Offshore Private Banking

Summary: Offshore private banking is of course a service offered via an offshore jurisdiction; the jurisdictions most commonly favoured for such activities are the more highly protected and regulated ones such as Jersey and Guernsey, although offshore private banking is certainly not exclusively restricted to such jurisdictions.

The term ‘private banking’ is often misused but it has a very specific meaning; it is the act of directly managing a high net worth private client’s finances and it is often but not always conducted by a private bank.

Offshore private banking is of course a service offered via an offshore jurisdiction; the jurisdictions most commonly favoured for such activities are the more highly protected and regulated ones such as Jersey and Guernsey, although offshore private banking is certainly not exclusively restricted to such jurisdictions.

What is a Private Bank?

When it comes to private banks they are not necessarily banks limited in access to certain people, nor are they nowadays always privately held banks as opposed to being listed companies.  The very first private banks were privately held, they were established in Geneva in Switzerland in the 1800s and they were created as limited partnerships, in fact a few still remain to this day, but nowadays there are many forms of private bank located around the world. 

A private bank specifically and exclusively offers private banking for high net worth individuals as mentioned, but some high street banks also offer private banking services to their main clients and the minimum initial account balance required can vary but rarely drops below £350,000 on deposit and available to invest.  One of the main points of private banking is offering a dedicated and personalised level of service to a client - such a level of service is usually unheard of in this day and age with internet banking, call centre based service centres and a branch’s bank manager changing from one month to the next.

Offshore Private Banking Features

In terms of the private banking services offered they will differ per bank and per client - especially depending on the wealth of the client - but a straight forward example of the basic offshore private banking services offered will always include: -

Having a dedicated bank manager to manage the client’s day to day financial requirements - the bank manager will build a rapport with his client and be that client’s direct and immediate point of contact with the bank

Having a premier accounting structure with an emphasis on flexibility

Having access to extended credit card, loan and overdraft facilities

Having access to investment specialists and advisors

Getting a dedicated portfolio management service

Receiving tax planning assistance and personal structuring of investments and assets: this tax planning assistance can include dedicated trust services

The complete utilization of all the offshore benefits offered by the particular jurisdiction in question which will likely include privacy, security and confidentiality, no local income or capital gains tax for non-resident account holders, no local inheritance tax liability, no VAT, no exchange controls or local stamp duty.

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