| SETTING UP AN OFFSHORE BANK ACCOUNT What
is the procedure to set up an offshore bank account? We
can assist you to open all types of corporate, trust and personal accounts in
most major currencies. The
best way to get things moving is to contact us with a summary of your requirements
and any questions regarding procedures and time frames etc. We specialise in matching
the right account to each client's needs and make no charge for answering serious
and realistic enquiries, although a consultancy fee may apply if detailed enquiries
need to be undertaken to arrange very specialised facilities. Every week we get
very vague enquiries such as "please send your full information on offshore banking".
As most information is on the website, if people only write a couple of lines
they cannot realistically expect us to spend a considerable amount of time checking
with our contacts on what is the latest opportunity on some remote Caribbean Island.
We get numerous emails giving no information as to the intended level of deposit,
whether the account is to be personal or corporate, or even the currency required.
In the case of an email like this, we can only refer you back to the site or request
that you phone us. We will need the following information before
we can arrange an introduction: 1.
The type of account required
2. Which jurisdiction you prefer?
3.
Is the account to be corporate or personal?
If corporate
we would need a description of the company's proposed activities
4.
What ID and references you can offer?
5. Proof of residential address
is sometimes required but we can clarify this for you in advance
6. Which
jurisdictions you are interested and an outline of the reasons why? References
might be required depending on the location of the bank. Most banks will accept
a letter on a 'To Whom It May Concern' basis - see the sample which follows to
will enable you to clarify the type of letter you may need.
Please
note: Payment of opening deposits etc. are usually paid directly to the bank.
All the fees quoted in our banking section are only payable on the basis that
we successfully open the account. We do not just email you all the relevant application
forms and then leave you on your own to battle through them! We liaise with you
right up until the account is successfully opened. If, for any reason, you are
declined by a bank, (an unlikely event) we will either refund you or offer to
set up an alternative account. back
to top Sample
of a Typical Bank Reference Letter
ABC
Bank
23 Oxford Street
Sydney,
NSW 2000
Tel: 02 3456-7890
Fax:
02-3456-7891
URL: www.anybank.com.au
E-mail: info@anybank.com.au Monday,
December 04, 2006 To
Whom It May Concern This
is to confirm that Mr. Jack Smith is currently a client of our banking institution
and has maintained a satisfactory banking relationship with our bank since May
2003.
Mr. Smith currently has deposits in a savings account in a 5 figure amount. This
reference is issued for the interested party and does not impose any responsibility
to the bank. Sincerely
(Signature
of banking official) James
Davis
Tel: 416-677-643
Fax: 416-757-757
E-mail: admin@abc-bank.ca back
to top What
Services do the Offshore banks provide? 1·
Current Cheque Accounts both personal and business
2· Deposit
Accounts
3· Fixed-term Deposit Accounts
4·
Internal Swift Transfers
5· IBAN Transfers
6·
Credit and Debit Cards
7· Online Internet Banking
8·
Investment Bonds
9· Letters of Credit
10·
Portfolio Management Services
11· Loans and Mortgages (subject
to status)
12· Business Development Finance (subject
to status)
13· Bills of Exchange Settlements back
to top Personal
Account Set Up Procedures When
we assist you to open a bank account you do not usually need to visit the bank.
Some banks require simple certification of documents. Others such as Switzerland
require either a trip to the bank or an Apostilled copy of your passport which
can be obtained in most countries. If you need an Apostille but do not know where
to get one, email us at Apostilles or check out www.apostille.com.
This company is not particularly cheap but, if you are unsure what to do and in
a hurry, we are informed that they are fast and efficient. One
word of advice is to always remember that a close working relationship with the
manager of the branch tends to help ensure smooth running of your accounts, especially
if the turnover is high or variable. Try to keep them informed of what is happening
and you will avoid difficult questions. The
majority of banks require notarised or certified copies of the applicant's passport
and an original utility bill although exact requirements tend to vary from bank
to bank. Some banks, for example, only require a passport or driving licence copy
in order to set up a straightforward card based account and sometimes even certification
is not needed. So it all hinges on what you need but a phone call or email will
enable us to define what type of account is going to achieve your objectives. The
set up time to arrange an account with a major bank can take anything from one
to eight weeks; we can usually give you a pretty accurate indication of timescales
at the outset. The delays are normally due to the time it takes the bank to check
the documentation and confirm any points or raise queries. The most common cause
of a hold up is an inadequate or incorrectly worded reference. Not all banks need
a reference but some require the signature of the signatory to be confirmed by
the bank issuing the reference. Another obstacle is that many banks are slow to
respond to enquires although, fortunately, experience gathered over many years
enables us to pinpoint which banks these are. Of course, it is also worth mentioning
that, if a bank is slow to act on a new application, it does not bode well for
a smooth relationship once the account is actually open. Although
all banks are subject to guidelines, the regulations will vary greatly from country
to country. The regulations are generally designed to ensure that the proceeds
of crime do not get into the banking system. With the increased threat of terrorism,
combined with drug money and organised crime, banks in some jurisdictions will
need considerable information about each beneficial owner, account signatory and
other people who have influence over the account before processing the application.
Due diligence has become much more stringent in many countries since the 9/11
attack on the World Trade Centre and, of course, both the Madrid bombing and 7/7
in London have brought home to Europeans that the risk of terrorism is very real. back
to top Corporate
Account Set Up Procedures When
we assist you to open a bank account you do not usually need to visit the bank.
Some banks require simple certification of documents. Others such as Switzerland
require either a trip to the bank or an Apostilled copy of your passport which
can be obtained in most countries. If you need an Apostille but do not know where
to get one, email us at Apostilles or check out www.apostille.com.
This company is not particularly cheap but, if you are unsure what to do and in
a hurry, we are informed that they are fast and efficient. One
word of advice is always remember that a close working relationship with the manager
of the branch tends to help ensure smooth running of your accounts, especially
if the turnover is high or variable. Try to keep them informed of what is happening
and you will avoid difficult questions. The
majority of banks require notarised or certified copies of the applicant's passport
and an original utility bill although exact requirements tend to vary from bank
to bank. Some banks, for example, only require a passport or driving licence copy
in order to set up a straightforward card based account and sometimes even certification
is not needed so it all hinges on what you need. Other banks require a certificate
of good standing especially if the company is over 6 months (sometimes 12 months)
old. Much depends on the actual bank, some banks will tend to ask for copies of
the documents to be notarised and/or apostilled in a company's place of incorporation,
others just want them certified or notarised locally and others prefer to have
sight of the originals. Fortunately, we can walk you through this bureaucratic
nightmare! Generally there are ways to smooth the path but, again, it all depends
on which bank you choose and the jurisdiction in which it is located. The
set up time to arrange an account with a major bank may take anything from one
to eight weeks; we can usually give you a pretty accurate indication of timescales
at the outset. The delays are normally due to the time it takes the bank to check
the documentation and confirm the references it requires. The most common cause
of a hold up is an inadequate or incorrectly worded reference. Some banks require
the signature of the signatory confirmed by the bank issuing the reference; another
obstacle is that many clients find their current bankers are slow to respond to
enquires. All banks will require evidence of beneficial ownership of the company;
these items are certified passport copies or national ID card along with the appropriate
board resolutions. Although
all banks are subject to guidelines, the regulations will vary greatly from country
to country. The regulations are generally designed to ensure that the proceeds
of crime do not get into the banking system. With the increased threat of terrorism,
combined with drug money and organised crime, banks in some jurisdictions will
need considerable information about each beneficial owner, account signatory and
other people who have influence over the account before processing the application.
Due diligence has become much more stringent in many countries since the 9/11
attack on the World Trade Centre and, of course, both the Madrid bombing and 7/7
in London have brought home to Europeans that the risk of terrorism is very real.
Back to
top Offshore
Banking: A Summary The
key to using an account in an Offshore Banking Centre hinges on having an account
which fulfils all your day to day banking needs. Some banks have decided that
all accounts should operate as multi-currency accounts; this simplifies things
immensely for people who use several currencies on a day-to-day basis. Where previously
you would have had three or four separate accounts for different currencies, such
as Pounds, Dollars, Euros and Yen, you can now hold funds in all major currencies
simultaneously but as separate balances on one account. Although the facilities
offered by the various banks vary, we try to deal with banks which offer a variety
of accounts covering all the facilities our clients are likely to need. Which
jurisdiction is ideal for you personally will depend on several factors. For example,
where you live, your preferred language and the location of companies and individuals
with whom you transact business. We can help you determine which locations are
likely to be suitable fairly quickly once we look at your main requirements. Back
to top We
arrange banking facilities in all of the following jurisdictions as well as a
number of less well-known offshore centres. The
diamonds indicate our rating of the facilities and benefits of the banks in the
particular jurisdiction. | | |
Anguilla: | | Not
the most sophisticated Caribbean location but worth a look. |
Andorra: | | Excellent
for personal banking needs. Ideally open the account in person. |
Austria: | | Comparable
to Switzerland for confidentiality but lower profile. |
Bahamas: | | Not
as good as in the past due to pressure from the US and OECD but still quite good
for non US citizens. |
Baltic States: | | Not
quite as good as Cyprus but, since joining the EU, this location can once more
be recommended. |
Barbados: | | Generally
very good feedback from clients and several good banks. |
Belize: | | Good
if you clear regular large USD cheques. Not our number one choice but it is worth
a look for some clients. |
British Virgin Islands: | | Several
large banks and very efficient generally. |
Canada: | | Good
confidentiality provisions and the banks are reliable and hassle free. This is
our favourite North American banking option for USD and CAD accounts as well as
a number of other currencies. Best opened in person but worthwhile. |
Costa Rica: | | Quite
good and straightforward but few banks offer internet banking. |
Cyprus: | | Probably
the best all-round EU banking Centre hence this one scores 5 plus. Cyprus offers
just about everything required. For personal and corporate banking it is hard
to beat. |
Dubai: | | This
is our five star Middle East banking choice. Very straightforward to deal with
and a 100% reliable banking network. |
Estonia: | | See
Baltic States. In our opinion this location along with Latvia is the best choice. |
Germany: | | Highly
efficient: Germany is very cheap for international transfers and the accounts
can be opened by mail for both individuals and companies. The ID can be certified
by the nearest German Consulate. |
Gibraltar: | | Ideal
for clearing sterling payments outside the UK. Also, borders Spain making it useful
for non resident Brits. Some banks require hefty deposits of £10,000+ |
Granada: | | Not
the most sophisticated Caribbean location but several excellent banks with a good
range of facilities both personal and corporate. |
Guernsey: | | Like
the UK the banking sector is over regulated and obsessed with money laundering.
If you need to bank here we deal with several banks. Not recommended |
Isle of Man: |  + | Like
the UK the banking sector is over regulated and obsessed with money laundering.
If you need to bank here we deal with several banks but its not one of our recommended
locations. |
Jersey: | | Like
the UK the banking sector is over regulated and obsessed with money laundering.
If you need to bank here we deal with several banks. Not recommended |
Latvia: | | Excellent
banking secrecy combined with excellent internet banking and IBAN facilities.
Ideal for corporate banking needs. |
Liechtenstein: | | Very
discreet and rock solid: Achieves our highest European rating for a non EU state
alongside Switzerland. |
Luxembourg: | | A
first class easily accessible European banking centre. Normally requires a visit
but very discreet. Almost pegs level with Switzerland and Liechtenstein. |
Nuie: | | A
small banking sector which is developing but currently not very sophisticated |
Nevis: | | Several
good banks with friendly staff but not very sophisticated and there are better
options elsewhere. |
Panama: | | The
best Central American banking centre by far. Lots of info needed to set up an
account but once it is open the secrecy is rock solid and stronger than Switzerland! |
St Vincent: | | Several
small friendly banks and worth a look for many clients. |
Switzerland: | | Very
discreet and rock solid: Achieves our highest European rating for a non EU state
alongside Liechtenstein. |
Tanzania: | | This
is one of the leading African banking centres and the bank is totally solid because
it is owned by a major European bank. A first rate low profile option. |
Turks & Caicos Islands: | | Several
small friendly banks and worth a look for many clients. |
USA: | | If
you are not an American the USA can be quite okay especially if you sell a lot
of items on the Web in USD. Surprisingly quick to set up as well although secrecy
is zilch! |
Vanuatu: | | Several
banks including subsidiaries of Australian banks but it has appeared on every
blacklist under the sun! The charges are horrendous too. In our opinion, it is
not really worth looking at currently. This could well change in future though. | |
| | |
back
to top Control
of Accounts Most
banks now offer internet access so the administration of the account is easier
for both parties and also more secure. For various reasons, some clients prefer
to fax instructions; this is perfectly safe if the bank operates a coded system
of passwords to ensure confidentiality and security. Interception of faxes is
much harder than an email although secure sites are not impossible for hackers
to penetrate and fake bank links and emails telling you to login to your account
are a constant headache. If a website is secure you will see a padlock symbol
at the bottom of your screen or the address will start https instead of
just http; it is the 's' in the https which indicates the site is encrypted.
For most financial industries the accepted standard is 128SSL. If you click the
padlock you can check that the site is what it appears to be. Of course, if you
type in the details of your bank's website yourself you do not have a problem. Back
to top Confidentiality For
many clients confidentiality is absolutely paramount to protect their assets from
litigation, malicious competitors or any other potential headaches that can arise.
We appreciate and understand our client's concerns. It is important to take into
consideration that, in most European countries, it is generally accepted that
the relationship between banker and client is confidential and should not be disclosed
without a Court Order. Of course, all European Union based banks are subject to
EU directives on such matters as money laundering, tax evasion and exchange of
information; some EU countries still retain rigid security. These are Austria,
Belgium and Luxembourg although Gibraltar and Cyprus are quite secure as well.
Always remember that some countries have information exchange and mutual legal
assistance arrangements tied in with double taxation treaties and other international
agreements. An example is the European Savings Tax Directive which came into force
in July 2005 and allows for the exchange of information on interest payments between
EU members states and some non member countries. Banking
in the UK is subject to European Union directives as well as an excessive level
of scrutiny by the regulatory authorities. This is even worse in the Channel Islands
and Isle of Man where law abiding long term clients have felt obliged to seek
alternative arrangements. The Turks and Caicos and the BVI are still satisfactory.
Switzerland, Cyprus and Luxembourg remain popular banking jurisdictions in Europe
whilst Anguilla, Antigua, Barbados, Costa Rica, Dominica, Hungary, Latvia, Liechtenstein
and Uruguay all continue to provide acceptable levels of confidentiality. The
main service we offer is to locate the correct account for your needs regardless
of whether you need a personal or corporate account. Our experience in setting
up bank accounts for both individuals and companies, often in unfamiliar jurisdictions,
is second to none. We will advise and assist with language problems as well as
the setting up of complementary services such as credit cards and secure Internet
banking. Back
to top Origin
of the Funds Banks
will ask for the economic origin of the money which you remit to your bank account.
They will often wish to understand your occupation. Why? Because, once the account
is opened, if the account officer sees a particularly unusual transaction he can
trigger an investigation. Common sense suggests we remove this risk by looking
at the situation in advance for any likely issues that could cause problems. back
to top | 
