Offshore Bank Account Costs
Most people establish offshore bank accounts for asset protection from lawsuits and for financial privacy. You don’t buy a drill because you want a drill. You buy one because you want a hole. So, we not only need to ask, “What is the cost to establish and maintain an account offshore?” We also need to ask, “What is the cost of, asset protection and financial privacy?”
So, for asset protection and financial privacy, the first rule is not to open the account in your own name. Open it in the name of an offshore corporation, LLC or trust. Suppose your name is Pat Smith. You wire money from from the bank down the street to an account offshore held by “Pat Smith.” The wire transfer trail leaves a longstanding record that you have an account offshore. That is why we generally open offshore bank accounts under the name of companies or trusts.
This increases privacy, because wire transfers in and out as well as other offshore banking transactions are conducted under the name of a company, not the individual. The setup fee for opening an offshore bank account is usually between $550 to $1,250. This depends on the bank and the jurisdiction. An offshore company typically runs between $1,685 and $2,495. So, the total is usually $2,235 to $3,745 for both.
How Many Offshore Banks are There?
According to Quora, there are an estimated 14,600 banks in the world as of this writing. However, very few banks will open accounts for foreigners, especially those from the US, UK, Canada or Australia. Plus, there are a wide array of service levels from stupendous and satisfying do downright unpleasant. Will your money be safe? Can you trust the bankers? Think about it. This is your money. You want a pleasant and safe banking experience right off the starting line.
There are a number of super safe, banks that provide great service. But there are too many banks out there to find the right one by bumbling around the Internet. The best way to find out is to ask someone who has been there before; especially someone who has established offshore accounts for thousands of people. So, hire an expert. It will be worth the small investment to get it right the first time. If you want more information there is a phone number and consultation form on this screen. Reach out and take advantage of it.
Opening an Account
Offshore banking requires an application, due diligence and an initial deposit to activate your account. The application is usually straightforward. It has your name, address and telephone number. You will typically give a rough estimate of how much you intend to deposit and withdraw and other information.
Sure, you want privacy. But you don’t want so much privacy that someone pretending to be you could walk into the bank and withdraw your cash. So, due diligence, such as a notarized copy of your passport, an original utility bill and reference letters are needed. They need to know that if someone calls, emails or walks into the bank to ask for the money that it’s really you. Your information will be confidential. But you want the money to go to you, not someone who says they are you. That is a big reason why they request identity documents.
It is an economic stability factor when one’s countrymen think of their banks as safe and secure. This is a universal principle. So, the international community comes together every year in Basel, Switzerland to come up with international banking standards. How much debt should a bank be able to take on in comparison to bank assets? How much cash should be kept on hand? What steps do they need to take to keep criminal proceeds and terrorist funding out of the system?
One of the most popular offshore banking jurisdiction is the Cayman Islands. Here you can read about an Cayman company and account.
So, another reason that banks require due diligence is that they want to welcome the “good guys” and keep out the “bad guys.” You may want privacy. But you also want your money safe and accessible. Therefore, you don’t want international regulators to shut down the bank and freeze your money. That’s what would happen if you shared a bank with the reincarnation of Osama Bin Laden. Bankers don’t just ask for identify documents because they are nosy. They want you and the other depositors to be safe. Moreover, they don’t want to lose their banking licenses by carelessly accepting bad guys into the system.
Why They Don’t Make Exceptions
Doing all of this due diligence that international standards require is not free. It costs money. So, that is why opening an account offshore involves a setup fee. The bank is not going to risk losing their license and skip the due diligence process and know-your-customer (KYC) regulations. You may say you are a nice guy or nice gal. However, the bank doesn’t know you. So, they will need you to prove it.
The bank will not bypass the regulations because you call them with fire shooting out of your mouth. They will not make an exception because you are jumping up and down like a screeching monkey because they are taking too long or asking for too much information. Local regulators regularly audit bank. They need to make sure the banks have checked all of the boxes for each account setup. So, don’t expect the to give you a wink and a nod. That is, they will not pat you on the head because you are too lazy to go get a passport or bank reference letter. They are not going to risk losing their license for you. They would rather just move on to the next customer who goes with the program.
Offshore Banking Fees
Monthly maintenance fees can run from $20 to $100, or so. Wire transfer fees are usually from $25 to $75. If you want an account where you can invest in the stock market there are institutions where you can trade on your own. There are also institutions where you can have an experienced money manager make investments for you, with your approval. Money managers usually charge a tiny percentage of the money they manage. Naturally, the types of fees and the amount charged vary by institution. They may be inside or outside of the ranges mentioned here.
The interest rates paid on deposits, monthly fees and types of accounts vary. Most offshore financial institutions have competitive rates in order to attract depositors. The interest rates paid offshore tend to be higher than domestic institutions. The process of establishing your offshore bank account will involve processing fees, courier charges and some small miscellaneous costs. These things may include things such as notary charges, etc. OffshoreCompany.com has helped thousands of people open private offshore accounts, companies and trust. So, reach out for us and we can assist with those needs today.
Find out what jurisdiction and bank is right for you is easy. Simply utilize the number or inquiry form above and explain your needs.
Last Updated on October 21, 2019