Establishing a Bank account in Lithuania
Coddan acts as an agent for the largest banks in Latvia and Lithuania. These banks offer a wide variety of retail and commercial banking services through an extensive network of branches locally as well as serving the international community through their remote bank account operation system. All these Banks have excellent internet banking facilities, a choice of credit/debit/anonymous Visa, Master, Cirrus, Maestro, Amex cards. The bankers will be able to assist you by introducing you to their investment portfolios or insurance services. Excellent relations with the Banks Correspondents located in the USA, Canada, Germany, Austria, Norway, Japan, Australia, etc., allow their clients to benefit from the unrestrained currency exchange operations and maintenance of multicurrency bank accounts. We will recommend you to a banking institution for your satisfaction taking into consideration your present citizenship and domicile.
A ready to operate bank account (account number, secure passwords, digital device, and bank account application forms) will be sent to you together with the company documents. Your offshore account will be ready to receive money only. It will be fully activated when the banks receive the original application forms accompanied by the following: duly certified incorporation documents; duly certified passport photocopy of each account signatory and duly certified signature cards.
We at Coddan being the sales agent can certify the documents ourselves; otherwise we will instruct and lead you through all the procedure, to get it done fast and easy. Initial deposit for the account activation is USD$ 500.00. Please be aware that banks will debit your account of USD$100.00 activation fee from the first transaction.
How to control accounts? The opening of a bank account is one of the primary concerns of our clients. All major banks recognize the importance of being able to carry out instructions expeditiously, with many banks now providing online computer facilities that provide information to the authorized user and the ability to effect either inter-account or external electronic transfers. Clients preferring to issue instructions by fax are able to establish coded systems with the bank to ensure both confidentiality and security.
Know your customer principles. Banks are required by their regulators to know their customers’ identities and details of their business activities. Clients are encouraged to inform banks of changes in their business pattern or of any large transactions. Banks are suspicious of large inward transactions followed rapidly by large outward transfers from corporate accounts and generally do not wish to attract this type of business. A client who describes his business as a business consultancy with an estimated annual turnover of US$ 200,000 per annum should not be surprised if their corporate banker rejects an incoming transfer of several million dollars.
Money Laundering. Both onshore and offshore banking centres have serious concerns relating to the laundering of the proceeds of drug trafficking and terrorism. Banks may require detailed information, such as copies of contracts or purchase orders, concerning source of funds to ensure that they do not become involved with money laundering and the layering of laundered funds. Self-evidently large cash transactions are bound to create suspicion and clients seeking to deposit more than US$ 10,000 in cash with a bank should provide explanations to their corporate bankers prior to attempting to place such deposits.
Confidentiality. Our international clients seek confidentiality in their affairs to legitimately protect their assets from disasters, unwarranted third party interference and to reduce an ever-growing burden of unnecessary disclosure and explanation. Confidentiality and privacy are often integral to risk management planning; and confidentiality, either on its own or combined with some other parameter, is a major factor in the use of offshore facilities. Banking confidentiality is best assessed through consideration of the physical location of a bank and its corporate structure. In Common Law offshore banking jurisdictions, confidentiality normally arises through four circumstances: specific laws or regulations designed to enshrine banking confidentiality, by the special relationship that exists between a client and their professional advisers, in an express contract and by virtue of the law of tort, whereby, for example, information with commercial value is protected against unjustifiable use.
In most European countries it is generally accepted that the relationship between a banker and a client is confidential and should not be disclosed without a court order. European banks are subject to European Union directives on such matters as money laundering and exchange of information, whilst many countries have exchange of information and mutual legal assistance provisions enshrined within double tax and other bilateral treaties.
The corporate structure of a bank is often an important selection parameter as normally clients seek to avoid banks incorporated or active in either their country of residence or where the bulk of their non-cash and non-bank assets are held. For example, a US citizen seeking confidentiality should carefully consider the wisdom of establishing a confidential banking relationship with an institution with a corporate presence in the US as a third party could seek redress through the US based corporate presence.
The UK is subject to the full burden of both European Union directives and a high level of both disclosed and undisclosed scrutiny by the authorities.
Parex Bankas (Vilnius, Lithuania). On 24 October 1996, the private limited company UAB Industrijos bankas was registered with the Bank of Lithuania. On 16 July 1998, the Bank was reorganised into a public company AB Industrijos bankas. The Bank was granted licence No. 17 for all banking operations in local and foreign currencies, including transactions in precious metals and with private persons.
In 1999, the Bank was looking for an investor. AS Parekss-banka, which is the largest bank of Latvia, became the strategic investor of AB Parex bankas. At the start of business, the shareholders' capital amounted to 17 million Litas. By the end of 1996, it has grown to 20 million Litas, whereas today it is valued at 31 million Litas. On 3 March 2000, the Latvian bank AS Parekss-banka and the related persons acquired the Bank's controlling share portfolio. On 5 October 2000, the Bank was renamed AB Parex bankas. AB Parex bankas accepts deposits, grants loans, processes payment orders and documentary settlements, converts currencies, issues guarantees and stands surety, and assumes other guarantor liabilities. The Bank also provides storage services for its clients' valuables, and rents safe deposit boxes for the clients' valuables and documents. Among other services, the Bank offers financing facilities, handles investments, trades in securities, and provides consultations on handling finances and investments.
Service For Corporate Clients:
Accounts. Your corporate account at the AB Parex bankas means prompt attendance, careful staff, convenient working hours and a possibility to freely manage the funds kept at the Bank. At the AB Parex bankas, you can manage your accounts at a distance. The payment system operated by fax gives you a possibility to manage your accounts from your office or another location at your convenience. You just need to have a fax machine. In this system, all notices, instructions and payment orders may be faxed to the Bank.
The Bank service Parex internet bank enables you to manage your bank accounts and view account balances from any location in the world, via the Internet.
Account opening requirements: Copy of the Company Registration Document, legalized in the required order; Copy of the Statute (and changes to it, if applicable), legalized in the required order. Document about the people assignment to use the account (meeting protocol, trust document or other applicable document). Passport of the person(s) who has the right to use the account; application for account opening management (2 copies), notarized authorisation signatures card of people, who have the right to use an account; clients questionnaire. Internet service agreement (if account will be managed through internet). If you cannot present the originals of the required documents to the bank, you can present the copies of them, which must be certified in one of the following ways: International certification in the Apostille form; Notary certification by the government unit; Certification of bank representative (Coddan).
Deposits. To those who want to save, the AB Parex bankas invites to conclude term deposit agreements. With the agreement, the interest earned on the deposit will be transferred to your bank account monthly or at maturity.
Credits. Intending to invest or looking for ways to replenish your company working capital? Explore the wide range of financing services provided by the AB Parex bankas. By joint effort, we will find a solution best suiting your needs. AB Parex bankas offers: short-term loans (for up to 1 year) and credit lines in local or foreign currencies for replenishment of working capital and business development; long-term loans (for up to 10 years) in foreign currencies to finance investment projects; overdraft facilities, i.e. the right granted to the Bank's client to overdraw his bank account to a limited extent and for the agreed period of time in order to make his payments; guarantees and sureties, i.e. transactions, whereby the Bank assumes liability for breach by the person, in favour of whom the guarantee or surety was issued, of his obligation or a part thereof to his creditor.
Payments. Why overpay? By making payments through the AB Parex bankas, you will save both time and money. Payments in LTL are elementary and simple, cheap and reliable. International settlements include a long list of correspondent banks, quick service.
Payment cards. Your company money always follows you in any country, in any currency, in all ATMs, stores and petrol stations! With a payment card, it is easier to make a hotel reservation or rent a car. With a payment card, you will be confident of safety of your money. Your money is always with you - in every country, currency, ATM, newspaper and gas station. When paying by card, it is easier to reserve a hotel room or rent a car. When you have a payment card you do not have to worry about the safety of your money.
Transactions in cash. At the AB Parex bankas, transactions in cash are effected conveniently and safely.
Currency exchange. AB Parex bankas ensures favourable currency exchange rates and reliable handling of transactions. For those companies, who want to manage their foreign currency stocks more flexibly, the Bank offers such instruments as forwards and swaps.
Bank cheques. Bank cheques are a convenient way to make payments, when the recipient bank information is not known or the payment is not urgent.
Documentary settlements. Letters of credit, and import and export collection are among the financial instruments used by many commercial and industrial companies daily. AB Parex bankas will help you to effect transactions promptly and efficiently.
Document collection is a method of settlement, when the Bank, acting under the exporter's instructions, delivers to the importer all shipping documents in exchange of payment or acceptance of a bill of exchange.
A letter of credit is a bank document issued at the customer (applicant) request, whereby the Bank undertakes to pay to the seller (recipient of the letter of credit) for the goods shipped, works performed or services rendered, against deliver by the latter of documents meeting the terms and conditions set in the letter of credit.
Bank guarantees. Ensure safety of your transactions: a bank guarantee will hedge you against the risk of failure by any party of the transaction to perform its obligations.
To apply for a bank guarantee from the AB Parex bank, you should contact the Bank branch, which administers your current account, and fill in an application form for a bank guarantee. The Bank issues guarantees out of the client own funds deposited in the special account or out of the credit line launched (loans extended) by the Bank to the client concerned.
Brokerage services. Licensed brokers of AB Parex bankas will provide professional consultations on investments in capital markets and ensure reliable handling of your transactions.
Factoring. Short of working capital? Opt for factoring. Factoring provides you with an opportunity to expand business and to balance cash flows, and ensures your business success.
Service For Retail (Private) Clients:
Accounts. A current account with AB Parex Bankas enables you to freely manage your money and to earn interest on the balance in the account. A current account is very simple to open - all you need is willingness and a passport (or any other document that proves your identity). Passport, application for account opening and management (2 copies), notarized authorisation signatures card of people, who have the right to use an account, Clients questionnaire and Internet service agreement (if account will be managed through internet). If the account owner permits another person to use the account, the following additional documents are needed: Passport (or notary certified copy) who is permitted to use an account; Account owner's trust document, that the owner permits another person to use the account, notary certified (this trust document can be also filled in "Parex bankas" offices); Authorized signatures sample of the person/people who has the right to use the account (can be filled in the bank or notary certified).
Deposits. We believe that your decision regarding the bank, which you intend to entrust your money to, is of the utmost importance. AB Parex bankas is a member of one of the largest and best-known financial groups in the Baltics. In Lithuania, the name of the Parex bank was registered in the end of 2000.
Secure benefit. Term deposit is a convenient and safe way to invest your savings. Term deposits generate pre-agreed interest. You may choose to have a deposit in Litas, US dollars or Euros.
Maturity: from 7 days to 3 years. Accumulative deposits are a convenient saving means. The accrued interest is monthly credited to the accumulative deposit account, which means that next month the interest is generated on a larger amount. You are also able to replenish your accumulative deposit account any time, without a separate agreement with the Bank.
Freedom of choice. At your request, interest may be disbursed at maturity or on a quarterly or monthly basis! You may instruct the Bank to automatically renew your deposit agreement for another equivalent period, without having to go the Bank every time. Deposits can be made in the name of other person. For deposits exceeding 100,000 LTL (or equivalent in other currencies), interest rates may be fixed by agreement. Your deposits with the AB Parex bankas are insured with the Deposit Insurance Fund, according to the Personal Deposit Insurance Law of the Republic of Lithuania.
Accumulative deposits. Accumulative deposits are a convenient way to save money. The interest that has accrued on your deposit over a month is credited to the accumulative deposit account, and next month you will earn more interest, as it will accrue on a larger amount.
Credits. Do not put off the better life for the future - housing and consumer loans extended by AB Parex bankas will help to implement your reasonable dreams immediately.
Housing loans. Become the owner of your home right away! Once you have decided, what kind of home you want to purchase (an apartments or a house in the place appealing to you), turn your dream into reality! Already tomorrow you may become the owner of real estate at any place of Lithuania, even if you do not have enough savings. AB Parex bankas will help you! It will take only a few days to get a low-interest-bearing housing loan with a maturity of up to 20 years enabling you to purchase a house or an apartment, or to construct or reconstruct (renovate) your home.
Loyalty scheme. Each client is a partner of the Parex bank. Our policy differs from the conventional approach of banks towards their clients. We believe that one the greatest valuables is a long-term relationship between the bank and the client. Therefore, we have devised a special client promotion scheme. Under this client promotion scheme operated by the Parex bank, the client will not only earn more interest on term deposits, but will also save by using our bank services. All you need is to have an account at the Bank with permanent inflows, or a deposit or a loan - and the benefits of the client promotion scheme are at your disposal.
Payments. Payments made through AB Parex bank are processed quickly and smoothly. Transfers to Latvia or the Russian Federation are exceptionally cheap.
Payment cards. Your money follows you everywhere, in any country, in any currency, in all ATMs, stores and petrol stations. With a payment card, you will make a hotel reservation or rent a car easier. With a payment card, you may be confident of safety of your money.
Brokerage service. Trade in shares and securities, low commissions on transactions in securities, and professional client support.
Other service. Bank cheques. Bank cheques are a convenient way to make payments, when the recipient bank information is not known or when the payment is not urgent. Traveller's cheques. It is a safe payment tool converted to cash in all countries of the world. You will avoid risks during business tips. Currency exchange - a variety of currencies exchanged at good exchange rates only. Rent of safe deposit boxes - store important documents safely. Leasing - financial and operational leasing, factoring and other financial services. Insurance - insurance of property and vehicles, insurance against accidents.
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