Offshore International Banking
International offshore banking is offshore banking activity that related directly to trade and business activities on an international level. Import and exports activities are more or less moot without the services of offshore international banking whereby letters of credit which engage business in trade confidence are issued through the offshore banks. Onshore banks facilitate this activity as well, but there is a greater benefit to offshore investors utilizing offshore international banking, in that there are relaxations on foreign exchange activity, and easily facilitate tax planning measures. The letter of credit for both exports and import purposes is the most important international banking tool in the business today, without it trade international trade would be dead or nonexistent.
International business of banking in offshore jurisdiction is becoming more and more popular as: companies realize the benefits of an offshore bank account; as offshore banks enhance and improve international banking services and products to be more competitive in such an industry. Attractive business rates, tax management opportunities, and no taxation on capital gains, while cloaked in total privacy are just a few of the very attractive features of international offshore banking.
A lower base cost of offshore banks translates into more affordable banking options, higher earnings on investment. Offshore banking for international companies also benefits from greater access to international investment opportunities. Domestic banks may not be willing to finance or fund international offshore activities or business activities and in most situations to open a business account a credit history and report is required as well as more comprehensive financial information. In order to establish an offshore international bank account, no financial information is required from the company, and hence the requirements are much more lax than on domestic market.
Key services offered by offshore banks for international banking purposes include:
Another advantage of offshore international banking is the anonymity with which the international company can operate globally. An International Business Company (IBC) with an offshore bank account is represented by a company name, rather than an individual with a name and face, and if for some reason, the identity of the beneficial owners of the company may hinder business relations; this is a good way to circumvent these challenges.
International bank accounts are especially valuable to persons who own and deal in real estate globally. An international offshore bank account will give access to international deposits; make payments with no questions asked about the source of funds. Once an account is established it is confident that through its original due diligence that the source of funds is valid and legal activity, there should be no further question on the source of funds. The purchase of real estate is considered taxable in some countries, however, if real estate is purchased through an IBC which holds an account in an offshore bank, then some privacy of transaction is guaranteed. The onus of declaring assets and earnings is that of the owner, and the bank is forbidden to communicate any financial information on company accounts.