| When you think of offshore bank accounts
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| | you want your money in a safe place. The
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| do you see shady characters carrying
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| | government could impose foreign exchange
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| around bags full of money? Today's modern
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| | restrictions or there may be a bank run.
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| bank legislation does not allow banks to
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| | A coup d'etat may make your money
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| accept cash deposits or transfers of US$
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| | inaccessible.
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| 10.000 and up without presenting proof of
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| | Non-residents usually pay minimal or no
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| the source of funds.
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| | taxes on interest or profits from
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| All serious establishments will ask you
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| | investments. Depending on your
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| to fill out forms known as KYC or know
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| | citizenship, country of residence and if
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| your customer. Find out more about KYC
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| | you use an offshore company as the
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| Know Your Customer This is not only to be
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| | account holder you may still have to pay
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| able to give you better service but to
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| | taxes.
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| protect themselves in case you are
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| | Many large international banks have
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| accused of money laundering. These forms
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| | branches or are incorporated in tax
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| also allow the bank to know your sources
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| | havens. To be on the safe side, you would
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| of income. Knowing your cash flow the
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| | probably be better off not using a bank
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| bank will not ask you to prove the origin
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| | that has branches or is incorporated in
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| of the funds every time you make a
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| | your country of residence.
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| transfer.
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| | American citizens must file an annual tax
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| Even though you have filled out a KYC
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| | return no matter where they live and
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| form the bank may or may not at its
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| | include offshore holdings. Starting July
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| discretion allow you to start a
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| | 1st, 2005, tax havens which are British
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| relationship with them.
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| | 'dependant territories', will apply the
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| What's the difference between your local
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| | European Union's Saving Tax Directive of
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| bank and an offshore bank? Basically any
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| | 2005. Initially this is 15% on returns of
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| service you will get locally will be
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| | savings paid to nationals of EU Member
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| available offshore. Then why open an
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| | States. Corporations are exempt from this
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| offshore account.
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| | withholding tax.
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| Offshore banking is no longer a handy way
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| | Always consult a tax specialist who has
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| to conceal income from illegal activities
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| | experience with the jurisdictions
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| or unreported business profits.
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| | involved before starting your offshore
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| There are many justifiable monetary
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| | tax journey. You do not want any costly
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| reasons to open an offshore bank account.
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| | surprises after you open offshore company
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| As a resident in a country with an
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| | and bank account.
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| unstable political and economic history,
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