Entrepreneurs from small and micro-entrepreneurs said that banks set difficult conditions for opening bank accounts for their businesses, including a minimum balance of at least 25,000 dirhams per month and paying a first year insurance policy of 3,000 dirhams with a bank statement. Less than a year, agree to the lack of any types of financing or loans.
They stressed that some banks exaggerated the matter until they stopped opening accounts for small and micro enterprises, and the accounts of medium-sized companies that require a minimum balance of at least 100,000 dirhams, or large at least 500,000 dirhams.
In turn, two banking experts considered what the banks are doing is an internal affair, as the risk management deems it within the framework of the directives of the Central Bank and the Union of Banks to abide by the «Know Your Customer» initiative, ie to check all documents related to the employer and his company, deeming it normal before opening Bank accounts are done for the benefit of everyone, to ensure that there are no suspicious transactions on bank accounts.
In detail, the owner of a small company, Majid Mansour, said that banks set difficult conditions for opening accounts for small companies, pointing out that those banks require the owner of the company who wants to open a bank account to agree that there are no credit facilities or loans, otherwise the application is rejected and not completed Its actions.
He added that many banks put three categories of companies: large, medium and small, but it is very tight with small companies, especially in collecting a minimum fee in the bank account, which amounts to AED 400 per month, if the balance is less than AED 25 thousand per month Although this amount may be important for small business owners, it is difficult to freeze monthly.
Entrepreneur Sumaya Al Samadi said some banks require a deposit of AED 10,000, a fee of AED 500 and an insurance policy of AED 3,000 to be paid once.
She pointed out that entrepreneurs in the beginning of their business activities, use these bank accounts for the purpose of deposits, or transfer of salaries, ie, the banks benefit from it, why all these conditions?
Al-Samadi pointed out that a basic condition for everyone is that the owner of the company must agree that there are no loans or loans before opening the bank account, pointing out that any drop in the bank account from the minimum amount is deducted between 200 and 400 dirhams per month.
Entrepreneur Mohammed Faisal said approvals for opening a corporate bank account in banks, without specific rules.
He added: «I tried to enter through the websites of banks, and found a common phrase, saying that the approval of the opening of the account is at the discretion of the absolute bank, and therefore there are no specific conditions or criteria can be applied to facilitate the opening of the account, while it takes to open a bank account in banks that set "In terms of minimum fees and fees between three weeks and a month, but those that tighten the terms of the period up to a maximum of two weeks."
Faisal pointed out that almost all small companies operate companies and their headquarters in the country, and owned by citizens or are partners in it, so, there must be clear standards and facilities on the business, because many of the parties contracted to implement projects, require a bank account in the name of the company To make payments. He added that there are micro-projects such as shops and groceries do not fit these conditions.
Dealing with the cashier
In the same context, said entrepreneur Omar Abdullah, banks give small business owners to deal with «cashiers» on the «counters» seven times for free, and then deducted 20 dirhams for each transaction with the cashier.
He added that some banks do not agree mainly to open bank accounts for small companies, and only medium and large companies, provided that the balance of not less than 100 thousand dirhams for «medium» and 500 thousand dirhams for «large».
Know your customer
Banks are required by the Central Bank and the Union of Banks to abide by the KYC initiative, ie to ensure that all documents relating to the employer and his company are established from the incorporation contract, the items it contains, the expected income or deposits, Expected, and all the identification papers of the partners, considering this is normal before opening bank accounts, and is done for the benefit of all, to ensure the ease of receipt of remittances and not to stop the disbursement in the future.
She added that companies that succeed in providing all documents, does not take the time to open the bank account for more than three working days, and in some cases during the same day.
For his part, the banking expert Ahmed Ibrahim, approved the opening of a corporate bank account as an internal matter for banks, as per its policy, and what it sees risk management, within the guidelines of the Central Bank in terms of customer knowledge, and ensure that there are no suspicious transactions on bank accounts in general, Sima companies.
He added that the movement of funds to companies is usually large, and from the outset must ensure that it is within the expected income, so it takes time to approve.
He continued: «There are no specific periods to open the bank account, as each case is studied individually, and this takes an average of three to seven working days, may increase or decrease depending on what the bank has information about the client and his company, and this is the right of banks and for the sake of safety Operations in it ».