Our valued sponsor

"Source of Wealth" when opening accounts

Silvio

Pro Member
Jun 1, 2018
675
1
812
93
Visit site
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"?
 
  • Like
Reactions: extremedox101
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.
 
  • Like
Reactions: Cetme308win
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 bulls**t but it's inevitable to play their game, give them information they expect and can understand and then you're good
 
  • Like
Reactions: Silvio
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#"!.
 
  • Like
Reactions: Silvio
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...
 
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.
 
  • Like
Reactions: Andrew Gooden
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
 
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.
 
  • Like
Reactions: Andrew Gooden
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!
 
  • Like
Reactions: Martin Everson
You always seem to have a stocked store room of valuable information. Thanks!

Thanks

I try and stay on the pulse of onshore and offshore solutions. Oh and yes I literally do have a substantial stock of solutions for different situations smi(&%
 
  • Like
Reactions: Andrew Gooden

Latest Threads