Malta used to be a decent banking center that was easily accessible to foreign and offshore companies. Although it has changed in certain aspects, there are now some obstacles even for Maltese residents who want to open a business bank account.
Business banking in Malta has changed. And to open accounts these days, you need the right information, to know which banks will realistically accept you, what your tacit requirements (sensitivities) are, and which bankers to target, information that Foster Swiss as an international consultant can provide you.
Like many international financial centers, Malta's banking sector has taken reputational hits and has been forced to undergo serious risk-reduction measures in recent years.
Maltese banks have been forced to "remove risk" from their operations. This means cancelling existing customer accounts when they fall outside the bank's acceptable risk parameters.
Malta's banking sector has had to evolve rapidly to meet the demands of international regulators, correspondent banks and foreign governments. It's the same thing we've seen in other offshore jurisdictions, such as Panama, Cyprus and Andorra.
Maltese banks also changed the rules for new customers, especially non-residents, Maltese companies operating outside Malta and foreign companies. Suddenly, the account opening process became slower and much more bureaucratic.
In addition, it has made opening a business bank account in Malta almost impossible for many businesses and entrepreneurs. Companies with limited ties to Malta that cannot meet the requirements of economic substance will have difficulty opening bank accounts here.
In fact, many Maltese companies doing business internationally have found that it is sometimes easier to bank elsewhere.
When it comes to opening a business bank account in Malta, many people are surprised to find that most of the due diligence focuses on the final beneficiary (UBO), the economic substance of the business, and proof of business.
With regard to the UBO, the bank wants to know who owns and controls the business. This usually includes anyone with an ownership stake of 10% or more. Of course, your company will also have to pass due diligence. And if your company does not have any economic substance in Malta, you can expect to overcome additional obstacles.
These rings can include additional bank reference letters, business reference letters, source of funds, customer contracts, supplier agreements, and more. Of course, the requirements vary from bank to bank, and some bankers may be more indulgent.
However, if your business is considered high-risk, as many offshore companies are, you can expect to pay up to ˆ1000 in due diligence fees upfront. And that doesn't even guarantee that your business bank account will be opened in Malta. At some banks, this is just the non-refundable cost of being considered for an account at the application stage.
That is why before opening a bank account in Malta you must have all the relevant information about your trade and the banking entities of the jurisdiction. Most of the failure in opening accounts is due to customer disinformation. Foster Swiss, international consultant gives you all the information you will need to open a bank account in Malta.
Our expert consultants have studied every detail of this jurisdiction, so they will be your best allies to successfully carry out your requirements.
For more information on this topic or any requirement related to our services, you can contact us directly through info@fosterswiss.com