A number of important steps must be taken to successfully open an account: preparation of relevant documentation, compliance with Know Your Customer  KYC) and Anti-Money Laundering (AML) standards, as well as choosing a bank that is ready to work with cryptocurrency companies. In this article, we’ll take a detailed look at the key requirements and steps you need to take to open a bank account for a VASP to ensure transparency and stability in your business’s financial operations.

Bank selection

 Opening a bank account for a VASP is an important and challenging process at the same time. Due to the specifics of VASP’s work, many banks are skeptical about opening accounts for such companies due to regulatory risks, increased compliance requirements and security issues. Therefore, before starting the procedure, it is necessary to find a bank that will definitely not refuse to open an account for a VASP.

Preparation of documentation

Banks require significantly more documents from companies operating in the cryptocurrency sphere than from ordinary businesses. The main goal is to ensure compliance with regulatory requirements and reduce the risk of money laundering and terrorist financing. Keep in mind that you will need to submit at least the following documents:

• Company registration documents (Articles of Association, extract from the trade register, register of directors/shareholders of the company, share certificate and other documents depending on the jurisdiction).
• AML/KYC policies. Banks will require proof that the company has clearly developed anti-money laundering and customer identification policies.
• Proof of licensing or registration. In many countries, VASPs are required to obtain a license or register their activities with financial regulators.
• Proof of the origin of the company’s funds (shareholders’ own funds with documentary confirmation).
• The contract with the AML officer and his personal documents. In some countries, his role can be performed by the director of the company himself, but with appropriate skills or documents confirming his level, such as a certificate of completion of relevant courses.

In addition to these documents, it is also necessary to prepare personal documents of the company’s shareholders/directors. These documents may include:

• For individuals: government-issued photo ID (such as a driver’s license, passport), proof of address (such as a utility bill), and possibly a social security number or taxpayer identification number.
• For legal entities: company registration documents, tax identification numbers, charter and ownership information.

Keep in mind that some banks or payment systems may ask you for apostilled documents or a translation of your documents into English.

Direct contact with the bank and the compliance procedure

 Before filling out the account opening application, the bank manager may ask you to provide preliminary information about your company and its activities. Banks working with cryptocurrency companies have their own compliance departments that scrutinize the company’s documents. Additional requests for documents or clarifications may arise, and in practice they almost always do. During the company’s document review, you will also be provided with more detailed estimates and bills for your account activity. They are based on your specified monthly turnover amounts, status of your company and its activities, registration jurisdiction, status and country of residence of shareholders and directors, etc.

Corporate bank account use

When you accept the rates offered by the bank, successfully go through the compliance procedure and are ready to start using the company’s corporate account, it does not mean that you are allowed to forget about constant contacts with the bank. After opening a VASP account, companies must meet ongoing compliance requirements. Banks may periodically conduct inspections of the company’s activities, requiring updating of documents and transaction reports. Therefore, it is important to maintain transparent and effective AML/KYC procedures, as well as ensure proper documentation of financial transactions. 

For readers 

Manimama has considerable experience of interaction with banks and established cooperation with some of them, which significantly speeds up the process for our clients. Therefore, the compliance procedure is clear to us and we know what is required to open accounts.

It should be noted that the opening of operational and client accounts for VASPs is critical for effective financial management and regulatory compliance in the field of cryptocurrencies. Operating accounts perform a number of important functions, while accounts for client funds ensure the protection of assets and the optimization of operations. It is important to properly navigate the process of opening accounts, following the necessary requirements and procedures to ensure the safety and success of activities related to cryptocurrency.

Keep in mind that specific requirements and processes may vary by financial institution and region. If you are not sure about choosing a bank for opening an account, you have difficulties with the compliance procedure, or the whole procedure seems too complicated for you, then you can always turn to our company’s specialists for help.

Our contacts

If you want to become our client or partner, feel free to contact us at support@manimama.eu.

Or use our telegram @manimama_sales and we will respond to your inquiry.

We also invite you to visit our website: https://manimama.eu/.

---

Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.

---

The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.