Assisting Clients with Cross-border Account Opening

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Assisting Clients with Cross-Border Account Opening www.ibosassociation.com www.ibosassociation.com / 1

Introduction This document provides guidance on completing documentation for opening an account with one of our international partner banks. It assists with the account opening procedures, defines roles and responsibilities, and describes regulatory and documentary requirements to assist throughout the process.

Contents 3 / Introduction 4 / Our Regulatory Environment 5 / Variables & FAQs 6 / Account Opening 7 / Example of an Account Opening Process

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Assistance with documentation

Dedicated client service and support

Whenever bank documentation needs to be completed, a designated implementation adviser will assist with identifying the requirements to be met. We will coordinate the completion of as much of the documentation as we can, and guide clients through the elements that require their input. This assistance through the documentation process should dramatically reduce the time it takes for the account to become operational.

We provide a dedicated support service through our partner banks to help you access their in-country banking services. This offers global relationship management with regional and local expertise to streamline problem-solving, escalation and service. Compliance with all legislation and regulations, while providing the simplest and most efficient experience for each of our partner banks and their clients, is our priority.

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Regulatory Environment

Variables Ultimate Beneficial Ownership

Safeguarding your interests Anti-money laundering (AML) laws and regulations in all jurisdictions are designed to protect all participants within the financial system (including clients) from financial and reputational loss, while supporting society’s broader interests by identifying and preventing potential criminal and terrorist activities. We take our AML responsibilities very seriously.

When first establishing a relationship, clients will need to provide additional documentation to supplement their account opening form(s). Among other requirements, we must verify the corporate identity of each company, as well as the personal identity of key shareholders and authorised signatories. The amount and type of documentation required may vary depending on such things as country of incorporation, type of entity and nature of ownership.

Ownership determines the extent to which we have to verify

Country of incorporation

the identity of shareholders and managers. Ownership may be

This mainly impacts the types and amount of constitutional

a matter of public record for companies listed on certain Stock

documents required to verify the corporate identity, and what

Exchanges, and therefore some documentation may not be required

evidence is required to verify the authority of those who sign the

in certain circumstances.

account opening agreements.

Authority of company representatives (Signatories/Mandators)

Domicile of account(s)

Authority determines the extent to which we have to ascertain

This affects matters relating to local regulations. Anti-money

whether or not the signatories are authorised by the company to

laundering requirements are often affected by the domicile of

open accounts in the company’s name and execute any contracts or

account. Certain jurisdictions also require declarations in relation to

other documents with the bank.

tax status.

FAQs What is the purpose of the Account Opening Application (AOA)?

What is the Specimen Signature Document?

The AOA is a legally binding agreement between our member bank

The specimen signature document is required for all those authorised

and its clients. The AOA acts as an offer by our member bank to open

to sign cheques and manual payment instructions within an

an account. The AOA is signed by an authorised representative of

organisation. It specifies who has signing authority on an account and

the client and represents the client’s acceptance of our member

provides sample signatures for verification purposes. The specimen

bank’s offer.

signature document does not state who is authorised to open or close bank accounts.

Know your customer

Navigating the regulations

Regulators require us to be entirely satisfied with our understanding of our clients’ identities, beneficial ownership, management structures, and usual transaction flows. Our “Know Your Customer” (KYC) process also assists with fraud prevention, and enables us to better understand and more effectively meet clients needs.

Our designated implementation adviser will identify and assemble the documentation required according to the many variables. They will, therefore, need to develop a complete understanding of each client’s circumstances, including corporate structure, ownership and domicile.

They will then have the details needed to determine the appropriate documentation and documentary evidence required to support the account opening with our member bank.

It also provides important information required for our member bank the registered address and the ownership structure. Also included

Why does the client have to provide identification documents such as copies of passports?

in the AOA are the general terms and conditions, or considerations,

Passports are a form of identification widely used across the banking

agreed between our member bank and the client, that govern

industry. Anti-money laundering laws and regulations require that

the operation of the account and any local terms and conditions

banks identify and verify the identities of beneficial owners, senior

that apply for the country or countries where the account(s) are

managers and, in some cases, signatories.

to open the account, such as the registered name of the company,

domiciled. Some account opening agreements may list the terms and conditions separately.

What is legalisation/notarisation/apostille?

Legalisation/notarisation is a process whereby a document is

What is a Board Resolution?

notarised by a notary public and usually legalised by an embassy or

A Board Resolution is a written document that records a decision

consulate official so that it will carry legal force in the country where

or action made by a Board of directors during a Board meeting. A

the account is to be opened.

company, being an artificial person, cannot act on its own and has a Board of directors formed to run the business, make decisions and

Apostille means certification and commonly refers to the legalisation

execute those decisions, such as account opening. The Board obtains

of a document for international use under the terms of the 1961

authorisation by passing a resolution providing detailed instructions

Hague Convention, abolishing the requirement for the legalisation of

concerning operations of the accounts and this resolution constitutes

foreign public documents. Documents that have been notarised and

the company’s mandate to the bank.

then certified with a conformant apostille are accepted by all nations that have signed The Hague Convention. In short, it is the official confirmation that a signature, seal or stamp on a public document is genuine.

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Example of an Account Opening Process

Account Opening There are certain documents that will always be required when opening an account with a bank abroad and these are explained below:

Notification

Basic documentation

Client

Client’s Bank

Partner Bank

Rejected

Requests account(s)

Sends “Referral Notification” mail with very basic info

Reviews referral notification

Completes AOA and any additional info and provides background docs

Asks client to complete AOA* and additional info and requests (as required by partner bank) *Account Opening Application

Additional information requested

• Account Opening Application Form – as far as possible, we will assist clients with pre-filling this form on their behalf by our implementation team.

• Evidence of authority of signatories to complete account opening agreements – this will be in the country of incorporation of the legal entity.

• Specimen Signature Document – this list of authorised signatories on each account is used for cheques and manual payments in contingency scenarios. Depending on the domicile of the account and ownership of the company, we may need to verify the identity of signatories.

Due Diligence

form of board resolutions, powers of attorney or extracts from trade registers, depending on the

Upon receipt of AOA and background docs - carries out a quality check

Sends the package by courier or, where allowable, by email as scanned copies

Corporate identity

Reviews account opening documents

In line with anti-money laundering requirements, additional documentation may be requested. Examples of such documents include: Signs Account Opening Docs

• Constitutional documents – Such as certificate of incorporation, memorandum and articles of

Arranges for signatures from the client

documents relating to the constitution of the legal entity.

• Evidence of your registered office and business address • Information relating to your shareholders and management – In certain circumstances we will need to identify key beneficial owners, shareholders and directors or managers with documentary evidence.

The specific requirements will vary according to the domicile of the account and your ownership structure.

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Account Opening

association, bylaws, limited liability operating agreement, certificate of registration, or other similar Send signed account opening docs by courier with Letter of Introduction or, where allowable, by email as scanned copies

Starts using account

Opens and confirms the account opening by sending the Confirmation of Account Opening

Advises customer that account is open

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