What is Commercial Escrow Account?
Commercial escrow account acts as a security on your financial transactions. The bank is the trusted and neutral custodian/agent of the fund until all parties fulfill their respective obligations/responsibilities as per the signed agreement.
Which transactions may require commercial escrow account?
• Mergers and Acquisitions
• Business and Asset Transfer
• Sales and Purchase arrangements
• Other special purpose accounts that require escrow agents
What are the pre-requisites in opening a commercial escrow account?
One or all parties involved in the transaction should be an existing client of the bank.
Do we have a minimum transaction deal in order to avail the commercial escrow account?
Yes, AED 10 million and above worth of transaction with a minimum tenor of 1 month
What are the requirements for opening a commercial escrow account?
Existing Clients Requirements
• Undertaking individual/non-personal multi account
• Signed commercial escrow agreement
• Signed Account Opening Letter
• Signed pricing proposal
Non-CBD Customer Requirements
• Compliance approval
• Certified true copy of Trade License (for company) or copy of valid passports and residential visa (for individuals)
• Passport Copies of authorized signatories
• MOA/Mandate/Board Resolution/POA
• Any other requirements requested by compliance or on-boarding teams
What is the process for releasing payment from commercial escrow account?
The disbursal of fund will be based on the agreed conditions set in the signed commercial escrow agreement