Premium Accessories
How We Managed to Open a Customer’s Account Despite the Bank’s Opposition
The business environment in the UAE is a blend of Shariah traditions and secular laws. Sometimes, the culture of this Muslim country can even determine if you’re allowed to open an account here. For instance, there can be situations where a person’s background, profile or past business practices become a hindrance — in such cases, the bank may simply reject you and put you on their blacklist.
We encountered a similar situation in our practice and this is how we tackled it
The Customer and the Challenge
Premium Accessories is a brand under the umbrella of Cigar Shop, a renowned network of online stores in Russia. They have made a name for themselves in the premium cigar and lounge segment.
The owner, Aleksei Kudishkin, initially approached us because we were recommended as experts in conducting business in the UAE. He wanted to establish an alcohol-serving lounge restaurant similar to his establishments in Russia, but he was aware of the potential difficulties with such a venture. The complexity of implementing his idea became evident when we started discussing the licenses that needed to be secured.
Despite this, we maintained communication, and eventually, Aleksei returned to us with a different business proposition — to commence trading in tobacco accessories. This didn’t require any tobacco licenses; all he needed to do was set up a company and start operating.
Having previously consulted with us, Aleksei trusted our expertise on the Emirates, and our task was to assist him.
The Outcome
Summary:
The process of setting up the company and obtaining the visa was relatively standard. The timeline was slightly extended due to the authorities being busy, but it wasn’t a significant delay.
― The company was established within 5 working days.
― Secured the visa in a span of 2 weeks.
― Managed to open a bank account, despite our customer initially being blacklisted by the local bank.
What Was Done
Overall, the case was quite typical — the company was set up within the customer’s required timeframe. The visa was also secured on schedule. However, the real success came after overcoming a major hurdle that couldn’t be ignored.
Opening a bank account. It’s uncommon, but there are instances when UAE banks decline to open an account due to certain aspects of the customer’s profile or background they find unfavorable. For instance, their business practices. These details might seem insignificant and wouldn’t pose a problem in another country, but they are taken into account in the Emirates. This was the case with Premium Accessories.
The bank’s experts discovered some information that contradicted local rules, compliance standards, and to some extent, traditions. The bank decided to reject the application and blacklist our customer. Of course, we couldn’t let this happen — we arranged a meeting and initiated thorough and detailed negotiations. To vindicate the customer in the eyes of the bank, we conducted a comprehensive analysis of his profile, clarified everything, and substantiated our claims with documentation.
The case was successfully resolved, the account and subsequently the company were opened. However, since the bank initially had no intention of resolving the issue in our customer’s favor, the process took 4 months. This is quite unusual for a mainland company, and addressing the issues with the bank required significant effort from our side. But most importantly, we managed to get the customer off the blacklist, enabling him to open his company, leaving him satisfied.
Customer’s testimonial
“I’ve sought AWATERA’s assistance twice: initially, the plan was to establish a lounge restaurant here, but the cost, timeline, and process of obtaining this license proved too complex at that time. The second idea — setting up a company to sell tobacco accessories — seemed straightforward, but we ended up grappling with the nuances of the local mindset. Kudos to the team, they meticulously planned every step, guided me on what needs to be done, and dedicated a significant amount of time liaising with the bank. Their expertise is truly commendable.”
Alexey Kudishkin, owner of Premium Accessories
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