Business Structure Advise - Russian Citizen with USA Banking

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Hi everyone! Looking for opinions, advise, and ideas. The case might be somewhat similar to many that have been discussed before but it also has some unique quirks.



So, I am looking to find a feasible way to do business online and accept payments.



The business is nothing special, very typical:

- IT consultancy, software development, digital marketing, and all that comes with that

- Development and deployment of own apps/services that expect payments

- Nothing even remotely illegal or suspicious by any country's standard

- Important requirement: able to accept credit/debit card payment online, apple pay, google pay, recurring payments for subscriptions - usual stuff.



The problem:

- This is a small business, almost a solo entrepreneurship, and the only founder has Russian citizenship

- As soon as "Russian" appears in any documents or conversation, all banks and payment providers immediately shut up and reject applications



About founder (background):

- Not resident in Russia since 2017

- Has no trail of any financial or other activity related to Russia

- Has very clear and transparent books for sources of income which are also completely unrelated to Russia or any sanctioned activity/entity



One more important "quirk": founder has active reliable USA bank account in USD with a rather old and respectful credit union. The bank confirmed it is okay to receive incoming payments originating from solo entrepreneurship activity. Unfortunately this bank does not provide any payment capture services, etc. It also doesn't business accounts, only personal. But ACH/SWIFT incoming/outgoing payments are fine. Also, it can receive incoming payments via Zelle



Considering all this context, I am now trying to find any feasible configuration how I could enable payments processing on my own online services and perhaps sell my stuff on marketplaces like Amazon (KDP), etc. and get paid. Target audience of customers is mainly USA/Europe, Asia/LatAm - second priority. Certainly not planning to do business with any sanctioned entities/countries.



Yet, will all these inputs, I fail to find a solid solution. Wherever I go, everything breaks as soon as my Russian citizenship pops up.



I would appreciate any practical suggestions. I don't really need full-fledged traditional banking - my USA bank is doing that for me. What I need is a reliable connector between usual online payments and my bank account either via any aggregation platform, digital banks, anything really that might work.



P.S. obtaining second citizenship is currently not an option.
 
Hi, if possible tell us what is your residency. Do you have residence permit, proof of address, tax returns from that place? How do you receive money for your services so far - is it documented (LLC?) or some crypto stuff?
 
Right now I am (temporary) resident in Ethiopia. I change location every few years due to the nature of my current work - large international organization. For any work I do now, including consultancy, etc I am being paid directly as wire transfers into my USA bank account (I have contracts signed with all parties paying so very transparent). Not using crypto much, only for investment purposes. I would love to shift more toward my own business from regular employment and this is exactly why I am looking for a solution









Meta said:






Hi, if possible tell us what is your residency. Do you have residence permit, proof of address, tax returns from that place? How do you receive money for your services so far - is it documented (LLC?) or some crypto stuff

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Ethiopia and Russian citizenship totally toxic. Get yourself another citizenship (Nauru, Vanuatu) and move to lets say Botswana then it looks different.
 
SCHLOSSFINANZ said:






0% chance sorry.

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Almost the same conclusion I am arriving to as well. One avenue I am exploring now is Solo Entrepreneurship in Armenia with local Armenian bank and local payment processing. It sounds promising (on paper) but what I don't know is how well US/EU card issuers support Armenian payment gateways.
 
SCHLOSSFINANZ said:






Get yourself another citizenship (Nauru, Vanuatu)

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It's a bit offtopic for this thread but does any of these really help? I was looking at their programs but couldn't find reliable evidence if it actually make things easier for me.
 
engineer said:






It's a bit offtopic for this thread but does any of these really help? I was looking at their programs but couldn't find reliable evidence if it actually make things easier for me.

Click to expand...

It helps a bit... It helps to get your foot in the door. You write that "everything breaks as soon as my Russian citizenship pops up". Well, with another passport you either don't mention your first one (if filing a form for some fintech) or discuss it a bit later in the process instead of getting automatic rejection.



Actually your residence matters more I guess (I don't know what documents you have).

A Russian guy who doesn't live in Russia since 2017, has a residence permit in, say, Germany, works for German company, has tax returns from Germany, utility bills etc is... kinda ok. He will have some scrutiny but if he dots all his i's and cross his t's he may get what's needed.

A Russian guys who even cannot really prove that he doesn't live in Russia, has some sketchy not-sufficient Ethiopian docs and apparently doesn't file taxes (even if it's legal in his circumstances)... No luck.

You may want to "stabilize yourself" somewhere. Digital nomad with Russian passport is going to have lots of problems with banking. I don't have experience with Armenia but it is not worse than many places. Certainly a step ahead from Ethiopia.



If you are just starting and turnover is small, just try to find a friend who can share access to services you need. You may spend a lot (A LOT!) of time and energy getting access to banking in your situation. Much better to spend that on your business.



Cheers.
 
Meta said:






A Russian guys who even cannot really prove that he doesn't live in Russia, has some sketchy not-sufficient Ethiopian docs and apparently doesn't file taxes (even if it's legal in his circumstances)... No luck.

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Thanks! I see your point and it makes sense. To disclose a bit more details, it is not just some sketchy Ethiopian docs. I am here not really by choice, I am for United Nations. I have diplomatic ID in Ethiopia, 200% clear documents, all background checks done by UN and even UN passport (it doesn't work without national one). And of course I can provide proof of my residence out of Russia with a clear trail. Heck, even my parents and sister have moved out of Russia a year ago and I paid partly for the new house in the new place.



So, in a sense, from my perspective I am 100% sure all my stuff is as clear and transparent as it could be. But unfortunately, I don't even get a chance to explain it. So, you're likely right, another citizenship might be useful to start the conversation. But paying 100k+ only to get a permission to submit your documents for review, heh, a bit extreme.
 
then its -1000% chance. You are a PEP and therefore no one will touch you.

Forget Armenia its a real shitty jurisdiction.



If you take Vanuatu you pay after you get approved
 
As a Russian citizen resident in Ethiopia, you would need something very, very compelling about yourself to become interesting to a bank or payment processor (outside of Ethiopia).



Getting a Vanuatu passport probably won't make much of a difference. The first thing most banks (and immigration officers) will ask is to see you real, original passport , not this overpriced piece of plastic called a Vanuatu passport.











SCHLOSSFINANZ said:






then its -1000% chance. You are a PEP and therefore no one will touch you.

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Having a diplomatic ID/passport does not make you a PEP.
 
SCHLOSSFINANZ said:






You are a PEP

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Strongly disagree, I am not. I am just a IT engineer, I am not politically or publicly exposed. Every international UN staff in Ethiopia has diplomatic status - it's a local government approach - even low-rank clerks. What it actually gives is a crystal clear person background. Well, unless banks a dumb enough and have 0 clue how this stuff works.
 
Sols said:






you would need something very, very compelling about yourself to become interesting to a bank or payment processor

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Hehe, this likely means a lot of low-risk money . Don't think I have enough to convince them though
 
Sols said:






This is the probably the answer to your question.

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It most certainly is and this is what I am looking forward to. However, relocation to a stable, good jurisdiction now with Russian passport and without millions of USD (or at least hundreds of thousands) is another problem which by no measure is simpler than payments processing.



But, yeah, I get the point and I agree with you here and with the post you referenced.
 
Sols said:






As a Russian citizen resident in Ethiopia, you would need something very, very compelling about yourself to become interesting to a bank or payment processor (outside of Ethiopia).



Getting a Vanuatu passport probably won't make much of a difference. The first thing most banks (and immigration officers) will ask is to see you real, original passport , not this overpriced piece of plastic called a Vanuatu passport.





Having a diplomatic ID/passport does not make you a PEP.

Click to expand...

you are mistaken, he is accredited to Ethopia with diplomatic ID card from Ethopia so he is a PEP for sure...
 
SCHLOSSFINANZ said:






you are mistaken, he is accredited to Ethopia with diplomatic ID card from Ethopia so he is a PEP for sure...

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Not everyone who works for a government or international organization like the UN is a PEP. If you look at the FATF recommendations, a PEP is someone who is a head of state, senior politician, member of parliament, senior official, executive of state-owned companies, or someone who is foreign and holds similar positions or someone who holds similar roles in an international organization (like the UN).



Our friend here is not a PEP unless he holds a prominent, senior position. Just pushing papers around for the UN does not make you a PEP.











engineer said:






It most certainly is and this is what I am looking forward to.

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That part you quoted there is just part of my signature, not something meant specifically for you. It is/was being used as a response to a large number of posts asking about something else entirely. Sorry about the confusion.
 
wonder if you have looked into the solution from @Gediminas or @MichaelUniq or @Fred all three have company packages with banking available, I have no idea if they can help you with banking for Russian but worth to approach them.
 
Your Russian Citizenship is not the Problem for sure - we see even low risk Banks meanwhile onboarding Russian Passport Holders with a well known and streamlined Residence for Russians nowadays - UAE for example.



If you get a UAE Residence and open Business Bank Account you even get Stripe Access.



Recently we worked with a Russian National holding Vanuatu Passport and Singapore Residence - at least the Vanuatu Passport wasn't of any issues with Hong Kong Business Banking for a Panama Offshore Company.



I guess the easiest way for you is to setup in UAE - even with 9% Corporate Tax, Audit and Accounting requirements you get on spot decent Payment Gateways Options and all Banks / Financial Institutions are used to work with Russian PP Holders.



Question is if the Setup expenses making sense for such a small scale Business you mentioned.



Probably your best Bet is to find another US Bank willing to onboard you based on your current US Bank Account as an Individual Client just with the difference that this Bank then offers Payment Gateway.



If you would have a proper Business yielding some serious money we could easily setup you with a Panama Bank / Panama Residence for Payment Processing in USD.
 
engineer said:






Thanks! I see your point and it makes sense. To disclose a bit more details, it is not just some sketchy Ethiopian docs. I am here not really by choice, I am for United Nations. I have diplomatic ID in Ethiopia, 200% clear documents, all background checks done by UN and even UN passport (it doesn't work without national one). And of course I can provide proof of my residence out of Russia with a clear trail. Heck, even my parents and sister have moved out of Russia a year ago and I paid partly for the new house in the new place.



So, in a sense, from my perspective I am 100% sure all my stuff is as clear and transparent as it could be. But unfortunately, I don't even get a chance to explain it. So, you're likely right, another citizenship might be useful to start the conversation. But paying 100k+ only to get a permission to submit your documents for review, heh, a bit extreme.

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I see. I'm afraid UN docs are not really helpful from bank's point of view. They want someone simple and easy to understand. Adding United Nations to the mix of Russia+Ethiopia doesn't make it more appealing IMHO.



I don't know if you are eligible for tax exemptions as UN staff. If you are and so you are not filing tax returns, I suggest you try to change that. Maybe get some not tax-exempted income just to file tax declaration. I don't really know how it works with UN, but I know that when you establish a legal entity for payment processing and open accounts, a bank may want to see a lot of docs regarding your capital. "I don't have tax returns as I was not required to file" will not be fine.



Other than that I don't know what to advise. Maybe ask for assignment to some other place. I guess even for Ethiopians it's a PITA to get proper banking services. I don't think you can do much while living there.



Good luck.
 
engineer said:






So, I am looking to find a feasible way to do business online and accept payments.

Click to expand...



I always try and suggest solutions but Ethiopian residency, Ethiopian Diplomatic ID and Russian citizenship. I tap out here.
 
Hello, if your volume is sufficient, and your overall risk portfolio checks out, we can help with both banking and Payment processing all in 1-2 business days. if you are interested Send a DM.
 
I think the important thing they want to see is that you've genuinely made a home outside of Russia. If you're posted to Ethiopian that doesn't really make it your base.



If you have a home address in UAE or Singapore (or some other hub) with a residency card, that should remove that concern. I have Russian friends, and they've been fine as long as they had a "good" legal residency (or three ). And also you've got somewhere to come back to and chill between postings.
 
engineer said:






Almost the same conclusion I am arriving to as well. One avenue I am exploring now is Solo Entrepreneurship in Armenia with local Armenian bank and local payment processing. It sounds promising (on paper) but what I don't know is how well US/EU card issuers support Armenian payment gateways.

Click to expand...

Works fine, from personal experience
 
engineer said:






Hehe, this likely means a lot of low-risk money . Don't think I have enough to convince them though

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Where do your revenues mainly come from, what's the primary source of your income?
 
SCHLOSSFINANZ said:






0% chance sorry.

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I unfortunately second this.



I had a similar case about 4-5 years ago and never found a real solution. In the end a friend of my client became shareholder/director with a bare trust deed which did not require registration or disclosure. That worked for I believe a little over a year after which the bank found out and closed the account faster than he could blink his eyes.



He now is being paid in stable coins and uses a wallet of a friend who has a couple of cards attached to the wallet. Its a nightmare because he has zero longer term changes to build up something.
 
engineer said:






Thanks! I see your point and it makes sense. To disclose a bit more details, it is not just some sketchy Ethiopian docs. I am here not really by choice, I am for United Nations. I have diplomatic ID in Ethiopia, 200% clear documents, all background checks done by UN and even UN passport (it doesn't work without national one). And of course I can provide proof of my residence out of Russia with a clear trail. Heck, even my parents and sister have moved out of Russia a year ago and I paid partly for the new house in the new place.



So, in a sense, from my perspective I am 100% sure all my stuff is as clear and transparent as it could be. But unfortunately, I don't even get a chance to explain it. So, you're likely right, another citizenship might be useful to start the conversation. But paying 100k+ only to get a permission to submit your documents for review, heh, a bit extreme.

Click to expand...

If you are UN staff with a status... look inside the org. They look after themselves. Solutions offered would likely not even work because of your status.
 
Get fake residency in one of the "stans" like everybody else and open a bank account with payment processing there. Or Collect & Pay for example. Their fees are obscene compared to other EMIs, but they cater to PMCs and other "UN" employees.
 
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