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Substance services and assistance in drawing up compliance dossiers for the bank

For successful work with banks not only in the UAE but all over the world, the company must prove the substance of its work. Otherwise, such a company will be acknowledged as a shell-company, which gives up the prospect of opening a corporate account in a reputable bank on it. Moreover, the central banks of Cyprus and Latvia at the legislative level banned their banks from working with shell-companies.

For a company to be the desired customer for a bank, it must have a substance, that is, confirmation of a carrying out of real economic activity.


What is included in the concept of substance?

 

In order for the company not to be perceived as a shell-company, it must have all the attributes of a modern "real" company, namely:

 

• website and corporate e-mails;

• office;

• employees;

• funds on balance;

• it must have agreements with partners and counteragents.

 

This is not a complete list of what can prove the substance of the company. In many cases, banks can become more favorable to the legal entity even on the basis of paid utility bills (if a company pays utility services, it confirms that it really works).

 

How can we help you?

 

The employees of our company will assist you in the formation of the substance: we will help to collect the necessary documents (agreements, receipts, extracts), create a corporate website, mail, and much more.

 

Compliance dossier for the bank with Parus Management Consultancies company

 

The compliance procedure is the process of bank’s checking of the “purity” of the funds that it will have to process, as well as the identity of the ultimate beneficiary. The purpose of the procedure is to make sure that the funds received in a bank account are earned honestly and are not related to arms or drug trafficking, and have not been tax-deductible.

 

Nowadays, banks even have compliance departments that search for the information about potential customers in different registries, databases, and on the Internet. In addition, upon the request of the employees of the department, the client must provide documents confirming everything said by the client. Such documents may be called a Compliance dossier.


What can be included in the Compliance dossier?

 

The Compliance department wants to make sure that the potential client’s business is real and legitimate, that the circulating assets were earned honestly, and the owner of the company is not a politically significant person. Based on this, the following documents may be included in the Compliance dossier:

 

- Tax reporting on the previous business of the client, which confirms the purity of the origin of capital;

 

- Salary certificates for recent years;

 

- Contracts with counteragents;

 

- Corporate or personal website: many banks believe that in the XXI century it is impossible to conduct business without virtual representation on the Internet;

 

- Transaction history (if the company already conducts business and got service of the other banks);

 

- CV of the beneficiary;

 

- Documents confirming the title of real estate/movable property, shares/corporate rights of other companies;

 

- Tax statements on the income of the previous years;

 

- Documents confirming the facts of the sale of the property, etc.

 

This is by no means a complete list of what may be included in the Compliance dossier. The availability of everything mentioned above will facilitate the opening of an account, but it does not guarantee anything at all – modern banks do not make decisions automatically. Therefore, it is strongly recommended to refer to the professionals to undergo the Compliance procedure at a bank!