One bank closed all of our accounts and stooped their business relationship with our company. Three banks denied to open a clients account in order to deposit client's money.
By not being able to deposit the clients money to the banks and then transfer the money to MoneyGram international in Germany, the following problems have arised:
1) We had to come to an agreement with a security company to visit our Agents network and pick up the clients money, store that money in a vault and then send the actual money by plane to MoneyGram International. The cost of this actions is very high. If we can not find a solution with a banking institution soon the cost of running the business of a Payment institution will be so high that it will force us to shut down the company.
2) When we had a clients account with Bank of Cyprus we used to transfer the money to the account of MoneyGram International in Germany twice per week. Now due to the issues we send the money to MoneyGram International every two months. Due to the high amount of money in the safe in Cyprus our relationship with our partner MoneyGram International has deteriorated and we have a lot of trust issues. We spend a lot of hours in meetings and creating reports thus increasing the cost of doing business.
3) Due to the high cost of cash collection we do not collect the money from our Agents every day. Because of that we had to increase their credit limit thus increasing our business credit risk.
4) Our Agents are turning down prospect clients because they are afraid to have a lot of cash at their premises. They are afraid of being the victims of theft. Due to that we have experience a decrease in our transactions and growth.
The cost of cash collection and storing the money in the vault is around 16,000 euro per month.
The cost of doing business with our company is consider by the banking institutions to be very high.
They did not give us an opportunity to have there decision reviewed and refused to sit down and discuss the issues.
No alternative channels to deposit money to a bank account. We discussed with Central Bank of Cyprus if they are willing to open an account in Central Bank of Cyprus but they said that it is not possible at the time.
licensed Payment Institution
Ellinas Finance Public Company Limited