How to Open an Offshore Bank Account

Article Written By: FranklinFinkleman

Gone are the days when one had to go the bank located in the offshore location in order to open the account there. With the advent of the Internet, opening an offshore bank account has become easier and just a few clicks away, regardless of where one lives. The website does everything to help a person to open the bank account, whether personal or business type.

Three basic steps have to be completed, in order to open an offshore bank account:

1. Selecting a suitable offshore bank or offshore services company

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 the decision process easier a good exercise is to prepare a features comparison table using your favorite spreadsheet program. Place the features / benefits as rows in the table with the columns reserved for the offshore banks and banking services you are comparing.

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.

Privacy and 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 is created equally. Many offshore jurisdictions have made drastic changes to their banking secrecy laws in the post 9/11 world. While many banks claim to respect your privacy they will turn over your details to authorities who ask for it.

Benefits of Offshore Bank Accounts

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

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 Bank's Require 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 Country of Origin - some offshore jurisdictions will not accept applicants from countries that are politically unstable or corrupt.

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. 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.

About the Author

Learn more about offshore asset protection at OffshoreLegal.org an offshore asset protection reference. Get your own completely unique content version of this article.

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