Question - open account at same bank/emi with 2 companies same ubo/director

[ShillGates]

Going back and forth on this. Looking at the current aml legislation, cross firing, arms length blablabla

If I would open 2 companies at the same emi - what are the risks involved? If these transact betwwen another on a real commercial basis (like what most poeple do, license/ip in one company - website in the other)

I imagine if one company is hight tax jurisidiction and one low, you will be accussed of profit shifting.
If both in the same tax bracket, then at least that not a consideration, but then whats the point of having it in the first place(2 corps at same bank)

In any case , 2 corps at the same bank, two different purposes, whats the risk Even some clients can be same....

 

[Sols]

That's perfectly fine and normal. A lot of people have multiple businesses and bank them with the same financial institutions.

Just make sure everything you do is legal and transparent, and in line with the EMI's acceptance policy.

There is a risk that if your offshore company is shut down, they might also throw out your other company. But that's not always the case. Depends on how severe the situation is and how valuable you are as a client.

 

[Martin Everson]

If I would open 2 companies at the same emi - what are the risks involved? If these transact betwwen another on a real commercial basis (like what most poeple do, license/ip in one company - website in the other)

Compliance officer:

I imagine if one company is hight tax jurisidiction and one low, you will be accussed of profit shifting.

You guessed right.

If both in the same tax bracket, then at least that not a consideration, but then whats the point of having it in the first place(2 corps at same bank)

Exactly.

In any case , 2 corps at the same bank, two different purposes, whats the risk

If you never were asked to provide a flow diagram explaining relationship between the two companies when opening the accounts then accounts will be frozen at some point in time. Even if you do explain it to them they may say they are no longer interested in offering you a service once flow of funds gets high and there is no profit it in for them and just risk.

P.S On a side note, even clean business with high volumes is considered a high risk business.