Offshore Banking Account

There are several types of offshore banking accounts, the details and services on the bank account will be defined by the: jurisdiction, facility and type of the offshore bank account selected.

Offshore banking accounts are catered for personal (individual or joint) or Corporate functions. The basic offshore banking account types are:

• Personal Account
• Corporate Account
• Merchant Account
• Numbered Accounts
• Online Bank account

Offshore bank accounts operate in a similar manner to onshore bank accounts. Debit or credit cars and online banking are provided to clients through which typical bank activity and transactions are conducted. The startup deposits for offshore banks accounts varies from bank to bank, but is also determined by the type of account selected.

The cost of set up (deposit requirement) and maintenance and transaction fees will also vary from offshore bank to offshore bank, but it is possible to set up an offshore bank account with an initial deposit of US1000 in some jurisdictions.

Offshore account providers (banks) are well regulated and monitored, and are required to adhere to strict international privacy and confidentiality laws. Additionally bank accounts in offshore financial centers can benefit from tax exemptions and competitive interest rates.

The process of opening an offshore bank account also varies with jurisdiction, bank and depends on the net worth of client and the type of account required. Private banking accounts are more difficult to access by requiring exceedingly high initial deposits and the applications must be from high net worth individuals, who are considered on a recommendation and reference basis. General offshore banks account applications must undergo comprehensive Know Your Customer KYC background checks before they are considered. It is through this KYC process that the banks will filter clients with “good’ money and “bad” money thus protecting the integrity of the bank. Banks are averse to providing an offshore banks account where the source of funds is derived from ill-gotten or illegal, criminal gains. As such the general application requirements for an offshore bank account will require documentation such as:

• Photo identification, notarized copies of passport
• Declaration of source of funds for initial deposit
• Business plan or documents that indicate expected source of revenue
• Documentation showing source of income and revenue expectation
• General anticipated deposit and withdrawal activity
• Proof of physical address such as utility bills, credit card or bank statement.

This list is not comprehensive and some banks require more thorough information, others will settle for the basic application requirement. Where the bank account desired is a business oriented bank account, all incorporation documents must be submitted, and the general personal documentation on each signatory will be required. Some banks only facilitate corporate accounts for International Business Companies, and such accounts actually enhance the privacy and confidentiality of the actual offshore account holders.

Bank activity and transactions on offshore bank accounts may be limited by the agreement and conditions set out therein. As an example some banks require a minimum balance, while other do not allow withdrawals without notice. The offshore bank account is a legal way of protecting assets, conduct international business, and maintain anonymity and privacy on financial information. It is therefore recommended that a due diligence on the bank is done ahead of time.

There are some offshore banks that will not set up an offshore account for a client in person and will require the services of a third party intermediary, normally offshore service providers who are versed in the processes of bank account opening, who facilitate the bank introduction. In most cases these intermediaries are facilitators who provide offshore international business companies, and can serve well in the instance that a bank will not accept individual account applications.

Choosing the right type of offshore bank account is important in order to maximize on the functions of the account. There are combinations of bank accounts where businesses, such as corporate account and a merchant account will enable a company to receive payments trough websites via credit cards. The scope of potential for a bank account is limited only by the type of offshore bank account selected.

Overall there is an offshore account available for any individual or group who wishes to take advantage of the benefits of an offshore account such as asset protection, wealth gain, tax management and access to international trade and investment, in a completely secure and confidential offshore banking environment, with all the modern services available, such as 24 hour offshore online or offshore internet banking, and ancillary services such as portfolio management, tax planning services, money and wealth management, stock trading and more.

Get to top