Take Advantage of Offshore Banking

Offshore Banking Advice

Offshore banking advice is widely available, but sound unbiased offshore advice is not. The best way to determine whether offshore banking is good for you, combine your own research and due diligence with that of professional services of a tax attorney, legal professional and or accountant. Offshore banking is a form of tax planning, assets protection and management, and used to facilitate international ventures and business. Offshore banking has it benefits, but depending on where the offshore bank is set up, there may be some setbacks. All in all, before venturing into offshore endeavors, please ensure engage in thorough research.

Offshore banking activity is legal activity, and anyone, can have an offshore bank account, although, offshore private banking is normally within reach for individuals of high net worth. Offshore bank accounts should be considered by anyone who requires privacy on finances, asset protection, and wealth enhancement opportunities.

Anyone considering offshore banking facilities should seek sound banking advice. The question is from where and from whom. Most offshore service providers (intermediaries) tend to be aligned with one or a few banks and offer advice to solicit business on behalf of that specific bank. This article is designed to provide independent and unbiased advice on offshore banking. Setting up an offshore bank account requires comprehensive deliberation.

There are three main guidelines to follow through when seeking advice on offshore banking:

  1. The jurisdiction of choice
  2. The offshore bank as an institution
  3. The type of account desired

This article will provide unbiased banking advice on what to look for when considering an offshore bank account. If you follow through with research that covers the core issues here, at the end of day you should have a couple suitable jurisdictions and banks in mind for your offshore bank account. ****


Offshore banking facilities are offered in jurisdictions worldwide, and as offshore banking becomes more lucrative and more competitive; the number of offshore banks is expected to grow. The decision on where to consider for a bank account should take into consideration the following questions:

  1. What are the existing legislations governing offshore bank and offshore bank operations?
  2. Does this legislation enforce strict protection for the client in the event the bank goes bankrupt?
  3. How is the offshore bank regulated and what are are the structures and legal form of the banks? Is it a private, national or other type of bank?
  4. How is the bank regulated, what local agencies ensure the clients’ protection?
  5. Is there legislation that enforces strict privacy and confidentiality rules?
  6. Are there any disclosure agreements in existence between the banks jurisdiction and other countries, such as the EU tax Savings Directive? _Note: This is an agreement between territories specified to exchange information on accounts and or withhold interest on account which are then paid to clients’ domicile country as a tax._A client seeking offshore banking service must look for a sound jurisdiction. One that is has strong legislative support and one that is well regulated; it should be located in a stable environment (both politically and economically) and should have legislation that provides ultimate privacy for the bank account holder.

The Bank

The licensed banking establishment must have a strong reputation in offshore banking, adhering to prudent regulations, and it must have a history of enforcing secrecy and confidentiality legislation, and strictly adhere to bank secrecy laws. This does not mean that the bank must be well known or well advertised, since some of the best offshore banks are known by few and gain new clients only through client references or recommendations.

The offshore bank should be efficient in its offshore banking services, have excellent customer care services, high quality of services with real people. Although the set up of most offshore accounts is done from out of the domicile through intermediary agents, once there is a need for communication between client and the offshore bank, the clients wants to be able to reach someone at establishment to address concerns.

The bank must offer reasonable rates (not over realistic). Be wary of those banks offering extremely unrealistic but attractive interest rates on savings accounts, chances are these are bogus or insecure operations or scams. One way to look into a bank itself is to visit the bank website and contact the bank with your own questions. Another way is to choose a trusted intermediary who should provide you with a choice of banks from which you can choose.

In light that some agreements like the EU tax directive is applied to individual accounts only and not company accounts. Some intermediates may actually guarantee the opening of an offshore bank account for a company which they incorporated, but most cases the opening of an offshore bank account is not guaranteed, since the due diligence and background check on client determines the eligibility. Some offshore banks do not accept independent applications and do not wish to be contacted directly.

Make sure the bank has reasonable fee structures that suit your products needs. Know the products the banks offer, essential to offshore banking is offshore internet or online banking facilities, giving 24 hour global access to a remote offshore account.

Know the restrictions and requirements to set up an offshore bank account. Sometimes you may go through the costly process just to find out you are not successful and have to seek a subsequent bank account, with more cost incurred.

The Bank Account

There are two main categories of bank accounts, deposit accounts and loan accounts. The first one allowing deposits or money to be put in has a positive balance; the last one, in which the banks lend money out, has a negative balance. There are some bank accounts that are defined by their function rather than the balance which they hold and these or often called transactional accounts, and example being a checking or current account.

A more specific list of the types offshore banks accounts (but not complete):

  • Savings account (joint or personal)
  • Transactional accounts
  • Time deposit / certificate of deposit
  • Numbered bank account
  • Money market deposit account
  • personal account (joint or personal)
  • Checking accounts

With a range of bank accounts to choose form a scrupulous assessment of individual or business banking needs should clearly indicate what type of bank account would be best suited and most functional.

Beware of account limitations and account restrictions which can be seen only in the fine print. Conditions such as minimal account balances required, notice for account withdrawals contractual account balance to ensure interest rates, and a host of other conditions can exist on the offshore bank account.

Bottom line, ensure that the product (the bank account) and services provided by the bank are what you need, and not what you don’t need or want. Be wise in selecting any offshore bank account, and seek offshore bank advice before opening any offshore bank account.

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