With the advent of the internet and online services gone are the days when a prospective applicant needs to visit a bank in an offshore jurisdiction to open an account there. Clients can visit websites and with a few clicks gain access to all of the required services needed to create an offshore bank account with absolute privacy.
There are 3 steps involved in opening an offshore bank account;
1. Research and Select an Offshore Bank or Offshore Services Company
This is a tough step. Options are many, but what you expect in terms of account operating costs, reliability / stability and benefits offered vary, at different organizations and places, between extremes.
To pick a suitable option, it is advisable to prepare a list of favorable offshore banks and companies. Better yet, prepare a comparison table - List the bank names and service companies (in rows) and features / benefits offered (in columns). This will help you decide on one desirable option.
Associated Costs
Once you have narrowed your search down to 3 - 5 vendors who provide all of the services you need the next step is to evaluate the costs associated with working with them. A piece of advice: the cheapest option is not always the best option.
Reliability / Stability
An offshore bank's reliability is determined by how trustworthy the banking laws are in the jurisdiction where it resides. It is recommended that you do your due diligence - find out the location and age of the bank and the local laws governing banking privacy.
When searching for a suitable offshore bank make sure to find one in a stable political climate. A stable government improves investor trust and hence further strengthens the credibility of the banks located in that region.
Not all offshore banks offer high levels of privacy regarding your account and transactions. While many countries will respect your privacy, some will divulge important details regardless of your acceptance.
Offshore Bank Account Benefits
Check out the bank or company website to know about the interest rates they offer on deposits and other associated benefits of having an account there.
Consult an Expert
It can save you a lot of money in the long run to enlist the services of an offshore banking expert. The experience they have as well as the relationships they have built with local companies can go a long way to making the offshore banking selection process easier.
2. Understanding the Bank's Requirements
Each offshore bank has its own set of different requirements that you need to fulfill to be able to open an account there. Many offshore banks have a few of the below mentioned requirements in common.
a. Prove your Identity - Banks will commonly ask for your name, contact information, banking references and passport# for personal accounts.
b. Political Stability - Some offshore banks won't accept you if you happen to be a resident in a country that is politically unstable.
c. Minimum Account Balance - You will be required a specified amount of money at all times in the account, right from when it was started. Eg.: $1,000, $5,000, etc. [Quick Tip: Some new, small offshore banks may not have the minimum balance requirement, but may not be very reliable either.]
3. Applying for the Account
Before applying for an account make sure you have all of the requirements fulfilled and the necessary funds to pay for the account setup, lawyer / intermediary fees, minimum balance deposit and money to support the ongoing account costs. By now you should have narrowed the field of choice down to a jurisdiction and a bank account vendor.
Article Source: http://www.myarticlemall.com
Find out more about asset protection at OffshoreLegal.org a free asset protection reference.
