Things drastically changed in the financial industry from financial institutions across the globe closing doors to high risk businesses which are unregulated.
Banks no more want to cooperate with unregulated financial companies to open accounts anymore. It is due to the fact that number of scams increased & people losing money towards these companies. Right now banks insist to any business that is required to be licensed, should have to get regulated & have to submit all documents strictly complying with stringent policies. These changes makes things impossible for unregulated companies which are required to be licensed.
Previously this wasn’t the situation.. Banks were open to allowed companies which are unregulated to open accounts & commence their business. This lead to huge stress of banks with many companies turning to be scams. So there is no choice for the banks filter out Good Boys from Bad Boys.
When you deal with funds of the public… it is essential that the companies have strong financial background to not to risk the clients funds and play with it. The first step towards is for the company to get proper regulation and comply with regulatory guidelines. If they are not able to do it then it makes things fall out of the court & makes companies to stay away from business. To run business it is essential to have bank account.
It completely makes sense on how things changed financially now by looking at the stand point of the financial institutions to protect the end customer on not falling into wrong hands.
So with these changes, it is no more an option for companies who are start ups and have no license to think of entering into business if they are dependent on bank account to operate their business.
Think before you start now!. Make sure you register with recognized regulatory body & get a local bank account where you get the license from. Cross border bank account opening is also very hard these days without any strong business plan, financial reports & previous track record.
We hope this clarifies on how things changed in the financial industry & helps you to decide before you start getting to business which needs to be regulated.
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