Business bank account for precious metals and bullion dealers with a US LLC

Our process begins with a detailed structural review of your US LLC. We analyse the articles of organisation, operating agreement, and ownership, including the residency and background of the Ultimate Beneficial Owners (UBOs). We verify the source of funds for the business capital and the source of wealth for the UBOs, ensuring a clear and documented trail that satisfies institutional compliance requirements.

Next, we build a complete Know Your Business (KYB) package. This file includes all necessary entity documents, such as the EIN confirmation letter, along with your dealer registrations, supplier agreements, and a robust AML/CFT policy. We present your business model, expected transaction flows, and geographical exposure in a format that underwriters at our partner institutions recognise and trust. This preemptively answers their key questions.

Based on this verified profile, we identify and engage with appropriate financial institutions. These may include US-based fintechs comfortable with higher-risk MCCs or international banks and EMIs that specialise in the bullion trade. We manage the introduction, prepare you for the compliance interview, and handle any follow-up queries. After the primary account is operational, we typically scope a second provider to build in redundancy.

Underwriters and compliance teams focus on five key areas for a US LLC in the bullion industry. First and foremost is the source of funds and wealth; they will demand irrefutable proof of the legitimate origin of the capital invested in the business and the personal wealth of the owners. Second, they scrutinise the business plan for coherence, paying close attention to projected monthly volumes, average ticket sizes, and the logic behind the expected flows.

Third, they assess counterparty and geographic risk. Underwriters will want to know where the metals are sourced from, who the typical customers are, and which countries you will be transacting with. Any exposure to high-risk or sanctioned jurisdictions is a significant red flag. Fourth, they verify your legal status. This includes confirming your registration as a precious metals dealer and ensuring you are correctly supervised for AML purposes in your operating jurisdictions. Unregistered dealing is an immediate deal-breaker.

Finally, they assess substance. While a US LLC may not require a physical office, underwriters look for signs of a real, operating business. This includes a professional website, evidence of management and control, and a clear connection between the UBOs and the business activities. The file we prepare addresses each of these points with clear, verifiable documentation.

Using a US LLC presents specific advantages and challenges for bullion banking. The structure itself, whether a Wyoming, Delaware, or New Mexico LLC, is familiar to international compliance teams. The primary currency is USD, but EEA and UK-licensed EMIs can provide EUR and GBP accounts, often with more appetite for this sector than traditional US banks.

The main jurisdictional consideration is demonstrating compliance with US regulations. This involves obtaining an Employer Identification Number (EIN) from the IRS, a process that can take several weeks for non-resident owners. For businesses defined as Money Services Businesses (MSBs), registration with FinCEN is required. We ensure these registrations are complete and correctly presented.

Tax reporting is another critical factor. A foreign-owned single-member LLC, for example, must file Form 5472 and a pro forma 1120 with the IRS, even if it has no US-source income. Demonstrating awareness and readiness to comply with these obligations is a key part of underwriting. While some fintech accounts are accessible, the 5094 MCC often requires a specialist provider prepared for the compliance load, which is where our network becomes critical. We find that a well-documented US LLC is often a stronger vehicle for this trade than entities from some European jurisdictions like Estonia, which face broader de-risking.

Accounts for precious metals dealers are frequently declined or terminated for reasons that a well-prepared file can mitigate. The most common cause is an inability to satisfy the bank's questions about source of funds and wealth. Vague, incomplete, or unverified explanations for how the business was capitalised or where the owners' wealth originated will lead to rejection. We prevent this by building a clear, evidence-based narrative from the outset.

Another major reason for decline is a perceived lack of regulatory compliance. This could be a failure to register as a bullion dealer where required, or operating with an inadequate AML policy that doesn't address the specific risks of the industry, such as high-value cash-equivalent transactions. Financial institutions will not onboard a business that exposes them to regulatory risk. We ensure your compliance framework is documented and robust.

Sudden changes in transaction patterns without explanation can trigger account closure. A sudden spike in volume, new international payment corridors, or unusually large refund requests due to price volatility can lead to an account being frozen pending investigation. We help you establish clear communication protocols with your provider to announce significant operational changes in advance. Finally, a mismatch between the application and reality, such as dealing in unverified-origin metals when the file stated otherwise, will lead to immediate off-boarding.

The timeline for securing a business account for a US LLC bullion dealer typically ranges from 2 to 8 weeks. The exact duration depends on the chosen institution, the complexity of the ownership structure, and the UBOs' risk profile. Specialist EMIs and fintechs that are agile and experienced with the sector are often quicker, falling in the 2 to 4-week range. International banks with more rigid committee-based onboarding processes may take the full 8 weeks or longer.

Our preparation of a comprehensive KYB file is designed to minimise delays by anticipating underwriter questions. A clean, well-documented file with clear source of funds verification moves through compliance queues faster. The onboarding process itself involves submitting the file, responding to initial queries, and a compliance interview with the UBOs, for which we help you prepare.

Staying live requires ongoing compliance and communication. This means adhering to the business activities described in your application, maintaining your AML and dealer registrations, and providing information for periodic reviews promptly. It is also crucial to alert your relationship manager to any significant changes in your business model, such as opening a new supplier relationship in a different country or anticipating a large transaction outside your normal pattern. Proactive communication prevents your account from being flagged for unusual activity.