Mirror of Justice

How to Open an Offshore Bank Account: 8 Considerations Before you Start

July 19th, 2009 at 02:52am Under Banking Law

Offshore banking is becoming increasingly popular as more people recognize exactly how they could benefit from an offshore bank account and because the set up process is straightforward. If you’ve ever wondered whether you could benefit from an offshore bank account, or you’re considering opening an account but you’re not sure which one to go for, this guide has been written with you in mind. Generally speaking anyone is free to open an offshore bank account. In fact, offshore banking has been widely used for many years by both individuals and organizations worldwide. Specifically an offshore bank account can also be of benefit to some expatriates residing in low or no tax countries as any interest earned on offshore bank deposits is paid without the deduction of taxation.

What is Offshore Banking?

Simply defined, an offshore bank account is an account held in a bank that is located outside your country of residence.

Asset Protection Structures

If you’re going to go out now to get your offshore asset protection started, consider the best offshore banking structure: The foundation/corporation. A foundation is an offshore asset protection tool that can be used in the form of a trust. A foundation can hold all your assets and have a bank account, but a foundation can not conduct business. When a foundation owns a corporation, which owns a bank account, this is the only powerful privacy protection offshore structure you will ever need. So if you have your offshore corporation within a foundation, you can conduct your business through the offshore account and plan your income taxes accordingly.

Panama has a number of unique attributes that make this a great asset protection jurisdiction for corporations, foundations, banking and stock brokerage accounts. It is also known as one of the world’s greatest haven for keeping and securing the cash assets of corporations, businessmen and individuals.

Tax Considerations

Most countries have no restrictions on where your business interests, investments or bank accounts are located; it is simply your responsibility to report any income you earn to the appropriate tax authority. You will need to establish a suitable structure in a tax friendly country to gain access to some of the better opportunities available, which is reason enough to go offshore for some even ignoring the tax benefits. Any business that is conducted outside of Panama is not taxable through Panamanian income tax.

Offshore Banks

Virtually all offshore banks want to receive some form of evidence of the account signatories’ identity. Many offshore banks, but not all, request that letters of reference from another bank is provided by account signatories. Some offshore banks go even further: they demand that a bank reference each be given by all directors and shareholders of the company. Sometimes an introduction by a party known to the offshore bank (such as an existing customer) is accepted instead of a reference. A fair number of offshore banks still happily open company accounts without any references at all. Some offshore banks provide their own resolutions for the directors to sign.

Internet Banking Security Concerns

You can shield your internet movements using an anonymising service. Privacy, on the internet, is created by technological means. In fact, the internet has become the global, no barriers, free market.

Privacy

Most (maybe all) traditional jurisdictions are no longer suitable for asset protection, privacy and confidentiality. When a foundation owns a corporation, which owns a bank account, this is the only powerful privacy protection offshore structure you will ever need.

Jurisdiction

Usually such an account is located in a low tax jurisdiction and offers certain financial and/or legal benefits to the holder of the account. If you believe that an offshore bank account structure could benefit you, the next step is selecting the right bank, the right jurisdiction and of course the right account type. There are jurisdictions where banks are under legal obligations to seek references, and there are banks that request references despite any legal obligation to do so. Policies vary greatly across offshore banks and jurisdictions, so make a choice that is acceptable to you.

Belize

Offshore banks in Belize provide their customers with various services including internet and international banking services. You don’t have to worry about confidentiality though; Belize banks will strongly protect any information you provide. The government has created banks secrecy laws which provides harsh penalties for anyone who would violate the secrecy provisions, except when a client is under a criminal investigation in Belize.

Panama

Panama has a number of unique attributes that make this a great asset protection jurisdiction for corporations, foundations, banking and stock brokerage accounts. Any business that is conducted outside of Panama is not taxable through Panamanian income tax. Panama is the most secure banking jurisdiction today, because Panama backs up its strong bank secrecy laws with real life enforcement. Other jurisdictions like Belize (mentioned above) have been known to be lax in their enforcement. Its one thing to have strong banking secrecy laws and its quite another to enforce them.

As a general guide it is often more discrete to establish your offshore structure in a location far from your residential jurisdiction. Panama has a number of unique attributes that make this a great asset protection jurisdiction for corporations, foundations, banking and stock brokerage accounts. Some call Panama the Switzerland of Latin America but this is not fair, Panama is far better than Switzerland and any other jurisdiction. With regard to reliability and stability make sure to investigate the laws and regulations for each jurisdiction you are investigating. Stable governments help to keep investor trust which in turn further adds to the credibility of the banks in that jurisdiction. Some offshore jurisdictions, such as Panama, have rock solid privacy laws governing banking while others such as Switzerland no longer protect their clients in the same fashion as in the past.

Offshore Banking & Asset Protection Center

July 17th, 2009 at 02:52am Under Banking Law

We are a law firm which means you have attorney client privilege – We specialize in Offshore Asset Protection. All of your affairs handled with us are covered by attorney client privilege which means that we could not reveal anything about you or your affairs without your specific permission or unless we were ordered to do so by a Panama Court (not a common occurrence). You can benefit from the legal protection and security of dealing with a licensed Panama Law Firm. If you buy an offshore corporation, offshore trust, offshore foundation or an offshore bank account from a non- law firm they could freely reveal your confidential information which they collect from you like name address, passport, name of corporation, bank account information etc. without any statutory penalties, in other words you do not have the benefit of attorney client privilege. Some of these corporate resale agents say they have some sort of financial privacy protections but it is flimsy and cursory at best.

Start here to learn more about why you should use a law firm for Offshore Asset Protection

Why use Panama – Panama is currently the new Switzerland and is also the number one retirement haven in the world. Panama does not tax offshore derived income, capital gains, etc. All tax violations in Panama are civil offenses, none are criminal and Panama has no tax treaties with any country. Panama actually requires all corporations to be formed by a lawyer to protect the privacy of their 400,000 corporations on file thus ensuring renewals each year. Panama cares about privacy, bank secrecy and asset protection. We only deal in Panama which is considered to be the most private jurisdiction in the world today, with the best bank secrecy laws, best corporate and foundation anonymity and strongest attorney client privilege in addition to having world class banks. Panama has no hurricanes, no earthquakes, no active volcanoes and no tsunamis which is why the Panama Canal was built here. So you do not have to worry about being unable to contact your bank by internet or telephone because a storm just passed over their island. Since we are in Panama we can and will represent any of clients who need legal representation in Panama with affordable rates ($150.00 hour). And yes we do get in our car and go down to the Panama banks representing our clients to open their bank accounts and to resolve any issues or problems that may come up down the road when our clients need our assistance. We are your corporate resident agent and would receive any official notices on behalf of your Panama Corporation or Panama foundation and of course we would understand the notices and could advise you not just say “hey, you got a document you need to read”. We are reachable by phone and email seven days a week and of course all communications with us are privileged communications. Always feel free to ask us questions by phone or email.

To learn more about why Panama excels as an Offshore Jurisdiction click here:

http://www.panamalaw.org/attributes.html

To learn more about Panama Asset protection click here:

http://www.panamalaw.org/asset_protection.html

Panama Banking – Panama boasts of having 150 international banks which is a living testimony to their strong bank secrecy laws please keeping in mind Panama is a country of 2.9 million people and these banks are in Panama City which is only about 9 square miles. All the banks we deal with have online banking including the ability to send international wire transfers. You do not need to come to Panama to open a bank account but you do need to supply reference letters and passport copies. You can even get up to 7% interest on 5 year deposits. The national currency in Panama is the US dollar but some euro accounts are available.

For more information on Panama Bank Accounts click here:

http://www.panamalaw.org/offshore_bank_account.html

For information on Offshore Debit Cards click here:

http://www.panamalaw.org/anonymous_mastercard.html

For information on offshore ATM cards click here:

http://www.panamalaw.org/anonymous_atm.html

Panama Anonymous Bearer Share Corporation – Such anonymous corporations are called by this term in Spanish – sociedad anonima. These corporations have no registry or database into which are entered the owners of the corporation. Ownership is through the printed stock certificate called bearer shares. There is no tax on offshore derived income other than the $300 annual tax included in our prices. Transfers of ownership do not have to be reported. With a Panama bearer share corporation wires moving through the wire system are not associated with any natural persons for more privacy. Panama corporations can be formed in 2-3 days. Panama bearer share corporations can own real estate anywhere in the world under Panama law.

To learn more about Panama Corporations click here:

http://www.panamalaw.org/bearer_share_corperation.html

Panama Private Interest Foundations – A Panama foundation has a number of advantages. It is like a combination of a corporation trust and will. Foundations have no real owner. The Panama foundation is anonymous. The foundation instructions are kept secret. Foundation assets including bank accounts are generally non-freezable. Foundations can own corporations and real estate.

To learn more about Panama Private Interest Foundations click here: http://www.panamalaw.org/panama_foundations.html

Panama stock Brokerage – You and or your corporation or foundation can have a Panama Stock brokerage account and play the worlds markets from home. Panama secrecy laws apply.

For more information click here:

http://www.panamalaw.org/stockbroker.html

Panama Passports, Visas and Residency – Panama offer an instant Passport program, a number of exciting and affordable visa programs.

To learn more about these exciting options click here:

http://www.panamalaw.org/passport_program.html

http://www.panamalaw.org/live_and_retire_in_panama.html

To learn more about the Panama Reforestation Visa Program click here:

http://www.panamalaw.org/reforestation_visa.html

Panama Legal Law Firm Panama Asset Protection Strategies:

Formation and Management of Anonymous Panama S.A. Bearer Share Corporations (sociedad anonima)

Asset and Estate Protection with a full range of effective strategies including Panama Foundations and Foundation Protectors

Providing corporate nominee directors and resident agent

Offshore Bank Accounts in Panama with online banking

Anonymous ownership of real estate anywhere

Anonymous ownership of boats and planes anywhere

Real Estate Investment (Panama real estate appreciating 28% per annum)

Panama Passport Program

Panama Residency, Citizenship, Visas

Stock Trading Accounts in Panama with secrecy

Offshore Visa, MasterCard from Panama Bank and other countries

Offshore ATM debit card

Offshore Merchant Accounts for high risk or low risk accounts

http://www.panamalaw.org

http://panamalaw.org/bearer_share_corperation.html

http://panamalaw.org/panama_foundations.html

http://panamalaw.org/foundation_protectors.html

Panama Offshore Banking & Banking Secrecy Laws

July 15th, 2009 at 08:52pm Under Banking Law

Panama is one of the most popular places for offshore banking. Numbered accounts no longer exist in Panama, instead Panama has what are known as bearer share corporations and those corporations own a bank account.

These corporations are difficult to find out the real owner because when ownership is transfered no records of the sale need to be kept or registered. The person that physically holds the share certificates is the owner of a bearer share corporation and any associated bank accounts which offers a great deal of privacy.

Of course there has to be someone as a signatory on the company bank accounts but within every corporation there can be more than one person with signing authority. Being a signatory on an account is not proof that the corporation funds are your funds.

Technically, the owner of the bank account is the corporation and not the people with signatory privileges. The banking secrecy afforded by law in Panama is what draws foreigners to Panama to set up their corporations and bank accounts.

Lets Take a look at some of those laws:

Article 74 of Decree 238 makes it so the banking commission of Panama can’t conduct an investigation on personal banking clients. Additionally, if it uncovers any information during normal operations they aren’t allowed to reveal that information to any person or authority. They may only do so if they are subpoenaed by a Panama court. Violators of this law are subject to another law which imposes fines or jail time on the guilty party.

Article 65 of Cabinet Decree 238 regulates the manner in which the National Banking Commission can gain access to banking information and documents. The law states that they may only inspect the banks general books and that they may not single out individual bank accounts. That law covers both deposits and securities at the bank, and this to can only be broken by a court order.

Article 170 states that any person with access to confidential banking information through either occupation or activity, that uses this information without the consent of the involved parties, in a way that causes someone damages, they can be punished and possibly imprisoned. That sentence can be anywhere from ten months to two years, it may include monetary fines and they will also be barred from practicing their profession for a two year period.

Regardless of where you bank today there are three reasons that can lead to your banking secrecy being violated. Those three reasons are severe criminal activity such as terrorist funding, money laundering and drug smuggling.

In Panama tax evasion is not considered a serious crime. There is no court in Panama that will allow your banking secrecy to be violated for tax related violations unless a case is brought that can show this money was also involved in a serious crime.

Panama is a member of the mutual legal assistance treaty. In a post 911 world it is now a requirement that all countries that transit funds in and out of the United States must be a part of this treaty. When you analyze this treaty it does not threaten any of the strict secrecy laws set fourth in Panama.

The following are the basics of the treaty. The investigation can only be conducted if the offense that is to be investigated is a crime in both countries. If a country wants information they have to prove they have no other alternative method of obtaining it and they must also show they can not go fourth with legal action without the information. When information is requested it has to be specific. They can’t just be fishing for information.

They must also first file a criminal case in its court system on a national level, which ensures that smaller cases are not covered under the treaty. If another country meets all of the conditions, the request is pushed through diplomatic channels and then Panama must consider the information request.

Panama values its banking secrecy laws and they may ask for more information before they break the laws they hold with such esteem. It is not uncommon for Panama to deny an information request since they need to feel the matter is serious on their end to bring action against a person. They are allowed to deny any request that meets the outlined guidelines.

Panama does not in any way shape or form participate in any tax treaties. They also do not acknowledge tax related investigations as criminal situations. Panama will not divulge a person’s personal information to a foreign entity for tax related issues unless formal litigation is brought before a Panama court and the judge approves the request. This is only granted for serious crimes. Tax evasion is considered a civil matter in Panama. In Panama you must commit a serious crime to risk your financial privacy.

Definition of an Offshore Bank Account

July 12th, 2009 at 08:52pm Under Banking Law

An offshore bank account may simply be described as: “a bank account maintained by an individual or business in a jurisdiction which they are not normally a resident of”. Basically what this long phrase means is that if you are a British citizen and you open a bank account in somewhere like Spain for example, the bank account in Spain is considered an offshore bank account. This example also works in the vice-versa case.

Countries often offer non-residents certain benefits which can be derived by opening accounts there. Spain for example may choose to promulgate banking laws that favor non-residents and not locals for a variety of reasons. The reason for such legislation would be most likely in order to attract foreign investment into the country. If you reside in Britain for example and have funds in a bank account in Spain its most likely you won’t be withdrawing your money every other day of the week. This assumption also affects the logic that money kept within the banking system bears profit for not only the owner of the bank account but the bank and the local economy as well.

Despite these benefits people are more likely to find better offshore bank accounts in smaller legal jurisdictions such as the Isle of Man, Panama, Jersey or the Canary Islands. Hence most people often assume that an offshore bank account means one that is located on some island located halfway around the world. The reason most people prefer offshore bank accounts in such jurisdictions is because they charge less tax, have more secrecy laws and offer better interest rates. Banks located in much more developed countries where stricter laws exist and banks have to constantly reduce the amount of interest offered to customers in order to meet the profit margins expected by their shareholders.

For more information visit: http://offshoreXplorer.com