Banking

Delaware companies with local management and control often have different banking needs than those with foreign administration. Depending on the activities of the company and the corporate structure, forum shopping for the most appropriate financial solution is recommended. Often, offshore banks and financial institutions familiar with cross border activities by non-residents provide for these services.

Financial institutions and banks included are considered the gatekeepers of the financial system. This position makes them vulnerable for sanctions, penalties and even closure because of regulatory violations. Hence the reason that financial institutions take customer due diligence and Know Your Client (KYC) procedures serious. Potential customers and account holders are therefore exposed to strong compliance requests by their banks.

The efforts to ensure the stability of the global financial system include periodic bank account screening. Several Delaware companies are at risk losing their banking facilities. Such changes emphasize the importance of selecting the most appropriate banking relationship and following the protocols. As such, professional assistance for bank account opening avoids several potential challenges owners of a Delaware company can experience with their banks.

Delaware companies can open accounts with payment processors and electronic money institutions providing them with IBAN numbers. These service providers are often mistaken with traditional banks. However, the scope and nature of their licenses as well as their mandates to operate, differ. Therefore, deposits are not secured and held with third party institutions. When problems occur, a different approach is needed to reactivate the account or recover the funds on deposit.