Why Offshore Banking?
Why should you bank offshore?
Quite simply, Offshore Accounts facilitate greater financial privacy. Residents of the UK and EU can now enjoy the same financial benefits as offshore companies and affluent individuals have done for many years. It is an affordable and secure solution, providing anonymous offshore banking and offshore asset protection for everyone. Shielding finances and assets from creditors, legal action and the divorce courts, for example, are some of the major reasons to bank offshore. Overseas Bank Accounts can be opened in the name of offshore companies in order to provide the maximum possible anonymity, privacy and offshore asset protection.
In the past, Offshore Bank Accounts were perceived as just for the wealthy. This is no longer the case. There is a distinct rise in the number of Europeans who are investing or depositing their money into anonymous bank accounts. In doing so, they achieve complete offshore protection.
Most offshore jurisdictions have fiercely strict privacy and confidentiality regulations established which help to ensure that the identities and transactions of individuals and, indeed, companies are carefully shielded and protected. Whilst this confidentiality is almost legendary, it is not possible to guarantee absolute privacy and anonymity. All offshore financial centres, just like onshore financial institutions, throughout the world have an implicit legal obligation to comply with investigations into suspected serious criminal activity such as money-laundering and, more recently, the funding of terrorism. This is the only time that OFC’s will impart information to a third party.
In the vast majority of offshore bank accounts and companies, where there is no compelling criminal or terrorism accusation, personal information including the details of the owner of the offshore account and transactional information are completely shielded. These OFC’s are designed to provide complete confidentiality and serve to totally protect and safeguard individual and company information. This, the highest level of confidentiality available anywhere in the world, is especially worthy of note as it relates to protecting assets from legal action within the home jurisdiction and civil matters such as divorce or inheritance matters. The only time that an offshore bank will divulge even the slightest amount of information will be when they are compelled to by a foreign government IF certain rigorous standards and tests have been met by the governmental body. This would be in the case of substantial evidence in a money laundering or terrorism case. The overseas banks do everything in their power to protect the identity and information surrounding the accounts they hold as their primary concern is safeguarding their investors. It is in the interest of these offshore financial centres to ensure that no leaks or breaks in confidentiality occur as it would completely shatter the confidence of other offshore account holders and investors. Along with losing face, they would stand to lose millions of pounds worth of business.
Other offshore vehicles and entities provide an even deeper and tighter level of anonymity and confidentiality. These include the International Business Company (the IBC) or Offshore trusts, although these are more complicated to set up and run than simply opening an offshore bank account.
Although anyone can open an offshore bank account, the objective should be to address the need of, and to strike the appropriate balance between, effective asset protection, reduced taxation, complete anonymity, security of transactions and accessibility.
Additional Information about Offshore Banking Accounts
There are popular offshore financial centres throughout the world and based on all continents. Selecting the right OFC for you is crucial to ensure the correct level and balance of confidentiality, taxation and offshore asset protection. One of the most effective ways of asset protection and banking anonymity, as touched on above, is the use of an offshore company to own the offshore bank account. The offshore location with the greatest privacy for an offshore company is not necessarily the jurisdiction with the greatest privacy for the offshore bank account. To provide maximum protection and wealth management, a combination of OFC’s would be of benefit. For example, an offshore company established in Nevis could own an offshore bank account in Switzerland. The Island of Nevis has terribly strong offshore company law that offers maximum privacy of ownership. Switzerland, however, provides the strongest combination of international bank security and financial privacy. It is crucial to establish the best combination for your specific financial requirements.
The Offshore Company UK is a world leader in offshore services, financial privacy strategies and asset protection plans since its inception in 1977. As with any financial vehicle, we strongly urge any prospective offshore investor or depositor to seek the advice of a well-established, renowned offshore services provider.
Learn more about offshore banking myths and offshore banking history from our Offshore Company advisers. We can also provide information relating to specific offshore banking institutions and bank account setup helping to ensure that you have a successful experience with your approach to offshore banking.