SVG IBC (FOREX/BO brokerage) needs a bank account

[George Kim]

It's completely legal. Think of the following situation instead (since the principle is the same):
Your company A does say...project management. You have a contract with another company B where it's stated that all expenses are to be paid by company B. So company A hires say...architects, construction workers etc. and then later invoices those expenses to company B in addition the the fee for it's services. Isn't company A technically a payment processor for company B in that case as well? Hint: It practically is, this is perfectly legal and requires no license.

Again, this is just an example of a completely different setup in a different scenario, but I'm just trying to show you another situation which is a lot more common and involves a company technically providing payment processing services.

In your case, you only need the SVG company IMO. Keep in mind that if you go the "payment processing" route, the payment processing company should probably not be a subsidiary.

I got the point. Thank you very much. Since SVG company isn't regulated, that would be certainly an option to be considered truly.

I am form St Vincent but you could probably use a St. Kitts LLC with a Cook Island Bank that has IBAN

SVG company is in progress, but still have a chance to access a Cook Island bank if they accept us.

 

[Willblack]

I got the point. Thank you very much. Since SVG company isn't regulated, that would be certainly an option to be considered truly.


SVG company is in progress but still have a chance to access a Cook Island bank if they accept us.

If I may ask since I'm in a similar business niche (although on the crypto side), did you end up going with a white label platform or did you code your own and did you have any troubles with opening accounts with liquidity providers for the SVG company?

 

[George Kim]

If I may ask since I'm in a similar business niche (although on the crypto side), did you end up going with a white label platform or did you code your own and did you have any troubles with opening accounts with liquidity providers for the SVG company

Honestly, for SVG Company, we're not in the stage to negotiate the platforms with LPs so far. Only FSC firm is under a contract with LP at the moment.

 

[tevalerie]

I got the point. Thank you very much. Since SVG company isn't regulated, that would be certainly an option to be considered truly.


SVG company is in progress, but still have a chance to access a Cook Island bank if they accept us.

Ok cool that works then and its crypto friendly

 

[DGTLOTC]

You are trying to obtain banking for probably the hardest to bank sector at the moment - not to be pessimistic but it’s a fact

 

[Steve Smith]

It's completely legal. Think of the following situation instead (since the principle is the same):
Your company A does say...project management. You have a contract with another company B where it's stated that all expenses are to be paid by company B. So company A hires say...architects, construction workers etc. and then later invoices those expenses to company B in addition the the fee for it's services. Isn't company A technically a payment processor for company B in that case as well? Hint: It practically is, this is perfectly legal and requires no license.

Again, this is just an example of a completely different setup in a different scenario, but I'm just trying to show you another situation which is a lot more common and involves a company technically providing payment processing services.

In your case, you only need the SVG company IMO. Keep in mind that if you go the "payment processing" route, the payment processing company should probably not be a subsidiary.

Very interesting topic! Ive often wondered how EU based brokers get around the headache of banking/receiving client funds when going for licenses off shore (SvG/Marshall Islands etc). Even the major and regulated brokers tend to run off shore/unregulated brokerages as part of their "group" if you look hard enough. Especially after the introduction of Mifid in the EU where I'd bet the majority of their business is going through their off shore entities under the guise of them being part of a regulated group. Yet the topic is shrouded in secrecy.

In terms of the OPs original question are you saying for arguments sake the set up could be :

Company A - registered in the EU (cyprus/england/germany). This company could provide "support services" (amongst others) etc and obtains IBAN via Bunq thus allowing it to receive funds from clients (Via WT), and or PSPs through e merch.
Company B - SvG licensed IBC

The EU company A will then invoice company B for X amount (monthly/yearly etc) depending on agreements signed for the support..?

This all sounds well and good but I still don't understand how the broker, who owns both companies, is able to get the "profits" out of the EU company. Surely you can only invoice a certain amount per month/year before the Eu registered company starts being investigated? If you have a difference with the invoice amount and what is sitting on the EU company balances?

Hurts my head just thinking about it!

 

[Willblack]

Very interesting topic! Ive often wondered how EU based brokers get around the headache of banking/receiving client funds when going for licenses off shore (SvG/Marshall Islands etc). Even the major and regulated brokers tend to run off shore/unregulated brokerages as part of their "group" if you look hard enough. Especially after the introduction of Mifid in the EU where I'd bet the majority of their business is going through their off shore entities under the guise of them being part of a regulated group. Yet the topic is shrouded in secrecy.

In terms of the OPs original question are you saying for arguments sake the set up could be :

Company A - registered in the EU (cyprus/england/germany). This company could provide "support services" (amongst others) etc and obtains IBAN via Bunq thus allowing it to receive funds from clients (Via WT), and or PSPs through e merch.
Company B - SvG licensed IBC

The EU company A will then invoice company B for X amount (monthly/yearly etc) depending on agreements signed for the support..?

This all sounds well and good but I still don't understand how the broker, who owns both companies, is able to get the "profits" out of the EU company. Surely you can only invoice a certain amount per month/year before the Eu registered company starts being investigated? If you have a difference with the invoice amount and what is sitting on the EU company balances?

Hurts my head just thinking about it!

The EU company functions like....a normal company. It generates a small profit as per the payment services contract signed between it and the SvG company. The rest gets transferred to the SvG entity. And yes, you will eventually get investigated which is part of the game in this business.

 

[George Kim]

In terms of the OPs original question are you saying for arguments sake the set up could be :

Company A - registered in the EU (cyprus/england/germany). This company could provide "support services" (amongst others) etc and obtains IBAN via Bunq thus allowing it to receive funds from clients (Via WT), and or PSPs through e merch.
Company B - SvG licensed IBC

The EU company A will then invoice company B for X amount (monthly/yearly etc) depending on agreements signed for the support..?

This all sounds well and good but I still don't understand how the broker, who owns both companies, is able to get the "profits" out of the EU company. Surely you can only invoice a certain amount per month/year before the Eu registered company starts being investigated? If you have a difference with the invoice amount and what is sitting on the EU company balances?

Hurts my head just thinking about it!

Honestly, I am thinking exactly as same as you do. Maybe I don't understand the point.
However, since the holding company owns subsidiaires including SVG, so that don't want the company be investigated may cause to be hurted by any financial issues.

By the way, I have heared there're several PSPs or EMIs can help to open a bank account in SVG as well.
- KuaPay
- HighRisk Gateways

Even don't know they are faithful but at least I will try with them be possible.