With the rise of internet technologies, creating an offshore bank account has never been easier. Gone are the days when one needed to actually visit the offshore bank in person to set up an account. With a few clicks of a mouse on a website, clients can gain access to all of the banking services they need with absolute privacy and security.
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 varies, 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.
Figuring out the Costs
If you are satisfied with basic features and benefits, your best bet is to pick a vendor that will cost you less.
Security and Privacy
To ensure your assets are protected properly, you need to investigate the banking laws governing the jurisdiction where you have identified suitable offshore banking services based on your initial benefit analysis.
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.
Benefits of Offshore Bank Accounts
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 or Lawyer
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 following requirements in common.
a) Proof of Identity – your name, contact information, banking references, and passport# are commonly asked for for personal accounts.
b. Political Stability – Some offshore banks won’t accept you if you happen to be a resident in a politically unstable country.
c. Minimum Bank Account Balance – Many offshore banks will require you to maintain a minimum balance in your account, or they will not approve your application and/or terminate your account.
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.
