It create a major issues for us because our business was shut down for ca 8 weeks.
As Crowdcredit Estonia is a financial institution (licensed and supervised by Financial Intelligence Unit) in Estonia and we are issuing loans via crowdfunding platforms the we were not able to collect funds and transfer these to our investors (i.e. Japanese private individuals).
Crowdcredit Estonia has also bank account in Tokyo but this bank does not provide IBAN account number.
As we are collecting payments also from Estonian crowdfunding platforms (e.g. Bondora) then Estonian banks do not allow Bondora to make payments to Japan.
6 Dec 2019 SEB Pank AS sent us a letter that our accounts will be closed since 6 Jan 2020.
Due to the fact that at the end of the year there was ca 3 weeks vacation period (Christmas, New Year) and we had to find another bank to open the account and obtain necessary documentation from Japan because our parent company is located in Japan then it was not even possible to open an account in another bank.
We asked SEB to prolong the closing of the account 3 times but SEB responded always NO.
Verbally they said that as Crowdcredit Estonia OÜ is issuing loans in South Africa and Latin America then this does not correspond to SEB's risk appetite and they will need to close the accounts.
We also took legal action against SEB and asked the court to postpone the closure of the accounts. The court did not satisfy our request. The proceedings are still ongoing. As we managed to open the account in Transfewise then we made a compromise agreement to SEB to stop the legal proceedings. SEB asked us to compensate their legal fees ca 8000 euros. We refused and now we are waiting the court decision.
As the account closure happened during Christmas Period then we tried to open the bank account in Swedbank, Coop, Citadele and LHV.
They all said no because the parent company is located outside Baltic countries, in Japan.
Likewise, they said that as Crowdcredit is a financial institution then it is a high risk client and their risk appetite does not allow to open an account to high risk client.
Finally we managed to open IBAN account in Transferwise.
Regulated loan provider
Crowdcredit Estonia OÜ