In today’s environment of increased financial transparency and stricter cross-border regulations, opening a bank account abroad has become a more structured and compliance-driven process. Banks carefully assess each applicant’s profile, source of funds, tax residency, and business activities before approving an account. In this section, we provide a carefully curated overview of banks across multiple jurisdictions that work with international individual and corporate clients, subject to internal compliance approval. We have prepared a comprehensive guide to help you navigate the entire process – from choosing the right jurisdiction and banking partner to preparing the required documentation and managing your account on an ongoing basis.
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The process of opening a foreign bank account can vary significantly depending on the jurisdiction, the bank’s internal policies, and the client’s objectives. We have analysed this process in detail to address the key practical and regulatory questions that typically arise.
Opening a bank account abroad generally requires a standard set of documents. For individual clients, this typically includes a valid passport, tax identification number(s), recent bank statements, and documentation confirming the source of funds and source of wealth.
For corporate clients, banks usually request corporate constitutional documents, information on shareholders and ultimate beneficial owners, agreements with counterparties, and evidence of genuine business activity and commercial substance.
In many cases, banks require the client’s personal presence for identification purposes. However, exceptions may apply depending on the jurisdiction and the bank. A number of European banks allow remote onboarding through secure video conferencing procedures or via authorised representatives and trusted intermediaries, subject to compliance approval.
Foreign banks conduct comprehensive due diligence to ensure compliance with applicable anti-money laundering (AML) and counter-terrorist financing (CFT) regulations. The review typically includes an assessment of the client’s financial background, source of income and wealth, business profile, transaction patterns, and overall risk classification.
For individual clients, foreign banks typically offer two main types of accounts: savings accounts and current accounts. Savings accounts are generally used for capital preservation and growth, while current accounts are designed for day-to-day transactions, including international transfers. When selecting an account, it is important to consider key terms and conditions such as minimum balance requirements, maintenance fees, transaction charges, and, in some cases, minimum turnover requirements.
For corporate clients, banks apply more extensive compliance and risk assessment procedures. This reflects the greater complexity of corporate structures, transaction flows, and regulatory exposure. In addition to standard corporate documentation, banks may request:
- a detailed business plan;
- recent financial statements or management accounts;
- a list of key counterparties, including a description of the nature of business relationships.
Particular scrutiny is applied to companies operating in higher-risk industries, such as financial intermediation, cryptocurrency-related activities, or the trading of precious metals and other regulated commodities.
Banks differ significantly in terms of their core business models and areas of focus. Broadly speaking, they can be divided into two categories: institutions focused primarily on wealth preservation and investment services, and those specialising in transactional banking. Approximately 70% of the international banking market consists of institutions oriented toward savings and investment solutions. These banks typically require a substantial minimum balance and may limit the number or volume of transactional operations.
By contrast, banks that focus on transactional services (current accounts) generally impose fewer minimum balance requirements but apply closer scrutiny to operational activity. Such institutions are commonly found in jurisdictions with strong international banking infrastructure, including Scandinavia, Hong Kong, Singapore and the United States.
In practice, there is often a mismatch between client expectations and market realities. While many international clients seek fully operational current accounts for active cross-border transactions, a significant proportion of foreign banks are more inclined to open savings or investment accounts rather than high-activity transactional accounts.
Opening a transactional (current) account abroad typically involves a substantially more rigorous due diligence process. Banks must assess the client’s business model, expected transaction flows (incoming and outgoing), counterparty structure, payment descriptions, economic rationale of transactions, as well as verify ultimate beneficial owners and authorised signatories. This level of review requires considerable compliance resources, which is why only a limited number of banks are prepared to onboard clients whose primary objective is high-volume operational banking.
At the same time, some international banks operate under a universal model, combining transactional services with investment and wealth management solutions.
A bank’s reliability generally refers to its ability to meet its obligations to clients as they fall due. Several factors are typically considered when assessing financial strength and stability.
One of the primary indicators is the institution’s history and track record. Banks with a long-standing presence in the market – particularly those with decades or even centuries of continuous operation – tend to demonstrate institutional resilience across economic cycles. In practice, even when large, reputable banks face financial distress, they are often supported, restructured, or acquired by stronger institutions, especially where systemic importance and a substantial client base are involved.
A strong and diversified client base is itself an important indicator. Systemically relevant financial institutions are less likely to be allowed to fail in a disorderly manner.
The jurisdiction in which a bank operates is another key consideration. Banks located in well-regulated financial centres with robust supervisory frameworks and transparent legal systems are typically perceived as more stable.
Deposit protection schemes also play a critical role. In many countries, statutory deposit guarantee systems provide compensation up to a fixed amount per depositor in the event of insolvency. In other jurisdictions, compensation mechanisms may vary depending on local legislation and the structure of the banking system.
For any foreign bank, reputation is a key characteristic: clients generally prefer to open accounts with banks that have strong credit ratings. Even a company’s foreign partners often require that the company’s account be opened with a bank holding a high rating.
A bank’s reputation consists of several components. First, its history: how long has the bank been operating? For example, banks in the Baltic states were established only at the end of the last century, while most Swiss banks have a long history, often exceeding 200 years.
The reputation of an institution is also partly determined by the number of its employees. In the largest Swiss bank, and in its branches worldwide, around 70,000 employees work. In contrast, one American bank based in Seattle employs only twenty-four people, though they operate in eighteen (!) languages.
The number of branches also affects a bank’s reputation. However, it should be remembered that a large branch network does not always guarantee convenience for clients.
Most foreign banks allow accounts to be opened in major international currencies, primarily US dollars and euros. Many institutions also support accounts in pounds sterling, Swiss francs and other widely traded currencies.
From a technical standpoint, a client may open either a single multi-currency account or several separate accounts, each denominated in a specific currency and assigned its own account number.
Payments can generally be executed in a currency different from the account’s base currency. In such cases, the bank will apply its internal foreign exchange rate on the date of execution.
Most international banks offer debit and/or credit cards linked to the account. In some institutions, a card application can be submitted simultaneously with account opening. In others, card issuance may be subject to additional review and may only become available after a period of account activity.
Card issuance is typically subject to specific conditions, including: minimum balance requirements or security deposits; spending limits; cash withdrawal limits; insurance coverage conditions; issuance and cancellation fees.
In many jurisdictions, banks require a security deposit or blocked balance when issuing credit cards to non-resident clients. This mitigates the bank’s risk exposure in the event of overdrafts or disputed transactions. The required collateral is often linked to the approved spending limit and may be substantial.
Procedures and client requirements vary significantly between foreign banks, but some general rules apply. The client is typically required to meet in person with a bank representative or at the office of a law firm (if the bank has an agreement with that firm to provide such services), bringing the complete set of documents for their company.
In most cases, at least the future account manager must be present in person, and in some cases, the bank may also require the personal presence of the company’s ultimate beneficial owner. A lawyer representing the client (Introducer) is usually present during the meeting.
If the account manager and the ultimate beneficial owner are different individuals, banks invariably require a personal meeting with the beneficiary as well. Moreover, both the account manager and the beneficiary must provide detailed information about themselves and their business. Banks are aware that the account is being opened for a newly established company, but they also understand that behind every new company there is typically an existing, long-standing business.
In most cases, it is not necessary to travel to the country where the account is being opened. However, for certain jurisdictions, an in-person visit to the bank is mandatory.
There are several methods for managing a foreign bank account remotely. One method is the “personally known” approach, which is traditional for banks in Switzerland, Luxembourg, and Liechtenstein: the banker meets the client during the initial meeting and subsequently receives instructions by phone. In this case, the client is initially identified using a passphrase, and later by voice or other personal characteristics known to the banker.
In addition, many banks offer other identification methods, including the use of coded instruction tables, encryption of instructions, and other security devices. Some Swiss banks additionally require the client to call the bank to confirm that instructions have been sent.
Recently, most clients prefer to manage their foreign accounts electronically, executing international payments online via internet banking. Banks provide various Bank–Client system options: some banks allow clients to log in to a personal web page on the bank’s website to initiate payments, while others provide software that the client purchases from the bank and installs on their own computer, enabling account management through the program. Some banks also allow clients to use email services to send copies of contracts or other documents confirming completed transactions.
A client may be refused a foreign bank account if the company’s declared activity is not acceptable to the bank. It is also not recommended to indicate that the company engages in more than one type of activity. If multiple types of activity must be declared, they should be related or interdependent (e.g., grain trading and import of agricultural machinery).
In cases where a company must declare multiple unrelated activities (e.g., investment operations and coal trading), this must be clearly specified when opening the account, or alternatively, separate companies can be established with a separate account for each.
Furthermore, certain types of activities, such as “financial intermediation,” are generally unlikely to be accepted by foreign banks.
If a bank suspects that the nature of payments does not correspond to the company’s initially declared activity, the account may be blocked pending clarification of all circumstances. In addition, banks are unlikely to accept a situation in which the “Payment Purpose” field always contains the same description, such as “Account Funding.” In such cases, the bank may require documentary justification for each payment.
It should also be noted that some banks can be unpredictable when it comes to terminating account services for various reasons. This is particularly true for American banks, which may notify a client to close the account within one week without providing any explanation for the decision.
A current account in a foreign bank is intended for transactional operations. The account holder can manage their funds without restrictions, execute any legally permitted payments, and must provide the bank with copies of supporting documents (contracts) if a single payment exceeds a pre-agreed limit with the bank or is atypical for that client.
In contrast, a savings account in a foreign bank is designed for the accumulation of funds and essentially functions as a “piggy bank.” Transactions on such an account are minimal, typically ranging from three to twenty per month, depending on the terms set by the specific bank.
It is therefore clear that opening a current account is suitable for a company that requires a transactional instrument, while a savings account is convenient for a company focused on accumulating investments
Some banks allow the opening of numbered accounts: the account details do not indicate the company name (for corporate accounts) or the owner’s name (for personal accounts). Only a set of numbers appears on the bank card.
However, this does not mean that the bank is unaware of the client, because in every case, when opening the account, the client must provide the beneficiary’s name and a copy of their passport. Numbered accounts first appeared in Switzerland. Although such an account is linked to a specific person, their identity remains completely confidential, known only to select employees of the bank that opened the account.
Numbered accounts in foreign banks offer another advantage: they provide full confidentiality of bank transfers. When funds are debited from a numbered account, the recipient bank only sees the account number. However, it should be noted that some European banks refuse to work with numbered accounts. In such cases, funds sent from a numbered account may be returned to the sending bank.
Numbered accounts abroad are subject to the same rules as other bank accounts. In certain cases, information constituting banking secrecy may be disclosed (for example, within the framework of anti-money laundering regulations).
We consider the use of numbered accounts impractical at present; moreover, very few banks continue to offer such services. A numbered account should not be confused with an anonymous account. The misconception that anonymous accounts exist persists, likely because, in the past, some banks allowed clients to open accounts online based solely on a passport copy. Often, the passport copy of one person was submitted, while the account was actually managed by another person (effectively anonymous).
It is clear that the situation has fundamentally changed, and all banks have ceased the practice of remote account opening in this manner. Today, bank employees and professional intermediaries involved in the account-opening process verify the authenticity of passport copies in the presence of their owners.
Bank secrecy legislation provides for ways to protect the information submitted by a client to the bank, establishing liability for bank employees who disclose information and restricting third-party access.
Although banks pay considerable attention to security when clients operate their accounts, the possibility of information disclosure due to employee incompetence or negligence cannot be entirely excluded. Such cases are rare, but they are not impossible.
Furthermore, clients must promptly inform the bank of any changes to their phone number, email address, etc. Situations may arise in which the account holder is unavailable (does not respond to calls or emails), while the bank requires certain documents (to justify a payment). In such cases, bank staff may contact the introducer who initially assisted the client in opening the account.
Currently, categorical claims by foreign banks regarding confidentiality cannot be fully trusted, as legislation in most countries imposes liability on financial institutions for “failure to report.” Additionally, banks are obligated to inform clients about any “reporting” action. If bank staff suspect illegal activity by a client, a formal report is completed and sent to the competent authorities, including the bank’s information about the suspected activity.
1) Europe: Switzerland, Liechtenstein, Austria, and Luxembourg stand out for their banking stability and confidentiality.
2) Asia: Singapore and Hong Kong are leading Asian financial centers, offering flexible conditions for settlement transactions.
3) United States: United States banks provide reliability and access to a powerful financial infrastructure; however, they impose strict client due diligence requirements.
In certain countries, such as Switzerland and Latvia, accounts may be opened through accredited intermediaries. However, in jurisdictions such as Singapore and the United States, personal attendance at a meeting with a bank representative is generally mandatory.
Some banks allow clients to open numbered accounts, where the company name (for corporate accounts) or the account holder’s name (for personal accounts) does not appear in the account details. Only a sequence of digits is indicated, including on the bank card. However, this does not mean the bank is unaware of the client’s identity. In all cases, when opening an account with a foreign bank, the client must disclose the name of the beneficial owner and provide a copy of their passport.
A bank may request additional information regarding the nature of transactions, especially if payments do not correspond to the company’s declared business activities.
We have prepared a convenient comparison tool to help you select the most suitable bank based on your specific needs. Key criteria include:
There are several ways to manage a foreign bank account:
