Private banking is a range of financial and banking services provided by a bank or other financial institution, usually to affluent customers - also known as high net worth individuals. Unlike a regular checking account, a personal bank account is traditionally opened with the expectation that the bank will hold the money for you. This means that private banking departments typically only want to see a minimal number of transactions going in and out of your account - this is not the account to receive payroll payments, pay bills or take business underwriting. However, it would be the right place to keep your family fortune, proceeds from a business sale, or any other monies you don't plan to spend in the near future.

If you are looking for a secure and reputable bank for wealth management or other private banking services, the Confidus team can help you find the most efficient solution for all your needs.

Opening a private bank account
When discussing the key differences between a private bank account and other types of accounts, it is important to note the additional requirements and general process of opening an account with a private bank. The main requirement for opening a private bank account is a significant amount of money – while the lowest minimum deposit is around $250,000, some banks require $5,000,000 in deposits before you can open a private bank account.

Opening a private bank account requires a certain amount of paperwork and a process to go through. While the main requirement for opening a private bank account is depositing a certain amount of cash, there are cases where applicants are denied opening a private bank account for other reasons. Each year, around 5% of applications are denied due to suspected fraud or illegal activity. To avoid accepting funds from arms or drug dealing or other illegal activities, private banks undergo rigorous risk and compliance procedures mandated by regulators to verify the identity of the prospective customer and the source of the funds. The recipient of the funds must also be identified.

Documents required to open a private bank account
The requirements for opening a private account may vary slightly from bank to bank, especially with regard to the amount of the deposit required. However, there are some documents that you will most likely require from any private bank. Due to strict regulations and international agreements, banks are required to conduct thorough KYC (“Know Your Client”) and other compliance procedures, not just before accepting the prospect but throughout their relationship with him or her.

The first document you will need to present is your passport - this is the main proof of your identity. Since private bank accounts are only available to people over the age of 18, your passport will also confirm your age.

Also, you need to prepare a document confirming your official address. The proof of residence must often be less than three months old.

In addition to documents proving your economic background, you will most likely be asked for documents proving the legitimacy of your source of funds (e.g. financial statements, inheritance documents or documents proving a sale of a business or real estate). In order for the bank to be as certain as possible about the legality of funds being deposited into the account, it may also require identification documents from all beneficiaries of the account.

Interestingly, the final decision on whether or not to approve an application to open a private bank account is not in the hands of a private banker - dedicated committee meetings are held for this purpose, and the Personal Manager is the person representing the prospective client. The main reason for doing this is to ensure that the decision makers have no relationship with the client and therefore have no potential personal interest in accepting a questionable application.

Opening a private bank account in the EU as a non-resident
A valid passport and current proof of residency are required to confirm that you are not a resident of a country subject to an international embargo or other restrictions. Restrictions for non-EU citizens vary from bank to bank and depend on the prevailing geopolitical situation. Political embargoes can lead to certain restrictions - this is currently the case for Iraq and Russia.