| Offshore banking has often been associated | | | | losing what is rightfully yours.Tax |
| with the underground economy and organized | | | | EfficiencyAs stated above, your savings, |
| crime, via tax evasion and money laundering; | | | | investments, assets or business profits can |
| however, legally, offshore banking does not | | | | grow almost free of any form of taxation. |
| prevent assets from being subject to personal | | | | This does not mean tax avoidance, it simply |
| income tax on interest. Except for certain | | | | means whilst your assets are held offshore |
| persons who meet fairly complex requirements | | | | they will benefit from very favourable tax |
| , the personal income tax of most countries | | | | advantages. There will for many however, be a |
| makes no distinction between interest earned | | | | potential tax liability when you look to |
| in local banks and those earned abroad. | | | | repatriate your assets to your home country. |
| Persons subject to US income tax, for | | | | This will depend on your nationality and your |
| example, are required to declare on penalty | | | | country of residence at the time of |
| of perjury, any offshore bank accounts-which | | | | repatriation.Asset ProtectionThere are many |
| may or may not be numbered bank accounts-they | | | | methods in which to protect your assets using |
| may have. Although offshore banks may decide | | | | an offshore structure, in the form of an |
| not to report income to other tax | | | | investment product, an IBC (International |
| authorities, and have no legal obligation to | | | | Business Company) or a offshore trust, or |
| do so as they are protected by bank secrecy, | | | | even a simple offshore bank account. These |
| this does not make the non-declaration of the | | | | will protect your assets from:* Protection |
| income by the tax-payer or the evasion of the | | | | from invasive bureaucracy* Protection against |
| tax on that income legal. Following September | | | | lawsuits* Protect your assets from seizureThe |
| 11, 2001, there have been many calls for more | | | | simplest form of protection offshore is the |
| regulation on international finance, in | | | | nature of the offshore privacy rules. What |
| particular concerning offshore banks, tax | | | | isn't known can't be attacked. The basic form |
| havens and clearing houses such as | | | | of offshore privacy combined with a IBC or |
| Clearstream, based in Luxembourg, being | | | | Trust is a very secure method to legally |
| accused of being a crossroads for major | | | | protect your assets from prying eyes.Lawsuits |
| illegal money flows.An offshore bank is a | | | | are filed every week. Ex-spouses, ex-business |
| bank located outside the country of residence | | | | partners, disgruntled employees or predatory |
| of the depositor, typically in a low tax | | | | lawyers may file a suit if they believe a |
| jurisdiction (or tax haven) that provides | | | | potential defendant is an attractive target. |
| financial and legal advantages. These | | | | Losing such a lawsuit could cause a |
| advantages typically include some or all of:* | | | | lifetime's worth of savings, investments and |
| Strong privacy* Less restrictive legal | | | | real estate holdings to be lost. In light of |
| regulation* Low or no taxation (i.e. tax | | | | this, placing assets offshore is a wise and |
| havens)* Easy access to deposits (at least in | | | | effective means of protection from frivolous |
| terms of regulation)* Protection against | | | | lawsuits.Once your assets are held offshore |
| local political or financial instabilityWhile | | | | they are unreachable by domestic courts. In |
| the term originates from the Channel Islands | | | | the event of a lawsuit, a defendant may be |
| "offshore" from Britain, and most offshore | | | | forced to forfeit domestic assets, but |
| banks are located in island nations to this | | | | offshore assets will remain untouched. |
| day, the term is used figuratively to refer | | | | Offshore courts do not recognize or carry out |
| to such banks regardless of location | | | | domestic judgments. This insures that assets |
| (Switzerland, Luxembourg and Andorra in | | | | sent offshore will remain confidential, |
| particular are landlocked).What type of | | | | secure, and permanently in the hands of their |
| services are available from offshore banks? | | | | rightful owners. Moving assets offshore will |
| The same as the services from any high street | | | | create peace of mind that what's yours will |
| bank, plus the extremely confidential Swiss | | | | always be yours.Regulatory AdvantagesThe |
| style numbered accounts. Many of the offshore | | | | regulations in force within most high tax |
| banks listed on this site are respected AA | | | | countries, are there to protect investors, |
| credit rated international banks, that | | | | and rightly so. However, due to the very |
| everyone has heard of before. They have | | | | strict nature of these regulations, fund |
| simply set up an offshore division or branch | | | | managers feel as if they are wearing a |
| division within a tax haven to attract a | | | | financial straight Jacket. It is difficult |
| share of the enormous international trade, | | | | for them to compete with the returns of their |
| and offer almost the same services as any | | | | offshore-based partners who enjoy less |
| domestic bank. Such as the following:* | | | | restrictive regulation. Many offshore |
| Personal and corporate current/checking | | | | jurisdictions have very mature regulatory |
| account* Personal and corporate savings | | | | systems in place, often based on those |
| accounts* Secure internet banking facilities* | | | | present within the US or the UK, yet they |
| Anonymous numbered accounts (extremely | | | | allow fund managers great freedom to add |
| confidential)* Debit and ATM cards, which are | | | | value for their investors. This is why |
| accepted globally* Credit cards* loans* | | | | offshore funds nearly always outperform their |
| MortgagesGoing offshore in simple terms means | | | | onshore equivalents. Within the high |
| placing your savings, investments, assets or | | | | regulation onshore countries, excessive rules |
| business concerns outside of your home | | | | and bureaucracy often plague domestic |
| country, within one of the many tax havens. A | | | | businesses and operations. Valuable resources |
| tax haven is a country that has very | | | | are diverted away from the productive process |
| favourable tax advantages, which means that | | | | in order to monitor compliance as a result of |
| your savings, investments, assets or business | | | | the restrictions imposed. Curing this problem |
| profits can grow free of almost any taxation. | | | | is as simple as moving to friendlier shores. |
| Although taxation is only one reason why many | | | | Offshore jurisdictions are intentionally |
| decide to go offshore.PrivacyTo protect the | | | | business-friendly and have regulations that |
| free flow of your personal information and | | | | are straightforward, simple to understand and |
| dealings. An offshore entity has no | | | | inexpensive to comply with. Moving a business |
| obligation to release your personal or | | | | offshore and enjoying a more pleasant |
| business information, affording you with a | | | | business climate may require nothing more |
| great deal of privacy & confidentiality. In | | | | than forming an offshore corporation and |
| general terms your personal information will | | | | transferring assets from the domestic |
| not be divulged to any governing body or tax | | | | corporation to the foreign one.Is all of this |
| authority unless suitable evidence can be | | | | legal?Do you trust your current bank or |
| shown to prove that you have been involved in | | | | investment provider? Chances are that they |
| criminal activities, such as money laundering | | | | too have an offshore operation; most of the |
| or drug trafficking.Financial privacy is | | | | world's major banks and investment companies |
| becoming a thing of the past. Almost every | | | | have an offshore present. Do you honestly |
| single transaction made at a bank or ATM, by | | | | believe that a triple A credited rated |
| law, must be recorded and filed. Consumer | | | | investment company or bank would operate in |
| credit agencies maintain databases full of | | | | an illegal activity? Companies such as |
| sensitive information that is used and shared | | | | Merrill Lynch, HSBC, ING Barings, UBS, |
| by other organizations and agencies. Asset | | | | Barclays, Deustche bank, ABN Amro all have |
| collectors routinely advertise their ability | | | | offshore operations. It is not the offshore |
| to locate bank accounts, brokerage accounts, | | | | industry itself that is illegal, it is only |
| and real estate and business holdings. Should | | | | the devious activities of certain individuals |
| asset collectors find substantial wealth, the | | | | who may give the offshore industry a poor |
| individual or corporation becomes an easy | | | | reputation. It is also true that the due |
| target for a lawsuit.Unless ethical and legal | | | | diligence, and money laundering checks |
| steps are taken to insure privacy, sensitive | | | | performed by offshore companies is |
| and confidential information could easily get | | | | increasing, especially after the 911 |
| into the wrong hands. Placing your assets, | | | | terrorist attacks. Which will ensure that it |
| investments, savings bank and brokerage | | | | becomes difficult for criminals to abuse the |
| accounts offshore will keep them off the | | | | offshore industry.Thomas Crown is an American |
| asset collector's radar screen. Consumer | | | | financial advisor currently living and |
| credit agencies and government departments do | | | | working in the Grand Cayman Islands. He |
| not have access to foreign account records or | | | | currently runs the website which is a |
| transactions. Domestic property may be held | | | | Beginners Guide to Offshore Banking. The site |
| in the name of a foreign corporation (IBC) or | | | | covers a wide range of topics; Offshore |
| trust. This insures that asset collectors and | | | | banking laws, Types of services offered, A |
| agencies cannot locate it. By taking | | | | large data base of banks, A pros and cons of |
| advantage of these methods an individual or | | | | using offshore banks, Guide to starting your |
| corporation becomes a smaller target and the | | | | own offshore bank.All of the information at |
| likelihood of being sued is reduced. | | | | is listed for free, their is no charge for |
| Utilizing offshore tools to protect privacy | | | | anything on the site. |
| could mean the difference between keeping and | | | | |