Mirror of Justice

Best Countries To Open An Offshore Bank Account

July 18th, 2009 at 02:52pm Under Banking Law

We frequently hear about offshore bank accounts in the news or in the movies because those trying to hide money for criminal reasons usually utilize these accounts so that they are not caught up in their shenanigans. However, that is not all an offshore bank account is about. In fact, having an offshore bank account means saving tax dollars and some may have other reasons behind it. Just because someone has a bank account outside of the country doesn’t mean they are a robber or a member of the mob.
Nevertheless, there are some legal implications and some things that must be kept in mind. One of those things is the fact that it is not legal for a United States citizen to open an offshore bank account. Sure, you may be protecting your money from creditors or from high taxes, but you could get yourself into trouble. This is how some become convicted of tax evasion, but it is very possible that the long arm of the law will not reach your offshore account.
Another risk is the fact that your money doesn’t have the protection of the government. Your money is subject to the laws of the country that it is in. This means that a coup or some accounting scheme could occur that would cause you to lose all of your money. That is when you must ask yourself which country you want to open your offshore account in. Should you choose Switzerland, Bermuda, the Bahamas, or the Caymans? This can certainly be a difficult decision.
Best countries
First of all, you don’t have to be wealthy to have an offshore bank account. Second of all, you do not have to be present to open it and you do not have to visit the bank at any time during the life of the account. For example:
- If you open an account in Switzerland, you can do it via e-mail or in person if you are in the country. Swiss bank accounts are quite secret and that is why so many choose them. They operate much like American banks and keep certain private matters such as divorce private. Switzerland does not change their laws under American pressure like some other countries do.
- Opening an offshore account in Bermuda doesn’t require you to be present at the bank. The account can actually be opened by mail, along with proof of identity. Many of their banks are known for serving clients all over the world and this has made offshore banking in Bermuda quite popular.
- The Bahamas are also known for their secrecy due to their privacy laws. This makes offshore banking in the Bahamas a huge business. They are also compliant with international laws with attractive incentives for their bankers.
- The Caymans are also one of the best because of the similarity to a U.S. bank account. Then there is the possibility of keeping your identity a secret. The Caymans do not encourage tax evasion, but they do not report deposits in the accounts or interest gained from those deposits.
Being safe
Offshore banks do not report your income to the IRS like U.S. banks do, so they use an honor system. This means that it is up to you to report your income, but changing laws and other factors can cause issues if you do not comply with the laws of your own country. However, offshore accounts keep matters private and keep others from learning of your affairs. That is why such accounts are so popular amongst people all over the world.

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