Deposit large sums of cash in a UAE bank

[alambic]

Hi, I'm wondering, how would it work to deposit a large sum of cash in a UAE bank, say low 7 figures over time?
I assume personal account would be limited to 5 figures and doing it too often would cause the account to be locked.
Maybe deposit on the account of a business that should be handling cash but then such business would probably be retail and have to declare and pay VAT on that.
Any ideas?

 

[Gediminas]

If you have a legitimate source of your cash, I don't see any problems.

If it comes from shady/fictional activities - my recommendation would be to forget it. You can get jail time with such risks.

 

[Nicholas Van Orton]

I concur with what @Gediminas wrote, and I'd add that depending on what you plan to do with the money, there are other ways to put it in the system. Alas, not knowing more, that's as far as I can reach...

 

[Fred]

In General the banks are very cash friendly in the UAE.

For example with most banks you can deposit 100.000 AED per day at the ATM.

We know a lot of customer that do this from time to time and we never heard that the bank asks questions.

However as soon as you start bulk cash deposits (1m+) they will most likely ask you questions.

Need to mention that there is right now a huge risk appetite gap between the single banks in the market.

While one bank checks your office space each quarter - there are banks putting your flexi desk on the bank statement and call it a day.

While one bank ask you tons of documents - there are banks asking no single question and even the banker mentions once the account is open - it's open.

In general the bank starting with R has by far the biggest risk appetite as long as you have a good passport.

 

[BTCNG]

In General the banks are very cash friendly in the UAE.

For example with most banks you can deposit 100.000 AED per day at the ATM.

We know a lot of customer that do this from time to time and we never heard that the bank asks questions.

However as soon as you start bulk cash deposits (1m+) they will most likely ask you questions.

Need to mention that there is right now a huge risk appetite gap between the single banks in the market.

While one bank checks your office space each quarter - there are banks putting your flexi desk on the bank statement and call it a day.

While one bank ask you tons of documents - there are banks asking no single question and even the banker mentions once the account is open - it's open.

In general the bank starting with R has by far the biggest risk appetite as long as you have a good passport.

Can you recommend 3-4 bank that the the most friendly?

 

[andrew28fl]

In General the banks are very cash friendly in the UAE.

For example with most banks you can deposit 100.000 AED per day at the ATM.

We know a lot of customer that do this from time to time and we never heard that the bank asks questions.

However as soon as you start bulk cash deposits (1m+) they will most likely ask you questions.

Need to mention that there is right now a huge risk appetite gap between the single banks in the market.

While one bank checks your office space each quarter - there are banks putting your flexi desk on the bank statement and call it a day.

While one bank ask you tons of documents - there are banks asking no single question and even the banker mentions once the account is open - it's open.

In general the bank starting with R has by far the biggest risk appetite as long as you have a good passport.

@Fred,

Does a Dubai Offshore Company, or FreeZone Company, pay VAT on all money that it collects from clients? Also do these type of companies need to maintain accounts, financial records such as receipts from clients etc, and get them audited by a local accountant?

How does Cash Deposit get accounted for, what paper work one has to provide to explain cash deposits?

I am planning on visiting Dubai around August this year and would love to discuss details of what I am trying to do with you.

 

[Fred]

@Fred,

Does a Dubai Offshore Company, or FreeZone Company, pay VAT on all money that it collects from clients? Also do these type of companies need to maintain accounts, financial records such as receipts from clients etc, and get them audited by a local accountant?

VAT - no.

Audit - depends on the Freezone. In the way we do the setup - no.

How does Cash Deposit get accounted for, what paper work one has to provide to explain cash deposits?

In the way we do the setup - no accounting.

The only instance that could ask questions is the bank itself.

In case you have frequently bulk deposits 1m+AED/daily - they can ask for invoice.

I see there is a big misunderstanding in the way how Freezone can do business. Let me give you an example.

You have a Freezone Company that rents an office in the Mainland - let's say Marina.

A customer comes to your office and pays in cash (he is no resident of the UAE) - you issue most likely an invoice without any VAT and deposit the money later on the ATM or teller. That's it.

Even if he is resident - most likely he has a Freezone company as well - so the above applies again just the Freezone invoice the client Freezone.

Freezone is the most known and used vehicle for expats - basically everybody has a Freezone in the UAE to do business.

I am planning on visiting Dubai around August this year and would love to discuss details of what I am trying to do with you.

Then it makes sense to start with the Dubai Company Formation and Residence Visa Application already remote.

Send me a PM or E-Mail to [email protected]

 

[andrew28fl]

VAT - no.

Audit - depends on the Freezone. In the way we do the setup - no.


In the way we do the setup - no accounting.

The only instance that could ask questions is the bank itself.

In case you have frequently bulk deposits 1m+AED/daily - they can ask for invoice.

I see there is a big misunderstanding in the way how Freezone can do business. Let me give you an example.

You have a Freezone Company that rents an office in the Mainland - let's say Marina.

A customer comes to your office and pays in cash (he is no resident of the UAE) - you issue most likely an invoice without any VAT and deposit the money later on the ATM or teller. That's it.

Even if he is resident - most likely he has a Freezone company as well - so the above applies again just the Freezone invoice the client Freezone.

Freezone is the most known and used vehicle for expats - basically everybody has a Freezone in the UAE to do business.

Then it makes sense to start with the Dubai Company Formation and Residence Visa Application already remote.

Send me a PM or E-Mail to [email protected]

Thank you for a detailed explanation. What are the costs involved in the FreeZone companies that you setup? Could you please give me a breakdown of the initial costs, and ongoing costs? If I decide to do this, I would go with the resident visa and actually move to UAE. I am on a Canadian passport. How many resident visas are allowed for one FreeZone company? Or is it just for the principal and family (wife/kids)?

 

[Fred]

Thank you for a detailed explanation. What are the costs involved in the FreeZone companies that you setup? Could you please give me a breakdown of the initial costs, and ongoing costs? If I decide to do this, I would go with the resident visa and actually move to UAE. I am on a Canadian passport. How many resident visas are allowed for one FreeZone company? Or is it just for the principal and family (wife/kids)?

I send you a Proposal by DM.

Freezone can act as sponsor for up to 6 Residence Visa. Everything aboth needs to be approved.

Please note your wife/kids can be sponsored from you once you have received the Residence Visa through the Freezone Company. Your wife/kids get a Relative Residence Visa.

 

[Houdini]

In the way we do the setup - no accounting.

The only instance that could ask questions is the bank itself.

still the case?

Are the banks still cash friendly as they were in 2021 ? I mean if you go there and want to deposit large amounts?

 

[Fred]

still the case?

Are the banks still cash friendly as they were in 2021 ? I mean if you go there and want to deposit large amounts?

Yes - AED deposits no questions asked for Business Bank Accounts - for sure not for unlimited cash but our usually western clients are surprised when they deposit 1.000.000 AED without any questions asked.

 

[Houdini]

Yes - AED deposits no questions asked for Business Bank Accounts - for sure not for unlimited cash but our usually western clients are surprised when they deposit 1.000.000 AED without any questions asked.

not bad, sufficient for me. But business bank account requires me to setup a Dubai company or they accept foreign companies?

 

[Fred]

not bad, sufficient for me. But business bank account requires me to setup a Dubai company or they accept foreign companies?

Yes - Dubai Company - no foreign Company - non-resident banking is dead.