Three Steps to Opening a Bank Account Offshore

With the advent of the internet and online services gone are the days when a prospective applicant needs to visit a bank in an offshore jurisdiction to open an account there. Clients can visit websites and with a few clicks gain access to all of the required services needed to create an offshore bank account with absolute privacy.

There are 3 steps involved in opening an offshore bank account;

1. Find a suitable Offshore Bank or Banking Service Provider

This step is of course the hardest part of the process as there are many variables to consider. Is the offshore jurisdiction stable, are the banking secrecy laws strong, how much is the vendor charging for an account, what are the fees one can expect to incur operating an account among others.

To make your research easier a favorite technique is to prepare a comparison chart of costs and benefits associated with offshore banks and offshore service providers as a guide. A spreadsheet can be set up in minutes using the rows to list the features / benefits and columns to list the various banks and companies providing offshore banking services.

Figuring out the Costs

Once you have narrowed your search down to 3 - 5 vendors who provide all of the services you need the next step is to evaluate the costs associated with working with them. A piece of advice: the cheapest option is not always the best option.

Reliability / Stability

In order to ensure your assets are protected properly one needs to investigate the banking laws governing the jurisdiction where you have identified suitable offshore banking services based on your initial benefit analysis.

Offshore banks that are in business in a stable jurisdiction are preferable. Besides, the economical and political stability conditions of the country in which the bank is located help determine the stability of the bank and whether it is trustworthy to investors.

Not every offshore bank account offers total privacy in the post 9 /11 world. Gone are the days of anonymous Swiss numbered accounts. Make sure you understand the rules that govern the bank or company you are working with by consulting a lawyer.

Benefits of Offshore Bank Accounts

Many offshore banks will offer a very competitive interest rate on deposits in addition to the banking privacy and secrecy benefits.

Consult an Expert or Lawyer

Apart from doing personal due diligence, it is a good thing to speak to an expert in the field of offshore banking. These experts will have lists and detailed information about reputable offshore banks. They could well make your process quicker in finding that right offshore bank for you.

2. Understand What is Required of You

Each offshore banking jurisdiction has it's own requirements for successfully opening a bank account there. Some of the common requirements are listed below;

a) Proof of Identity - your name, contact information, banking references and passport# are commonly asked for for personal accounts.

b. Stable Origin Country - many offshore regions will not accept clients from known politically unstable or corrupt countries.

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. Apply for the Account

Opening an offshore bank account might cost anywhere between $0 and $1,000, depending on the bank and the account type. You can submit the application either online or through paper.

See Also

Which Offshore Bank Account is Right For You?

Getting High Yield Investments With Your Money

Frozen bank account

External Links

Offshoreinfo.com

Offshorelegal.org

En.wikipedia.org