Off Shore Banking
Off shore banking is a common legal practice, engaged by many individuals and companies to facilitate asset and wealth management, increase capital gains and profits, and used as a tax planning tool.
Off shore banking is literally that. Off shore! The assets (cash) of the off shore account holder is deposited in a licensed bank establishment that is physically located in another country (jurisdictions) from where the account holder lives. As an example: a person in Panama cannot have an off shore account in Panama but can have one in Cypress.
There is one main restriction on the off shore account, such as - money for deposits must originate outside the banks jurisdictions, That is the principle of the offshore banking, no activity with locals, no money from within the jurisdictions. Off shore banks are sometimes called Offshore Banking Units or written as offshore (one word) banks.
The term offshore originally referred to banking establishments set up in Europe in the Channel Islands, located offshore from England, where banks offered attractive interest rates for domestic clients, hence the term off shore. Since, the concept of off shore penetrated into many markets to which extent there are over 100 jurisdictions worldwide with off shore banking facilities. Many are located in the Caribbean, South and Central America, like Panama, and the well known financial center of Switzerland, but there are others scattered over the globe.
Offshore banking establishments set up in remote islands and countries benefits not only the off shore clients, but is seen as a viable form of economic development and growth opportunity for the host country.
One of the main advantages and benefits of engaging in offshore activities while using , offshore vehicles and offshore entities, is the no or low tax policies that apply to the assets of the off shore enterprise, whether it is a company or an account.
Off shore banking is available to anyone who can meet the application criterion, pass the Know Your Customer requirement and fulfill the initial deposit which can range from as little as US1000 and exceed the US2million mark (this then places your investment in private offshore banking where services are tailored and personalized to meet the client’s needs. Normally reserved for clients with an evident high net worth).