The advent of the information revolution has spawned a much greater choice in banking services. More particularly the option of Online Banking now means you can do your banking business in an environment or country that best meets your needs, at a time convenient to you.
There are several good reasons as to why you would want to consider setting up an Offshore Account. Those reasons include:
Confidentiality: A number of International Offshore Banking Centres boast strong confidentiality laws that make it illegal for a bank to reveal banking history or the underlying account owner’s details. Many have prudent, sound regulations in place geared towards safeguarding deposits and maintaining their confidentiality. A number of Offshore Banks also offer anonymous debit cards. If you are concerned about (or at risk from) predatory litigation or are suspicious of “Big Brother” knowing your every financial movement then you have a lot to gain from Offshore Banking.
Operating flexibility: Many countries these days place enormous amounts of red tape, bureaucracy and excessive regulation in the way of persons trying to start or grow a business. Many Offshore Banks are located in countries that allow companies and individuals to carry on business without any form of special licensing thus enabling accounts to be opened relatively quickly and easily following incorporation of a new company.
Better interest rates: There is usually very little competition as regards interest rates within the one country. Consequently better interest rates on deposits than what you would get at home can often be found Offshore. (The interest rates offered by most onshore banks, especially in the bigger countries, presently, barely keep pace with inflation).
Greater choice of investment products & services: Many Offshore Banks boast specialised investment banking units as traditionally they have focussed on providing money management services for independently wealthy private clients. (Non-bank asset managers are a fairly recent invention; for generation upon generation “old money” families have gone to their bank when looking to buy investments). Additionally many Offshore Banks now offer online brokerage and/or currency trading platforms, services that you will rarely see offered by “onshore” banks.
Services tailored to the needs of International Business: For many years Offshore banks have specialised in servicing the particular needs of international trading businesses ie companies which buy products in one country for sale in another. Hence they tend to have a better understanding of the needs of Offshore Company/Trust/Foundation customers and thus, potentially, a greater capacity to deliver effective service.
Mitigate against currency movement risk: Unlike Onshore Banks most Offshore banks offer multi-currency accounts (many also offer currency trading advisory services). Smart money never keeps all its cash in one currency! One has only to look at the savage drops experienced by both the Euro and the US Dollar over the past 2 or 3 years (and the rise of the Australian dollar from 50cents US in 2001 to above parity presently) to appreciate the wisdom of keeping available cash in a range of currencies. This can be better achieved offshore (in an environment respectful of financial privacy).
Tax Savings: Capital always flights to where capital gets the best deal! With powers such as the EU having passed laws aimed at forcing EU Banks to tax interest earned by EU nationals (and with the possibility that other governments may soon follow suit) the opportunity exists to avoid taxes at home by banking confidentially Offshore.
Stability & security: Not everyone lives in a politically or economically stable country. Some people live in countries that have exchange control rules limiting one’s ability to move capital overseas. Many live at risk of having assets seized or accounts frozen by corrupt or ineffectual rulers (or by overzealous regulators or as a consequence of predatory litigation). Most Offshore Banks tend to be set up in stable, secure hard-to-get-at jurisdictions offering a safe haven for your money keeping it well away from big brother, professional litigators and the kind of political turmoil or economic strife & often seen in many African, some Asian and (lately even) some European countries.
For more information on how you can benefit from setting up an Offshore account please Contact Us or click on any of the below links: