Offshore banking refers to the banking in countries other than your home country. Opening an offshore bank account offers tax advantages, asset protection, and confidentiality benefits. Offshore bank accounts are another effective asset protection option. It is advisable to open an offshore bank account in the Cayman’s or Channel Islands. Choosing secure offshore banks can offer the highest amount of stability and safety.
Offshore banks located on islands like the Cayman Islands and Channel Islands and Luxembourg serve as tax havens for many. Avoid Switzerland, as it signed new treaties with many countries and now discloses everything.
International trust agreement banking is the safest method of maintaining confidentiality in banking. This allows you to open multiple currency accounts. Most of these bank accounts offer anonymous debit cards that can be used to access funds at ATM machines. Offshore bank accounts opened in a jurisdiction that has favorable taxation and legislation can guarantee that income and interest earned on the account are tax-free.
Domestic bank accounts are susceptible to lawsuits while offshore banking provides an unrestricted environment of financial freedom and security. Moving assets to an offshore bank can help savings grow at a faster rate. Offshore banking also allows diversification of personal and corporate banking while providing an international business presence. It protects funds that would otherwise be lost in your home jurisdiction and lets you take advantage of increased banking possibilities. Offshore banking opens up new doors to financial products and services that may not be available in your home jurisdiction.
Look at many types of banking and see which is right for you. A personal bank account is the least protective type of bank account because the account will be in your name and the government can see your name in all international wires sent or received. You can provide a additional layers of security to your bank accounts by using an anonymous corporation, trust, or foundation for banking.
Though there are numerous advertisements online about foreign banks, you need not be confused about choosing a reputable offshore banking jurisdiction. Evaluate your bank based on privacy and customer service. The bank should have measures to protect privacy and calls must be answered by an officer familiar with your needs and in your language.
Be aware that recent regulation in the United States made it a Federal crime if you do not file a Report of Foreign Bank and Financial Accounts (FBAR) if you meet the following conditions:
United States persons are required to file an FBAR if:
- The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
- The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.
- United States person means United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.