasonable requirements, they were eventually pleased to tell me that if I made the transfer again, they would approve it. And so I did. Guess? it bounced, with a message in Lithuanian saying the transfer bounced because of "reason: other". I tried to wire again lower sums and it happened again. Of course that they billed me a penalty for a bounced payment (w00t?) multiple times without explaining why. Trying to contact their support to investigate what happened, I was told that they will give me a response within 3 business days. Seeing that the communication pace was simply unacceptable and that no-one on their behalf was in any way forthcoming to help me sort out these problems, I resorted to close the account (extra 200 euros to pay, you thought closing an account is for free?). Oh, and they never even bothered to write me an email that the account was closed, I just simply cannot log into it anymore.

To conclude my experience with them: it appears that they are severely understaffed and have poor business standards with anything that has to do with a prompt reply. It is unreasonable that it should take over a month to open a bank account anywhere, and it is not reasonable to have to wait for days on end to get a simple answer to a simple problem. Also, the "account review fee" shows that they might be suffering from high client churn, at least for non-EU companies/individuals. The fact that I was interacting with an exchange might not have been in my favor, and in this regard I think they might be just tormenting clients so that they are pushed to use Bankera's crypto platform (spectrocoin), which I am sure might have been more "friendly".

So long and thanks for all the fish (and good riddance, too!).

Hey, this looks messy. Can you send me privately the company name that was used for the account? I will check what has happened there.
 

celizo

Active Member
... I don’t really understand the companies who criticize Bankera for invoicing them 200 Euros to look at their case : if they are so desperate that they need to bank at Bankera, what is 200 Euros when there is a chance to get an account ?)
Compliance fees (for gaming company): 900€

And it was uniquely for a B2B usage: withdrawals from gaming merchant accounts (Neteller/Skrill...), payments of services and dividends.

For B2C (we have not applied for it), compliance fees: 2400€

Compliance officers have changed lots of time, I think it's the big problem at Bankera/Pervesk.

Fortunately, in the meantime we have found another EMI for our needs. Compliance less than 2 months with them.
 

GeneralGogol

Active Member
I find it funny when people say Bankera or other EMI is slow processing documents, ask lot of questions.
Why don't you all go to Deutsche bank and open accounts for your Dubai companies etc?
The answer is very simple, no high street bank would open accounts for you. That is why you bank with EMI's.
So be prepared to pay more and have more questions - simple as that.
Wow, so much condescension in one post, I can see why you love Monaco so much.

Many of us have many accounts in many high street banks, but they just don't allow crypto. So using SpectroCoin for the exact reason it was founded and built, does not seem like too much to ask for.

Good luck trying to receive\send crypto to your 7-figure-initial-deposit private bank, let's see how fast your accounts get shut down even with the high fees you pay them. And who even said anything about banking through EMIs. Many private\solid high-street banks do not offer transactional accounts so you are forced to use EMIs for almost any high-turnover business nowadays, even if it is not high-risk but just one that banks can't understand.
 

Konstanz

Entrepreneur
Do you see any posts in this thread about Dubai companies wanting mainstream bank accounts? Do you see anyone complaining about having to answer questions or provide documents?

The concern raised here is specifically against the poor compliance with Bankera.
  • Bankera asks questions, but doesn't handle the answers in a manner comparable to many of its competitors.
  • They ask for unreasonable KYB on third-party businesses you transact with.
  • They ask for account opening fees and have a long, proven track record of simply losing track of applications.
  • They ask for proof of address and reject valid ones repeatedly.
There are things that Bankera is almost uniquely bad at.
Unreasonable KYB is just your opinion. You don't know regulation. Are you Lithuanian lawyer or expert?
Opening fees- only of long waiting list.
Yes, it's slow sometimes, yes, they ask questions. However, never had any problems with them
 

Sols

Staff member
Mentor Group Gold
Unreasonable KYB is just your opinion. You don't know regulation. Are you Lithuanian lawyer or expert?
What makes you think I'm not familiar with the regulation? The regulation isn't the hard part anyway. The law itself doesn't really go into much detail about KYB. What's tricky is understanding how the relevant regulator interprets and enforces the law.

I have — in several different capacities — been involved from start to finish EMI, PI, and equivalent license applications in EU/EEA and elsewhere. Have overseen compliance functions in several regulated sectors and financial institutions. Getting to know the regulator is key. The people working at Bank of Lithuania have always been professional and competent when I've visited them in Vilnius during application processes. The problem is they are understaffed and still catching up on the hundreds upon hundreds of licenses they issued before they put a stop to it after Revolut got its banking license. This combined with ECB pressure has created a difficult compliance atmosphere in Lithuania. Some are able to navigate it properly. Bankera, Pervesk, and SpectroCoin are not.

My criticism of Bankera isn't completely taken out of thin air. You can rest assured it's not based on Dubai companies seeking to bank with Deutsche Bank. ;)

Opening fees- only of long waiting list.
I have emails from Bankera's compliance forwarded to me where after weeks (in some cases months) of no response to requests for updates, they apologise for having lost track of the application, internal miscommunication, and blaming staff turnover. I don't think they have ever even mentioned long waiting lists.
 

fortunespeculator

Entrepreneur
Go to ACAMS conferences to see the **** in the pipeline for the next decade... they talk about mandatory sharing of account info between banks (effectively this will mean when one of your accounts is closed all of them will be) and lots of other things that would make any non-pencil-pusher sick to their stomach.
More reason to shift to crypto and **** these banks over.

I find it funny when people say Bankera or other EMI is slow processing documents, ask lot of questions.
Why don't you all go to Deutsche bank and open accounts for your Dubai companies etc?
The answer is very simple, no high street bank would open accounts for you. That is why you bank with EMI's.
So be prepared to pay more and have more questions - simple as that.
So bottomline is again shift to crypto basically.
 
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