I welcome you as the CEO and founder of COREDO. Over nine years my team and I have helped hundreds of entrepreneurs from Europe, Asia and the CIS register companies in key jurisdictions, from the Czech Republic and Cyprus to Singapore and Dubai, and successfully complete bank onboarding. Today we’ll examine, why EU banks refuse even licensed companies, and share proven solutions so you save time and avoid account freezes.
This is why a license by itself does not guarantee account opening: for the bank it is only one element of the overall risk picture, not a free pass.
Reasons for rejection during bank onboarding
Imagine: you register a company in Estonia or the Czech Republic, obtain a license for payment services, but the bank blocks the account application. Our experience at COREDO shows that in 70–90% of cases the issue is the Legal Opinion, a legal opinion that analyzes corporate registers, tax liabilities, licensed activities and AML aspects. EU banks, following EBA guidelines 2024-2025, require a complete package: a flawless opinion with an apostille, confirmation of UBO and source of funds.
We regularly see legal opinions that describe the company abstractly, without tying it to specific operations and jurisdictions. For a bank this is a critical drawback: if the document does not explain why this particular company in this structure performs these specific payments, it is perceived as formal and useless.
The COREDO team recently assisted a client from Singapore with a Pte Ltd license. EU banks refused due to cross-border AML risks: the logic of cross-border payment flows from Asia. We conducted a forensic UBO analysis, checked against the ACRA registry and notarized the chain of ownership. Result: the account was opened in a Czech bank within 14 days, without EDD delays.
Another trap: shelf companies or ready-made companies older than 5 years. COREDO’s practice confirms: 40% of AML onboarding failures are related to dormant status, where governance analysis reveals gaps in actual control. Regulators require an AML audit before onboarding, especially for high-risk profiles.
UBO verification and source-of-funds checks to prevent account blocking
UBO (Ultimate Beneficial Owner), ultimate beneficiaries: this is the foundation of KYC Due Diligence. Non-compliance with public registers leads to onboarding refusals and EDD. At COREDO we always start with a full verification: declarations of control, a forensic audit of the chain, confirmation of source of funds through bank statements and contracts.
One case: a company from Dubai with a forex license faced onboarding refusal in Slovakia. FATF risks from grey list jurisdictions triggered the block. The solution developed at COREDO: a strategic business plan with evidence of economic presence, integration of GDPR data protection and an AML audit. The account was activated, and foreign trade operations increased by 30% without fines.
Source of funds often becomes a trigger for account blocking. A common mistake by companies is limiting themselves to declarations of origin of funds. For banks this is not enough: a verifiable chain of documents is required, showing the link between business activity, contracts, receipts and the distribution of funds. The absence of even one link is interpreted as increased risk.Banks request evidence: not just declarations, but the full chain from supplies to payments. Under AMLA 2025, a deep audit is mandatory for PEP onboarding, we integrate it into onboarding, reducing risks by 80%.
EDD for shelf companies and 6AMLD
High-risk clients: PEPs, companies from Asia with AML non-compliances or ready-made companies: require EDD (Enhanced Due Diligence). The 6AMLD directive strengthens AML for payment providers and card issuance: banks block if there is no forensic analysis. Our approach at COREDO: we combine digital KYC 2025 with notarization, minimizing blocking metrics.
Practical example: an Estonian fintech with a shelf company from the Czech Republic. Bank refusal due to weak corporate governance. The COREDO team conducted a governance analysis, updated the articles of association, confirmed substance (office, staff). Now the client issues cards under 6AMLD. This example shows that bank onboarding problems are rarely fatal. In most cases they point to managerial and structural weaknesses that can be fixed before the next submission – provided the company is ready to rebuild governance and AML frameworks.
Your strategic steps
- Invest in a Legal Opinion in advance: a full registry analysis reduces rejections by 70-90%.
- Conduct an AML audit: mandatory for scaling foreign economic activity (FEA) in high-risk zones.
- Manage UBO and source of funds: forensic EDD for shelf companies prevents loss of operations.
- Integrate governance into KYC: the key to fintech expansion into Estonia or the Czech Republic.
The COREDO team implements this at every stage: transparently, with reporting and support. We acknowledge the challenges; regulations are tightening, but with our experience you will scale your business without losses.
Contact us if you need details about your case. Together we’ll build a reliable structure for the EU, Asia and the CIS.