Which bank would suit me best?

[Paper Chaser]

As 2020 draws to a close, I'm preparing my personal relocation from Germany to Malta.

Once I got there, I'll get a Maltese company structure set up by Dr. Werner & Partner (Start - DWP Dr. Werner & Partner) and slowly build up my business. All good so far. Let‘s head to the tricky part.

From what I have read and heard about Maltese banks so far, they don't seem to be reliable or stable at all (e.g. recent bank shutdowns in the past years). It also got harder for expats to apply for a bank account and even harder for high risk clients like me, I was told by Dr. W&P. If I had to choose, I would go with the Maltese HSBC branch. What do you guys think about that?

It took quite a good amount of paperwork with my agents so far and I definitely want to avoid running into long-term paperwork and banking interruptions since it would kill my business. Short reminder: I‘m considered to be a high risk client because my business is about Cryptos and much more, if that information helps any. Incoming transactions will be from 3rd parties and Paypal mainly, outgoing ones will be to Binance or to Advcash (to Binance).

So for these particular reasons, I've been looking for other European banks (EMIs as well as traditional ones). I was considering to go for a mix of Paypal-Wirex-Advcash kind of solution, but with all the mess of EMIs currently, I am focussing on traditional banks instead.

Paypal will be easy. Check.
Binance and Advcash may be a great combo for my daily needs of Cryptos. Check.
What’s left on my list is a stable, reliable, strong bank for daily business.

Which solutions would come in your mind for my specific needs?

 

[Sols]

More and more expats don't bank in Malta. They keep their foreign accounts and maybe a few neo-banks and EMIs like Bunq, N26, Revolut, and TransferWise.

You will very likely run into problems moving money to and from crypto exchanges with any bank in Malta. HSBC and BOV are the big ones, and there's no real difference between them. The smaller ones aren't much better either but it's worth taking a look at BNF (formerly Banif) at least.

It's not that they are necessarily on the brink of failure (but keep an eye on their financials), and the ones that are left have stood the tests of time so far unlike the forcibly shutdown banks Nemea, Pilatus, and Sata. But as a result of good old xenophobia and the recent bank problems, Maltese banks treat foreigners with suspicion, even if you show up with a low-risk EU passport, stable job, and clear source of funds/wealth. This is more or less manageable if you are engaged in a low-risk business that they understand and for which you can easily supply supporting documents, but if we're talking about crypto you'll run into issues.

For any transfer to/from crypto exchanges to/from Malta, use a crypto-friendly EMI or bank in between. That reduces the risk the bank in Malta will get too inquisitive, but they will eventually start asking questions if the amounts get high.

Rumours have circulated for years now that HSBC will or may pull out of Malta. While it hasn't happened yet, the bank's presence in Malta seems fragile. BOV is probably the most stable although its and Malta's reputation have made it difficult for BOV to get stable USD correspondent accounts.

Keep your German bank accounts and consider opening a few more before you leave. Hold on to those relationships dearly.

 

[Paper Chaser]

More and more expats don't bank in Malta. They keep their foreign accounts and maybe a few neo-banks and EMIs like Bunq, N26, Revolut, and TransferWise.

That's what I'm talking about: to me it looks like every EMI is struggling right now. Tried bunq once, wasn't pleased with it at all (except for one really cool feature). N26 and Revolut are well-known to randomly close accounts connected to crypto activities (I'm pretty sure it violates their TOS), it would basically be just a matter of time to get kicked out. Especially Revolut is going hard on it - which is a tragedy, because they're the biggest EMI out there and other banks slowly follow this trend to ban cryptos or crypto-related activities too. TransferWise has been a rollercoaster according to reviews of people in this forum and to me it does not sound like a good solution for receiving Paypal/3rd party bank transfers or to handle daily banking business.

You will very likely run into problems moving money to and from crypto exchanges with any bank in Malta. HSBC and BOV are the big ones, and there's no real difference between them. The smaller ones aren't much better either but it's worth taking a look at BNF (formerly Banif) at least.

Yes, that is exactly what I was told by my agents as well. May my chances to establish a stable relationship with HSBC be better when just telling them I need a banking account for my online shop (where my Paypal/3rd party bank transfers basically come from, so it is actually true!)? I would then just do it like you mentioned below: using Advcash, Wirex etc. like a middleman to buy cryptos? I mean, is there anything wrong with that? As I need to do it on a daily basis, HSBC may ask what's the reason for that...

It's not that they are necessarily on the brink of failure (but keep an eye on their financials), and the ones that are left have stood the tests of time so far unlike the forcibly shutdown banks Nemea, Pilatus, and Sata. But as a result of good old xenophobia and the recent bank problems, Maltese banks treat foreigners with suspicion, even if you show up with a low-risk EU passport, stable job, and clear source of funds/wealth.

Do Maltese tend to be xenophobic? :O Gonna be a rough time down there, I'm the youngest, palest yet most tattooe'd guy in town.

This is more or less manageable if you are engaged in a low-risk business that they understand and for which you can easily supply supporting documents, but if we're talking about crypto you'll run into issues.

Back to the topic, so what's your opinion on my thoughts above? Sending daily amounts to Wirex/Advcash or whoever it will be, so I can buy cryptos on Binance etc.?

For any transfer to/from crypto exchanges to/from Malta, use a crypto-friendly EMI or bank in between. That reduces the risk the bank in Malta will get too inquisitive, but they will eventually start asking questions if the amounts get high.

Ah, here we go! I really wonder what amounts are considered to be high? Daily outgoing transactions vary from 1k-10k within the first few months and high likely skyrocket afterwards.

Rumours have circulated for years now that HSBC will or may pull out of Malta. While it hasn't happened yet, the bank's presence in Malta seems fragile. BOV is probably the most stable although its and Malta's reputation have made it difficult for BOV to get stable USD correspondent accounts.

Ough... good to know tho! So it pretty much seems to me like Malta is under pressure because of troubles with the US. Malta gonna be the little sister of Germany soon, you heard it here first! Applying to all rules first and even go further to show everyone we're such good boys and we don't want no trouble with anyone! Yet we are supposed to get p*netrated by all foreigners because if we'd raise voice we would be called Nazis or needed to fear conflicts. Finally woke up and got rid of this country, sorry for loading my current frustrations here. lmao

Keep your German bank accounts and consider opening a few more before you leave. Hold on to those relationships dearly.

Ain't gonna happen, because I'll establish a new business. I don't have one yet and therefore don't have business bank accounts, just using personal accounts so far.

Thanks for every help, share or thought on this matter!

 

[Sols]

Do Maltese tend to be xenophobic? :O Gonna be a rough time down there, I'm the youngest, palest yet most tattooe'd guy in town.

No, not in general, but the banks treat foreigners like garbage. Doesn't matter who you are. I've seen well-off C-level executives struggle to get house loans and high-income earners barely be allowed credit or even debit cards. It's ridiculous.

Not always, but often enough that Maltese banks are losing out on perfectly fine customers.

Back to the topic, so what's your opinion on my thoughts above? Sending daily amounts to Wirex/Advcash or whoever it will be, so I can buy cryptos on Binance etc.?

There is nothing wrong with doing that and it reduces the risk that the Malta bank will ask questions.

Ah, here we go! I really wonder what amounts are considered to be high? Daily outgoing transactions vary from 1k-10k within the first few months and high likely skyrocket afterwards.

If you're wiring out 10,000 EUR per day to yourself, that will raise questions. First of all, where did that money come from? How did you get the money into the Malta bank? Where did it originate? How did you earn it? You'll have to show source of wealth/source of funds first.

The biggest problem for the bank will be when you start receiving money. That's when they might start giving you problem for having income derived from trading crypto. It's not impossible but most crypto traders I know in Malta don't keep their wealth there. Only enough to pay rent/bills. The rest stays with abroad.

 

[Paper Chaser]

If you're wiring out 10,000 EUR per day to yourself, that will raise questions. First of all, where did that money come from? How did you get the money into the Malta bank? Where did it originate? How did you earn it? You'll have to show source of wealth/source of funds first.

That would be fine I guess since whole money originates in eBay/Amazon sales which result in Paypal/3rd party bank transfers. Is there anything else I should be aware of?
My agents just told me I can setup a personal Maltese HSBC banking account for sure, but to bank with the bigger ones (HSBC, BOV) as for my business needs I would have to have higher turnovers, which I will likely have in a year, but won't have for now.

The biggest problem for the bank will be when you start receiving money. That's when they might start giving you problem for having income derived from trading crypto. It's not impossible but most crypto traders I know in Malta don't keep their wealth there. Only enough to pay rent/bills. The rest stays with abroad.

Mhm... I wonder if they have to know whether cryptocurrencies are being involved or not anyways. I mean, all they will have to face will be my online shop sales. However, you're right, it might raise questions why I am wiring out these daily incoming transactions to another bank account of mine.
Mind if I ask where do the business men you know bank then?

 

[BlueMist]

If you run a high risk business, then you may forget about business bank account in Malta, even if the UBO is a resident. Maybe with a proper setup and office, yes. BOV was the bank to work with in Malta, but they have decided to close bank accounts of many businesses due what they call a de-risking operation. I never had questions from BOV of transfers even more than €50k , neither incoming or outgoing, whether from EEA or to the outside. But they have closed my account anyway this year after having it for many years.

If you need account with Malta IBAN, you can check Finductive. It's EMI and they generally accept high risk businesses. But as with all EMIs, they are not meant to be for holding too much cash.

 

[Silvio]

There is exactly ZERO 0% chance HSBC Malta will open you an account and if your advisor told you to go there I will SERIOUSLY doubt their advice altogether.
Also BOV will be extremely hard to open- not 0% but maybe 1% chance that they will open you an account. I don't know what kind of advice this Dr Werner is telling you but it seems disconnected from reality. If you indeed manage to open please let us know ... and also go to buy a lotto ticket afterwards as you should consider yourself extremely lucky.
What @Sols said is 100% true (as usual), I suggest listening to his advice.