Following on from a number of queries we have received, this article offers an overview of why an offshore bank account could benefit you and how to open an offshore bank account if you decide that you would like one.
The information contained herein is general and does not constitute personal advice on any level. However, if you would like to speak to someone about your own offshore banking requirements simply complete our offshore advice form.
Generally speaking offshore banking can be of potential benefit to:-
- Those who wish to bank in multiple currencies
- Those seeking international access to their money
- People who require greater flexibility from their bank account structure
- And those who would like to add an extra layer of privacy to their financial dealings
Specifically an offshore bank account can also be of benefit to some expatriates residing in low or no tax countries as any interest earned on offshore bank deposits is paid without the deduction of taxation.
Offshore banking can also benefit companies with a presence in more than one country for example, as having a single central offshore bank account will add a degree of management simplicity to all banking activity.
Those who specifically wish to protect their financial assets may well find that by placing them offshore they effectively place them outside the reach of chance litigation. Chance litigation is becoming the norm in many countries now but the lawyers who specialise in such claims prefer to target relatively easy prey - i.e., people whose assets are more visible. Adding an offshore element removes a layer of transparency which may help protect an individual from this unfair practice.
It should be duly noted that seeking to place assets offshore to protect against genuine claims, to avoid taxation, launder money or to protect the proceeds of criminal activity is highly illegal and will rightly result in prosecution.
If you believe that an offshore bank account structure could benefit you, the next step is selecting the right bank, the right jurisdiction and of course the right account type. Just ensure that you do your due diligence on any country and bank you consider to ensure that your interests will be well served and best protected.
In terms of the process for opening an offshore bank account it is relatively straightforward and simply requires the completion and submission of an application form - but because of a clamp down on money laundering new ‘know your customer’ rules and regulations have been implemented worldwide that require a bank to also be in receipt of notarised copies of personal identification information for an account holder. The particular bank you decide upon will advise you about the information required but it is usually necessary to supply proof of identity and proof of address.
Offshore banking is becoming increasingly popular as more people recognise exactly how they could benefit from an offshore bank account and because the set up process is straightforward. Furthermore the services offered by many of the best offshore banks like HSBC offshore and Barclays International are unrivalled in their flexibility and so an offshore bank account is often preferable to a domestic account.
