Why does EMI and Neobanks ask for Tax documents among many others?

[reimmarkus]

but there is no justification to ask for tax returns and other general paperwork - such a request is a perfect moment to show the middle finger because it will get way worse, Revolut and Bankera are the last ones who tried this on me

Revolut asked me one time for tax documents, but it was a personal account not a business account. Wise did the same on the business account. But wise did it after 6figs went through the account.

 

[JohnnyDoe]

When did Zen & Blackcatcard start asking you for tax related documents? Already in the beginning or after 6figs went through the accounts?

Zen at opening, Blackcatcard when I started moving some money

but there is no justification to ask for tax returns and other general paperwork - such a request is a perfect moment to show the middle finger because it will get way worse, Revolut and Bankera are the last ones who tried this on me

you can’t argue with banking monkeys. Their game, their rules.

 

[void]

you can’t argue with banking monkeys. Their game, their rules.

sure, voting with my feet and money

call me naive but I'm very optimistic I will live long enough to see this whole s**t show to fall apart and bank scum begging for customers and behaving like any other business... I like to dream sometimes

 

[Piano]

when it comes to invoices, salaries and other documentation supporting individual transactions then fine, that's what we can generally accept and makes at least a basic sense

but there is no justification to ask for tax returns and other general paperwork - such a request is a perfect moment to show the middle finger because it will get way worse, Revolut and Bankera are the last ones who tried this on me

Yeah, NEVER heard of a brick and mortar bank asking for this , anyone heard different ?

 

[Sols]

Yeah, NEVER heard of a brick and mortar bank asking for this , anyone heard different ?

Yes, frequently and in all corners of the world. It starts becoming very common when you transact six/seven figures and higher. Banks are required by law to make sure they aren't facilitating tax evasion. One simple method of reducing that risk is to ask to see tax returns.

 

[wellington]

I don't really base our business on luck but rather on research and negotiations. And that's exactly what I've also started with Zen; we are trying to find out what the right price is for our business, they are looking into it and have promised to come back with an offer. So, I would say it's worth asking once in a while and also being ready to negotiate.

I will update here if we agree on something.

Looks like a good offering unfortunately won't work for me (i don't live in Eurostan).

Would be interested to have an update on the business side though (though no European company either) we do need a fiat payment gateway for retail/commercial service processing.

When did Zen & Blackcatcard start asking you for tax related documents? Already in the beginning or after 6figs went through the accounts?

I applied for Blackcatcard -> never ever got a notification or anything since. not even to say a application had been submitted lol.

 

[reimmarkus]

I applied for Blackcatcard -> never ever got a notification or anything since. not even to say a application had been submitted lol.

Did you contact them to ask about your application?

 

[Forester]

Yeah, NEVER heard of a brick and mortar bank asking for this , anyone heard different ?

Yes, frequently and in all corners of the world. It starts becoming very common when you transact six/seven figures and higher. Banks are required by law to make sure they aren't facilitating tax evasion. One simple method of reducing that risk is to ask to see tax returns.

Yes, the same for me. @void: Unfortunately, it can be very well justified by AML measures – as a part of the KYC procedure (to avoid misunderstanding: I do not like it at all and I would like to share your dream )

 

[void]

Unfortunately, it can be very well justified by AML measures – as a part of the KYC procedure (to avoid misunderstanding: I do not like it at all and I would like to share your dream

it may very well be... I'm just saying that for me anything directly unrelated to given transaction is a deal breaker, an impulse to let it go and close my account as such a company is cursed anyways - for now (at least when it comes to institutions I'm dealing with) it's still pretty rare

anyways, bitcoin adoption is growing...

 

[jafo]

it may very well be... I'm just saying that for me anything directly unrelated to given transaction is a deal breaker, an impulse to let it go and close my account as such a company is cursed anyways - for now (at least when it comes to institutions I'm dealing with) it's still pretty rare

anyways, bitcoin adoption is growing...

NGL, here the USA/IRS is THE BIG winner in the world: Taxpayer Bill of Rights 8: The Right to Confidentiality

sure, voting with my feet and money

Same here! No hesitation! Euphemistically, any question asked of me beyond the minimum to ascertain I am "me", and I shoot first, aim later, and then question the corpse!

That "excuse" that "the government made me do it or I was just following orders" didn't hold water at the Nuremberg trials and certainly will NOT hold water with me. So many lives were destroyed and cut short by others "following orders". Now, it would be nice if the order followers doxxed the names and contacts of those who "made them do it".

 

[Piano]

Yes, frequently and in all corners of the world. It starts becoming very common when you transact six/seven figures and higher. Banks are required by law to make sure they aren't facilitating tax evasion. One simple method of reducing that risk is to ask to see tax returns.

banks are required by law in all jurisdictions ?

 

[Dandyline]

Yes, frequently and in all corners of the world. It starts becoming very common when you transact six/seven figures and higher. Banks are required by law to make sure they aren't facilitating tax evasion. One simple method of reducing that risk is to ask to see tax returns.

I assume it's mostly common with banks in countries where people moving to lower taxes or with EMIs. Never heard of anything similar in Tier 1 EU countries, you can transact millions with no questions.

 

[Sols]

banks are required by law in all jurisdictions ?

Yes. Tax evasion is not legal anywhere, not even in places that have zero tax. So there is a possibility that any bank anywhere can ask to see a tax return.

I assume it's mostly common with banks in countries where people moving to lower taxes or with EMIs. Never heard of anything similar in Tier 1 EU countries, you can transact millions with no questions.

I couldn't find a definition anywhere of EU member state tiers and what country is in what tier (nor could I find out how many tiers there are), but I can't think of a single EU country where I haven't come across this request. Except maybe in the Nordic countries where the banks can just get tax returns by asking the local tax authority. Perhaps I just haven't experienced Tier 1 EU. But I have seen these requests from banks in Spain, France, Germany, Netherlands, and Switzerland.

Generally speaking, though, the bigger the bank and/or the bigger the economy of that country is, the less likely it is you'll be asked. Smaller banks and smaller countries have more at stake with each individual client so they are more likely to ask invasive questions.

 

[Freccione]

Revolut asked me one time for tax documents, but it was a personal account not a business account. Wise did the same on the business account. But wise did it after 6figs went through the account.

Wise never asked me for any tax information, despite having had well over 7 figs of transactions with them.
Lately they sent me some SOF and general AML questionaire, which I will try to answer properly. My business is completely legitimate, yet I have a feeling they will close my accounts now.

 

[jafo]

Wise never asked me for any tax information, despite having had well over 7 figs of transactions with them.
Lately they sent me some SOF and general AML questionaire, which I will try to answer properly. My business is completely legitimate, yet I have a feeling they will close my accounts now.

First Things First! The book!

(1) Move your money. Empty your account(s).

(2) Send them all the SOF and answer all the AML questionnaires they sent you.

(3) If in doubt, see #1

I had the same issue. Once those requests/questions came in, it was an ill omen. Glad I evacuated that sinking ship! Maybe you are luckier.

 

[void]

First Things First! The book!

(1) Move your money. Empty your account(s).

(2) Send them all the SOF and answer all the AML questionnaires they sent you.

(3) If in doubt, see #1

I had the same issue. Once those requests/questions came in, it was an ill omen. Glad I evacuated that sinking ship! Maybe you are luckier.

this is a golden rule... it was only once I didn't respond to a gentle sign of trouble with immediate evacuation and I ended up with money locked in epayments (for my protection of course, thank you FCA) - despite it ended well I will never make such a mistake ever again

 

[reimmarkus]

Wise never asked me for any tax information, despite having had well over 7 figs of transactions with them.
Lately they sent me some SOF and general AML questionaire, which I will try to answer properly. My business is completely legitimate, yet I have a feeling they will close my accounts now.

Send them 3 customer invoices, statements all for the last three months. also send your websites if you have one. that's how the SOF was lifted.

 

[cuno]

First Things First! The book!

(1) Move your money. Empty your account(s).

(2) Send them all the SOF and answer all the AML questionnaires they sent you.

(3) If in doubt, see #1

I had the same issue. Once those requests/questions came in, it was an ill omen. Glad I evacuated that sinking ship! Maybe you are luckier.

I should have read your posts before I send my docs to Mister Tango, they locked my account while they check the documents. That's only a few thousands, but still.