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Home >> Special Situations >> Foreign Customers
Problems Opening a Foreign Business Account
As a Canadian company, we've had some interesting problems in opening an account with a company in Finland. We presented all required papers, identified our business and ourselves and proved the existence and signature rights in person. The bank refused to open our account, citing their right to decide for or against accounts and the fact that the company was not Nordic (mind you, Finland is a EU country and the bank an international bank).
We asked if the situation would have been the same for a US company and were told any non-nordic entity would have been handled the same. No policy was referred to or provided to us. We're filing trade-barrier complaints with Foreign Affairs and International Trade Canada and would urge American banks and corporations to look closer at this situation. Do you find such practices as defensable in this day and age? What would you suggest American and Canadian companies do in cases such as this which may be "invisible trade barriers " in the Nordic region?
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 As "free trade" agreements bring the world closer together, it's hard to envision that a "Nordic only" policy could stand up to scrutiny, particular in a bank that purports to handle international business. At the same time, though, bankers in the U.S. are able to decide for themselves whether to accept a deposit account without regulatory interference, and many banks here would refuse business from a foreign business. That refusal would normally be based on lack of experience or capability in international banking.
It's often necessary for international businesses to establish banking relationships in foreign countries. If your business needs a Finnish bank account, and is having difficulty with beauracracy on the part of banks there, you might try to enlist the assistance of the Finnish consulate in Canada. Whether that would resolve the matter is a moot point, but it might lead to a dialog that could have a positive outcome.
Published on BankingQuestions.com 8/09/08
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