The Big Problem With Wise (Don't Get Your Account Closed)

Summary

In this video, the speaker discusses the challenges faced by business owners trying to open USD accounts with Wise (formerly TransferWise). Due to recent restrictions and data security concerns, many individuals from certain countries are unable to access these accounts. The speaker emphasizes the benefits of using Wise for international transfers but advises clients on alternative banking options like Relay and Mercury. They recommend seeking professional assistance to navigate the complexities of opening bank accounts in the U.S. and staying informed about Wise's evolving policies. The overall message highlights resilience and adaptability in managing international finances.

Takeaways

• 😀 Wise.com is a valuable tool for business owners to manage multi-currency accounts, including USD, Euro, and GBP.
• 💵 Using Wise for international transfers can result in better rates and lower risks of account closures compared to traditional U.S. banks.
• 🌍 Certain countries (e.g., Afghanistan, Bangladesh, China) face restrictions on opening USD accounts with Wise.
• 🔒 Recent challenges in accessing USD accounts may be related to data breaches and changes in banking partnerships.
• 📋 Users may be required to provide additional verification information to open or maintain their accounts.
• ⚠️ Frequent international transfers can lead to account closures by U.S. banks, prompting the need for alternatives.
• 🏦 Alternatives to Wise include online banks like Relay and Mercury, which require a U.S. physical address for account setup.
• 👨‍💼 Consulting with a professional CPA can help navigate complex banking requirements and find suitable solutions.
• 🤝 Users are encouraged to reach out for personalized assistance if they encounter difficulties with banking options.
• 💡 Despite challenges, there are still viable pathways for foreign business owners to open accounts and conduct business effectively.

Q & A

What is Wise.com (formerly TransferWise) used for?

Wise.com is a financial tool for business owners that allows them to open multi-currency accounts in various currencies, including USD, Euro, and GBP, which is particularly useful for international transfers.

Why is Wise recommended for international transfers?

Wise is recommended for international transfers due to its generally better exchange rates and lower risk of account closure compared to traditional banks, especially for businesses that need to send money frequently across borders.

What issues have arisen with opening USD accounts at Wise?

Recently, there have been problems with individuals from certain countries being unable to open USD accounts at Wise, which has led to speculation about the reasons behind this limitation.

What countries are restricted from opening personal USD accounts with Wise?

Countries restricted from opening personal USD accounts at Wise include Afghanistan, Bangladesh, Cameroon, Cuba, India, Myanmar, Nevada, Ukraine, UAE, Venezuela, Yemen, Serbia, Russia, and Pakistan, among others.

What should clients do if they cannot open a USD account with Wise?

If clients cannot open a USD account with Wise, they are advised to explore other banking options or consider using different online banks that may have less restrictive policies.

What alternative banks can be used for business accounts?

Alternatives to Wise for business accounts include online banks like Mercury and Relay, but these often require a US physical address for account opening.

How can clients who are restricted from opening accounts find solutions?

Clients from restricted countries can potentially seek assistance from relatives or friends in non-restricted countries to help them open accounts or consider creating a new LLC to navigate the restrictions.

What recent event may have impacted Wise's operations?

A ransomware attack on Evol Bank in July could have affected Wise's operations, leading to limitations on account openings and requiring additional verification for clients.

What is the significance of physical addresses in opening bank accounts?

Having a physical address in the US is crucial for opening accounts with online banks, as many of these institutions require verification of a US-based address.

What should clients do if they feel overwhelmed by banking issues?

If clients are overwhelmed by banking complexities, they are encouraged to schedule a consultation with experts who can assist them in navigating the banking landscape effectively.