Private bank accounts

Private banking is a set of financial and banking services typically offered to wealthy clients - also known as high net worth individuals - by a bank or other financial institution. Unlike a regular checking account, a private bank account is traditionally opened with the expectation that the bank will manage the money for you. This means that private banking departments typically only want to see a minimal number of transactions coming in and going from your account - this is not the account used to receive salary payments, pay bills, or make business draws. However, it would be the right place to keep your family fortune, litigation from a business sale, or any other money you don't want to spend in the near future.

If you are looking for a safe and reputable bank for wealth management or other private banking services, the Confidus team can help you find the most efficient solution for all your needs.

Opening a private bank account
When discussing the key differences between a private bank account and other types of accounts, it is important to point out the additional requirements and general procedure for opening an account with a private bank. The main requirement for opening a private bank account is a substantial amount - while the lowest minimum deposit is around $ 250,000, some banks require $ 5,000,000 in deposits before you can open a personal bank account.

Opening a personal bank account requires a certain amount of paperwork and a procedure will be followed. While the main condition for opening a private bank account is the deposit of a certain amount of money, there are cases when applicants are denied a private bank account for other reasons. Every year around 5% of applications are rejected due to suspected fraud or illegal activity. To avoid accepting funds generated through arms or drug trafficking or other illegal activities, private banks go through rigorous risk and compliance procedures mandated by regulators to verify the identity of the prospect and the source of the funds . The beneficiary of the funds must also be identified.

Documents required to open a private bank account
The requirements for opening a private bank account can vary slightly from bank to bank, especially in terms of the amount of deposit required. However, there are some documents that you are likely to request from any private bank. Due to strict regulations and international agreements, banks are obliged to carry out thorough KYC (“Know your client”) and other compliance procedures not only before accepting the potential customer, but throughout their entire business relationship with him / her.

The first document you will need to present is your passport - this is the most important proof of your identity. Since private bank accounts are only available to people aged 18 and over, your passport will also confirm your age.

In addition, you will need to prepare a document confirming your official address. Often the proof of residence must be less than three months old.

Most likely, in addition to documents proving your economic background, you will also be asked for documents proving the legitimacy of the origin of your money (such as annual financial statements, inheritance documents, or documents proving a business or real estate sale). So that the bank can be as sure as possible about the legitimacy of the funds to be deposited into the account, it can also request identification documents from all beneficiaries of the account.

Interestingly, the final decision on approving a private bank account application is not in the hands of a private banker - committee meetings are held for this purpose and the personal manager is the person who represents the potential client. The main reason for doing this is to ensure that the decision-makers are unrelated to the client and thus have no potential personal interest in accepting a questionable application.


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