Opening an Offshore Bank Account

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.

The process of opening an offshore bank account can be completed following these three basic steps;

1. Research and Select an Offshore Bank or Offshore Services Company

The first step is perhaps the hardest step. With so many vendors claiming to provide bullet proof asset protection services it can be hard to figure out who is actually telling the truth.

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.

The Cost Involved

Once you have narrowed the field through your features / benefits analysis the next phase is to look at the costs associated with opening and operating your account with the various vendors. It is good to note that the least expensive option is not always the best option.

Reliability / Stability

An offshore bank's reliability is determined by how trustworthy the banking laws are in the jurisdiction where it resides. It is recommended that you do your due diligence - find out the location and age of the bank and the local laws governing banking privacy.

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 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.

Offshore Bank Account Benefits

Research the local interest rates that banks in the jurisdiction you are interested in offer on deposits. Many will offer better rates than the banks in your own country in addition to the privacy and secrecy benefits they offer.

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 Account Balance - You will be required a specified amount of money at all times in the account, right from when it was started. Eg.: $1,000, $5,000, etc. [Quick Tip: Some new, small offshore banks may not have the minimum balance requirement, but may not be very reliable either.]

3. Complete an Account Application

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.

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About the Article Author

Apply for offshore bank accounts at OffshoreLegal.org an offshore banking reference.

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