Disadvantages of Banking Offshore
As is implied by their name, Offshore banks are very often located in smaller jurisdictions in remote regions. This is not always the case, but it is the perception of many about offshore bank accounts. While this may lend a certain amount of trepidation to a potential depositor or investor, with a careful approach to the selection of the jurisdiction and Offshore bank, this worry is moot. With the ever-increasing use of technology to deposit, handle, transact and invest money, the physical location of the bank is almost irrelevant. No matter if the banking institution is in New York or New Delhi, most of the transactions are simply a mouse-click away. And with the increased acceptance of debit and bank-backed charge cards, offshore banking account funds are available at literally tens of thousands of “ATM points” worldwide.
Further, if the astute agent assisting the potential depositor upholds his end of the bargain, he will have pointed the depositor to the Offshore bank that offers the proper balance of security, asset protection, and confidentiality that is best suited to the depositor’s interests.
Many people also imagine that Offshore banking is the realm of the wealthy or the mega corporations because of an erroneous assumption that these banks are only interested in mega-deposits or transactions. This is also not completely true. While there are certainly jurisdictions that cater to those seeking to safeguard substantial assets and estates (take, for example, Switzerland and Luxembourg), there are also those jurisdictions that have much lower depository requirements and that can prove extremely useful and valuable to those without immense assets. There are even a few jurisdictions with minimum deposit requirements of $500, though establishing Offshore bank accounts for amounts this small would conceivably make for more effort than the value they provide.
Last Updated on January 26, 2018