Offshore Banking Help

August 22nd, 2008

By definition, offshore banking means to use the services of some bank that is located outside the depositor’s jurisdiction or in a country different from where the depositor resides. This is done for the purpose of obtaining some form of tax benefits and to preserve the security and confidentiality in future cases that involves legal lawsuits in the original country. The word offshore was coined because people from the UK considered banking in the British Channel Islands to give them tax advantages, and these islands were offshore. boundaries of jurisdiction. These tax havens were located offshore off the mainland, and since then the word stuck as a popular term to define such transactions. Soon, savvy entrepreneurs and investors swarmed to these islands when the benefits offshore banking becomes known. You can also seek help of well known finance experts like Suzie Orman.

Since their governments are laxer with their rules, offshore banking is subject to fewer regulations. You can open more kinds of offshore banking accounts and manipulate them in various ways. Offshore banking is responsible for the circulation of 2 trillion dollars around the planet every single day. There were very few offshore banks until a few years ago and even those were thought to be for covering up for drug money and other criminal acts, today, it’s a wholly different picture.

Offshore banks also provide the whole gamut of services that a local bank will provide. It allows for both kinds of account, checking or savings, either in a personal or corporate format. You can also make use of the host of other features they provide such as ATM cards, debit cards, credit cards (all internationally accepted) and avail of loans and mortgages and money transfers. People are keeping their accounts strictly confidential by using numbers for the accounts instead of their names.

A few offshore banks will agree to manage your investments for you and keep custody of your assets. Trustee services, corporate administration services, FOREX and fund management are some of the other features these banks may have. Commercial banking and private banking are the two types of offshore banks. So all of them may not have all the features listed here. A retail bank has more standardized services and they are more cost-effective than private banks. Private banking means several customized services for the clients. But for that, the client will have to pay more.

Confidentiality is certainly the best advantage because offshore banks are not bound to reveal their clients’ personal or corporate information. Only if there is evidence that you have been involved in some illegal activity will your details be passed on to governments or to tax organizations. It is not possible for them to reach at your offshore banking account in any way – through a suit or through seizure – until the time they find out about it.

You can see your money multiplying tax fee in these online banking accounts because these accounts are located in regions that are termed as tax havens. One of the best benefits of an overseas account is the immense tax benefits you get. But the savings cannot be termed as total because when you are bringing the money into your country, you may be liable to several forms of taxation. Offshore banking brings another benefit, which is termed as asset protection. The offshore accounts make it possible for you to get protection from invasive bureaucracy, lawsuits and asset protection from seizures.


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