Bank Account Opening

Navigating the financial landscape as a high-risk business doesn’t mean facing a closed door. It means requiring a specialized key, tighter controls, and smarter structuring. At BankMyCapital, we understand that “high-risk” does not mean illegal. It simply means your business requires expert guidance to secure a compliant, stable high-risk bank account and long-term payment infrastructure.

For businesses in high-growth sectors like cryptocurrency, iGaming, or forex, securing a reliable High-Risk Business Bank Account is the crucial foundation for sustainable growth. A properly structured high-risk bank account opening process: 

• Reduces Operational risk
• Improves Transaction Stability
• Ensures Ongoing Compliance with International Banking Regulations

This guide breaks down what you need to know and how to get pre-approved efficiently.

What Are High-Risk Bank Accounts?

A high-risk bank account is a specialised banking solution designed for businesses operating in industries exposed to elevated financial, regulatory, or reputational risk.

High-risk bank accounts are specialized financial services explicitly tailored for businesses operating in sectors that carry an elevated financial or regulatory risk. These industries face unique challenges such as increased fraud exposure, higher chargeback ratios, and stringent global regulatory requirements.

While traditional banks often refuse these applicants, specialized financial institutions (FIs) and Electronic Money Institutions (EMIs) provide the necessary infrastructure to handle these complexities.

The Regulatory Framework for EMIs

Electronic Money Institutions (EMIs) are crucial partners for high-risk businesses, offering flexible and modern payment solutions. Crucially, EMIs are strictly regulated to ensure customer fund security and compliance:

• European Union (EU): EMIs operate under the Electronic Money Directive (EMD2) and the Payment Services Directive (PSD2). Oversight is provided by the European Banking Authority (EBA), while licensing and daily supervision fall under the respective National Competent Authorities (NCAs) in each EU member state (e.g., the Central Bank of Ireland, or the Bank of Lithuania).
• United Kingdom (UK): EMIs are primarily regulated by the Financial Conduct Authority (FCA) under the Electronic Money Regulations 2011 (EMRs).

This stringent regulation means that when you bank with a legitimate EMI, your funds are safeguarded in segregated accounts, ensuring they cannot be used for lending and are protected even in the unlikely event of the institution failing.

Common Questions About High-Risk Accounts 

• What are bank accounts for high-risk businesses?
  High-risk bank accounts are designed to support businesses in inherently high-risk industries, such as online gambling, pharmaceuticals, and crypto services. They provide the robust financial infrastructure necessary to manage elevated risks like fraud, chargebacks, and intense regulatory scrutiny, while complying with international AML/CFT standards as outlined by the Financial Action Task Force (FATF) and FATF Recommendations.
• What defines a high-risk account?
  A high-risk account is characterized by its association with industries that have a higher likelihood of financial disputes, chargebacks, and potential AML/CFT exposure. From a high-risk bank account opening perspective, these risk factors trigger enhanced compliance requirements in line with EU regulations from the European Banking Authority (EBA) and the European Commission – Finance AML/CFT framework. These accounts typically feature enhanced due diligence, stricter verification, ongoing transaction monitoring, and higher reserve requirements, consistent with guidance from regulatory authorities such as the FCA in the UK, Bafin in Germany, Central Bank of Lithuania, MFSA in Malta, Central Bank of Cyprus and FinCEN in the US. 
• What are the fees for high-risk accounts?
  Fees for High-Risk Accounts are generally higher than standard accounts due to the increased risk management resources required by the provider. These can include higher transaction fees, monthly maintenance fees, and reserve requirements designed to cover potential chargeback-related losses.
• Do high-risk accounts always pay the most interest?
  No. The primary focus of financial institutions offering high-risk accounts is providing secure, compliant, and reliable payment processing, consistent with international standards set by FATF and national financial authorities, not maximizing interest returns.
• How much money can you safely keep in a bank account?
  The safety of funds depends on the bank’s regulatory jurisdiction and the applicable insurance limits (e.g., EU deposit guarantee schemes). For high-risk bank accounts held with EMIs or licensed banks, fund protection is governed by local financial regulators and safeguarding rules rather than profit-based guarantees. We work exclusively with regulated entities to ensure your funds are protected within statutory limits.

We work exclusively with regulated entities to ensure your funds are protected within statutory limits.

Key Benefits of a Specialized High-Risk Account

Securing the right account with the help of a specialist like BankMyCapital provides significant advantages:

• Market Access: It enables participation in lucrative, specialized markets that conventional banking institutions cannot or will not support.
• Global Trade Facilitation: These high-risk business bank accounts are often equipped to handle multi-currency transactions, cross-border settlements, and international payment flows, which is crucial for global business growth.

These accounts are often equipped to handle multi-currency transactions, which is crucial for international business growth.

• Enhanced Fraud Protection: High-risk providers often use advanced compliance and anti-fraud technologies such as real-time transaction monitoring and AML controls, customized to secure operations in volatile sectors.

High-risk providers often use advanced compliance and anti-fraud technologies customized to secure operations in volatile sectors.

• Sustainable Growth: They provide the necessary financial stability to manage complexities and support sustainable expansion in challenging markets.

High Risk Bank Account Vs Traditional Bank Account 

EMI vs. Traditional Bank: What’s the Difference?

Cost Comparison across Different High Risk Providers

Understanding Global Payment Rails: SEPA vs. SWIFT

For high-risk businesses seeking credibility and reliable payment processing, it’s important to consider market trends. Globally, the cross-border payments market is projected to reach over $320 billion by 2030, growing at an annual rate of 7.1%, highlighting the increasing need for robust, compliant banking solutions.

For any high-risk business operating internationally, understanding the two primary global payment networks is vital. The bank or EMI you choose determines which of these networks you can access:

Why this matters for your business: EMIs and banks specializing in high-risk sectors often provide direct access to both SEPA (for cost-effective, fast payments to European suppliers or clients) and SWIFT (for global payouts to non-EU jurisdictions in various currencies), enabling seamless worldwide operations.

What Industries Are Classified as High-Risk?

Businesses are classified as high-risk based on potential for fraud, regulatory oversight, and chargeback rates. High-risk classification often includes:

• Cryptocurrency Trading & Exchanges: Due to their volatile nature and strong regulatory focus on Anti-Money Laundering (AML) and Know Your Customer (KYC) standards, often guided by the Financial Action Task Force (FATF).
  Regulatory Authority Examples: Virtual Assets Regulatory Authority (VARA, Dubai), Markets in Crypto-Assets Regulation (MiCA – European Union), Financial Conduct Authority (FCA, UK), Monetary Authority of Singapore (MAS).
• Online Gambling and iGaming (Casinos, Betting): High transaction volumes and a complex, high-risk regulatory environment.
  Regulatory Authority Examples: Malta Gaming Authority (MGA), Curaçao Gaming Control Board, Anjouan Gaming Authority, Kahnawà:ke Gaming Commission, Tobique Gaming Commission, Nevis Gaming Authority, Romanian National Gambling Office (ONJN), Gibraltar Gambling Commissioner.
• Forex, CFD, and Investment Services: Subject to rigorous financial securities laws and ongoing supervision.
  Regulatory Authority Examples: Cyprus Securities and Exchange Commission (CySEC), Financial Services Authority (Seychelles), Financial Services Commission (Mauritius), Securities and Commodities Authority (UAE), Dubai Financial Services Authority (DFSA), Financial Sector Conduct Authority (FSCA, South Africa).
• Pharmaceutical Sales (e.g., CBD/Nutraceuticals): Regulatory hurdles and high chargeback potential.
• Adult Content Services: Reputational and compliance risks.
• Telemarketing & Subscription Services: High frequency of consumer disputes and chargebacks.

Additional Factors Increasing Risk:

• Non-EU Shareholders or Directors
• Newly Established Companies (limited operating history)
• Financial Instability or Poor Credit History
• Previous rejection by a major regulator like the UK Financial Conduct Authority (FCA)

Technology & Integration for High-Risk Businesses

Modern high-risk banking requires seamless technology integration to keep operations efficient, compliant, and scalable. At BankMyCapital, we ensure that our clients’ EMI accounts for high-risk business are equipped with the latest tools to support growth across industries like iGaming, crypto, adult services, and international trade.

API Integration Capabilities

Most EMIs supporting high-risk bank accounts provide API keys, enabling clients to integrate their offshore merchant account or international merchant account directly into their IT infrastructure.

This allows businesses to automate payment processing, reconcile transactions in real-time, and enable high risk payment processing without manual intervention.

Multi-Currency Wallet Features

Clients can access crypto-friendly bank accounts or high-risk IBAN accounts that support more than 20 currencies, making it easy to send, receive, and store funds in the currency of choice.
This is essential for international merchants, iGaming operators, gambling businesses, and companies leveraging high-risk payment gateways.

Accounting Software Integrations

To streamline bookkeeping and financial reporting, most EMIs integrate with the top accounting software solutions, including:

• Xero 
• QuickBooks 
• Sage
• Zoho Books
• Wave Accounting

This integration ensures accurate financial reporting, reduces errors, and enables businesses offering iGaming bank accounts, gambling bank accounts, or adult bank accounts to manage chargeback protection services efficiently.

Risk Mitigation Strategies

Running a high-risk business doesn’t mean unavoidable financial risk. Implementing proactive risk mitigation strategies can improve your chances of approval for an EMI account for high-risk business and reduce operational issues.

Key strategies include:

• Maintain transparent and accurate financial records for audits and compliance.
• Implement robust chargeback protection services to minimize disputes.
• Choose providers with strong high risk payment gateway solutions and multi-currency capabilities.
• Keep business operations aligned with AML/CFT regulations, guided by FATF Recommendations.
• Limit exposure by segmenting high-risk transactions across offshore merchant accounts or international merchant accounts.

High-risk accounts can be closed if compliance standards are breached. Businesses should proactively manage accounts to avoid this:

• Avoid excessive chargebacks or fraudulent transactions
• Follow provider guidelines for iGaming bank accounts, gambling bank accounts, and adult bank accounts
• Maintain proper documentation and regular communication with your EMI or bank. 

Alternative Solutions

In most of the high risk cases, EMIs are a better fit than traditional banks, especially for businesses requiring flexibility, speed, or industry-specific solutions.

• EMI accounts for high-risk business often allow faster onboarding, multi-currency wallets, and integrated high-risk payment processing, compared to traditional banks that may have stricter restrictions.
• Crypto-friendly bank accounts can complement EMIs for businesses dealing in digital assets or international payments.
• High-risk IBAN accounts from EMIs can provide the same operational benefits as conventional accounts but with better acceptance for high-risk industries.

Red Flags to Avoid

Understanding what can trigger an instant rejection is crucial for successful high-risk bank account opening:

• Unverified business owners or missing KYC documentation
• Poor compliance history or previous account closures for iGaming bank accounts, gambling bank accounts, or adult bank accounts
• High chargeback rates without proactive chargeback protection services
• Misaligned business model with provider’s risk appetite

Why Might Your Application Be Refused?

Even with a legitimate business, rejection is common because banks prioritize managing regulatory exposure. Understanding the reasons is the first step to securing an account.

The Strategic Advantage: Pre-Approval and Expert Guidance

The application process in jurisdictions like the UK and Europe can be challenging due to stringent regulatory requirements and cautious bank approaches. Pre-Approval is a crucial, strategic step that maximizes your chance of success.

BankMyCapital’s Timeline Breakdown 

Case analysis: within 24 hours

EMI / bank pre-approval: 2–3 business days

Case submission for bank account opening: within 1 business day after pre-approval

EMI / bank review: approximately 3–8 business days, depending on the institution and case complexity. 

BankMyCapital’s Pre-Approval Process Ensures:

• Efficiency: We vet your application against the specific requirements of the most suitable banks and EMIs, assessing the likelihood of approval before you invest heavily in document finalization.
• Clarity: You gain a clear understanding of the bank’s exact requirements, helping you resolve documentation issues preemptively.
• Strategic Pivoting: If an initial application is unsuitable, we can immediately pivot to alternative, compliant financial partners, saving significant time and resources.
• Risk Mitigation: Potential red flags such as transaction flows, jurisdictional exposure, or business model concerns, are identified and addressed before submission, reducing the risk of account rejection or future account closure.
• Faster Time to Live Operations: By aligning your profile with the right financial institution from the outset, pre-approval significantly shortens the time required to activate a fully functional high-risk bank account and begin processing transactions. Typically we set you up in a matter of one week. 

Required Documents for Pre-Approval

To begin the pre-approval process, you will need to prepare:

1. Business Overview: Full details on incorporation, legal structure, shareholder structure, and specific industry segment.
2. Financial History: Information regarding any previous banking relationships, including reasons for closure or termination.
3. Client/Partner Details: Information about existing clients, partners, and suppliers, including their jurisdictions and the nature of transfers.
4. Compliance Policy: Proof of adherence to AML and KYC standards.

Appeals Process

If your high-risk bank account application is denied:

• Request a formal explanation from the EMI or bank
• Review all compliance and documentation gaps
• Rectify issues and submit appeal documentation with supporting evidence. 

We will make sure you can obtain your high risk account efficiently. 

BankMyCapital’s Tailored Solutions

We adopt a holistic method to secure your High-Risk Business Bank Account. Our process includes:

1. Initial Consultation: We thoroughly understand your business structure, global operations, and specific banking needs.
2. Tailored Recommendations: We provide a short-list of suitable offshore banks, European banks, and Electronic Money Institutions (EMIs) that have a proven risk appetite for your industry.
3. Document Preparation: We guide you in preparing and adjusting all necessary documents, including detailed business plans and activity descriptions, to meet bank compliance standards.
4. Bank Submission & Negotiation: We assist in submitting the application and negotiating directly with bank representatives on your behalf.
5. Ongoing Support: We offer continuous communication support until your account is fully onboarded.

We commit to reapplying with another suitable bank if the first application is unsuccessful (provided all necessary documentation is supplied), ensuring you find the right financial partner.

By leveraging our deep understanding of regulatory compliance and the unique needs of high-risk sectors, BankMyCapital ensures you have the necessary financial tools and support to thrive in challenging markets.

FAQ: High-Risk Bank Accounts

Q1: How long does high-risk account approval take?
Approval timelines vary depending on the business type, jurisdiction, and EMI account for high-risk business selected. Typically, the process, from initial pre-approval to account activation, can take 3–8 business days.

Q2: What is the minimum deposit for a high-risk business account?
Minimum deposits depend on the provider and industry. For offshore merchant accounts or international merchant accounts, some EMIs may require initial deposits to cover risk reserves and ensure proper high-risk payment processing. This process aligns with EU regulatory frameworks under the European Banking Authority (EBA).

Q3: Can I get a high-risk account with bad credit?
Yes, many providers of iGaming bank accounts, gambling bank accounts, or adult bank accounts focus more on compliance and business model than personal credit scores. Some solutions are guided by international AML/CFT standards like those from the Financial Action Task Force (FATF).

Q4: What documents do I need for a high-risk merchant account?
Documents typically include proof of business registration, ownership structure, KYC for all directors, payment processing history, and risk disclosures. These are required for both high-risk IBAN accounts and high-risk payment gateway setups.

Q5: How much do high-risk accounts cost monthly?
Monthly fees vary by provider and risk exposure. Fees cover services like chargeback protection services, high-risk payment gateway access, multi-currency wallet support, and ongoing regulatory compliance.

Q6: Can I open multiple high-risk accounts?
Yes. Many businesses operate several accounts to manage different regions or product lines. This can include offshore merchant accounts, EMI accounts for high-risk business, or international merchant accounts for diverse operations.

Q7: What happens if my account gets closed?
If a high-risk account is closed, the provider typically gives notice and instructions for fund withdrawal. Businesses using high-risk payment processing solutions or crypto-friendly bank accounts can often transfer funds to alternative iGaming, gambling, or adult bank accounts to maintain operational continuity.