About Offshore Caribbean Banking Online
Does the term "offshore banking" have you envisioning some recent film about clandestine figures funneling money to the Cayman Islands or terrorists laundering money offshore to support their cause? There have been a lot of changes in the laws to prevent that in recent years. And yes, to answer the burning question, it is legal to have an offshore account.
Other People Are Reading
-
Misconceptions
-
Many people are misguided by movies and news reports into thinking that an offshore banking account is something criminal or illegal. Just about anyone can have an offshore account; this merely means that you have a banking account in a country other than the one in which you reside. Many businesses have offshore accounts to take advantage of the tax benefits. Tax avoidance is acceptable; tax evasion is not. There is a difference.
Geography
-
The term "offshore" got its name from the British Channel Islands, which are tax havens. The Channel Islands are literally located offshore from Britain, thus the name. Other notable countries offering these financial services are Switzerland, Luxembourg and Andorra, to name just a few.
In the Caribbean, offshore banks with a variety of services are available in Antigua, Belize, British Virgin Islands, Dominica, St. Lucia, St. Vincent and the Cayman Islands.
With the advances in online banking, you can easily access your account from any country at any time, while taking advantage of often higher interest rates. -
Considerations
-
It is fairly easy to open an offshore account. In the Caribbean islands, banks do not use Social Security numbers and do not run credit checks, so they must perform due diligence and use other methods to determine your legitimacy. The information they require includes:
* Bank reference from your current bank. This must be addressed specifically to the bank in the Caribbean islands and must include how long you have banked there (minimum of 3 years), your average balance and status of your account.
* Your driver's license and passport
* One confirmation of your physical address
* Your full name and residential address, phone and fax number, nationality, date and place of birth, occupation and the name and address of your employer
Some banks do not offer checking services to a new account holder who has just arrived. However, they will offer you a savings account and a debit card.
A number of world banks offer online offshore accounts that can be opened online, eliminating the need to even travel there. Check their sites for their specific account-opening criteria and rates.
Benefits
-
As global markets expand, more people live and work abroad and often move between countries. This is one of the main reasons to open an offshore account--so that you can access your funds in a variety of currencies depending on where your travels take you. Other benefits include:
* 24-hour access by phone, Internet or worldwide ATMs
* Avoid foreign exchange rate charges
* Tax-efficient offshore investments and savings
* No inheritance, capital gains taxes or death duties
* Safety for your money if you are living in a politically or economically unstable country
* Better interest rates
* Litigation protection
Features
-
Do your homework. There are huge banks like HSBC as well as some lesser-known institutions that offer offshore services. Make sure you are comfortable with your choice of banks and their history regarding stability and security, particularly if you choose to go with a lesser-known provider. Verify the security of their online banking system.
There are a multitude of account types and features available. Determine what your specific needs and features are and don't be tempted by all the extra options they offer.
-
