Offshore Banking
When it comes to the safety of your financial resources and the protection of your assets, we recommend the safest and most secure financial institutions in the world. Depending on the jurisdiction you choose, we have relationships with secure offshore banks that offer our customers security, stability and safety.
"Offshore banking or Offshore banks refers to the many banking and investment institutions available in countries and jurisdictions other than the depositor’s home country. While technically any bank can be considered an Offshore bank when it meets the above criteria, the term is generally reserved for the banking institutions located in what are considered jurisditcions that have a high regard for the privacy and security of their depositors.
Since their origin, Offshore Banks, tended to be unfairly portrayed by both media and the home jurisdictions alike. The accusations have ranged from tax evasion to money laundering, but careful examination of the true purpose of Offshore Banking Accounts, and an unbiased examination of where illicit funds are truly held or "laundered", sheds light on the situation. The most reputable jurisdictions also have a high regard and respect for international law and will not accept illicit funds. Other false accusations have centered around criticism of unsafe environments, poor regulation, etc. Again, these could not be farther from the truth. The popular Offshore Bank Account jurisdictions of good repute have very sophisticated, stable banking regulations. Because it is in their best interest to attract and keep depositors, these regulations are geared towards meeting both the needs of their clients and complying with internationally accepted anti-money laundering regulations. Many of these jurisdictions rely on foreign capital held in their banks as their primary currencies, and as their main source of foreign investment. In order to move this foreign capital through their countries of origin, they must also be mindful of their regulatory standards. That is another reason why banks worldwide are required to follow certain know-your- client practices such as requiring a notarized passport copy and original utility bill showing one's residential address.
What is Offshore Banking?
The broad definition of an Offshore bank is that of a bank that is located in a jurisdiction or country that is different from the jurisdiction or country that the depositor or investor resides. One of the many benefits of holding an Offshore banking account is that they are usually located in financial havens that provide substantial asset protection and confidentiality benefits to the bank account signatory. These jurisdictions also often allow for a relaxation of restrictions with respect to the types of offshore banking accounts available to depositors or investors, and how then can be invested. This amounts to decreased regulation and greater flexibility for the depositor. The more popular offshore jurisdictions often provide a substantial increase in financial privacy. (People in the US are generally taxed on worldwide income, so it is the duty of the accountholder to comply with applicable tax laws.) For our purposes here we will focus only on those proven to provide quantifiable benefits as outlined above. These Offshore banks can be located in actual island-states such as the Caymans or Channel Islands, or in landlocked countries such as Switzerland. Switzerland has been a secure financial haven for over a hundred years, thus, and longer than the island nations. There has been much chatter regarding the privacy of Swiss banks. You'll notice, however, the only Swiss banks that have had issues are those banks with branches located outside of Switzerland. Those with purely Swiss locations continue to maintain strong privacy.
As mentioned in our opening paragraph, there are a number of misconceptions and myths associated with offshore bank accounts in these offshore financial centers. Are Offshore Banks the Haven of Money Launderers and Criminals? Not today. The international banking world does its best to weed out the unsavory characters. We have additional information on Offshore Bank Account Myths that should be taken into consideration.
Where Should an Offshore Bank Account be Established?
It is important that the proper jurisdiction be selected when deciding which offshore banking district to choose. The majority of the offshore jurisdictions have prudent, sound regulations in place geared towards safeguarding the deposits and maintaining the confidentiality of the accountholder. However, some weigh their benefits in safety, while others in confidentiality, and some, such as Switzerland, offer both. Though the popular venues all offer a comparatively similar confidential and secure environment, it bears consideration to outline what one's banking goals are and then choose the jurisdiction accordingly. A very small minority of the offshore jurisdictions do a poor job of managing and regulating their banking institutions, but the informed investor or advisor will deem these as unsuitable for themselves or their clients. Further, these poorly organized and run jurisdictions are often manipulated by illicit depositors and hence prove easy targets of the FATF (Financial Action Task Force) looking for money laundering or other criminal activity.
History of Offshore Bank Accounts
It is an unfortunate fact that Europeans have long been subjected to relatively heavy tax burdens. This was as true in the British Isles as it was on the continent. Faced with the prospect of watching their hard-earned assets and wealth diminish with every reach of the tax collector’s hand, they were ripe for a solution. And a solution came. The small, island nation state known as the Channel Islands convinced these frustrated depositors that funds placed in its banks could be free from scrutiny the hence the heavy-handed taxation burden. The Europeans were convinced and soon this service thrived, with other small jurisdictions becoming savvy to this foreign capital-attracting strategy. So, they began to revamp their banking institutions, adopting sound, pragmatic banking rules and regulations that eased the potential concerns of investors and depositors. The Offshore bank was off to a running start!
And soon the term “Offshore banking” became synonymous with any smaller, haven jurisdiction that offered safe, secure, confidential banking with practical regulations. Soon the rest of the world was “in the know”, and began to look at these havens as viable solutions to their needs. Americans, Africans, Asians, etc., found these Offshore bank accounts quite useful for a myriad of reasons. Unlike their banks at home, these Offshore banks were not regularly subjected to political turmoil or economic strife, and were most welcome for their stability and asset protection benefits.
In the years since they have come into greater use and thus more visible. Some offshore banking accounts have been unfairly portrayed by the larger jurisdictions and their corresponding media outlets as the stomping grounds of the criminal underground--a veritable haven for their illicitly-obtained assets and funds, or the choice locales for their money-laundering schemes. Money-wise investors and depositors have long known that these prejudices could not be further from the truth. They know that offshore banks can be remarkably effective havens for assets and funds in need of safe, secure, confidential keeping. They know that these banks can safeguard their funds from the perils of civil, economic, or political strife in their home countries. Today, offshore banks continue to keep their end of the bargain and continue to provide a safe, confidential haven for those seeking to safeguard their assets and funds from the perils of aggressive litigation.
Many a discriminating depositor has benefited from the safe, confidential, and asset protection environment that an Offshore banking account has to offer. While it is important to assess your goals and discuss these with a competent, experienced agent before leaping into un-chartered waters, there are many unquestionable benefits provided by establishing an Offshore bank account. Their reputation among depositors and investors for providing a viable banking location featuring protection from liability and confidentiality is growing, and Offshore banks will continue with this hard-earned reputation for asset protection, tax reduction (depending on your jurisdiction), and superb confidentiality of deposits.