Nikita Veremeev
25.08.2025 | 6 min read
Updated: 25.08.2025
“86% of international companies planning to register a business in Europe by 2025 face delays or rejections when opening bank accounts due to sanction restrictions and tightened compliance,” – these are the findings of the latest report by the European Banking Federation. This statistic is not just impressive; it is a game-changer for anyone considering an EU market entry strategy or diversifying corporate accounts abroad. Today, EU sanctions are not just a foreign policy tool but a factor that radically affects daily business processes: from registering a company in Europe to obtaining a financial activity license and managing international payments.
The question every owner or CFO should ask themselves: “Is my business ready for the new realities: account blockages, secondary sanctions, tightened KYC and AML, the need for transparent corporate structuring?” In an environment where geopolitics dictates banking requirements and compliance becomes an ongoing process, standard solutions no longer work.
In this article, I will detail how EU sanctions and international regulations transform account opening and business licensing in Europe, the strategic and tactical mistakes companies often make, and the practical tools that really work to minimize risks. Drawing on COREDO’s practice, I will show how to build a sustainable business model even under sanction pressure. If you not only want to survive but scale your business in Europe in 2025, read on.
EU Sanctions for Business: Consequences 2025
In 2025, EU sanctions for business are becoming more complex, affecting a wide range of economic and industry sectors. For entrepreneurs, these measures mean new challenges and a revision of usual operations as the consequences affect both market access and the use of key technologies and financial instruments.
Types of Sanctions for Entrepreneurs
Today’s EU sanctions are a multi-level system of restrictions, including both sectoral and targeted measures against legal and physical entities, as well as secondary sanctions against companies cooperating with sanctioned entities. In 2025, financial sanctions against legal entities, limiting access to banking services, international payment systems, and business licensing in Europe, become particularly significant. Geopolitics directly affects bank accounts: banks and fintech companies are forced to implement strict currency controls, account blockages, and asset freezes at the slightest suspicion of sanction regime violations.
In practice, the COREDO team has repeatedly encountered situations where even indirect mentions of connections with sanctioned jurisdictions led to a refusal to open a corporate account abroad or block an existing account. This requires businesses to have not only deep expertise in Due Diligence but also constant financial monitoring of all transactions.
Consequences of Sanctions for Business in Europe
The long-term consequences of sanctions go far beyond the current restrictions. The legal risks of doing business in the EU are significantly increasing: companies are forced to invest in managing reputational risks, strategic planning for EU market entry, and building transparent corporate structures. COREDO’s practice confirms: successful scaling is possible only with the integration of compliance risk management into the company’s development strategy.
In the face of sectoral sanctions and the threat of secondary sanctions, it is critically important not only to comply with regulator’s requirements but also to be able to respond promptly to changes in the sanction landscape. This requires regular audits of the corporate structure and constant interaction with international legal consultants.
Opening a Bank Account in Europe under Sanctions
Opening a bank account in Europe under sanctions is becoming an increasingly complex task due to the tightening of restrictions and the emergence of new requirements for financial operations. In 2025, additional EU rules come into effect that significantly change the procedure for interacting with banks for clients from countries under sanctions.
New Banking Rules in the EU 2025
In 2025, opening a bank account in Europe for international business is associated with a number of new requirements. Banks have strengthened preliminary compliance audits, implemented enhanced client identification procedures (CIP), and require detailed disclosure of the sources of funds. For non-residents and companies from the CIS and Asia, the difficulties in opening an account are exacerbated by the need to provide a full set of documents, including not only corporate reporting but also biographies of directors and shareholders, proof of tax residency, and a detailed business plan.
The solution developed in COREDO involves step-by-step preparation of documents and preliminary audit of the corporate structure, allowing to minimize the risk of rejection during the application review by the bank. Special attention is paid to justifying the legality of fund origin and the transparency of the corporate structure.
Beneficiary Verification and PEP KYC Standards
KYC and AML standards in Europe have been tightened: banks conduct in-depth verification of beneficiaries, paying special attention to PEP (Politically Exposed Persons) status, connections with sanctioned regions, and operation history. In 2025, requirements for disclosing information about beneficiaries became even stricter: banks require not only passport data but also proof of the legality of funds and an analysis of corporate ties for secondary sanction risks.
COREDO’s experience shows that successful compliance can only occur if a pre-prepared package of documents and a transparent ownership structure are in place. In several cases, the COREDO team conducted a preliminary compliance audit, allowing clients to avoid account blockages and speed up the opening process.
Account Blocking and Asset Freeze
Account blocking in European banks and asset freeze: a reality for companies that do not meet the new compliance requirements or fall under sanctions. In response, international business is actively seeking alternative payment tools: digital banks, fintech solutions, international payment systems, and financial intermediaries capable of ensuring international payment processing under sanction pressure.
COREDO’s practice confirms the effectiveness of using multi-banking and diversifying payment channels. In a recent case, a client was able to maintain operational stability by integrating digital banks and alternative payment platforms, minimizing account blockage risks.
Diversification and Multi-Banking for Business
Diversification of banking partners and multi-banking become key financial control tools in the EU. Strategic planning for EU market entry now includes assessing banks for sanction resilience, evaluating alternative jurisdictions for business, and building reserve payment routes. Solutions implemented by the COREDO team allow clients not only to reduce account blockage risks but also to increase flexibility in managing international payments.
Business Licensing in Europe – New Requirements
Licensing of business in Europe is continuously evolving, and by 2025 new requirements are introduced for companies operating in the EU. This affects both traditional sectors and financial and digital services, emphasizing the importance of a thorough comparison of licensing conditions in individual European Union countries.
Licensing in the EU: Country Comparison 2025
Business licensing in Europe in 2025 is not only about complying with EU and FATF regulatory requirements but also proving tax residency, confirming the center of financial interests, and providing corporate reporting according to international standards. Licensing specifics in different jurisdictions (e.g., Czech Republic, Cyprus, Estonia, United Kingdom) require deep analysis: some focus on economic citizenship and physical presence, others on corporate structure transparency and source of funds.
COREDO’s experience shows that successful licensing of financial companies in the EU is only possible with thorough preparation and adaptation of the corporate structure to the specific jurisdiction’s requirements.
How to Prepare a Business for Compliance
A transparent corporate structure is the key factor for successful compliance and obtaining a license. The preliminary audit of the corporate structure, implemented by the COREDO team, includes analyzing connections between shareholders, checking beneficial ownership, assessing secondary sanction risks, and preparing a full package of documents for licensing.
International corporate structuring and implementing compliance risk management procedures allow reducing the likelihood of licensing refusal and ensuring long-term financial transparency of the business.
Moving on to the question of the license, let’s review the necessary documents and the procedure for obtaining them in 2025.
License: Documents and Procedure for Obtaining in 2025
In 2025, obtaining a license for financial activities in the EU requires an expanded package of documents: corporate reporting, proof of source of funds, biographies of directors and shareholders, business plan, documents confirming tax residency, and financial interest center. Banks and regulators require completion of preliminary compliance audits and implementation of client identification procedures (CIP).
The COREDO team accompanies clients at all stages of document preparation, ensuring compliance with international standards and regulatory requirements.
How to Reduce Business Risks Due to Sanctions
Sanction pressure on business is constantly increasing, raising financial and operational risks. To effectively reduce business risks due to sanctions, it is important to understand typical mistakes made when opening accounts and obtaining licenses that can lead to operation blockages and additional checks.
Mistakes When Opening Accounts and Licensing
The most common mistakes: insufficient document preparation, non-transparent ownership structure, lack of due diligence and financial monitoring, and attempts to hide connections with sanctioned regions. COREDO’s experience shows that even minor discrepancies in documents or shareholder biographies can lead to account opening or licensing refusal.
The solution is implementing multi-level document quality control and regular corporate structure audits.
Thus, only a systematic approach to document preparation and verification can minimize risks and increase the chances of successful operations in the EU.
Compliance for Business in the EU: How to Prepare
Compliance for business in the EU is not a one-time procedure, but a continuous process, including preliminary compliance audits, AML/KYC internal regulation implementation, automatic data exchange, and monitoring adherence to banking secrecy. Managing reputational risk requires constant monitoring of changes in the sanction and regulatory field.
At COREDO, we implement comprehensive solutions that allow clients not only to pass complex compliance but also to maintain a high level of financial transparency on an ongoing basis.
Alternative Payment Tools 2025
Amidst sanction pressure, alternative payment tools prove effective: digital banks, international payment systems, fintech solutions, and financial intermediaries capable of ensuring currency control and flexibility in international payments. The selection of alternative jurisdictions for business reduces account blockage risks and ensures the stability of international operations.
The COREDO team has implemented several projects integrating digital banks and multi-banking, allowing clients to maintain operational activity even when accounts in traditional banks are blocked.
A comprehensive approach to selecting tools and jurisdictions can significantly enhance business resilience: further, we will consider practical steps to reduce blockage and sanction risks.
How to Reduce the Risk of Blockage and Sanctions
Minimizing the risk of account blockages and secondary sanctions requires strategic planning, implementing compliance risk management, and diversifying banking partners. COREDO’s practice confirms that only a comprehensive approach, including sanction status analysis, corporate structure audits, and selecting resilient banking partners, allows reducing risks to a minimum level.
Practical Tips for Entrepreneurs
Practical tips for entrepreneurs in 2025 are especially relevant; in a rapidly changing market, it is important to remain flexible and ready for new challenges. The following insights will help prepare for future changes and effectively develop your business, relying on real trends and expert experience.
Key Insights 2025
- EU sanctions and international restrictions radically change the approach to opening bank accounts and licensing business in Europe.
- Success depends on the transparency of the corporate structure, thorough document preparation, and continuous compliance.
- Diversification of banking partners and the use of alternative payment tools are key to business resilience.
How to Open an Account and Obtain a License
| Step | Description and Key Actions | Important Documents/Tools |
|---|---|---|
| Sanction Status Analysis | Check the company, beneficiaries, PEP, sources of funds | Due diligence, KYC, AML |
| Structuring Preparation | Transparent corporate structure, connection audit | Corporate reporting, audit |
| Choosing a Jurisdiction | Compare EU, Asia, alternative country requirements | Comparative analysis, consultations |
| Document Preparation | Gather a full package for the bank and licensing | Passports, charter, business plan, reports |
| Choose Bank/Fintech | Evaluate reliability, sanction resilience | Bank ratings, reviews, recommendations |
| Multi-Banking Strategy | Diversify accounts and payment tools | Alternatives list, fintech solutions |
| Continuous Compliance | Implement AML procedures, regular monitoring | Internal regulations, training |
How to Choose a Jurisdiction and Bank
- Assess not only regulatory requirements but also the sanction resilience of the chosen jurisdiction.
- Priority should be given to countries with a developed system of financial monitoring and transparent KYC/AML procedures.
- Use multi-banking and alternative payment tools to diversify risks.
If you want to receive individual consultation on opening a bank account, business licensing in Europe, or minimizing sanction risks, the COREDO team is ready to offer comprehensive support at every stage. Assess your risks and gain a strategic advantage today – contact COREDO experts.