Private banking for business owners and entrepreneurs is offered on qualifying criteria set by each bank, generally based on income, investable assets or the value of the business relationship. Requirements cover verification of identity, source of funds and, for business clients, the entity structure.
For business owners the practical distinction is between personal private banking, assessed on your own income and assets, and a business banking relationship assessed on the enterprise. Banks commonly bundle them, and the qualifying test may consider both.
Business Requirements at a Glance
Private banking relationships are generally assessed on the following.
- Income or investable assets at or above the threshold the bank sets
- Verification of identity and residential address under FICA
- Verification of the source of your funds and wealth
- For business clients, the entity registration documents and beneficial ownership details
- A strong credit record where credit facilities form part of the relationship
- Tax residency information, required for international reporting
Registration and Legal Requirements
Thresholds differ substantially between banks and are revised. Some define qualification on annual income, some on investable assets, and some on the total relationship value including business banking.
Beneficial ownership must be established for entities, meaning the natural persons who ultimately own or control the business. Complex holding structures require tracing through them.
Documents and Ownership Information Required
Expect to provide identity and address documents, entity registration documents, financial statements, and documentation of the source of your funds and wealth.
Source of funds verification is more rigorous at this level, reflecting anti-money-laundering obligations. Where wealth came from a business sale, an inheritance or a property disposal, documentary evidence of that event is required.
Tax, Licence and Compliance Requirements
Tax residency information is collected for international reporting purposes, and providing inaccurate information has consequences. Where you have tax obligations in more than one country, disclose them.
Private banking bundles relationship management, preferential rates, credit facilities and sometimes investment advice, with a fee structure that differs from ordinary banking. Establish what you are paying for.
Where investment advice forms part of the service, establish how the adviser is remunerated and whether it is independent.
Process, Deadlines and Ongoing Obligations
Compare banks rather than accepting the first offer. Thresholds, fee structures and what is included differ substantially between providers offering superficially similar services.
This page does not restate qualifying income or asset thresholds, because banks revise them and third-party figures are frequently out of date. Confirm the current criteria with the bank directly.
This page is general information and not legal or tax advice. Confirm current thresholds, rates and requirements with SARS or a registered tax practitioner, since they change with each budget.
Frequently Asked Questions
What qualifies me for private banking?
Income or investable assets at or above the threshold the bank sets, which differs between banks and is revised. Confirm with the bank directly.
Is business banking included?
Banks commonly bundle personal private banking with a business relationship, and the qualifying test may consider both.
Why is source of funds verification so detailed?
Anti-money-laundering obligations are applied more rigorously at this level. Documentary evidence of how wealth was generated is required.
Is investment advice included?
It varies. Where it is, establish how the adviser is remunerated and whether the advice is independent.
Confirm current qualifying criteria and fee structures with the bank directly. This page is general information and not legal or tax advice. Confirm current thresholds, rates and requirements with SARS or a registered tax practitioner, since they change with each budget. Browse all business and compliance requirements.