Several banks require a bank reference letter for people to open a business bank account. Some banks ask for crazy bank reference letters with a reputable bank and a bank representative that know you in person since 2 years and also of that should be done according to a special template.
- Many banks like Abn Amro refuse to provide a bank reference letter. They are right for several reasons. We should not add useless paperwork & administrative procedure that are useless. Usually, the banks say that you can ask for stamped bank statements at a local branch as an alternative.
- A bank reference letter is a breach of privacy with consequences. We think that the personal bank of a business beneficial owner should not know about his business activities. Let me tell you why. We know that some bank representatives have asked their customers if they could transfer the dividends of their companies to the personal bank after they learnt about the purpose of the bank reference letter. Furthermore, some bank representatives commented about customers who opened business bank accounts in offshore jurisdictions even if it was totally legal.
- When your personal bank is aware of it, they can monitor it. If you transfer money from your business bank account to your own bank, then your bank will know where it comes from & all the details about your business. They can be then pushy to sell you products & services knowing that you are worth a certain amount of money.
A company without a bank account is useless. If you can’t open a bank account in one country because of the bank reference letter (example: Cyprus, Uk, Gibraltar and all jurisdictions under the soviet commonwealth regime), don’t insist. Choose a country where it is easier to open a bank account (example: Bulgaria, Hungary, Germany, France, Estonia, Usa). Unfortunately, many banks ask for many papers and on top of that they don’t guarantee that they will accept to open a bank account.