"Source of Wealth" when opening accounts

maxmmm

Active Member
I noticed several times when banks ask about "Source of Wealth", if I say it's dividends from my business they start asking more questions about my business and I get sucked into a whirlpool of questions... which usually results in a rejection. Not because there's anything wrong with the business, it's just that somehow this puts me as a higher risk for the bank.

Any ideas on what would be a good answer to this question that will satisfy banks and stop these questions? Just say "Savings"?
 

lrotter

Active Member
Savings and salary - if you can show some payslips

Income from business activity - if you have any other business that you can show with financial results
 

Martin Everson

Offshore Consultant
Business Angel
Always say savings. I have never had an issue with giving that simple response even for 7 figures. The minute you say anything else the bank will take you down a squirrel hole of paperwork.
 

void

Trusted Member
Business Angel
Always say savings.
this is the first choice what to say - in my experience it works often without any other question, for the rest of cases (when you're asked an obvious question "where do this savings come from originally?") it's good to have a backdoor ready to use - contract showing you sold an adequately expensive real estate works very good (everyone understands that) or that you sold a (share in) company (also well accepted)
this is all bullshit but it's inevitable to play their game, give them information they expect and can understand and then you're good
 

Martin Everson

Offshore Consultant
Business Angel
If a bank ever asks for anything more than a statement showing the balance of the "savings" then basically do not bank there period!!!! Treat their inquisitive nature as a reflection of how they feel about you and the relationship with them i.e they consider you a criminal ca#"!.
 

maxmmm

Active Member
Great answers...

and yeah you may be right there, maybe it's the other way around - it's not the answer to the question that led to the rejection, but the fact that they are asking it is showing that they're fishing for reasons for decline...
 

Elve

Member
It is an interesting topic, In my experience, the problem is not so much the opening of the account, but after opening the account and the funds that reach the account match what you said when opening the account. Of course that depends on what amounts we are talking about.

It is really tempting not to give all the details about your source of wealth, but it is also good to keep in mind that if you intend to regularly deposit into this same account, this can be a problem if the bank starts asking questions about these deposits and they do not match what you originally stated.

If you decide not to tell the whole truth, it is important to structure all your fund movements before you get them to the account so that you can always justify the incoming funds based on what you have declared originally. Is not always easy.

Transferred all its source of wealth to a single bank without telling the whole truth is in my opinion unconscious and can quickly turn into a nightmare for large amounts.

Sometimes it is better to visit several banks until you find the one that accepts you in relation to your commercial activity, you sleep more quietly. Or another option is to distribute the funds to several banks not to sound the famous alerts : -) And nobody will ask questions in this case.

@Martin Everson, I think I do not have to deal with good banks or not choose the right countries because to report a 7-digit amount as savings, most of the banks that I have dealt with will ask how that amount was generated.. Even by declaring the sale of real estate, some banks ask how the funds that enabled the purchase of these properties were generated.

That is the real problem and dilemma when we have activities considered risky by most banks.
 

void

Trusted Member
Business Angel
Transferred all its source of wealth to a single bank
who does this deserves to lose it all because it's simply absolute ignorance of how the world works nowadays

I don't have worldwide experience but at least in EU you can find and easily open tens of (free of charge or we cheap) personal accounts where you can keep all your wealth (no matter how big it is) split to 100k EUR (insured) chunks - this solution for dummies is easily achievable and everyone should do it - it's just the very basic protection, definitely not saying it's enough
 

Martin Everson

Offshore Consultant
Business Angel
I don't have worldwide experience but at least in EU you can find and easily open tens of (free of charge or we cheap) personal accounts where you can keep all your wealth (no matter how big it is) split to 100k EUR (insured) chunks - this solution for dummies is easily achievable and everyone should do it - it's just the very basic protection, definitely not saying it's enough
Thats exactly what people should do. Especially if you live in Germany you can use dedicated companies like raisin.com that will do the splitting for you. i.e your money can be split among up to 48 EU banks and each bank is covered by EU 100k deposit protection. So that's up to 4.8m covered and held in your name.

Far easier than doing the split for larger amounts yourself.
 

Andrew Gooden

Building Trust
Entrepreneur
Thats exactly what people should do. Especially if you live in Germany you can use dedicated companies like raisin.com that will do the splitting for you. i.e your money can be split among up to 48 EU banks and each bank is covered by EU 100k deposit protection. So that's up to 4.8m covered and held in your name.

Far easier than doing the split for larger amounts yourself.
You always seem to have a stocked store room of valuable information. Thanks!
 
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