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Offshore banking

Global bank account opening services in the jurisdiction of your choice.

Learn about offshore banking. This series discusses the benefits of an offshore bank account, offshore banking jurisdictions, how to set up your account, fees and costs as well as your account security. The offshore banking information you need to know.

The two major benefits of legitimate offshore banking are privacy and securities. Many people often misguidedly think that offshore banking accounts were developed to help people to commit tax evasion and money laundering. But the increased privacy and securities that offshore banking provide can enable individuals with large financial assets to keep their financial stability safe, not from the government, but from prying eyes.

Some countries offer a certain level of amenity to legal suits against their investors’ assets. As your finances are in another jurisdiction, a country may or may not choose to comply with a court order to seize the assets, should the issue ever arise. Also, offshore banking accounts do not usually require members to provide any more information than the primary holder of the account, and they will not disclose such information to third parties.

That being the case, many countries (dependent upon one’s residing jurisdiction, as well as the bank’s jurisdiction) have strict regulations, policies and procedures to ensure that investors of their local banks are not doing so for illegal purposes. Countries do try to work together in such matters, especially when criminal activity, fraud or potential terrorism is being investigated.

Before investing in an offshore bank, you should ensure that you have determined the jurisdiction which best balances the privacy, securities and the taxation of your funds. Some countries offer higher levels of one or more of these fields, so it is critical that you determine your overall financial goals and ensure that the jurisdiction meets your specific demands. It is also important to research desirable jurisdictions to see if the FATF has been involved in any way. If this research finds there has been a high level of FATF investigations and involvement in that area, you are advised to seek a better area.

Offshore accounts are usually set up through a legal representative of the institution you are planning to invest with. It is always best to ensure they are well established in the desired financial institution for which you want your funds invested. If you are not dealing directly with the institution, an offshore financial adviser or assistant could be chosen instead, but be cautious in doing this and ensure that the firm is well established and licensed.

After obtaining proper financial assistance (if applicable) the initial investment will need to be secured. As offshore banking accounts cater for those with a high income, expect the initial deposit requirement to be rather high. This amount will vary greatly, depending on the jurisdiction and amenities that are offered by an offshore bank.

Although taxation is limited substantially when investing in an offshore banking account, most jurisdictions will still require you to report such income. Offshore banking should not be used as a method of tax evasion or money laundering, but should instead be utilised for the tool that it is. Security of assets and a definitive regard to privacy should be the motivators in establishing an offshore account.

Finally, when establishing an offshore bank you need to be aware that not all countries are outside the jurisdiction of the country you are residing in. To put it more bluntly, even though you may have your assets in another country, this does not mean that the country in which those assets are stored is immune from seizure. Some countries will work alongside your residing country if is needed to obtain finances or assets.

As with all financial matters, you are strongly encouraged to research the benefits and jurisdictions that are most likely to meet your specific needs, and advised to seek legal counsel if you have any legal questions. By ensuring that your finances and assets are secured with limited outside access and disclosure, you will make sure that your wealth is secured for generations to come.