Among the main reason why offshore bank accounts are being sought after is the fact that interest earned is in most cases not taxable, thus offering opportunity for growth. In addition confidentiality and easy access to fund by way of online access, debit card or credit card contribute to the popularity of offshore bank accounts. Nevertheless it should be remembered that at least the following factors must be considered before opening an offshore accounts, corporate or individual.
Confidentiality: It should be remembered that full disclosure of beneficial ownership is mandatory in almost all centres. The use of anonymous account is the thing of the past. Whilst in general customer's confidentiality will always be protected, such protection is only afforded to customers with genuine business. In most cases, where there is a court order requiring disclosure or where there is suspicion that a transaction involves proceed of criminal activity, a bank may be compelled to make disclosure.
Due diligent requirement: Most offshore centres have now legislated laws on anti-money laundering and anti-terrorists financing measure with the effect that banks are required to apply more stringent customer due diligent procedures. In most cases documents required are more numerous and time taken to approve an application is longer than before.
Documentation: No two banks have identical requirement to meet their due diligent prior to opening accounts. Nevertheless common theme appears. It must be remembered that bank reference, detailed explanation of business and source of fund must be provided.
Cost: Opening and maintaining offshore bank account may be a costly affair. Our clients are advised that at least one-time introduction fee must be paid and bank charges for transactions carried out may be more expensive with some offshore banks.
We have assisted hundreds of clients in opening offshore bank accounts in various centres and are ably equipped to advise on the confidentiality, due diligent, documentation requirement and cost aspects of opening and maintaining offshore bank accounts. The fact that we are qualified intermediaries with a few banks also ensure that our clients' application enjoy high rate of success.
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Bank account opening form. |
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Specimen cards verified. |
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Passport copies of director, signatory and beneficial owner verified. |
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Proof of residential address; normally in the form of bank or credit card statement, utility bills. |
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Bank reference; and usually reference from an international bank is preferred although not a must. Bank reference should state at least number of years of banking relation, type of account and whether the conduct of account is satisfactory. |
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CV or resume; what the bank wants to see here is what the customer has been and is doing now. |
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Detailed nature of business, i.e. The bank needs to understand the client's business. |
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Company / business profile; Most of these companies are new so there is no profile. Profile of a related company or company which is owned by the beneficial owner will do. |
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Source of fund; i.e. What is the economic origin of the money that will pass through the account. For example consultancy fees, trading commission, etc. |
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List of counter parties; i.e. If your client claimed to be in pharmaceutical business he should be able to list out a few of his suppliers and customers. It is not likely that people in who claim to be in this business do not know his counter parties. |
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Reason/s why account is needed; whatever is the reason so long as legitimate. |
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Face to face meeting; Not strictly necessary but from our opinion this is very important. This is just a one-time trip that is worth taking. Meet the bank and its officers and this would help so much in future dealing with the bank. |
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