Client-Account-Opening-Guide-23-08-2018-v-01--1-

Assisting Clients with
Cross-Border Account Opening
Assisting Clients with Cross-Border Account Opening 1

Contents
Introduction 3
Our Regulatory Environment 4
Variables & FAQs 5
Account Opening 6
Example of an 7
Account Opening Process
2 Assisting 2 Assisting Clients Clients with with Cross-Border Account Account Opening Opening

Assisting Clients with
Cross-Border Account Opening
This document provides guidance on completing documentation
for opening an account with one of our international partner
banks. It assists with the account opening procedures, defines
roles and responsibilities, and describes regulatory and
documentary requirements to assist throughout the process.
Assistance with documentation
Whenever bank documentation needs to be
completed, a designated implementation adviser
will assist with identifying the requirements to be
met. We will coordinate the completion of as much
of the documentation as we can, and guide clients
through the elements that require their input. This
assistance through the documentation process
should dramatically reduce the time it takes for the
account to become operational.
Dedicated client service
and support
We provide a dedicated support service through
our partner banks to help you access their incountry
banking services. This offers global
relationship management with regional and local
expertise to streamline problem-solving, escalation
and service. Compliance with all legislation and
regulations, while providing the simplest and most
efficient experience for each of our partner banks
and their clients, is our priority.
Assisting Clients with Cross-Border Account Opening 3

Regulatory
Environment
Safeguarding your interests
Anti-money laundering (AML) laws and regulations
in all jurisdictions are designed to protect all
participants within the financial system (including
clients) from financial and reputational loss, while
supporting society’s broader interests by identifying
and preventing potential criminal and terrorist
activities. We take our AML responsibilities very
seriously.
When first establishing a relationship, clients will need
to provide additional documentation to supplement
their account opening form(s). Among other
requirements, we must verify the corporate identity
of each company, as well as the personal identity
of key shareholders and authorised signatories. The
amount and type of documentation required may vary
depending on such things as country of incorporation,
type of entity and nature of ownership.
Know your customer
Regulators require us to be entirely satisfied with our
understanding of our clients’ identities, beneficial
ownership, management structures, and usual
transaction flows. Our “Know Your Customer” (KYC)
process also assists with fraud prevention, and
enables us to better understand and more effectively
meet clients needs.
Navigating the regulations
Our designated implementation adviser will identify
and assemble the documentation required according
to the many variables. They will, therefore, need to
develop a complete understanding of each client’s
circumstances, including corporate structure,
ownership and domicile.
They will then have the details needed to determine
the appropriate documentation and documentary
evidence required to support the account opening
with our member bank.
4 Assisting Clients with Cross-Border Account Opening

Variables
Ultimate Beneficial Ownership
Ownership determines the extent to which we have
to verify the identity of shareholders and managers.
Ownership may be a matter of public record for
companies listed on certain Stock Exchanges, and
therefore some documentation may not be required in
certain circumstances.
Authority of company representatives
(Signatories/Mandators)
Authority determines the extent to which we have to
ascertain whether or not the signatories are authorised
by the company to open accounts in the company’s
name and execute any contracts or other documents
with the bank.
Country of incorporation
This mainly impacts the types and amount of
constitutional documents required to verify the
corporate identity, and what evidence is required to
verify the authority of those who sign the account
opening agreements.
Domicile of account(s)
This affects matters relating to local regulations. Antimoney
laundering requirements are often affected
by the domicile of account. Certain jurisdictions also
require declarations in relation to tax status.
FAQs
What is the purpose of the Account Opening
Application (AOA)?
The AOA is a legally binding agreement between our
member bank and its clients. The AOA acts as an offer
by our member bank to open an account. The AOA is
signed by an authorised representative of the client and
represents the client’s acceptance of our member bank’s
offer.
It also provides important information required for our
member bank to open the account, such as the registered
name of the company, the registered address and the
ownership structure. Also included in the AOA are the
general terms and conditions, or considerations, agreed
between our member bank and the client, that govern
the operation of the account and any local terms and
conditions that apply for the country or countries where
the account(s) are domiciled. Some account opening
agreements may list the terms and conditions separately.
What is the Specimen Signature Document?
The specimen signature document is required for all
those authorised to sign cheques and manual payment
instructions within an organisation. It specifies who has
signing authority on an account and provides sample
signatures for verification purposes. The specimen
signature document does not state who is authorised to
open or close bank accounts.
Why does the client have to provide
identification documents such as copies of
passports?
Passports are a form of identification widely used across
the banking industry. Anti-money laundering laws and
regulations require that banks identify and verify the
identities of beneficial owners, senior managers and, in
some cases, signatories.
What is a Board Resolution?
A Board Resolution is a written document that records a
decision or action made by a Board of directors during
a Board meeting. A company, being an artificial person,
cannot act on its own and has a Board of directors
formed to run the business, make decisions and execute
those decisions, such as account opening. The Board
obtains authorisation by passing a resolution providing
detailed instructions concerning operations of the
accounts and this resolution constitutes the company’s
mandate to the bank.
What is legalisation/notarisation/apostille?
Legalisation/notarisation is a process whereby a
document is notarised by a notary public and usually
legalised by an embassy or consulate official so that it
will carry legal force in the country where the account is
to be opened.
Apostille means certification and commonly refers
to the legalisation of a document for international
use under the terms of the 1961 Hague Convention,
abolishing the requirement for the legalisation of
foreign public documents. Documents that have been
notarised and then certified with a conformant apostille
are accepted by all nations that have signed The Hague
Convention. In short, it is the official confirmation that
a signature, seal or stamp on a public document is
genuine.
Assisting Clients with Cross-Border Account Opening 5

Account
Opening
Basic documentation
There are certain documents that will always be required when
opening an account with a bank abroad and these are explained
below:
• Account Opening Application Form – as far as possible, we will assist clients
with pre-filling this form on their behalf by our implementation team.
• Evidence of authority of signatories to complete account opening
agreements – this will be in the form of board resolutions, powers of attorney
or extracts from trade registers, depending on the country of incorporation of
the legal entity.
• Specimen Signature Document – this list of authorised signatories on each
account is used for cheques and manual payments in contingency scenarios.
Depending on the domicile of the account and ownership of the company, we
may need to verify the identity of signatories.
Corporate identity
In line with anti-money laundering requirements, additional
documentation may be requested. Examples of such documents include:
• Constitutional documents – Such as certificate of incorporation,
memorandum and articles of association, bylaws, limited liability operating
agreement, certificate of registration, or other similar documents relating to
the constitution of the legal entity.
• Evidence of your registered office and business address
• Information relating to your shareholders and management – In certain
circumstances we will need to identify key beneficial owners, shareholders and
directors or managers with documentary evidence.
The specific requirements will vary according to the domicile of the account and your
ownership structure.
6 Assisting Clients with Cross-Border Account Opening

Example of an Account Opening Process
CLIENT CLIENT’S BANK PARTNER BANK
Rejected
NOTIFICATION
Requests
account(s)
Sends ”Referral
Notification” mail with
very basic info.
Reviews referral
notification
Completes AOA
and any additional
info and provides
background docs
Asks client to complete
AOA* and additional info
and requests (as required
by partner bank)
*Account Opening Application
Additional
information
requested
DUE
DILIGENCE
Upon receipt of AOA
and background docs -
carries out a quality check
Sends the package by
courier or, where allowable,
by email as scanned copies
Reviews account
opening
documents
Signs Account
Opening Docs
Arranges for
signatures
from the client
ACCOUNT
OPENING
Send signed account
opening docs by
courier with Letter of
Introduction or, where
allowable, by email as
scanned copies
Opens and
confirms the
account opening
by sending the
Confirmation of
Account Opening
Starts using
account
Advises
customer that
account is open
Assisting Clients with Cross-Border Account Opening 7

IBOS Association Limited
Golden Cross House
8 Duncannon Street
London, WC2N 4JF
Tel: +44 (0)207 484 5082
www.ibosassociation.com
8 Assisting Clients with Cross-Border Account Opening