Bank Accounts
The UAE has a well-developed banking industry, with easy access to international payments. It is compliance that can be somewhat slow and unresponsive - likely something globally universal rather than endemic in nature
Operating a bank account in the UAE is no different to operating an account with a Western bank. Most banks' online facilities are excellent.
However, it is the opening of a bank account in the UAE that will require some effort. Of course, opening a bank account is meant to be a simple and competitive service but in practice it has become tedious – yet any difficulties can be overcome with knowledge and experience.
There is marked difference between opening a corporate bank account and a personal bank account in the UAE. The latter can be easily and quickly arranged. For the former, the key is proper preparation.
Of course, for any type of account, the bank will need to satisfy their Know-Your-Customer (KYC) requirements. These are in line with KYC policies as applied by banks generally and include items such as verification of IDs, immigration and registration status, addresses, etc.
But there are a few specific items to note about the UAE approach.
The bank: (i) will carry out some due diligence on / require documents relating to the founders’ non-UAE companies; and (ii) will expect some information on the founders’ personal finances. These requirements are not quite in line with what is common in Western jurisdictions and we should be glad to discuss this in detail.
The bank will also consider the type of activities the prospective client undertakes, company registration address and any office arrangements in place. Some banks gravitate to certain types of activity and/or to registration addresses (offices) local to the bank.
Please also note that the level of offered banking services in the UAE differs depending on the expected account turnover and/or minimum balance. Of course, it would typically help a bank account application if the turnover and minimum deposit amounts were high.
By comparison, opening a bank account for an individual is straightforward.
The KYC process is simpler and more in-line with international practices. There are some slightly different bank account products/types to choose from.
The opening of a bank account may not be the easiest of tasks, but it is not prohibitive at all. All that is required is to build a business case in advance. And of course, we have the requisite knowledge and experience to present a robust application to the bank.
