High-Risk Industries - Doing Business International (2024)
Companies in high-risk industries are finding it more difficult to open a bank account in recent times. Traditional banks and digital banks have difficulties with accepting clients with regard to their KYC procedures and AML requirements. However, there are niche banking services out there that specify in certain industries. It is important to have a full scope of the possibilities before making a decision. Doing Business International has experience with providing services for high-risk industries.
Doing Business International can provide banking solutions for the following high-risk industries:
Crypto industry and cryptocurrencies;
Dating/adult industry;
Cannabis/CBD industry (also the cannabis paraphernalia industry);
Certain licensed companies (e.g. forex investment fund);
Companies that do business in high-risk countries (typically disallowed by traditional banks);
Import/export companies with a very high monthly transaction volume;
And many more.
The optimal banking solution for companies in a high-risk industry usually involves a niche digital bank. High-risk merchant accounts are offered by these digital banks. Companies with a high monthly sales volume (over €20,000, for example) and companies that do business in high-risk countries can make use of these merchant accounts.
Electronic Money Institutions (EMIs) are also more flexible when it comes to high-risk businesses. EMIs will typically perform a risk assessment of the applying company based on its location, activities, and ownership structure. In this case, there will also be a list of prohibited countries, but not as extensive as with traditional banking.
Our added value is setting your business up with the perfect bank account, regardless of the industry. Doing Business International can assist companies in high-risk countries with getting a bank account that has global coverage and high chargeback protection. We work with the top banks in the world, and we have a wide arrange banking solutions for clients in high-risk industries.
So, your business is considered high-risk? And you cannot secure a bank account?
This is no longer an issue. Doing Business International can assist. Do not delay your business any longer, contact us today.
Or, would you like to know what the top banks are for high-risk industries? Let our advisors guide you. For an overview of all banking solutions, please click here.
While money laundering and terrorist financing is a risk anytime money is exchanged, there are industries where the risk is significantly higher. These industries include any financial institution like banks, currency exchange houses, check cashing facilities, and payment processing companies.
Professional service providers (lawyers, accountants, investment brokers). Cash-intensive businesses, such as convenience stores, restaurants, retail stores, and parking garages. Ship, bus, and plane operators. Telemarketers.
Usually, a business can get labeled as high-risk if they meet two criteria: The first is that they operate within a high-risk industry. The second is that they show a significant financial risk with potential failure. High-risk merchants could meet both conditions or just one.
In 2022, depending on the measure used, each of these four industries could be ranked as most dangerous: Construction– experienced the most workplace deaths. Education and health services– experienced the most nonfatal injuries and illnesses involving days away from work.
Cash-Intensive Businesses: Businesses that primarily deal in cash transactions, such as casinos, money service businesses, or pawnshops, are at higher risk for money laundering due to the ease with which cash can be used for illicit purposes.
Purchase of (investment type) Single Premium Policies (which enables criminals to 'get rid' of substantial amounts of money in one go) — Highest potential money laundering risk.
As indicated above, the five types of risk are operational, financial, strategic, compliance, and reputational. Let's take a closer look at each type: Operational. The possibility that things might go wrong as the organization goes about its business.
High-risk industries, such as adult entertainment, online gaming, and pharmaceuticals, face more significant challenges in securing payment processing services. A robust payment gateway facilitates smooth transactions and ensures the security and integrity of sensitive financial information.
According to OSHA, the "High-hazard" establishments include, but are not limited to, manufacturing, grocery stores, agriculture, construction, transportation, warehousing and storage, performing arts, and retail.
The manufacturing industry covers everything from furniture production to food, textile, and more. With so many paths, the risks associated with this industry are vast. If you work in the manufacturing sector, you often operate heavy machinery and are around hazardous materials.
Introduction: My name is Nathanael Baumbach, I am a fantastic, nice, victorious, brave, healthy, cute, glorious person who loves writing and wants to share my knowledge and understanding with you.
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