About Offshore Banking
Geographic diversification is an underrated but important key in establishing a successful investment portfolio. Individuals are gaining financial freedom and flexibility, freedom of movement and are protecting their wealth through various offshore solutions including offshore banking.
Offshore banking is simply banking in a foreign jurisdiction which can include opening a personal, corporate or investment account. Regulated under international banking license, many reputable offshore jurisdictions offer sophisticated and stable banking regulations that provide substantial asset protection and confidentiality benefits to the bank account holder.
Expats utilize offshore accounts while they live abroad and businesses hold multiple accounts while conducting business internationally. While offshore banking is seen in a negative light and misconstrued by the media, banking offshore is perfectly legal and a powerful tool that offers greater advantages that onshore banking may.
While offshore banking comes with an array of benefits, many factors must be weighed and taken into consideration when choosing the right jurisdiction as well as the right financial institution. Defining the objectives and goals of your banking needs will assist in determining the right structure to meet your needs. A few things to consider before opening an offshore bank account:
1. While many offshore jurisdictions offer similar advantages and benefits, there is no one-jurisdiction-fits all. Our advisors will discuss your needs and goals and ask you the right questions to help determine which banking jurisdictions are right for you.
2. Defining your banking needs will help establish which financial institution will meet your goals.
3. Each financial institution will have its setup process and set of due diligence processes. Requirements typically include fulfilling KYC (Know Your Client) by proving your identity, address, and source of funds.
4. Once the account has been approved, the bank´s minimum required deposit must be transferred into the account.
5. Monthly or yearly charges must be paid, according to the chosen bank. Accounts should be utilized regularly, such as depositing or withdrawing funds, to avoid the closure of the account. Reporting must be done following your local tax and international reporting regulations, and inter-jurisdiction tax treaties
Choose your jurisdiction
While many offshore jurisdictions offer similar advantages and benefits, there is no one-jurisdiction-fits all. Our advisors will discuss your needs and goals and ask you the right questions to help determine which banking jurisdictions are right for you.
Choose the financial institution
Defining your banking needs will help establish which financial institution will meet your goals.
Fulfill due diligence processes
Each financial institution will have its setup process and set of due diligence processes. Requirements typically include fulfilling KYC (Know Your Client) by proving your identity, address, and source of funds.
Account opening
Once the account has been approved, the bank´s minimum required deposit must be transferred into the account.
Maintenance of Account
Monthly or yearly charges must be paid, according to the chosen bank. Accounts should be utilized regularly, such as depositing or withdrawing funds, to avoid the closure of the account. Reporting must be done following your local tax and international reporting regulations, and inter-jurisdiction tax treaties
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