It is absolutely natural that not all industries have the same performance indicators. One important indicator is the riskiness of an industry, which causes companies involved in certain industries to face difficulties when opening bank accounts and obtaining legal and financial services from other companies, including from their own government.

Fortunately, there are intermediaries who are ready to facilitate the resolution of these issues: opening accounts at a financial institution, connecting payment gateways for fiat and cryptocurrency transactions, obtaining permits, and creating various sets of necessary documentation. One such intermediary is BoomAff, offering the full range of these services, acting as your reliable legal partner, ready to defend your interests, effectively and quickly opening business bank accounts for gambling and other things.

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Understanding Industries Characterized With A High Level Of Risk

In banking, there is a field of activity known as risk management. Risk management allows financial institutions to categorize their clients based on the riskiness of their businesses, in order to understand how to properly work with them. This understanding enables financial institutions to:

  • Create products ranked by client risk categories (both legal entities and individuals)
  • Set fair prices for these products (fees, usage charges, transaction commissions, insurance and its cost)
  • Establish transaction limits, controls on large transfers, and special monitoring conditions by the financial institution’s staff
  • Increase attention to transactions that could lead to potential losses for the financial institution, making changes to their IT management systems and internal paper regulations
  • Create an adequate decision-making system for various cooperation issues with clients characterized by high risk, ranking them by degrees of risk
  • Obtain a balanced risk portfolio of products that meets the regulatory requirements within which the financial institution operates.

High-risk (not explicitly illegal) industries in the 21st century include:

  • Online gambling and gaming
  • Adult entertainment
  • Cryptocurrency businesses
  • Pharmaceuticals and nutraceuticals
  • Telemarketing and online marketing
  • Travel and tourism agencies (some of them)
  • Financial services (e.g., payday lenders, some money transfer services)
  • Import/export businesses
  • E-commerce ventures with high chargeback rates.

It is important to note that not every industry listed is fully legal in every country worldwide. For instance, gambling is regulated very differently across various jurisdictions globally, being legal in some, illegal in others, and having a status somewhere in between in others.

The reasons these industries are considered high-risk include their higher likelihood of fraudulent activities, increased regulatory scrutiny, greater financial instability, or frequently changing legislation affecting these industries.

Not only can the industries themselves be high-risk, but also the financial transactions within these industries, especially if payments are organized not in standard fiat currencies but in cryptocurrencies, can be risky. If there is a combination of risks (high-risk industry + high-risk currency/cryptocurrency), conducting business becomes even more complicated, and the client’s risk profile for the financial institution only becomes more complex.

Therefore, if finding a suitable financial institution to open an account is impossible or difficult on your own, it makes sense to turn to competent financial-legal intermediaries such as BoomAff. We have helped many clients open accounts and obtain the necessary permits in the online gambling and casino sectors, which also accept cryptocurrencies for payment, as well as navigate EU company registration and UBO acquisition.

The Importance of Specialized Financial Services

When a representative of a high-risk business approaches a financial institution to open an account, not every one of them is willing to cooperate with such customers. Often, many documents are required to start the process, the provision of which is not always possible or quite difficult—aimed at preventing the financial institution from starting a relationship with such a client. The actual reasons for this are as follows:

  1. Regulatory requirements specific to a particular territory. The national/central bank (or a similar regulatory body in the country) may have requirements to refuse services in commercial or state financial institutions to certain business categories based on their riskiness and type of business.
    1. The need to have enhanced requirements for AML, KYC, and Counter-Terrorism Financing (CTF) procedures. These procedures are typically defined by the financial institution and its client, ensuring that both the client and the financial institution know each user of the client’s services or products who registers a profile and makes financial transactions, guaranteeing they operate within the risk level set by the financial institution for a specific business sector. In other words, the financial institution wants to be sure that no funds are being laundered, used for terrorism financing, drug trafficking, human trafficking, or other illegal activities through a gambling establishment that opens accounts to receive money from gamblers.
    1. Reputational risks for the financial institution itself. Every reputable financial institution in a highly regulated country tends to refuse high-risk clients to maintain a healthy client financial portfolio. Additionally, informal risks may arise from market rumors and gossip among banking peers if a financial institution starts to serve a dubious business, especially if other financial institutions have already refused such a business in opening an account.
    1. Higher operational costs necessary to service a high-risk client: more efforts for due diligence, ongoing financial and operational monitoring, more frequent compliance checks, and other associated costs. These funds are allocated for employee salaries, software enhancements, and internal financial institution documentation development.
    1. Increased financial risks associated with the transactional servicing of such a client, especially if they have suspicious operations, chargebacks, and other substandard transactions abnormal for a regular business.

On the other hand, if a business owner doesn’t approach a conventional financial institution that would rather refuse a client than take them on, there can be significant benefits. By finding a financial institution in a jurisdiction that accepts high-risk clients, particularly from the gambling sector, the client can gain the following advantages:

  1. Expertise in risk management. Financial institutions understanding the specifics of high-risk businesses have developed methodologies to manage and minimize risks, offering financial products with optimal cost and functionality tailored for such clients.
    1. The level of attention from the financial institution to client account transactions will be lower than in “regular” financial institutions that do not understand how to properly service high-risk clients. Therefore, there will be fewer “red flags” from the financial institution regarding the normal operational business activities of the client and fewer “poking the nose into”.Improved transaction processing solutions. Financial institutions familiar with high-risk businesses can offer optimal payment solutions, their own or third-party payment gateways, for integration. Financial institutions that have worked extensively with online gaming parlors know how to control the opening bank accounts for crypto and run them effectively through tailored payment gateways and solutions.Regulatory compliance. Specialized financial institutions are well-versed in the regulatory requirements of high-risk industries. They can assist gambling establishments in staying compliant with AML regulations, KYC requirements, and other relevant laws, reducing the risk of potential legal issues.
    1. Higher transaction limits allow optimal use of the gambling business’s potential, where large winnings and consequently large payouts to gamblers are common. High rollers can also make large deposits to accounts, which must also be considered a plus.

This is how specialized financial services can help mitigate risks and ensure smooth operations:

  • Access to specialized financial products
  • Compliance support
  • Flexible payment processing
  • Multi-currency support, including cryptocurrencies
  • Chargeback management thanks to specialized solutions to minimize them
  • Fraud prevention, etc.
Find out how to correctly make the EU company registration & UBO acquisition

BoomAff’s Expertise in High-Risk Business Operation

BoomAff has been successfully operating since 2018. During this time, we have helped dozens of clients to:

  • Start their own online gambling clubs from scratch
  • Connect and configure payment gateways for their websites
  • Obtain various permits in different jurisdictions
  • Select suitable domain names
  • Choose favorable jurisdictions for gambling licenses, tailored to their business models
  • And more.

These actions are invariably accompanied by the opening of financial institution accounts to support the operational functioning of the business. We are well aware that a business like an online gambling venue involves thousands and even hundreds of thousands of transactions per day, which flow from clients to the gaming parlor accounts and from the accounts to clients. Nearly every transaction involves a financial institution as the primary financial institution and partner, a settlement center that must operate as smoothly as possible to eliminate any business disruptions. Additionally, a certain portion of transactions will bypass the financial institution—typically, cryptocurrencies, associated financial instruments, and other derivatives that do not directly engage a financial institution for transactions.

For this, we assist at every step of opening an account, from gathering documents in the preparatory phase to receiving the notification of account opening from the financial institution, which can be forwarded to regulatory authorities requiring this notification (e.g., licensing organizations or the tax authority in a specific geo). Below, we will outline the steps of the global approval process to secure bank account setup.

Global Approval Process

The global process of opening a financial account (whether state-owned or commercial) for a high-risk client, particularly operating in the online gambling sphere, looks as follows:

  1. Preparatory stage. Armed with information about several financial institutions potentially suitable in various world jurisdictions for opening a gambling account, it’s necessary to prepare a document package according to their requirements. At this stage, our expertise is invaluable as we have all the necessary information about financial institutions potentially suitable for gambling clubs and their up-to-date requirements for the document package they want from their corporate clients.
  2. Selection of one or several financial institutions to apply for account opening. At this stage, our client chooses the jurisdiction that best suits them for service according to their business model and the region of operation of the gambling license. Examples of actively used jurisdictions for high-risk businesses today include Malta, Cyprus, Singapore, Hong Kong, the US, and Estonia. Financial institution selection may also be recommended by us based on our personal contacts in specific financial institutions where we have already helped other clients open accounts.
  3. Document preparation and collection. After selecting one or more suitable jurisdictions, we begin, together with our client, to collect the document package. To maximize the chances of getting the desired result—a financial account opened—we simultaneously apply to several financial institutions, possibly even in different jurisdictions (to save time). The document package may include dozens of types of documents, including (but not limited to) passports and tax identification numbers of business owners, account signatories, and chief accountants, licenses, permits, official business registration documents in a certain geo, financial statements, company internal documents, business plans, permits for conducting business in specific areas, documents for ownership of gambling venue’s IT systems, website, mobile application, intellectual property documents to be used by the gaming club in its operations, and other docs. The specific list of documents depends on each financial institution. We guide our clients through this process, providing qualified assistance at each stage, up to participation in the development and formalization of the necessary documents if they are absent at the moment.
  4. Application (on your behalf, using an official power of attorney, where possible, or with your personal presence). We will fill out the account opening application, attach all documents, and pass the new client’s questionnaire.
  5. Waiting for application review. Your application, as it is being reviewed, is gradually supplemented with the conclusions of various internal specialists: background checks of key company employees and business owners, due diligence, risk level assessment, compliance team review, and analysis of one’s business model, financial health, and industry reputation.
  6. During the application review process or after completion, the financial institution may conduct 1 or more personal interviews with the business owner and other key employees to clarify issues and better understand the essence and structure of the business, as well as to categorize the business by risk level. If the financial institution has concerns or doubts about opening an account for you, conducting such personal interviews can be extremely helpful in addressing and persuading the financial institution in your favor.
  7. Ultimately, the financial institution’s responsible person makes the final decision: to open the account or to refuse its opening. If, during the process, several financial institutions have agreed to open an account, the client can agree to have all of them, be served only in several, or choose only one financial institution.
  8. Account opening and setup, exchange of all important official data regarding this account, and its connection to payment gateways and systems. As well as setting up a messaging system for account movements and other reporting. By the way, since a standard gambling establishment usually deals with multiple currencies and through multiple payment channels, several financial accounts will also be opened—one or more for each currency. If a specific financial institution is unable to provide an account in a particular currency, it is rational to be serviced by several financial institutions simultaneously capable of covering the entire range of your business needs. This question is studied jointly with our client in the preparatory stage, and such a set of financial institutions is selected that will be able to cover the needs (if one cannot cope).

Each stage can take its own time, from several days to a week-something. Overall, the entire account opening process, from step 1 to step 8, takes from 2 to 8 weeks, greatly depending on the country where the financial institution is located, the document package required for collection (and whether it is ready before submission or needs to be completed with some missing documents), the availability of the client’s budget for various formal and ‘informal’ fees, etc. In any case, we are always focused on the result, and all our efforts are aimed at achieving the goal—opening a fully functional account.

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Tailored Solutions for Gambling Industry

In each jurisdiction, there are rules regarding the operation of gambling clubs and how they can use banking services. In turn, gambling establishments also have their own banking service needs, namely:

  • Availability of a multi-currency account or accounts opened in different currencies (which best suits the specific banking rules of the country where the account is opened), where funds deposited by gamblers will be received and from which gambler winnings will be paid out.
    • High-speed operations on these accounts: instant crediting (from punters) according to the operational regulations for the trading network, and payouts according to the financial institution’s regulations for outgoing transactions (1-3 days) after the financial institution receives a payment order from the gambling venue based on a withdrawal request from the punter.
    • Good transaction limits to meet gamblers’ needs for quality gaming: in terms of the number of transactions per unit of time and the amounts that can be within one transaction (daily/monthly limits).
    • Availability of an automated data exchange system for funds movement on accounts, to quickly reflect changes in gamblers’ balances.
    • Availability of auxiliary banking products, such as short-term deposits, to keep excess money on them, additionally earning on deposit commissions from a financial institution (a short-term deposit for legal entities is called an overnight deposit).
    • A personal banker assigned to solve various issues and problems, as well as advising on optimizing financial services and informing on all significant changes relevant to business operations.

In addition to the daily operational activities, online gambling venues have to deal with increased requirements from financial institutions due to the nature of their business. As we wrote earlier in this article, there are 5 reasons why regular financial institutions do not want to cooperate with gambling clubs and open accounts for them: the peculiarities of regulatory requirements, the need to have heightened requirements for AML, KYC, and CTF procedures, reputational risks for the financial institution itself, higher operational costs, and increased financial risks associated with transactional services for such a client.

For cooperation to be mutually comfortable for both parties, it is necessary for gambling venues to develop and actively implement procedures for identifying potentially risky clients, monitoring risky transactions, and other transactions with negative characteristics, as well as developing a reporting system and information exchange with the financial institution about all such transactions. The presence of such documentation and a working business process will increase trust in the financial institution, facilitating its overall work and investigations into suspicious transactions in particular.

BoomAff has previously assisted clients—gambling establishments—in developing such documentation and its practical implementation into operational processes. We are ready to continue assisting our clients in this regard to effectively address regulatory and compliance challenges in various jurisdictions and financial institutions.

Let’s look at some case studies of successful banking solutions for gambling clients.

  1. CosmicSlot.com: payment methods were implemented through eZeeWallet, Visa, MasterCard, NeoSurf, Bank Transfer, EcoPayz, Cash to Code, Stickpay, Interac, Jeton, Skrill, Neteller, PaySafeCard, Zimpler, Rapid Transfer, Sofort, plus geo-local methods and 3 cryptocurrencies. Supported currencies: EUR, CHF, CAD, PLN, NOK, NZD, and AUD.
    1. SpinsBro.com: available currencies are EUR, NOK, CAD, AUD, JPY, NZD, CHF, BRL, and PLN. Payment methods connected include MasterCard, VISA, Uberweisung, Bank Transfer, Changelly, eZeeWallet, Cash to Code, NeoSurf, Rapid, Revolut, Bitpace, Cashlib, Sofort, Interac, Astropay, MuchBetter, EcoPayz, Mifinity, as well as 6 cryptocurrencies.
    1. Jupi Casino: payment methods were implemented through Mastercard, VISA, JCB, American Express, Cash to Code, MiFinity, Euteller, Neosurf, and Skrill, as well as 3 cryptocurrencies. Available fiat currencies are EUR, USD, AUD, CAD, NOK, GBP, RUB, NZD, JPY, and BRL.
    1. Supacasi.com: payment methods were implemented through Bancontact, Epay, EPS, Euteller, Giropay, Multibanco, and Neosurf.

For the vast majority of these gambling houses, incoming transactions are instant. Outgoing transactions to cards and e-wallets are executed (after the gambling venue’s administration approval) within 24 hours, and transfers to financial accounts happen within 48 hours.

Also, transaction limits usually range from 10 (20) euros to €1,000-10,000 per day/per transaction.

Depending on the needs of our clients, we can discuss specific payment limits (from clients and to them), allowed payment methods, and the possibility of cryptocurrency transactions. We’ll delve into crypto in the next chapter.

Opening business bank accounts for gambling is a very important aspect of the work of casinos

Customized Services for Cryptocurrency Businesses

The question of cryptocurrency operations is the subject of discussion and regulatory challenges worldwide. Since its emergence in the late 2000s, crypto has been penetrating more and more spheres of human activity (embracing both business and entertainment). The list of cryptocurrencies is growing every day, having long surpassed 23,000 kinds, and there are over a thousand of them available for free trade today.

Regulation of cryptocurrencies across the planet is a complex issue. It’s no wonder that specific regulatory requirements in each geo vary, ranging from complete absence of regulation to fairly comprehensive regulation, on par with some regular businesses. Operations with them can be fully or partially prohibited, as well as fully or partially permitted. For example, it may be impossible to mint or sell crypto, but ownership is allowed. Or selling may be prohibited while minting and owning may be allowed. Or exchanging for fiat money of the country’s national currency and vice versa may be restricted. Or storing more than a certain amount may be limited. In general, this provides ample ground for various changes, which, we’re sure, will continue to bubble up for the next 50 years.

That’s why organizations, individuals, and companies encounter resistance in various countries around the world when they try to mint, sell, exchange, or transfer cryptocurrencies. Especially many difficulties arise when attempting to open financial accounts for the purpose of conducting commercial activities: that is, accepting crypto as payment for goods and services, which is a legally complex issue. In 2024, there are literally about a handful of countries in the world where cryptocurrency is a legal means of payment for goods and services for legal entities and individuals, and taxes must be paid on their turnover or income. In other countries, it’s not possible to open a financial account to accept cryptos as a legal payment method or exchange it for fiat money.

Overall, difficulties with cryptocurrency worldwide can be summarized in such a list:

  • Lack of precise regulatory documents in many countries
    • Changeable regulatory requirements also in many countries
    • Cryptocurrencies are seen by many as a primary tool for bypassing banking financial monitoring, anti-money laundering, and counter-terrorism financing systems, so many financial institutions are quite wary of operations with them
    • The excessively high price volatility of cryptocurrencies (comparable to fiat currencies) makes them a risky instrument for investments, daily transactions, and long-term savings (they’re only good for financial speculation, inflating the investment “bubble”)
    • The technical complexity of integrating payment gateways with banking systems, where market participants’ expertise is not very high in many countries (except those where crypto is widely accepted, such as the USA).

The following solutions can address these problems:

  1. Enhanced AML and KYC protocols with robust verification processes and continuous monitoring
  2. The development of better regulatory compliance programs through engaging legal and compliance experts and proactive engagement with regulators
  3. Partnership with crypto-friendly financial institutions
  4. Use of third-party payment processors
  5. Transparent and secure operations
  6. Insurance and risk management through obtaining insurance coverage and developing risk management strategies.

For informational purposes and to address point 3 in the list above, we’ve compiled a list of 20 banks that are fairly open to opening accounts for cryptocurrency operations (with names and countries specified):

  1. N26 (Germany, Austria, Switzerland, Belgium, Portugal, and Ireland​)
  2. AMINA (formerly SEBA Bank, Switzerland)
  3. Xapo Bank (Gibraltar)
  4. BankProv (United States​)
  5. Ally Bank (United States)
  6. Revolut (UK, European Economic Area (EEA), Australia, Singapore, Switzerland, Japan, the US, New Zealand, and Brazil)
  7. Wirex (global)
  8. Monzo (United Kingdom)
  9. Mercury (United States)
  10. Quontic Bank (United States)
  11. Juno (in partnership with Evolve Bank & Trust, United States)
  12. Goldman Sachs (United States)
  13. Morgan Stanley (United States​)
  14. JP Morgan Chase (United States)
  15. USAA (United States)
  16. Bankera (globally, except for the US, Iran, North Korea, Belarus, and Russia)
  17. Change (Estonia​)
  18. Worldcore (Czech Republic)
  19. Scallop (global​)
  20. Cash App (United States).

Based on this list (as well as your own research), you can make an informed decision as a gambling operator regarding opening accounts with them for operational purposes in cryptos.

And to address point 4 of the previous list, we’ve selected 10 payment processors that work with cryptocurrencies for online gambling establishments:

  1. Coinbase Commerce
  2. BitPay
  3. CoinGate
  4. NOWPayments
  5. AlfaCoins
  6. CryptoProcessing
  7. CoinPayments
  8. SpectroCoin
  9. PayPal
  10. Stripe.

And here are 5 examples of cryptocurrency businesses successfully obtaining bank accounts:

  1. Coinbase has established several bank relations, including JPMorgan Chase.
  2. Luno, a cryptocurrency exchange based in London, has financial accounts in Singapore.
  3. The Gemini exchange, founded by the notorious Winklevoss twins, has accounts in multiple financial institutions across the US.
  4. Bitstamp, one of the longest-running cryptocurrency exchanges, partners with the Silvergate Bank in the US.
  5. Kraken has an account at the Signature Bank, US.

Advantages of Partnering with BoomAff

Partnering with BoomAff has the following three key advantages for online gaming parlors:

  1. Global banking expertise. BoomAff excels with a vast network of banking partners worldwide. Our deep industry knowledge connects online gambling clubs with financial institutions willing to work with high-risk businesses. Our expertise ensures a streamlined process for opening accounts.
  2. Personalized service. Each client receives a dedicated account manager. These specialists offer tailored solutions, guiding our clients through every step of the account opening process at a financial institution. Personalized attention ensures all regulatory requirements are met efficiently.
  3. Excellent approval rates and fast processing. BoomAff’s strong banking relationships lead to amazing approval rates and quick processing times. Our proficiency in handling high-risk industries accelerates account approvals, minimizing delays, and enables online gaming parlors to start operating swiftly.

In a nutshell, partnering with BoomAff cuts through the red tape, ensuring compliance and operational efficiency for houses of gambling working online.

Client Testimonials and Success Stories

Here are some pieces of feedback from our satisfied clients:

  1. Marlon Maylord, CEO at cosmicslot.com: I want to express my gratitude to the professional team at BoomAff for their dedication to the task and attention to all our needs, resulting in the successful opening of several multi-currency financial accounts in multiple jurisdictions of our interest and connecting a payment gateway that provides incredible transaction speed and careful risk approach to chargebacks and other fraud indicators.
    1. Eugene Vishnevetsky, COO at spinsbro.com: We approached BoomAff solely for the issue of opening the right financial accounts to cover operations in 120+ countries worldwide. At every stage of the process, the staff paid the utmost attention to the issues that interested us, offered several excellent options, and managed to open all accounts in less than 2 weeks. Now, that’s a result!
    1. Jamarhal Vishvarnatshandi, Vice President at Jupi Casino: Thanks to the personal involvement in our business request by every participating employee of BoomAff, the issues were resolved quickly and without extra effort on our part. I’m glad that BoomAff took responsibility for all the routine work related to opening the account, coordinating details, preparing documentation, and more. We will definitely continue cooperation and explore other areas of expertise of BoomAff, of which we discovered quite a few during our collaboration.
    1. James Eckhouse, CFO at supacasi.com: It’s a shame that only a few companies work as smoothly and substantively as BoomAff! If I had at least 25% of the employees working at BoomAff in all of my businesses, I would have expected tremendous success 10 years ago! Keep it up, BoomAff, and thank you for swiftly resolving our issue!

And this is a success story told by the Chief Technology Officer at cosmicslot.com, J. Frederickson:

General description

We embarked on transforming and expanding our payment interface and banking capabilities to better cover our operational geography in 170+ countries where we operate today. The management’s final decision was to open accounts in several international banks and collaborate with a payment gateway enabling the inclusion and servicing of over 40 payment channels, aligning with our business expansion model. To execute this part, we chose BoomAff, which took on the tasks of opening accounts and finding the necessary gateway.

Challenge and vision

The challenges lay in significantly expanding our payment capabilities, which, until the implementation of the solution, were not as swift as desired, sometimes involving double currency conversions and sometimes, payment failures due to mechanical or methodological limitations of our current bank. The solution involved changing the bank, supplementing it with several supporting banks, changing the gateway, as well as implementing an extended range of payment options, and improving technical integration and reporting.

The strategic role of BoomAff

BoomAff meticulously planned and implemented a multi-stage strategy. They found suitable banks in convenient countries, selected optimal service packages, prepared documentation, and coordinated the opening and servicing of accounts. They provided several options for modern payment gateways, from which we made a reasonable choice. They acted as a full-fledged agent and intermediary in implementation, effectively addressing all aspects of the task: financial, legal, documentary, technical, and practical. Bank accounts were opened in Dubai, Singapore, Malta, and Estonia, fully covering the financial spectrum of our needs. The entire project implementation from the date of the first meeting with BoomAff representatives to the adoption of new integrated payment solutions and the finalization of all documentation by all parties took only 2.5 months, which is quite fast for such a project. The hands-on expertise of BoomAff employees in such matters is immediately evident!

Find out about the secure bank account setup in the selected geo

Conclusion

Specialized banking services for high-risk industries have numerous benefits for the daily operations of a gambling venue. Implementing them to enhance your current payment solution or when opening a new gambling club is a crucial part of the entire undertaking, and the effectiveness of involving an experienced partner and intermediary like BoomAff is hard to overstate. We draw your attention to our expertise in this matter, inviting you to take advantage of all the benefits of quickly opening bank accounts in the banking jurisdictions you need!

If you are interested in opening a business bank account for high-risk industries – read here

Get Ahead in Global Banking for High-Risk Businesses Now!

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