It is important to discuss with experienced professionals the set up of an offshore bank account. The offshore bank accounts can be created online or via telephone direct communicating with a consultant. An offshore bank account is simply a bank account businesses have an outside country of residence. The most offshore banks require an eligible introducer. The jurisdiction here is referred to as banking havens due to the strict enforcement of customer privacy.
Gain significance of financial confidentiality opening an offshore bank account in one of the favorable jurisdictions. In the offshore accounts, the customers open a new account in the name of private offshore companies that are established. There are international financial standards that banks must meet with regard to bank safety. Obtaining a correspondent banking relationship carries certain requirements. Also, it should continuously pass the tests to maintain the relationship.
What does offshore bank account do?
It Provides Sounder Banking Systems and Banks
The banking systems in the EU are having sound banking systems. The banks are in stable jurisdictions with low debt that doesn’t gamble with customer deposits. The offshore bank accounts are always responsible for hard-earned savings.
A foreign bank account makes a less attractive target while there is no such thing as 100% protection. An offshore bank account is protecting individuals from overzealous government agencies armed with the power to freeze the assets.
Diversification of Currency
Hold on to foreign currencies to diversify the portfolio risk, protect the purchasing power, and internationalize the savings. The offshore bank accounts are convenient online platforms for holding foreign currencies.
Get Higher Interest Rates for Deposits
The low-interest rates effectively transfer wealth away from savers, who otherwise enjoy higher returns on the deposits. There is a good chance of savings keeping pace with the real rate of inflation.
What do the banks need?
Here is the list of documents that the banks need –
- Notarized copy of passport
- Signature card
- Bank account application
- Address proof, like a utility bill
- Bank reference letter from bank with a relevant person having a banking relationship
- Professional reference letter from Accountant/Attorney with a relevant person
The offshore bank may want evidence of a satisfactory relationship between the business and the bank, as for banking reference. It might want information and details like daily balances. The domestic bank can typically provide a letter of reference confirming that the client is standing. The offshore bank wants information about the nature and type of transaction. Banks are under increasing pressure to stop money laundering and other illicit activity. Thus, the documentation is needed for institutions taking not of the funding sources in the account.