Introduction to UK Banks

I received notification yesterday that Pingar had finally opened a corporate bank account in the UK. One milestone signed off then.

Opening a corporate bank account in the UK for an in-bound NZ business is not as simple as it sounds. Think LAX Transit Lounge, Think UK Banking: If you know what I mean.

Anti money laundering legislation means that banks here now impose significant stakeholder checks at the time of opening an account. If your NZ business has a Trust as a shareholder, be prepared to forward Trust documentation as well as details of trustees, beneficiaries etc. Whilst trusts are a common business vehicle in New Zealand, they appear to set off alarm bells in the UK.

Banking practice also differs in a number of other areas. Only this week, a major test case opens in the High Court in which The Office of Fair Trading (OFT) is challenging seven leading retail banks and the Nationwide building society. The outcome could bring a fundamental change to UK High Street banking.

My advice to any NZ business looking to set up a base in the UK is to try and set up your UK account whilst in NZ. UK Trade & Investment in NZ should be able to help. It is unlikely that you will complete the process in a one or a two week market visit to the UK.

For Pingar, it is therefore hats off to NatWest, part of the Royal Bank of Scotland Group. It will be good to do business with you.