It’s not that easy to open a Business Bank Account for Money Transfer Business, so what are the options?
Whilst the high street Banks will decline an application for a Business Bank Account for Money Transfer Business, there are other options available.
The key reason why an application will be declined is down to the nature of the business.
Although the main reasons are stated it is due to the strict anti money laundering (AML) rules, often it is due to other circumstances.
It is true that opening a Bank Account for Money Transfer Business will carry additional risks.
These risks are mainly due to increased checks that need to be undertaken on the transactions.
All banks need to ensure the legitimacy of the transactions to ensure they are all compliant.
The AML rules and regulations related to money transfers can be very strict, so they must be adhered to.
Failure to ensure they are compliant could put the banks own money at risk.
This means they have to be ultra cautious, especially if cash is also involved.
So businesses with electronic transfers only (Bank transfers or card payments) will be more favourable.
But there is another reason why the big banks don’t like to offer you a Bank Account for Money Transfer Business
The more money transfer businesses are out there, the greater the competition is for the big banks.
As such they can legitimately protect themselves by declining any applications from this sector.
Meaning if you need to transfer money abroad you would have to do so at your own bank.
Which if you checked the charges, would be considerably higher than a money transfer business.
As such, it helps to decline an application rather than allow it, even if they wanted to.
So what options are there to open a Bank Account for Money Transfer Business?
Although the options are limited, there are some potential business accounts which are available.
Whilst they will not have a branch network or accept cash deposits, they will allow you to trade electronically.
As such you will get your own account number & sort code, with online & mobile banking.
It will allow you to trade electronically with unlimited balances and instant payments.
Applications can be accepted without the need of a personal visit with each provider fully FCA regulated (FCA)
For details on what will be available,please contact us directly on 020 3286 3929 or apply directly online by Clicking Here