uae onshore banking

[jojojo]

ANyone got some experience with banks there? Are they over compliance crazy?

My bank in a "offshore" jurisdiction wants now invoices for every single thing and also asks for UBO details on any clients I do business with , which is no longer anything that is good for banking tbh. It used to be good but not anymore. Hows UAE?

and before you ask, no i dont bank with euro pacific

 

[Larry]

Are you talking about a bank account for UAE freezone or LLC company?

If so you can go without problems with the biggest banks but I recommend to go with the regional one of the freezone emirate you set up your company. For example RAK freezone use Rakbank. If you business ic clear and not shady you get bank account without resident.

Private account you get in every bank in UAE real fast but with Visa.

If you are talking about company outside UAE and without residence you can try your luck with emirates nbd but they require high account opening balance and minimum balance. around 30-50k$.

 

[jojojo]

Prob Rak freeZone or onshore .

Not offshore.

I meant more in regard to operating the account - if they going to ask a lot of silly questions after the account been opened

 

[Larry]

Prob Rak freeZone or onshore .

Not offshore.

I meant more in regard to operating the account - if they going to ask a lot of silly questions after the account been opened

Normally the first deposit they ask of source of funds then it's working fine without many or no questions.

I'm talking about 500k$/year. Money came from merchant accounts. Maybe they ask more questions if you get transfers from different customers/companies.

 

[negon]

How is UAE banking, I mean any internet banking (english) can I send wires and SEPA transfers directly or must it be confirmed by e-mail, fax or something? It requires introducer service? does it require a company in the UAE and what are the minimum costs to get a company there for Internet business?

Lot's of questions that should be answered before someone consider banking in the UAE.

 

[jojojo]

the banking it self is fine with ibans, I am sure, its the UAE, not some back water like St vincent.
@ledger, good idea!

 

[Martin Everson]

ANyone got some experience with banks there? Are they over compliance crazy?

Find a bank in DIFC and don't end up dealing with local banks and local laws. Remember that the UAE ruler can wake up in the morning and decide a new banking law that can be in place by lunchtime - happened in past....lol. However won't happen in DIFC zone so easily.

I still have a personal account open with Citibank there and.....yes compliance do have OCD .

 

[niggashit]

ANyone got some experience with banks there? Are they over compliance crazy?

My bank in a "offshore" jurisdiction wants now invoices for every single thing and also asks for UBO details on any clients I do business with , which is no longer anything that is good for banking tbh. It used to be good but not anymore. Hows UAE?

and before you ask, no i dont bank with euro pacific

Jesus, I'm telling you to fly US and open account with Chase Biz. No any questions asked. No any bulls**t invoices.

My Chase Biz account done over 1million over 1-2 weeks. No questions asked but account security increased. last week they frozen my card because I withdrawn in compromised atm. They delivered replacement card next day to door

I also got approved for Chase INK Credit Card with 50k limit dahaha.

Find a bank in DIFC and don't end up dealing with local banks and local laws. Remember that the UAE ruler can wake up in the morning and decide a new banking law that can be in place by lunchtime - happened in past....lol. However won't happen in DIFC zone so easily.

I still have a personal account open with Citibank there and.....yes compliance do have OCD .

Martin, How do you manage thousands of accounts across multiple countries? Don't you feel tried login into each one?

Treasury software?

 

[Martin Everson]

Martin, How do you manage thousands of accounts across multiple countries? Don't you feel tried login into each one?

I have 117 bank/EMI accounts and 8 brokerage accounts from Cambodia to London collected over 20+ years . About 1/10 of accounts are actively used however. Got spreadsheet and drawers full of tokens id's. No issues with logging in. Only issue is every time I change address it costs me several 1000's in notary costs for the huge number of certified copies needed and courier costs . Hence why I like EMI's where an electronic copy will do .

p.s this number excludes the closure of my satabank, leupay and MT accounts. I actually think most people have at least 10 bank/emi accounts opened.

 

[niggashit]

I have 117 bank/EMI accounts and 8 brokerage accounts from Cambodia to London collected over 20+ years . About 1/10 of accounts are actively used however. Got spreadsheet and drawers full of tokens id's. No issues with logging in. Only issue is every time I change address it costs me several 1000's in notary costs for the huge number of certified copies needed and courier costs . Hence why I like EMI's where an electronic copy will do .

p.s this number excludes the closure of my satabank, leupay and MT accounts. I actually think most people have at least 10 bank/emi accounts opened.

I'm sure banks provide you MT104 and MT940 functionalities for treasury software. I use kyriba which support cash pooling across multiple banks.

For an example, They do allow to create your own Swift BIC Code and Iban (or it's equivalent), And you can mask your account data and receive payments. It will route automatically to your chosen banking pool.

There need to be master account to split funds. Each pool has it own master account. It's like seeding. You do not have to use Tokens anymore with this. Treasury softwares can provide you single token to connect multiple banks to receive & send payments.

Lol I discovered this through Microsoft and digged deeper.

SWIFT Code - MSFTUS66 - MICROSOFT CORPORATION, REDMOND,WA

 

[JohnLocke]

I have 117 bank/EMI accounts and 8 brokerage accounts from Cambodia to London collected over 20+ years

that's a large number!

 

[Martin Everson]

I'm sure banks provide you MT104 and MT940 functionalities for treasury software. I use kyriba which support cash pooling across multiple banks.

I once looked at Unicredit's Cash Management platform for this as it does cash pooling, swift hosting, iban creation, MT940 end of day reporting etc etc. Plan was for it to be my in-house platform for a captive banking license. It never materialized however as I sold the business I would have used .

 

[niggashit]

I once looked at Unicredit's Cash Management platform for this as it does cash pooling, swift hosting, iban creation, MT940 end of day reporting etc etc. Plan was for it to be my in-house platform for a captive banking license. It never materialized however as I sold the business I would have used .

In-house banking is popular in China.

 

[GrumpyMess]

I have 117 bank/EMI accounts and 8 brokerage accounts from Cambodia to London collected over 20+ years . About 1/10 of accounts are actively used however. Got spreadsheet and drawers full of tokens id's. No issues with logging in. Only issue is every time I change address it costs me several 1000's in notary costs for the huge number of certified copies needed and courier costs . Hence why I like EMI's where an electronic copy will do .

Probably monthly maintenance fees also cost you a lot. Do all these banks follow your address changes? Wasn't there a situation when they send info to your citizenship but not residence country during AEOI?

 

[KJK]

Do all these banks follow your address changes? Wasn't there a situation when they send info to your citizenship but not residence country during AEOI?

I'm pretty sure that happens all the time and will happen even more and more with automated reports and people simply travelling and migrating.

For example I heard that in Estonia (country of 1 million people, almost half of which are actually Russians and not Estonians), about 25 % of the reports they recieve and send (through stuff like AEOI) are inaccurate due to people moving abroad and/or opening accounts abroad.

 

[Martin Everson]

Probably monthly maintenance fees also cost you a lot. Do all these banks follow your address changes?

The majority of of the EMI/banks I don't pay anything monthly otherwise I would be broke . All banks/EMI's have up to date address details.

Wasn't there a situation when they send info to your citizenship but not residence country during AEOI?

Not that I am aware of. Like any tax free country that receives AEOI info on its citizens it goes straight in the bin .

 

[KJK]

Not that I am aware of. Like any tax free country that receives AEOI info on its citizens it goes straight in the bin .

He was referring to exactly the opposite situation than what you mean.

I.e. some bank (either intentionally or by mistake) reporting you to the where you were born (UK) instead of your country of residence.
Or for example reporting a Finnish-born person who relocated to Estonia with the report still sent to Finland.

 

[Martin Everson]

He was referring to exactly the opposite situation than what you mean.

I.e. some bank (either intentionally or by mistake) reporting you to the where you were born (UK) instead of your country of residence.
Or for example reporting a Finnish-born person who relocated to Estonia with the report still sent to Finland.

I understood what he said and I was born in Bahamas so thats why I referred to tax free countries and reports going straight in bin

 

[HKS]

ANyone got some experience with banks there? Are they over compliance crazy?

My bank in a "offshore" jurisdiction wants now invoices for every single thing and also asks for UBO details on any clients I do business with , which is no longer anything that is good for banking tbh. It used to be good but not anymore. Hows UAE?

and before you ask, no i dont bank with euro pacific

Hi JoJo, I lived in UAE for 13 years and operated companies in the Freezones as well as assisting several colleagues to open their operations in various zones and onshore locations.

UAE banks have become more enquiring about transfers, its usually standard commercial information such as invoices and BL etc. Never have I heard of anyone being asked who the owners are for the external company you are working with.
Be aware that rules can change frequently and you have to adapt to them fast.
Note that EVERY entity is a business and can close if they find it no longer viable to operate. This is more evident when you search within the DIFC register under banks and filter the dissolved banks.. There are many who were there and now closed.
DIFC does give more international level protection, however there is a price to pay for everything , it could be they only open for DIFC registered companies ( personal accounts are different ). That is more expensive to register and operate with very heavy exit fees and fines in DIFC.
Other Freezones for regular business activities may be more suited and lower in cost.
Scrutinise everything you can, Everyone sells the line that its all Rosy and perfectly simple and easy..
Its not and thus can cause undue stress when not needed, and if you are unaware.

UAE has many benefits and if they fit well with your needs then its a great place to have a business setup.
You will have to travel in every 6 months officially to Not effect your residency visa.. However recent visit proved at the airport it now 9 months (unofficially-- Not being promoted - But working if you arrive after 6 months).

Local banks are prone to having to adopt new regulations quickly, however if you go for banks such as RAK Bank , ADCB, NBAD, Emirates NBD. They will be secure as they have ties to their respective Emirate and they will not allow a local bank to go under. Loss of reputation is more expensive than bailing them out.

Prudence should be the way forward in holding large sums of money in any single offshore or overseas bank , I believe you already understand that all your eggs in 1 basket is not wise.

Whatever your operation needs to work and function, set up the most minimal operation you can as costs are rising and will continue to do in the near future. Its no longer the affordable place it once was.
Its friendly enough to get your business set up, then you find out the real ins and outs of the place.


Hope you find what you need .

 

[jojojo]

Hanif thanks for the reply - that actually is a real world reply and not some half arsed thing I read sometimes .

Martin - why the heck do you need so many bank accounts?!? Lol

Anyway I am looking for serious solutions as the number one thing
For me is a reliable bank - not that Puerto Rico backwater