About Offshore Bank Accounts
An offshore bank is one located in a different country from that of its depositor, and it can offer certain legal and economic advantages not available from a domestic bank. For example, people flock to offshore banks because they offer improved privacy, easy methods of withdrawing funds and fewer legal restriction, while they are protected from currency fluctuations by having transferred their assets to the currency of those countries.
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Significance
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Offshore banks are no longer just the province of the wealthy. People with limited means are gravitating to them because they pay a higher rate of interest than do domestic banks. In addition, most offshore banks impose no taxes, and they protect the depositor's privacy more so than their local bank.
Identification
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There are several advantages to someone creating a relationship with an offshore bank. For one, if a person lives under the threat of political turmoil in his country, an offshore bank can provide him with a worry-free jurisdiction. For another, some offshore banks can offer services not available domestically, like anonymous accounts and opportunities to invest that are not available in his home country. Many also can pay higher interest because of efficiencies due to lower operating costs and the lack of government control.
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Considerations
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Some drawbacks do exist for a person thinking about doing business with an offshore bank. First, offshore banking is thought by many to attract organized crime, and that money laundering is a primary purpose of choosing one. Further, access to ones assets can be difficult because many offshore banks are remote. Finally, unless you choose an offshore bank that speaks your language, you may face a communications problem in managing your assets.
Features
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About all offshore banks offer savings and checking accounts, debit and credit cards, foreign currency and investment services. Many of them offer online access to the account's record, and most allow you to do your banking business by telephone or email. You will find mortgages as well as other consumer banking products at larger banks, though they are more cumbersome than those that you will find in you community.
Benefits
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If you are subject to litigation as a physician or an attorney, or are concerned about attacks on your assets in the future, putting assets in an offshore account can shield them from lawsuits. International law makes it difficult for a lawsuit to be filed against these assets--though not impossible. However, for all intents and purposes, these offshore accounts are protected from lawsuits.
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