Segregated and Safeguarding bank accounts
Safeguarding Bank accounts for Money Remittance and emoney firms, We can get you an account in as little as 2 weeks!
The account must be with a Credit Institution in the EEA to satisfy the FCA or European Regulator. Over 20 EEA banks to choose from, up to 24 currencies, Virtual IBAN issuing available, nobody gets safeguarding bank accounts faster.
European Payment and emoney regulations dictate that most payment or emoney licence holders must segregate “relevant funds” and not incorporate them into their own working capital. This is typically achieved through a client segregated or safeguarding bank account with any EEA credit institution. Such accounts cannot be accessed by third parties and are separate from the current account belonging to the company to whom the funds are transferred. The bank must have no right to “set-off” any owed funds from this account.
Unfortunately UK high street banks have been reluctant to offer safeguarded accounts creating a huge entry barrier for payment firms. BFC recently culled their clients with little notice. Despite PSD2 mandating that banks treat payment service providers on a Proportionate, Objective and Non-Discriminatory basis (POND), some major banks continue to flout these rules and the regulators have yet to clamp down on these practices.
Through our tireless work we have managed to find solutions to this regulatory hurdle. We have a network of 21 EEA based credit institutions with differing acceptance criteria, account opening timeframes and costs. We can assist with your application and find you the best fit for your business. If you need a multi-currency safeguarding account in a hurry or you need help with an FCA application get in touch with us today