What Are Offshore
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,
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
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 bank.
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.