3 Surprising Facts About Offshore Banking

There are a lot of myths and fake news about offshore banking. A lot of people think that there’s something unethical about anyone who keeps offshore accounts. However, offshore banks are legal and safe. International banking just means that you’re keeping your money in a bank that’s located in a country other than where you reside. Offshore banks are simply a different and secure way of managing your money. Here are 3 surprising facts about offshore banking.

1. You Don’t Need A Big Income To Open An Account

One of the misconceptions about offshore banking is that you have to have a six-figure income to open an account at an Offshore Bank. You don’t have to be wealthy and it’s easier than you may think. Not all international banks are like those in Liechtenstein, in which you must deposit at least $350,000. Even Swiss banks require a minimum of $10,000. Some offshore banks, usually public banks in several countries, allow you to open an account with less than $1,000. Some banks will allow new accounts with a $500 deposit.

2. Remote Banking Is An Option

Most people think that even if they have the funds to open an offshore account, they don’t think it’s practical for them. They’re under the impression that they have to travel to the country where the bank is located to transfer their funds. However, it’s not always necessary to open the account in person. Many offshore banks allow new customers to open their accounts remotely. Most banks allow new customers to submit the required documents. The approval process can take anywhere from a few days to three weeks. Once the account is approved, you can manage your funds by the Internet, phone, or fax.

3. Offshore Banks Are Strong

Offshore banks must operate according to the laws of the country in which they’re located with less intervention from the government and stricter financial laws. In developed countries, bankers don’t always face the consequences of mismanagement of client’s funds. However, bankers who manage international banks could go to jail for those offenses. Security and privacy of a customer are strictly enforced and limits information about account holders from being shared with third party sources. Account holders may transfer funds by a variety of methods including checks, drafts, or wire transfers. In the United States, a valid ID and proof of current address may be all that’s required to open a bank account. To open an account with an offshore bank, you may need the following documents:

  • Copy of your passport
  • Proof of current address
  • Bank statements
  • Resume
  • Letter of reference

With an offshore account, you can make global investments including precious metals, stocks and bonds, and real estate.

The requirements show that international banks are particular about clients that they allow to open offshore accounts. If you’re considering opening a new bank account, you may want to look into the options that are available from offshore banks.

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