In an effort to protect the financial system, international and cross border Know Your Client (KYC) and Anti-Money Laundering (AML) rules force banks to periodically monitor the status of the bank accounts they have under management.
If you haven’t paid your yearly fees, and your (offshore) bank forgot to remind you that they needed an update of your company documents, challenges can commence when the bank is in trouble and even get placed under resolution by a central bank.
Unfortunately we’ve seen situations like these during recent years for a number of times. Banks were closed, central banks took over management and the customers with an offshore company and a bank account at these banks did not qualify for recovery via the domestic depositors protection scheme, insurance funds or even during the regular liquidation. A banking challenge you should avoid.