Banking

Why open a business account?

A business bank account is often not mandatory for self-employed persons from a tax perspective, but there are a number of advantages to having one:

• Some banks state in their terms and conditions that it is not permitted to conduct business transactions on a private account.
• A business account is in the name of a company and therefore offers more privacy; when a customer transfers money, they will not see your name.
• A business account provides a clear overview for your bookkeeping and tax returns.

A disadvantage of a business account is that it is more expensive than a private account.

Which banks allow sex workers to open a business account?

The larger Dutch banks accept sex workers as business customers. It is important to state when opening the bank account that the company’s purpose is sex work. Banks sometimes close accounts because the account holder was not transparent.

Most digital banks state in their terms and conditions that they do not accept sex workers as business customers.

Can the bank ask questions about your work?

Banks have been tasked by the government with checking that bank accounts opened with them are not being used for illegal activities, such as money laundering. For this reason, banks conduct investigations into people who have a business account, known as a KYC investigation. Banks are allowed to ask questions about topics such as the type of work the company does, specific transactions and cash deposits.

Banks have committed to respecting the privacy of both sex workers and their clients. Sometimes banks ask for medical information, such as STD tests. This is not allowed without good reason, and we recommend that you seek help as soon as possible!

If you have any questions, please contact us.