Currency payments for a foreign company start with the payment route: which currency the client pays in, which system the money moves through and how many intermediary banks sit between the sender and the recipient. Registration gives a legal entity the right to enter into contracts. Access to a specific currency comes from a credit or payment institution, and only after its own checks. Below we look at what to consider before choosing a jurisdiction and an account for international payments.
How money moves between countries
A US dollar transfer almost always passes through a correspondent bank with access to dollar clearing. If your account provider has no such access, the payment goes through a chain of two or three intermediaries, and each of them may request documents or hold the transfer. So before opening a dollar account, check two things: which correspondent the payments go through and how many days an outgoing transfer usually takes.
Euro transfers within Europe go through the SEPA schemes. The SEPA area covers the EU and EEA countries plus the United Kingdom, Switzerland, Monaco, Andorra, San Marino and several other European states; the list is maintained by the European Payments Council (EPC). Caribbean jurisdictions, Seychelles, Belize, Hong Kong and Singapore are outside it. Euros from an account in these countries leave as an international Swift transfer, with a correspondent chain, more slowly and at a higher cost than a SEPA transfer.
Hence the first rule: the account currency should match the currency of your main receipts, and the account provider should have a direct route into that currency. Every conversion includes a margin, and on a turnover of several million a year the exchange rate difference becomes a noticeable cost item.
What changed in payments in 2025–2026
- Verification of payee for euro transfers. Since 9 October 2025, banks and payment institutions in the euro area have been required by Regulation (EU) 2024/886 to check the payee’s name against the account number before sending a transfer. The sender sees the result: a match, a close match or no match. If a contract or invoice names the company differently from the bank (abbreviated, without “Ltd” or in a different transliteration), a European client will see a warning and may delay payment. Write the company name in every document exactly as it appears in the register and in the account opening form. In EU countries outside the euro area, this obligation applies from 9 July 2027.
- Structured addresses in Swift. Swift is moving international payments to the ISO 20022 standard and removing free-format addresses from payment messages: town and country become mandatory separate fields. This step was planned for November 2026 in the SR2026 release. On 27 August 2026, at the request of banking communities, Swift postponed the payments part of the release and promised to announce a new date no later than December 2026. The task is simple: collect your counterparties’ full legal addresses with town, postcode and country and update your payment templates.
- Payment transparency under the FATF standard. In June 2025, the FATF updated Recommendation 16 on originator and beneficiary information in payment messages. Countries must implement it by the end of 2030. Financial institutions are already asking more often for full counterparty details and an exact payment purpose.
What gets checked in currency transactions
The bank compares every transaction with the profile the client declared when opening the account. It looks at five signals:
- the countries of counterparties and their banks, including sanctioned countries and those on FATF lists;
- whether payment amounts and frequency match the turnover forecast in the application;
- the economic rationale of the deal: a contract, an invoice, proof of delivery or of services rendered;
- whether the payment purpose matches the declared business;
- transit: money came in and went out to a third party the same day without a clear reason.
A payment outside the profile may be held until documents are provided. A quick reply with a full package usually resolves the matter. A long silence in response to a request is one of the most common reasons for account closure.
Document package for currency payments
Put it together before opening the account and update it when your clients or volumes change:
- a list of key clients and suppliers with their countries and settlement currencies;
- framework agreements and sample invoices;
- a 12-month turnover forecast, with incoming and outgoing payments shown separately;
- proof of the origin of the start-up capital;
- for trading, a description of the supply chain: who ships, who pays, where customs clearance takes place.
The full list of corporate documents is collected in the article KYC and KYB for an offshore company, and the review procedure at account opening in the guide how to pass the bank’s review.
Bank or payment institution
Payment and electronic money institutions (EMIs) are convenient for multi-currency receipts and SEPA payments, and their onboarding is usually faster than a bank’s. EMI client money is protected by safeguarding: the institution holds it separately from its own funds. Deposit guarantee schemes do not cover such balances. For large balances and dollar payments, businesses usually keep a bank account as well. A detailed comparison is in the article EMI or bank for an offshore company.
The owner’s obligations in their country of residence
A company account abroad is visible to the tax authority of the country where the owner lives. Financial institutions report information under the CRS standard, and for accounts of passive companies, such as holding companies, they also report the controlling persons. Many countries apply currency control rules and controlled foreign company (CFC) rules to their residents. In Ukraine, the CFC rules are set out in Article 39-2 of the Tax Code. Before the first payment, check the procedure for transferring personal funds into the capital of a foreign company under the current rules of your country’s central bank. Details on information exchange are in the briefing CRS 2026 for a foreign company owner.
How to choose a jurisdiction for currency payments
If clients pay in euros from Europe, look at a company with convenient SEPA access: a UK Ltd (UK company formation) or a company in the EU. For payments with Asia and in dollars, businesses often choose Hong Kong or Singapore. A classic BVI offshore company works well as a holding company, and its operating payments usually go through a bank or EMI in a third country. Provider selection and preparing the application for your payment profile are handled by Offshora’s banking support.
Frequently asked questions
Can an offshore company open an account in several currencies at once?
Yes, most banks and EMIs open multi-currency accounts. The set of currencies and the route for each depend on the provider’s correspondent relationships, so check them before you apply.
Why does a euro transfer take several days?
If the sender’s or the recipient’s account provider is outside the SEPA area, the euros leave as an international transfer via Swift and correspondent banks. Within SEPA, a standard transfer is credited within a business day, and an instant one within seconds.
What is Verification of Payee?
Since 9 October 2025, euro area banks have matched the payee’s name against the account number before sending a euro transfer and shown the result to the sender. The company name in contracts and invoices must match the name in the account details.
What documents will be requested for a currency payment?
Usually a contract, an invoice and proof of performance: a waybill, an acceptance certificate or a work report. For large and unusual payments, you may be asked about the economic rationale of the deal and your relationship with the counterparty.
Do I need to report a foreign account in my country of residence?
It depends on the country. Information on the account will reach the tax authority through CRS exchange anyway, and CFC reporting and currency control rules are set by the law of the owner’s country. Check them before opening the account.
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