Bank Accounts

• List of banks with which we open accounts
• Where and why should a bank account be opened?
• Types of accounts
• Bank choice criteria
• Account opening procedure
• If you need help in making your choice

Amond & Smith Ltd cooperates with a large range of foreign banks worldwide. If you need help in choosing an appropriate foreign bank in order to open a personal or corporate account with it, please feel free to contact us. Our specialists will advise you on all matters connected with opening an account and will offer several alternatives which meet your requirements. We will open a foreign account for you with any bank you choose, even if it is not included in the list of banks on our website.

Where and why should a bank account be opened?

In the 21st century, it is hard to imagine any company without a bank account. Only those companies incorporated for the purposes of owning property and carrying out no business activity can manage without a bank account. In a lot of countries it is obligatory for companies to have a bank account. That is why opening a bank account is a very important stage in the overall process of international tax planning, which requires a serious and informed approach.
The difficult task of balancing the finding of a reliable and prestigious bank and the matter of confidentiality and bank secrecy arises when opening a bank account abroad. It is necessary to start with purpose for opening such a bank account in order to choose the right bank. For example, for the purposes of carrying on a trading business it is important to have a foreign account which is simple to manage together with a bank which has a good reputation with its business partners. The best variant for the accumulation of funds is to open accounts with major reliable banks situated in stable and economically developed countries (in Western Europe, for example), although it is advisable to diversify the deposit currency by keeping money in USD and in EURO or GBP, for example. We would also advise you not to keep all your savings in one bank but to open several accounts with various foreign banks in order to reduce your risks.
An account does not have to be opened in the country where your company is incorporated. In particular, if your company is incorporated in one of the island states of the Caribbean Basin it would be expedient to open a foreign account in a European country to make access to the account easier. However, the legal requirements and internal bank procedures for opening accounts by non-resident companies should be also taken into consideration.

Types of Accounts

Bank accounts can be grouped into the following types, depending on your overall purpose:

• A current account is intended for servicing commercial activity or the personal costs and revenues of its holder. Interest on account balances can not be accrued at all or can be very small. A cheque book or a debit card can be attached to the current account.
• A card account is opened when a client receives a credit card. It is used to facilitate card transactions and future redemption of the client's debt, normally by use of a current account. 
• Money in a fixed deposit account should always be deposited for defined minimum period, and it generates greater profit. The minimum deposit is usually equal to several thousands USD and is deposited for a period of not less than 1 month.
• Money in a private banking account is used for the purpose of long-term investment in securities. This account is usually opened with a specialized bank department or even with a specialized bank dealing specifically with the attraction and location of investments. Major banks are interested in those clients who intend to invest sums of at least several hundred thousand USD.
• A brokerage account (investment account) is opened with a brokerage company or with a bank rendering brokerage services in the securities market. The account's purpose is to service sale and purchase of securities transactions with this broker.

Almost everything above mentioned can also be applied in relation to specialized accounts for operations in foreign currency markets (FOREX accounts).

Bank Choice Criteria

The following criteria can be regarded as the main criteria in choosing a bank:

• Political and economic stability of the country where the bank is located;
• Reliability and prestige of a bank, and a high position in the international rating agencies' ratings (Standard&Poor's, Moody's, Fitch, and others);
• Level of the state's control over banking operations;
• Portfolio of bank services rendered to clients;
• Correspondence between the bank's profile and the specific character of the expected account transactions;
• Minimum deposit;
• Cost of services;
• Convenience of services rendered to distant clients;
• Possibility of receiving credit cards;
• Interest on current and deposit accounts;
• Availability of investment programs; and

Location of a bank and its branches. 

Accounts Opening Procedure

As a rule, it is sufficient to provide the following documents and information to a bank in order to open a bank account abroad:

1. Documents positively identifying the account holders (owners, directors, and other persons acting on the basis of a power of attorney): passport, foreign passport, and a document certifying your permanent place of residence. The stated documents shall be originals.
2. Company corporate documents (articles of association, memorandum, certificate of registration and appointment of directors - all these documents shall be certified by a notary public and apostilled, and a certificate of shares issue. If an account is managed by a third party there shall be a power of attorney issued in the name of the latter and it has to be duly certified by a notary public and apostilled; a resolution for issuing a power of attorney must also be provided).  
3. The following documents are required depending on the bank with which an account is to be opened: recommendations from the client's business partners, other banks with which he has accounts, business cards, names of contractors, etc.

A personal meeting with a foreign bank representative is sometimes necessary before the initiation of an account opening procedure.

The account opening procedure can last from 1 day to 1 month depending on the bank's location and internal regulations.