Turner Little - Company Formation Agents
UK Ltd with emi bank account

TransferWise Business Closure

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Fp1994

New member
Hi Guys,

I'm new to this forum and saw a couple of other threads that were similar to the problem that I had yesterday and now today.

Yesterday I tried to send my German supplier of PPE Respirators the best part of €75k through TransferWise (My Limited Business is UK Based) to fulfil an invoice that I owe. It told me they were doing routine checks and the payment would be made within 4 working days. I got in touch and submitted the documents to show the source of the funds and the commercial invoice in euros. Before this I had already sent through the best part of €250k through TransferWise.

Anyway... today I got an email saying:
"Unfortunately after reviewing our policies and banking partner agreements, we’ve decided to close your account. We can’t give specific reasons for the account closure. This means we’ll reject all incoming payments and you won’t be able to use your account again. Your pending payment will be refunded back to the originating account)."

I received the money back immediately. I asked the question 'Why' and haven't received a response.

I then tried to open up another FX Company account, who rejected me because I failed their risk profile check. I called up and asked why, and they said their compliance department had made the decision and they're not allowed to give reasons as per the regulations which I do understand now. Because I know I haven't done anything unlawful, I started analysing potential risks of my business and the only things that I could think of are:

1. Banking with an Internet Bank (Tide), who aren't considered as regulated as your high street players. Another FX company I spoke to today said they can't have client depositing from Internet Banks.
2. I am trading PPE which is highly volatile and I'm sure there has been some sour deals that have got ugly. This was mentioned when I was speaking to the FX account opening team.
3. I have only been trading since September 2020 and the business was incorporated in June 2020.
3.a. I have generated over 300k in sales very quickly without much personal previous business experience.

I literally have no-idea who to turn to in finding out how I can avoid situations like this, I'd love to understand exactly why this has happened all of the sudden. Maybe somebody on here has had a similar experience or can shed some light. It would be much appreciated.

Many thanks!
 
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