Bank account outside the European Union (SWIFT)

Bank account outside the European Union for virtual terminal

E-Commerce along with all its alternates, such as, U-Commerce, Mobile Commerce, Social Commerce have changed forever the way we do business and carry out commercial activities. Today, with one click we can transfer money, exchange currency or make a payment to bank account located in any country in the world. 

As a result of this technological revolution and globalization, opening a bank account outside of a country of residence of an account holder have become a usual practice. Usually, to open a bank account outside the European Union the client’s physical presence is not required and identification can be done through webcam. Also, the list of requirements that a future account holder has to fulfill is reduced to minimum making the process even easier. 

Are the banks outside the European Union worse than those within the European Union? The answer is: No. The difference lies in Compliance department policies that present incoming and outgoing money transfers from being linked to money laundering. Additionally, opening a bank account without physical presence outside the European Union means tax saving and entrance to international markets. 

Characteristics of a bank account outside the European Union

All residents and non-residents of European Union can apply for a bank account without their physical presence and accept payments from their virtual POS terminal. The characteristics of a Non-European Union SWIFT bank account are:

• Flexibility in accepting online businesses: The banks located outside the European Union are usually in favor of e-commerce. That is, opening a bank account remotely they don’t require a client to have a physical business offering him all the advantages to develop online commercial activity. E-commerce businesses enjoy low number of restrictions and more freedom when it comes to international wire transfers. Marketing online, Forex-related business, trading of Cryptocurrencies and other intangible services are always welcomed in foreign non-European banks. 
• Maintenance cost and fees: The fees and cost of maintaining a bank account opened in non-European Union bank are usually higher than of any local bank. Since all the wire transfers are made using SWIFT international payment network and not IBAN and SEPA, the costs of wire transfers are more elevated. When an IBAN wire transfer has a fee of 5 euros, it can cost you from 25 to 40 euros to make a payment through SWIFT.
• Variety of debit and credit cards: The main brands of the cards issued by European Union banks are Visa and Mastercard. The banks located outside the EU usually also offer to a client a possibility to apply for such cards as Discover, Union Pay, JCB or Diners Club. All of these cards, together with Visa and Mastercard, can be used for online purchases and cash withdrawals in any ATM in the world. 
• International treaties: The majority of the banks located outside of the European Union countries offer privacy due to the fact that the governments of these countries have not singed automatic exchange of banking information treaties. For example. United States and Puerto Rico did not sign any bilateral agreement and therefore there is no information exchange between them. Therefore, before choosing a bank account, we recommend our clients to pay attention on the list of international treaties signed between their countries of residence and the jurisdictions where they want to open a bank account. 
• Obligations to declare your bank account: In case the government of your country of residence has signed any international treaty that put at risk the privacy of your banking information we strongly recommend you to get informed by the fiscal authorities of your country about your obligations. If a bank account is opened for a company and not a physical person, the beneficial owner has an option to decide whether he wants to invest the generated funds into his business or to repatriate it in form of dividends. In this second case the client will have to declare his earning in order to transfer these funds to a bank account in his country of residence and spend it freely. 
• Globalization: In case your clients are from all over the world and you will have to make or accept international payments, SWIFT account is a necessary tool for you. You won’t have to worry about currency exchange and international restrictions.   

Bank account fees

* The customer can open the bank account outside the European Union in the currency he wants, provided it is of international legal tender (Euro, American Dollar, Canadian Dollar, Australian Dollar, British Pound, Japanese Yen, Swiss Franc etc.)

* Opening of bank account without physical presence. All arrangements are be made through e-mail and / or certified mail.