What Are Offshore Banking Accounts?
Offshore Banking Accounts refer to opening an account in one of the many
banking or investment institutions in another country or jurisdiction.
Any bank can be considered an offshore bank if it is located in a low-
regulation, low-taxation, haven, jurisdictions.
Since they began, offshore banks have had a bad reputation. They have
been accused of being involved in everything from tax evasion, to money
laundering. The careful examination of where illicit funds are really
held shows the truth of the situation. Other false accusations about
offshore banks are-unsafe environments and poor regulation are untrue.
Most Offshore Bank account jurisdictions are very sophisticated, with
stable banking regulations. It is in their best interest to attract
depositors. The regulations are bent toward meeting the needs of a
One of the benefits of having an offshore banking account is the fact
that they are usually located in tax havens that provide great asset
protection and confidentiality to the bank holder. This often allows for
relaxed restrictions with regard to the types of accounts available to
depositors and investors, there is generally a decreased tax liability.
Offshore banks can be located in actual island states like, the Caymans
or Channel Islands, or landlocked countries such as Switzerland. It is
not imperative that the land is surrounded by water.
There are still a number of misconceptions associated with offshore
banking accounts, but as a would be offshore bank account owner, you will
need to take many of these statements with a grain of salt. You should
also do a bit of homework on any offshore bank you are thinking of
opening an account in. Most offshore banking accounts offer a
confidential and secure environments. While there are a few offshore
jurisdictions that do a poor job of managing and regulating their banking
institutions, if you are informed you will know these offshore banks are
unsuitable for you.
Europeans have always been subject to heavy tax burdens. In the British
Isles, as well as on the continent, they were faced with the burden of
huge tax bills. The solution came when the small, island nation known as
the Channel Islands convinced the European depositors that opening a
banking account in their banks would make their deposits free from the
heavy handed taxation. The European taxpayers agreed and soon the idea of
offshore banking accounts became quite popular. Other jurisdictions
became aware of this idea and they began changing their banking
institutions, adopting banking rules and regulations that eased the
concerns of investors and depositors. This was the start of the offshore
Soon Offshore banking institutions were started in smaller, haven
jurisdictions that offered safe, secure, practical and confidential
banking regulations. Soon the rest of the world got the word and began
looking into these havens as solutions to their banking needs. Unlike
conventional banks, are not subjected to economic or political strife. In
the past few years they have a greater use and more visibility, it has
become widely known that offshore banks can be havens for funds and
assets in need of secure, safe, confidential keeping.