Natalia Revenko from International Wealth: Advantages of Foreign Financial Solutions for Gambling Companies

To control and manage finances successfully, legal entities engaged in gambling businesses open accounts in various financial institutions. A lot of businesspeople decide to register accounts abroad. However, this task can be difficult if you have no idea of requirements and restrictions that bank and non-bank organizations apply to their customers.

We have collected relevant tips on opening foreign accounts for gambling companies prepared by Natalia Revenko, Business Development Director (Eastern Europe) at International Wealth.

Why is it profitable for gambling market players to register accounts in international financial facilities? What documents are required to open an account? What non-resident banking trends can be seen now? These issues are revealed in the article.

Advantages of foreign financial solutions for gambling companies

Financial organizations accepting corporate non-residents are generally registered in England, Cyprus, Lithuania, Ireland, Hong Kong and Canada.

An account in one of such facilities will provide a gambling company with the following benefits:

• increase in brand respectability (a Danish or Belgian license is acknowledged by European states);
• smooth operations within the sustainable economical and political system of countries with well-developed infrastructure (Malta or the UK);
• entry to new markets and expansion of the client pool (a Canadian license received in Kahnawake);
• extended banking opportunities (a Maltese license opens the doors of banks and merchant services providers);
• user-friendly settlements in freely convertible currencies.

Required data to open an account in a foreign financial establishment

To open a common settlement account, a legal entity should prepare:

• documents specifying beneficiaries and directors: registration certificate, memorandum and charter;
• documents proving the identity and confirming the residential address by beneficiaries and directors of the company;
• CV and welfare confirmation (account statement showing the source of income);
• company address confirmation (rental contract and utility bill not older than three months);
• detailed description of company business activity;
• contracts with partners.

Banks can additionally request documents confirming the actual presence of the company in the registration country, financial reports etc.

To open a merchant account, in addition to the above-mentioned you will need a high-quality website, account test data and the following documents:

• a statement of the company account for the past three months;
• a monthly processing history for the past six months with Fraud/CHB statistics;
• a license, signed AML policy and KYC applicable procedures for registering and monitoring your own customers;
• signed agreements with the company responsible for client identification;
• signed internal AML/KYC policy;
• domain ownership confirmation;
• PCI DSS, ASV, AOC, SAQ documents.

All documents on both personal and corporate accounts are accepted in English with a notarial certification. Documents issued by non-EU countries should be apostilled or certified by consular legalization.

Specific nature of opening accounts in non-bank organizations

Non-bank facilities generally have simpler requirements and more flexible compliance. The account opening process in a payment system or financial company usually takes up to a week while banks can consider an application for months.

Conventional banks most frequently ask to pass a paid advance approval: clients have to pay for consideration of their candidates as physical entities (or their companies) to find out whether they are appropriate to a bank. After completing the preliminary approval, the bank gives the green light and sets up a clear period for submitting the full package of documents, or refuses the application. The fee is not compensated whatever the outcome of the consideration.

Opening an account in the payment system for such a high risk activity as gambling can be the only opportunity. It is especially referred to companies holding licenses in offshore jurisdictions – Curacao or Costa Rica. You can open a settlement account prior to obtaining a license if it is in process. Afterwards, you can activate the processing and account of customer funds.

Besides, I would like to stress that non-bank facilities offer more solutions in comparison with banks providing a traditional set of services. Examples: international fiat and cryptocurrency transfers, application of SEPA, SWIFT, Faster Payments, ACH and blockchain.

Non-resident banking trends

With betting, online casino and poker services being subject to compulsory licensing, opening an account without a license is impossible.

Currently, I would emphasize several core trends in non-resident banking. For instance, fewer banks accept companies from other countries (e.g. a Maltese gambling company should explain the reasons and grounds for opening an account in Portugal or Singapore).

Banks also pay attention to the regional nature of businesses and connection with the country hosting a bank (Bookmaker Gaming Operator from Gibraltar).

The main trend is the end of the age of bureaucratic companies with legal addresses. Banks need a corporate website, real office, comprehensive reporting, as well as account statements even for offshore companies (for example, a licensed company from Curacao).

Our primary goal is to help customers not only join the bank but also remain there. Account opening is just half the battle, as you should use it properly. Thus, our principal purpose at the stage of getting acquainted with clients is to discover true business objectives and select a promising solution.

Role of advisor in the international banking sector

A professional intermediary (or eligible introducer) inspects any organization before establishing business relations, owns unique corporate information derived from the original source, knows all the nuances of document requirements and restrictions. Such information allows to form an appropriate offer for clients, exclude unprofitable solutions, as well as prevent potential pitfalls that can be unveiled only by professional intermediaries.

Financial organizations also gain certain benefits. Customer’s credibility is higher due to eligible introducer’s recommendations. Intermediaries take on a part of compliance. Consequently, banks or non-bank institutions obtain verified clients and documents.

Customers prepared by professional intermediaries can open accounts quicker and easier.

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You can read more about foreign financial solutions for online gambling venue clients in the first part of the article. Natalia will talk about benefits for physical entities opening accounts abroad. Moreover, she will explain what should be noticed by gamblers deciding to register accounts in foreign banks.

Do you want to find out more about foreign bank and non-bank solutions? Attend Ukrainian Gaming Week 2020 on April 15-16.

On the first day of the event, Natalia Revenko will make a presentation dedicated to the account opening in ordinary banks and non-bank facilities located abroad.

Event program ►►►