1 Easy Navigation Opening a Cash Account with Citi Global Transaction Services
2 Table of contents Introduction... 1 Opening a Cross-Border Cash Account with Citi... 3 Anti-Money Laundering Requirements... 6 Account Reservation...7 Capital Injection... 8 Smart Checklist... 9 Country Complexity Low Medium High Escalation Conclusion Appendix FAQs... 18
3 Your Guide to Opening a Cash Account with Citi s Global Transaction Services Welcome to Citi s Global Transaction Services. This Guide was developed specifically to give you a single point of reference to all the information you need when opening an account with Citi. In addition to key contact information, you will find a summary of processes in the pages that follow to help you gain a better understanding of the steps involved in opening local, as well as cross-border accounts. Our primary objective with this Guide is to provide full transparency into our practices and procedures so you know what to expect as you move through the account opening process. Citi s Commitment to You We remain committed to providing you with service excellence and in doing so, hope you find this Guide both informative and useful. To help you navigate through the process, we ve broken our Guide down into tabs. Should you find you have any questions not covered here, please refer to the Contact section for guidance on where to send inquiries. Fast Facts Citi is uniquely positioned to provide an incredible depth of service to clients doing business in local markets and around the world with its: Expansive reach operating in 102 countries for an unparalleled global footprint Vast experience opening an average of 1,200 cross border accounts each month in addition to many more local accounts Exemplary service accounts opened within 24 to 48 hours upon completion of the Anti-Money Laundering/Know Your Customer process and your delivery of all required documentation In the last year, Citi has successfully reduced the end-to-end* time to open an account by 76%, decreasing the average end-to-end turn-around time from 48 days to just 11 days. At the same time, 70% of all accounts are opened well within 24 hours of receiving your completed documentation. * End-to-end time is measured from the point your relationship representative requests an account opening(s) on your behalf through to the account activation, including Electronic Banking entitlements. Due to strict Anti-Money Laundering/Know Your Customer laws account openings cannot be completed until all Citi requirements have been fully satisfied. For more information, please refer to the Anti-Money Laundering Requirements tab in this Guide. Guide to Opening a Cash Account with Citi, February 2009 page 1
4 Who you will work with in Citi will depend primarily on your needs and whether you are opening a local or cross-border account. Local Accounts Depending on the country in which a local account is being opened, you will either return documentation directly to your relationship representative or to the local Account Servicing Unit or Implementation Area. The recipient will then manage the account opening for you. Your relationship representative will work with you to identify your primary contact and provide guidance as to where documentation should be sent. Local account openings are those accounts that can be opened without the assistance of the Regional Account Servicing Units. Cross-Border Accounts Our Regional Hubs are responsible for the startup of cross-border accounts and services for Citi s cash management clients worldwide, including documentation planning, review and account activation. Again, your relationship representative will work with you to identify who your primary contact will be. Regional Hubs Regional Hubs are located across the globe and service the following continents: EMEA Europe, the Middle East and Africa ACASH Canada, United States, Latin America and Mexico APCASH Asia and the Pacific Rim ACASH Hub EMEA Hub APCASH Hub Guide to Opening a Cash Account with Citi, February 2009 page 2
5 Opening a Cross-Border Cash Account with Citi Opening accounts in a local country and opening cross-border accounts (those outside your country of domicile) follow a very similar process. For local account openings, you may work through local country contacts instead of the request being managed by one of our centralized Regional Hubs. In these cases, the individual you originally contacted may work with you throughout the account opening process. The following pages are an overview of Citi s process for opening a cross-border cash account. Here you ll find key milestones and standard timeframes, as well as a synopsis of what we need from you in order to open your account. Guide to Opening a Cash Account with Citi, February 2009 page 3 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
6 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account Opening a Cross-Border Cash Account with Citi (continued) This flow chart depicts a new legal entity opening a new account in a new jurisdiction with the end-to-end timeline representing an average scenario. This timeline depends on full cooperation of all parties hours hours 5 business days 1. Begin by contacting Citi to request an account opening. 2. Your relationship representative will then gather all preliminary information and engage the appropriate Regional Hub. 3. The Regional Hub retrieves documents on file to determine what can be leveraged. The Regional Hub will then contact you to confirm the request, provide you with a smart checklist, request any additional details needed and establish a timeline. 4. You review and complete all documentation requirements. 5. The Regional Hub will proactively follow-up with you to request completed documentation and offer assistance as needed. The Anti-Money Laundering process, managed by the relationship representative with supporting documentation from you, occurs in parallel to steps 1-8. Guide to Opening a Cash Account with Citi, February 2009 page 4
7 24-48 hours As agreed upon at the beginning of the process 6. When you complete the documentation, simply return it to the Regional Hub contact. 7. The Regional Hub will review to confirm that all documentation is complete. 8. The Regional Hub sends your account opening request to the Account Activation team. 9. The Regional Hub will confirm when the account has been opened and entitled.* 10. You can then begin using the account. Orange box denotes client activities Green box denotes Hub activities Note: Any necessary changes or missing Information will require additional correspondence time. Yellow box denotes hand-off to an internal operational team within Citi * Note: Most Corporate clients will be entitled to CitiDirect Online Banking while Financial Institution clients will be entitled to SWIFT. Guide to Opening a Cash Account with Citi, February 2009 page 5 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
8 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account Anti-Money Laundering Requirements In order for Citi to satisfy regulatory requirements surrounding the issue of anti-money laundering, the relationship representative may need to request additional information outside of the account opening documents. A primary objective of the Citi Anti-Money Laundering Program is to ensure that the Bank complies with legal and regulatory requirements for customer due diligence, i.e., Know the Customer (KYC) requirements. In Citibank these efforts are managed through our Relationship and Coverage teams, who will work with the client to obtain information that identifies the client (including its significant owners and senior mangers) and helps us gain an understanding of the client s business and market reputation. Often the customer due diligence process will involve on-site visits with the client, collection of specific customer documentation, and review of publicly available information about the client. This process first takes place before the Bank initiates a relationship with a client, and is updated regularly thereafter. In order to successfully complete this process the Relationship or Coverage team at Citibank will ask for the following Legal Formation Documents such as Articles of Incorporation, Bylaws, Partnership Agreements and other similar formation documents Information includes Beneficial owners and percentage of ownership, Names of Senior Officers and Contact Information The documentation will vary depending on locale and can include entity structure. Guide to Opening a Cash Account with Citi, February 2009 page 6
9 Account Reservation Once an account has been requested, you may make a further request that the associated account number(s) be reserved prior to the actual account opening. In these cases, Citi will work to reserve the account number(s) on our systems. This will allow for the requested account to be tied to a number that can be used for your internal purposes prior to the account becoming active. It is important to note, however, that although the account number has been reserved, the account itself is not active and the number cannot be used for any transactional purposes until all the required documentation is complete and the account is identified as opened in Citi s systems. Guide to Opening a Cash Account with Citi, February 2009 page 7 There are a few countries that are unable to reserve an account number prior to opening. The Regional Hub will share this information with you at the time of your request. However, many countries can and will reserve an account number with just basic information such as legal entity name and address. The time it takes to reserve an account number varies depending on the country, but in general will be supplied in hours. FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
10 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account Capital Injection When incorporating a new business entity in a country, you may be required to open a Capital Injection Account. A Capital Injection Account is a non-operating account opened solely for the purpose of receiving the initial deposit required for the incorporation of a new business entity. This initial deposit may be necessary to comply with local country incorporation requirements. Capital Injection Accounts are opened with a full documentation deferral and a Post No Debit (PnD) status. Once the incorporation process is completed through the official in-country channels, you will need to provide full documentation in order to convert the Capital Injection Account into a fully operational Cash Management Account and remove the Post No Debit Status. Below is the list of countries where Citi can open a Capital Injection Account. Country Austria Bahrain Belgium Bulgaria Cameroon Congo Costa Rica Cote d voire Czech Republic Denmark Ecuador Eqypt Finland France Gabon Germany Greece Guatamala Honduras Hungary Ireland Italy Region Country Jersey Kazakhstan Kuwait Lebanon Luxembourg Netherlands Nigeria Norway Poland Portugal Romania Russia Senegal Slovakia Spain Sweden Turkey United Arab Emirates United Kingdom Venezuela Guide to Opening a Cash Account with Citi, February 2009 page 8 Region
11 Smart Checklist Following is a short checklist of the basic documentation required to open an account. Global Account Documents (GAC) Local Account Conditions Customer Activation Form Signature Card Constitutive Documents Local Declaration Guide to Opening a Cash Account with Citi, February 2009 page 9 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
12 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account Country Complexity The information that follows outlines the level of complexity involved in opening accounts across Citi. Countries are assessed as being High, Medium or Low complexity based on both the documentation and processes required to open an account. This information should be considered indicative only, and is intended to serve as a guide for planning purposes. Low Complexity Countries considered of a lower complexity typically have Central Bank regulations with fairly basic and straightforward account opening requirements. Documentation can include: Customer Activation Form Signature Card Global Manual Transaction Authorization (optional) Global and Local Account Conditions Constitutive Documents Identification Documents such as Passport copies Country Australia Austria Belgium Canada Denmark Finland France Ireland Jersey Luxembourg Netherlands Region NA Western Europe North America NA Latin America Country Guide to Opening a Cash Account with Citi, February 2009 page 10 Region New Zealand Norway Philippines Portugal Puerto Rico Spain Sweden United Kingdom United States NA Vietnam
13 Medium Complexity In countries with medium complexity, requirements for opening an account are somewhat more involved with varying documentation, such as local approval, needed to complete the process. Specifically, documentation can include: Customer Activation Form Signature Card Global and Local Account Conditions Global Manual Transaction Authorization (optional) Constitutive Documents Identification Documents such as Passport copies Local Declarations Additional Approvals for Non-Resident Signatories Country Bahamas Costa Rica Dominican Republic Ecuador El Salvador Germany Greece Guatemala Haiti Hong Kong India Region Latin America Western Europe Country Indonesia Italy Jamaica Japan Korea Panama Peru Singapore Thailand Trinidad Guide to Opening a Cash Account with Citi, February 2009 page 11 Region FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
14 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account Country Complexity (continued) High Complexity Countries considered high in complexity have more stringent Central Bank and local regulatory requirements. The level of documentation varies from country to country. Required documentation may include: Customer Activation Form Signature Card Global Manual Transaction Authorization (optional) Global and Local Account Conditions Constitutive Documents Translation of Constitutive Documents Identification Documents such as Passport copies Local Declarations Additional approvals for Non-Resident Signatories Guide to Opening a Cash Account with Citi, February 2009 page 12
15 High Complexity In addition, these countries typically require legalization via governmental agencies that includes notarization and Apostille through the Secretary of State s office where the notary is registered. In these cases, the Secretary of State confirms via Apostille that the notary is valid. Generally speaking, legalization involves having documents sent to the local Consulate representing the country where the account is being opened for validation. This process is required by local regulations for those countries that are party to the Hague Convention. Country Algeria Argentina Bahrain Bangladesh Brazil Brunei Bulgaria Cameroon Chile China Columbia Congo Cote d Ivoire Czech Republic Egypt Gabon Honduras Hungary Israel Jordan Kazakhstan Kenya Kuwait Region Country Region Lebanon Malaysia Mexico Morocco Pakistan Paraguay Poland Romania Russia Senegal Slovakia South Africa Sri Lanka Taiwan Tanzania Tunisia Turkey United Arab Emirates Uganda Ukraine Uruguay Venezuela Zambia Central Eastern Europe, Middle East, Africa Latin America Guide to Opening a Cash Account with Citi, February 2009 page 13 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
16 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account Escalation When escalation is necessary: help is just a phone call or away We are committed to delivering consistent, quality service. However, we know that from time-to-time a situation arises and our standard service procedures may not be able to address your immediate needs. To that end, we have put a service into place that enables you to escalate your account opening issue, question, or concern 24-hours a day, Monday through Friday so the Citi Account Services team can work with you toward a quick and complete resolution. Escalation Process Level 1 escalation Client Service Officer or Implementation Manager (If the account opening is part of an implementation) Level 2 escalation Client Service Manager or Account Manager If you are unsure of who to contact, our global escalation service is available to you at any time, for any account opening reason, simply or call, the below: Telephone US Toll Free: International: Call one of the above toll-free telephone numbers to speak with a Citi Account Services Help desk representative. He or she will ensure that your escalation issue is addressed within the same business day. Note: Though unlikely, if all of our representatives are on the phone servicing other clients, you will be prompted to leave a voic message. Please be assured that a representative will return your call promptly. Send an to You will receive an immediate confirmation of receipt of your and the name of the Citi Account Services representative who will be contacting you again, ensuring that the issue is resolved as quickly as possible. Ensuring your complete satisfaction is our number one goal and this process is part of our commitment to provide you with superior service and resolve your queries as quickly as possible. Guide to Opening a Cash Account with Citi, February 2009 page 14
17 Conclusion Thank you for choosing Citi as your banking partner. Our goal is always to give you access to the highest level, best quality service available in the industry. As such, we are continually looking for new ways to streamline our processes to make working with Citi as seamless as possible for you. One of the ways we do this is by providing you with all the information you need to accomplish your day-to-day tasks with speed and confidence. With this Guide, we hope you will find that opening a cash account with Citi is both fast and easy from the processes we have put in place, to the detail on documentation we need from you, to the contact points you can turn to for answers to your questions. For more information about additional products and services visit us at Guide to Opening a Cash Account with Citi, February 2009 page 15 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
18 Guide to Opening a Cash Account with Citi, February 2009 page 16
19 Appendix Guide to Opening a Cash Account with Citi, February 2009 page 17
20 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account Frequently Asked Questions What is Global Account Documentation (GAD)? The GAD is the Citi standard requirements to open cash accounts within Global Transaction Services. The GAD is available in dual languages for most major countries. What documents constitute the GAD? The GAD pack, which has been an auditable requirement since 1999, contains global standard forms designed to be used across 89 countries. The GAD consists of the following documents: Customer Activation Form Signature Card Global Manual Transaction Authorization (optional) General Account Conditions Your Relationship Representative will provide you with a specific checklist for additional requirements based on the country in which you are requesting an account opening. What is the Customer Activation Form (CAF)? Guide to Opening a Cash Account with Citi, February 2009 page 18 This form serves as the official request for an account opening. This required form is signed by an authorized representative of your company and details the corporation name, address and tax identification number. In addition, the CAF allows for acceptance of General Account Conditions and Local Conditions for the country in which you are opening the account without the need to sign the Terms and Conditions. What is the Signature Card? A Signature Card is required for all those authorized to sign checks within an organization. As such, it specifies who has signing authority on an account and provides sample signatures for all those individuals. What is the Global Manual Transaction Authorization? This is required when electronic banking is not available and identifies those authorized to have manual funds transaction access to accounts. Specifically, it identifies who can initiate a wire and who can confirm or approve a wire.
21 What Constitutive Documents might we have to supply to Citi? The Constitutive Documents required to complete an account opening will vary from country to country, but generally include: Certificate of Incorporation: Issued by the Registrar of Incorporations, this certifies the registration of memorandum and the articles of associations Certified Copy of Memorandum and Articles of Association/Bylaws or equivalent: Lists the regulations that govern the running of a company Corporate Resolution/Trade Register/Power of Attorney or equivalent: Details for Citi who the Board of Directors has given account opening authority to in your organization, delivered either on a standard Citi form or your own version and listing name(s) or title(s) of who can open, close and manage bank accounts (when titles are provided, an Incumbency Certificate should also be included) Incumbency Certificate: Provided by your Corporate Secretary indicating individual names, titles and sample signatures as outlined in the Corporate Resolution Why do I have to provide identification documents such as copies of Passports? Guide to Opening a Cash Account with Citi, February 2009 page 19 Passports are a form of identification widely used within Citi and across the industry as a tool for identifying signers on cash accounts. This is especially true when doing business or opening accounts outside of the U.S. In some instances a Driver s License copy will be accepted in place of a Passport. The purpose is to minimize risk for both you and Citi. What are Local Declarations? Local Declarations are forms that require signature and return to Citi. Their purpose is to cover local regulatory requirements outside of the Terms and Conditions. Not all countries will require the completion of a Local Declaration. FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
22 FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account Frequently Asked Questions (continued) What are the General Account Conditions (GAC)? The GAC are streamlined Terms and Conditions governing accounts, applicable in all 89 countries where Citi has an account servicing presence, and are required to open and maintain a demand deposit account (also known as a current account or checking account) on a global basis. Any specific provisions, either local or related to a particular product, should be identified on a separate document that builds directly into the GAC. The GAC covers both electronic banking and account opening. In addition, Funds Transfer language is incorporated so there is no need for signatures on separate documentation in order to include funds transfer. How are Local Conditions different? Local Conditions supplement and/or amend the GAC. These are applicable only for those countries that, due to local laws and regulations, require additional documentation. Please note that not all countries have Local Conditions. If there is a conflict between the local account conditions and the GAC, the Local Conditions will override the GAC. What s the difference between the Resident Checklist and the Non-Resident Checklist? Guide to Opening a Cash Account with Citi, February 2009 page 20 The Resident Checklist is provided when you have an office or presence in the country where the account is to be opened. Alternatively, the Non-Resident Checklist is given to you when your company does not have an office or presence in the country. What is the Access Authorization Agreement? The Access Authorization Agreement or AAA is a form signed in relation to Electronic Banking. When an entity that owns a CitiDirect client definition platform into which the account will be added and the legal entity that owns the account to be added to that platform are not one in the same, this document must be completed and signed. This authority is granted by the entity that owns the account giving permission to the entity that owns the client definition to view and/or transact on the account owner s account. Are there additional documents that must be submitted and signed? In addition to the Local Conditions, the local market may require that you sign additional documents. This is normally required to fulfill local legal or compliance requirements.
23 What is the typical timeline to open a cash account? We have reduced the overall amount of time to open and entitle a cash account from 48 days to 11 days. This includes the time it generally takes to satisfy our Anti-Money Laundering/ Know Your Customer requirements and your completion of all necessary documentation. However, the overall timeliness of the account opening process is depends on several factors, including local laws and requirements as well as mutual cooperation by all parties. What is Legalization? In International law, legalization is the process of certifying a document so that it will be recognized by the legal system of a foreign country. What is an Apostille? Apostille is a French word which means a certification. It is commonly referenced to the legalization of a document for international use under the terms of the 1961 Hague Convention abolishing the requirement of legalization for foreign public documents. Documents which have been notarized by a notary public and then certified with a conformant apostille (via Secretary of State s Office where notary is registered) are accepted for legal use in all the nations that have signed the Hague Convention. What is Consularization? Guide to Opening a Cash Account with Citi, February 2009 page 21 Consularization in international law, is the act of authenticating any legal document by the consul office, by the consul signing and affixing a red ribbon to the document. In countries which are not signatories to the 1961 convention and do not recognize the apostille, a foreign public document must be legalized by a consular officer in the country which issued the document. In lieu of an apostille, documents in the U.S. usually will receive a Certificate of Authentication by the United States Department of State in Washington D.C. as a prerequisite. Once authenticated by the Department of State, the documents then need to be reviewed and approved by the consular staff of the country in which the transaction is to occur. Is the account opening process for Financial Institutions different from Corporate clients? Financial Institutions follow the same process as Corporate clients and have the added option of requesting incremental accounts via SWIFT. What does it mean to have the account entitled? Account entitlement means you are able to transact on the account via an electronic method. Most Corporate clients use CitiDirect while most Financial Institutions use SWIFT. FAQ Conclusion Escalation Complexity Smart Checklist Capital Injection Account Reservation Anti-Money Opening a Cash Account
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