Is it safe to use an offshore bank account and a bank?
100% reliability can not ensure no one. But in general, offshore banking is safer if you immediately approached seriously the choice of jurisdiction and offshore bank.
Offshore banking is safe to use if:
You have chosen a stable jurisdiction with well-developed legislation;
You have chosen a liquid bank;
If you avoided meeting with fraudsters;
Properly prepared documents;
Do not violate local and international laws.
Among the additional security measures, consider the existence of deposit insurance: if the bank goes bankrupt, you will be refunded the amount to a certain level – $ 100,000, euro, or 1.4 million rubles. However, if the amount on the account exceeds this threshold, then the return is not guaranteed.
In the worst case, funds above such a threshold in a crisis can freeze or confiscate, as it was in Cyprus in 2013.
You can minimize the risks with the help of experienced consultants who take into account the real situation in the world and your goals. Sign up for a free consultation at the link or at firstname.lastname@example.org.
Who can open an offshore bank account?
You can open an offshore bank account, both individuals and legal entities. Conditions are specified in the laws of a particular country and in the rules of banks.
The real restrictions are only the requirements to provide information about yourself, the origin of funds, the requirements to comply with the laws on paying taxes and opposing the laundering of illegal funds.
It is realistic to open an offshore account in a few days, provided that you have collected a full package of documents that the bank has requested.
In some cases it is allowed to open a bank account remotely, without a personal visit. In others, you will have to come in person or send a trustee to get a bank account. Depends on the country and the bank.
Do I need to be a millionaire to use offshore banking or is it expensive to open an offshore bank account?
If you think that in order to open an account in an offshore bank you must have a fortune of several million, then you are mistaken. Yes, there are countries and banks, where it is not worth to climb with a deposit of less than $ 1 million.
But there are those banks that require investing $ 100,000, or even fifteen hundred dollars, as a minimum deposit.
To open an offshore account there is no need to be an oligarch or owner of Gazprom. Freelancers, small and medium-sized businessmen, inheritors, etc. turn to offshore banking.
Depending on your goals, objectives and opportunities for today, you choose a bank.
It is worth mentioning that deposits of $ 100 are not of interest to the bank – opening an account will cost you more. Therefore, check at a free consultation, which bank is right for you in connection with your capabilities.
What services does offshore banking offer?
Offshore banking does not limit your ability to banking products. Often, he even expands these very possibilities and offers those tools that were previously unavailable to you.
You are offered the opportunity to put a certain amount on the account at interest. One of the most popular products in offshore banks. If you believe the studies of international organizations, about 20 trillion dollars are stored in offshore, including on deposits.
If we are talking about an active business or a human traveler, then a credit card is an important and useful tool. Offshore banks allow you to easily get a credit card of different issuers (Visa, MasterCard), as well as debit cards, prepaid cards, etc.
If you need a checkbook, then some offshore banks offer it. Ask consultants for details.
Often, businesses need fresh resources, a lever for accelerated development. Credit on favorable terms in a stable jurisdiction is able to satisfy hunger and allows you to sharply shoot. Banks offer both one-time loans and lines of credit for reputable customers.
Offshore banking is particularly attractive with its investment tools. In your home country, banks can be strictly limited to those tools that offer – by law or by fear.
Offshore jurisdictions are at the forefront of progress, primarily in financial technology and products.
You will choose from the usual and new for yourself stocks, mutual funds, bonds, the set that you see fit. Or ask your broker to do it for you in the selected bank.
Do I need to be checked in the bank (“Know Your Customer” policy)?
If you still believe that offshore without additional questions will open a bank account to anyone who just needs to bring a suitcase with a million dollars, then you are mistaken. This is a fairy tale from the distant past.
Today, offshore banks have become much more demanding. They are under pressure from international requirements. Violation of anti-laundering or tax laws can lead to billions of dollars in sanctions.