Offshore Private Banking
When the offshore activities such as banking, investments and financial services are provided to private clients (individual or groups) that are investing sizable assets and normally of high net worth, this is referred to as offshore private banking. The principles of offshore private banking are related to the high quality and level of services extended to the client. By definition it is simply the act of managing the finances of a client of high net worth in an offshore environment. With that managing service comes a suite of elite and tailored services. Offshore banks which market “private banking” often have a sound reputation in banking and extremely strict confidentiality rules.
Private offshore banking and private offshore bank are two separate items and should not be confused for each other. While the former is a level or standards of service, the latter is simply a banking establishment that is non-incorporated.
To qualify for offshore private banking, the investment required in some offshore financial centers can be scaled from US2 million and Up. Off chose in a competitive environment as offshore is right now, some banks actually open private offshore bank accounts with a deposits as low as US250K. Overall, the level of services extended in private offshore banking is dependent on the wealth of the client, but there are some basic offshore banking services will include:
Private banking in an offshore jurisdiction will benefit from enhances privacy, security and confidentiality, zero tax penalties, and no foreign exchange control. Some of the Key characteristics and features of the elite and private offshore banking is:
It is not possible to walk into a bank offering private banking services and open an offshore private bank account. On the contrary, financial establishment offering offshore private banking are extremely and richly appointed close door operations requiring a letter of recommendation and several references for the bank to even consider the application. , in fact most banks see clients by reference only and appointments are required. Private offshore banking unlike retail offshore banking is more personalized, and customers are normally visited by banks representatives to establish a rapport and determine suitability and relevance. Offshore banks are very selective in clientele, their main goal to maintain and preserve the assets and privacy of the clients. .
Offshore Private banking offers various services such as wealth management, money management, and tax planning, this type of banking sometimes coined wealth management. Whereas other “retail” banks the operations are run of the mill, with wide range of offshore service available, requiring lowered deposit requirements and services tend to be lower in cost and unspecialized. Private offshore banking caters to wealthy clients who are looking for customized and personal banking services. Private banking or wealth management is simply coined- keeping rich people happy!