So I'm setting up a business account for my new LLC (consulting, mostly remote). The bank in Miami asked me to provide a list of where my customers are located, like countries and states. I've never been asked this before at other banks. Is this normal now? What are they actually looking for?
Banking
Why did my Miami bank ask where my LLC's customers are located?
Yeah, that's pretty standard for business accounts post-2020. They're doing KYC and want to understand your customer base for AML risk. If you have customers in high-risk countries, they might flag it.
Miami banks are extra paranoid Because of all the international shell companies. Consider it a good sign they're actually asking questions instead of just opening the account.
I had to do the same for my LLC in Orlando. They wanted to know the percentage of revenue from each country. Pain in the butt but took like 10 minutes to fill out.
Thanks, that makes sense. So it's more about risk profiling than anything else? I was worried they thought I was doing something shady ngl.
Exactly. They're not accusing you, they're just covering their regulatory butts. If you have zearo international customers, just say so and you'll be fine.
Wait until they ask you for your social media handles and your mother's maiden name. Kidding... mostly.
It's the FinCEN beneficial ownership rule too. They need to know who's behind the LLC and where the money comes from. Customer locations are part of that puzzle.
Also, if you're in consulting and all your clients are in the US, they'll probably leave you alone after this. It's the folks with customers in Russia or Iran that get the extra scrutiny.
Good to know. I'll just give them the info and move on. Appreciate the reassurance.
FYI, some banks will close your account if you can't explain your customer locations clearly. So be precise. Don't say 'everywhere' or 'the internet'.