Understanding Offshore Banking – Updated April 2013

Offshore banking is not a complicated matter providing that you know what you do and that you receive the correct advice. As to the definition of Offshore banking it simply means using a bank in a country other than your own, and contrarily to a common belief it does not necessarily means that you are banking on a island (even if most know tax have are indeed island).

What is the Most Important Consideration when Selecting a Country where to Bank?

• Privacy is of course an important issue. Is the bank secrecy strong in this country and is it respected and enforced by the country authorities. Belize for example has one of the best bank secrecy in the world.
• The soundness of the bank is important because the best secret banking in the world will not help you if the bank goes bankrupt. Some countries monitors there bank better than others. Here again Belize deserves a good mark. Be wary of offshore banks in east European countries as I have seen a few fails.
• Tax Treaty Network: Check if the country where you want to open your company or bank account has tax treaties with other countries and especially with your own country. For example some countries in the Caribbean have given in to US pressure and signed tax treaty with the US or with Europe. Belize has some tax treaties with European country but none with the US and Canada. Then there are strategies to avoid problems if your country has a tax treaty with Belize, for example an IBC in Belize and a bank account somewhere else. A foundation, a bit more expensive to set is another good tool for perfect offshore protection   

Do Offshore Banks Protect Fully their Client’s Information?

Of course all will depend of the legal framework of the country where the bank is located, so in most offshore haven you may expect above average privacy protection. But you must be warned that even countries like Panama will cooperate with authorities of other countries in four categories of crimes: terrorism, money laundering, narcotics trafficking and child pornography. Therefore the protection is not absolute even in the best haven. Of course to complicate the work of the authorities a strategy can be organized using multiple jurisdictions and structures. But said structures are not needed for the average offshore user which main “offence” would be to do some tax planning or asset protection.

How Does I Select the Best Offshore Banking Jurisidiction

Firstly, you should not be doing the choosing yourself. What i mean is going on a website and select yourself the cheapest offshore company and offshore bank account by yourself because it is cheap may help you save a few bucks but put you in trouble. Even if you read as much information on the web as possible it will still not do. Secondly the best banking jurisdiction is not an absoute principle but a relative one. What i mean is that the best solution for Mr. A may be the worth option for Mr. B. Many elements must be taken into account and a solution given on the net may not be the best for you because it does not match all the criteria of your personal situation. Also it is always difficult to know when an information was posted. Now the fact is that a solution designed 3 years ago may not be good anymore. 

 

For more information about our banking solutions please read our posts about offshore account opening at distance in the following countries

 

Location	Bank	Information
Andorra	BPA Bank	Click Here for more information
Barbados	Scotia Bank	Click Here for more information
Bulgaria	Various	Click Here for more information
Cyprus	Bank of Piraeus	Click Here for more information
Dubai	Barclays Bank	Click Here for more information
Hong Kong	HSBC	Click Here for more information
Seychelles	Barclays Bank	Click Here for more information
St Vincent & Grenadines	LB Bank	Click Here for more information
Switzerland	Various	Click Here for more information

 

Do not hesitate to contact us at corporate@offshorepremium.com for a consultation on the best tailored solution for you offshore company and offshore bank account. you can also consult us through the contact form

Originally posted 2012-06-09 09:49:10. Republished by Blog Post Promoter