Safeguarding bank accounts

If you’re an authorised payment institution (API) or e-money institution (EMI) handling client funds, then you must comply with the safeguarding requirements under PSD2. The segregation method, which uses a specialist safeguarding bank account, is the most common method of safeguarding.

However, getting the right safeguarding bank account can be difficult. Banks may refuse to offer these accounts to firms that are not yet authorised. API Compliance can connect you with a reputable bank using its well-established network of banking contacts.

What client funds do I need to safeguard?

The Financial Conduct Authority specifies that you need to safeguard ‘relevant funds’, meaning:

• Funds you receive from or for the benefit of a payment service user, and;
• Funds from a payment service provider for a payment transaction to be made on behalf of a payment service user.

Who needs a safeguarding bank account?

Small payment institutions (SPIs) can choose whether or not to adhere to safeguarding rules, but the FCA encourages them to do so. Authorised payment institutions (APIs), authorised e-money institutions (AEMIs), and small e-money institutions (SEMIs) must comply.

How can I get a safeguarding bank account?

Criteria for approval of a safeguarding bank account can vary by bank. For example, some banks require a minimum turnover level or a minimum number of employees, and others may not consider startups.

How long does it take to open a safeguarding bank account?

With our help, the process should take only a few weeks. Contact us before you waste time applying to banks; we’ll find the right match faster.

What makes us different?

Many businesses struggle to get approved for a safeguarding bank account. Our established network of banking contacts enables us to help you get the right account faster.