Receiving money from third world countries, issues ?

[apple20]

Hi all,

I need advise on receiving money from investors. I run a successful business, and I want to start an investment company. The problem is that most of the investors are from third world countries. Is it possible to receive funds to a UK limited company, and issue them with shares??. I know I need to speak to a professional about the whole set up but is the idea feasible ? receiving money from different countries would cause issues?
I have friend who works in an investment bank, and he told me, that banks don't like money from third world countries and any accounts that does accept those funds they will freeze the account. How true is that? I can be selective not to accept war zones areas. Is there some kind of black list of countries?

 

[Sir Gelato]

Yes, can happen, if they send you funds from 3rd world countries you may have some issues with the bank and they can freeze your account, after that you have to demostrate to the bank the origin of the funds, etc etc.
On the forum there are many post about high risk countries to work with.
Why not processing the payments or transfers through a medium or not risk country that has ties with the original country so when the money goes into the ldt account has more kind of a clean face.
I've knew years ago somebody that had the same problem. We set up a loan structure to 3rd world countries for charitable purposes.

 

[reesek]

You can work with an escrow and a lawyer. Good layer to accept money as investments. Also your investment term sheet should be very professionally written as loans for example is an immediate red flag while equity purchase is a much safer transaction

 

[apple20]

You can work with an escrow and a lawyer. Good layer to accept money as investments. Also your investment term sheet should be very professionally written as loans for example is an immediate red flag while equity purchase is a much safer transaction

Hi Thanks for your reply, I definitely wouldn't want it as loan, so each investor's stake in the business is clear. I am confused about the escrow part? I thought escrow was to hold money until delivery etc?? I need the money to deliver i.e invest.

 

[reesek]

convertible loan is very common investment structure in usa but given the circumstances and your situation you should sell equity directly
yes, escrow holds funds until you actually issue shares and deliver share certificates