Securing a banking partner used to be a straightforward administrative step. Today, for companies operating in regulated industries, it’s a complex, high-stakes process — and often the biggest operational hurdle they face.
Bank collaboration isn’t about opening an account. It’s about presenting your business as structurally sound, regulatory-aligned, and ready for institutional scrutiny. From onboarding to ongoing monitoring, this relationship demands strategy, preparation, and precision.
Here’s a breakdown of how serious institutions evaluate potential clients — and what your business needs to get right.
1. Beneficial Ownership: Expect Full Transparency
One of the first steps in any bank’s due diligence process is verifying who ultimately owns and controls the company. Most institutions require:
- Clear, updated ownership charts
- UBO declarations
- Proof of identity and address for each listed owner
- Explanations of indirect ownership chains (if applicable)
Red flag: Ownership held through shell companies or trusts without adequate explanation often results in extended review — or refusal.
Tip: Use clean visual charts, clearly annotated. Attach supporting corporate documents and align UBO declarations with what’s listed in your registry filings.
2. KYC & AML Documentation: Prepare to Be Proactive
Banks are required by law to conduct Know Your Customer (KYC) and Anti-Money Laundering (AML) reviews not only at onboarding, but throughout the relationship.
Be prepared to submit:
- KYC policies tailored to your risk profile
- AML procedures showing internal controls, monitoring, and escalation
- Staff training logs or certifications (in some jurisdictions)
- Risk assessments specific to geography, customer type, and transaction size
Red flag: Recycled or generic KYC/AML templates that don’t reflect actual internal processes will be flagged during reviews.
Tip: Create a short compliance summary explaining how your internal policies are applied in practice, and who is responsible for oversight.
3. Business Model and Transaction Flow: Map It Clearly
Banks don’t just want to know what your company does — they want to understand how money moves through it. You should be able to explain:
- Your business activity (in plain terms)
- Expected payment flows — in and out
- Countries you operate in, and any cross-border transactions
Third-party processors or PSPs involved
Red flag: Vague or overly technical explanations lead to more questions. If the bank can’t explain your business to its risk committee in one sentence, onboarding will stall.
Tip: Include a 1-page flow diagram showing typical transactions, jurisdictions involved, and how they’re monitored.
4. Governance and Control: Who’s Actually in Charge?
Beyond shareholders, banks want to know who controls day-to-day operations and who signs off on compliance.
They often request:
- Org charts showing management and compliance functions
- CVs or bios for directors and key officers
- Board resolutions authorizing bank relationship
- Evidence of independent oversight or advisory roles (where relevant)
Red flag: Unclear division of responsibilities or over-concentration of control in one individual may be flagged, especially in regulated sectors.
Tip: Clearly identify your MLRO (Money Laundering Reporting Officer), compliance lead, and escalation points — even if you’re a small team.
5. Ongoing Monitoring: Build It Into Your Ops
Once you’ve been onboarded, your bank relationship doesn’t run on autopilot. Expect:
- Periodic documentation reviews (typically every 6–18 months)
- Requests for updated financials, ownership changes, or compliance materials
- Triggered reviews after structural changes, funding rounds, or press events
Failure to respond can result in de-risking — where your account is closed without explanation.
Tip: Assign an internal owner for bank communications and calendar key deadlines. Treat it like a vendor relationship with SLAs.
6. How Long Does It Take?
Timelines vary. The onboarding process can take:
- 2–4 weeks for straightforward applications with complete documentation
- 6–12+ weeks if complex structures or remediation is involved
- Indefinitely stalled if communication breaks down or documentation doesn’t meet standards
Tip: Don’t start the process when you’re already under operational pressure. Build banking into your early go-to-market timeline.
