This is for you to assess.
Hence when you speak to the bank, you can ask them this question and let them answer. We cannot provide/speak on behalf of the bank to you on this. Your activities can close it down. Enhanced due diligence could close it down. Doing transactions that were not agreed upon mutually could close the account down. State &/or Federal push/guidelines can close it down. This is why you will have FULL access to the solution provider. If you are convinced (given the limited choices) that this is the provider to work with then you can sign up with them, at which time, our fees would be due to us.
Hello. My name is Faisal Khan. I’m a banking and a payment consultant. When we provide access to banking to companies, one of the questions they ask is what if the bank closes down my account?
It’s a very good question because we need this to say we are taking a referral fee and, you know, once we’ve taken the fee, the bank could close our account after 15 days or 10 days or three months. So they say why should we pay you a referral fee if the bank closes our account down?
So we have three answers for this thing. First thing, you’re negotiating with the bank directly. So it is up to you to assess and then determine if you want to continue with the bank. The same question you are asking us will you close my account down after 30 days or 15 days or 45 days is something you should be asking the bank. And if you are satisfied with the bank’s answer, then you should continue with them.
The second thing is, if you are doing something on the agreed-upon transaction set, you will have nothing to hide. You have nothing to fear. You have nothing to be worried about. But if you do something outside what was agreed with the bank and you do a transaction or a transaction set, that you had not agreed to with the bank or you hid from the bank or you did not tell them anything, then they have a right to close down your account because you just violated their agreement, their understanding of how you will be operating an MSB account. So that’s the second thing.
The third thing is the bank can close down because of a specific transaction or transactions you continue to do so even though they’re agreed upon but they may have been flagged for some reason. You may decide to do transactions with people that are flagged and you continue to do so, you may violate certain local laws or international laws, you may be sending payments masked as something else while you’re saying something else. Even though the payment is within the agreed framework, but that’s something that you, not the bank, you are not doing right, and which is why the bank is going to take the position of closing the account down.
99 percent of the time when the bank decides to close the account down other than the fact that they are derisking from the business, 99 percent of the time, it is most likely your fault. You are in some ways violating the agreement, or you are in some ways doing something that was not agreed upon in before you got the account, and which is why the account would be closed down.
So to sum it up, if you are going to be getting an account from us, you know, you have to assess. You have to assess from the bank if this is the account and the services that they will provide to you are up to your liking or not. And literally, if seven days later they closed down your account, well, that’s on you, not on us.
I hope I was able to answer the question. If you have any more, please feel free to ask. Till next time, have a good one.
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This page was last updated on January 21, 2020.