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Offshore banking has often been associated with the underground economy and organized crime, via tax evasion and money laundering; however, legally, offshore banking does not prevent assets from being subject to personal income tax on interest. Except for certain persons who meet fairly complex requirements , the personal income tax of most countries makes no distinction between interest earned in local banks and those earned abroad. Persons subject to US income tax, for example, are required to declare on penalty of perjury, any offshore bank accounts?which may or may not be numbered bank accounts?they may have. Although offshore banks may decide not to report income to other tax authorities, and have no legal obligation to do so as they are protected by bank secrecy, this does not make the non-declaration of the income by the tax-payer or the evasion of the tax on that income legal. Following September 11, 2001, there have been many calls for more regulation on international finance, in particular concerning offshore banks, tax havens and clearing houses such as Clearstream, based in Luxembourg, being accused of being a crossroads for major illegal money flows.

An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages. These advantages typically include some or all of:

* Strong privacy

* Less restrictive legal regulation

* Low or no taxation (i.e. tax havens)

* Easy access to deposits (at least in terms of regulation)

* Protection against local political or financial instability

While the term originates from the Channel Islands “offshore” from Britain, and most offshore banks are located in island nations to this day, the term is used figuratively to refer to such banks regardless of location (Switzerland, Luxembourg and Andorra in particular are landlocked).

What type of services are available from offshore banks? The same as the services from any high street bank, plus the extremely confidential Swiss style numbered accounts. Many of the offshore banks listed on this site are respected AA credit rated international banks, that everyone has heard of before. They have simply set up an offshore division or branch division within a tax haven to attract a share of the enormous international trade, and offer almost the same services as any domestic bank. Such as the following:

* Personal and corporate current/checking account

* Personal and corporate savings accounts

* Secure internet banking facilities

* Anonymous numbered accounts (extremely confidential)

* Debit and ATM cards, which are accepted globally

* Credit cards

* loans

* Mortgages

Going offshore in simple terms means placing your savings, investments, assets or business concerns outside of your home country, within one of the many tax havens. A tax haven is a country that has very favourable tax advantages, which means that your savings, investments, assets or business profits can grow free of almost any taxation. Although taxation is only one reason why many decide to go offshore.

Privacy

To protect the free flow of your personal information and dealings. An offshore entity has no obligation to release your personal or business information, affording you with a great deal of privacy

Barclays’ offshore banking solutions are often chosen by British expatriates who already have a business relationship with the bank before they leave the UK and who are aware of the bank’s pedigree and reputation. All in all Barclays offshore banking division services the main requirements of the individual and corporate client, and because Barclays have a good industry recognised reputation from Standard and Poors, Fitch and Moodys their offshore and international client base is apparently growing. The focus of the private and premier banking services available from the offshore division of the bank is the provision of a first class service for the management, protection and growth of a client’s wealth. Barclays International and Private Banking Division offer offshore and private banking solutions to those with cross border needs, the Division is a part of the 300 year old UK based Barclays financial institution. Offshore corporate banking services available from Barclays offer corporate clients or intermediaries the ability to streamline cross border trading and banking.

For expatriates, international business professionals or those with cross border needs who are seeking a straightforward offshore personal bank account, Barclays International Personal Banking from Barclays International and Private Banking Division offers easy and secure access to funds with telephone and internet banking available, discounts on international money transfers, the ability to bank in multiple currencies, international mortgages, UK tax advice, good interest rates and a safe and secure account are also offered and assured. For expatriates, international business professionals or those with cross border needs who are seeking a straightforward offshore personal bank account, Barclays International Personal Banking from Barclays International and Private Banking Division offers easy and secure access to funds with telephone and internet banking available, discounts on international money transfers, the ability to bank in multiple currencies, international mortgages, UK tax advice, good interest rates and a safe and secure account are also offered and assured. Offshore corporate banking services available from Barclays offer corporate clients or intermediaries the ability to streamline cross border trading and banking. In terms of the Barclays’ offshore banking services available, the group offer personal, corporate and private banking solutions as well as a unique international premier banking solutions for those with in excess of GBP 100,000 to bank and invest. For those seeking private offshore banking solutions there is an international private banking division at Barclays and also the aforementioned premier banking solutions which are available to those who require a more personalised banking and investment service from Barclays.

In terms of the Barclays’ offshore banking services available, the group offer personal, corporate and private banking solutions as well as a unique international premier banking solutions for those with in excess of GBP 100,000 to bank and invest. For those seeking private offshore banking solutions there is an international private banking division at Barclays and also the aforementioned premier banking solutions which are available to those who require a more personalised banking and investment service from Barclays. For those seeking private offshore banking solutions there is an international private banking division at Barclays and also the aforementioned premier banking solutions which are available to those who require a more personalised banking and investment service from Barclays. Offshore corporate banking services available from Barclays offer corporate clients or intermediaries the ability to streamline cross border trading and banking. Their relevant corporate products and services include financing, investing, day to day banking and trading – and as with personal Barclays offshore bank accounts, corporate accounts are also safe and secure as Barclays is a bank with an excellent reputation.

Offshore Private banking is most suited to those with in excess of GBP 1 million and the premier banking service is for those with in excess of GBP 100,000 – either to invest, trade or bank. For Read more…

With the advent of the reloadable cash card, carrying cash is fast becoming a thing of the past. Indeed cash has many drawbacks such as risk of theft and physical break down of paper currency.

Fully secured reloadable cash cards are replacing cash and credit cards as they are far safer. The latest state of the art reloadable cards are pin code protected, completely anonymous and have no expire date.

MLM and auto surf companies are also finding the latest reloadable cash cards very useful to pay their members. Most MLMS have thousands of members that can make paying out commissions very costly and time consuming. Reloadable cash cards allow MLM companies to pay many members quickly saving both money and time.

Load accounts can be set up that allow MLM companies to pay their members with the help of an online log in panel. Funds are first wired into a load account where they can then be distributed to hundreds of members in minutes.

Reloadable cards can even be loaded from offshore IBC company formations and private bank accounts with one quick wire transfer. This can be very useful for those who wish to bring in funds from offshore privately and confidentially.

Reloadable cards are now even being Read more…

Many people believe that there is a fine line between those who bank offshore and criminals who launder money and evade taxation – but the truth about offshore banking and those who legitimately place assets offshore is that the action of placing money offshore is not illegal, will likely never be illegal and can be of benefit to almost all of us!

The word ?offshore? in the financial sense is synonymous in many people?s minds with ?saving tax?, and while some who bank offshore are legitimately entitled and able to save tax by having interest paid on their savings before the deduction of tax, there are many more real benefits available to those who choose to open an offshore bank account.

For a start the tax saving advantages of the offshore world are really only available to a few people who are usually expatriates, non-resident in a high taxation country and with tax liability in a country where taxation is low or even non-existent ? however, the asset protection benefits, personal privacy advantages and the potential to access better account structures and services are available to the majority of us when we choose to bank offshore.

Even Americans, British and Europeans can potentially benefit in one way or another from opening an offshore bank account. But before I continue to explain the advantages we can all potentially reap from offshore banking, it?s important to mention that placing assets offshore without informing one?s relevant tax authorities can be illegal and that before one makes any significant decisions or takes action relating to finances, qualified independent financial advice should always be sought.

Many offshore jurisdictions in this day and age are regulated Read more…

When you think of offshore bank accounts do you see shady characters carrying around bags full of money? Today?s modern bank legislation does not allow banks to accept cash deposits or transfers of US$ 10.000 and up without presenting proof of the source of funds.

All serious establishments will ask you to fill out forms known as KYC or know your customer. Find out more about KYC: Know Your Customer This is not only to be able to give you better service but to protect themselves in case you are accused of money laundering. These forms also allow the bank to know your sources of income. Knowing your cash flow the bank will not ask you to prove the origin of the funds every time you make a transfer.

Even though you have filled out a KYC form the bank may or may not at its discretion allow you to start a relationship with them.

What?s the difference between your local bank and an offshore bank? Basically any service you will get locally will be available offshore. Then why open an offshore account.

Offshore banking is no longer a handy way to conceal income from illegal activities or unreported business profits.

There are many justifiable monetary reasons to open an offshore bank account. As a resident in a country with an unstable political and economic history, you want your money in a safe place. The government could impose foreign exchange restrictions or there may be a bank run. A coup d?etat may make your money inaccessible.

Non-residents usually pay minimal or no taxes on interest or profits from investments. Depending on your citizenship, Read more…

A ruling recently passed by the Supreme Court has given local governments the power to seize private property to generate tax revenue. This could feasibly enable cities to order the removal of homes to make way for shopping centers or other private development.

The 5-4 decision means that home owners will have more limited rights. Thomas Merrill, a Columbia law professor and a specialist in property rights stated, ?The message of the case to cities is yes, you can use eminent domain, but you better be careful and conduct hearings?.

Does this concern you? Only eight states ? Arkansas, Kentucky, Florida, Illinois, Maine, Montana, Washington, and South Carolina ? forbid the use of eminent domain for economic development unless it is to eliminate blight.

In a scathing dissent, Justice Sandra Day O?Connor wrote, ?The specter of condemnation hangs over all property. Nothing is to prevent the state from replacing any Motel 6 with a Ritz-Carlton, and home with a shopping mall, or any farm with a factory.?

The bottom line ? protect what you own. Within the last five years there has been an alarming increase in citizen control laws to the extent that your personal right to keep banking activities private and confidential are now being seriously infringed upon. Indeed, creditors and government agencies Read more…

But are you really safe?

In the last few years, laws such as the Patriot Act in the US have been approved that effectively take your rights to privacy and financial well being away.

These same laws that were meant to protect us are now instead being used as a loophole by high power lawyers and government agencies to access your banking records, garnish money and freeze your assets.

In fact, currently US banks automatically report to government agencies on the activities of their clients, including you. What’s worse, your hard earned savings can now be legally garnished from your bank account by government agencies and creditors who may believe they have a claim against you. In the US alone you stand a 1 in 4 chance of being sued if your net worth exceeds $100,000. Not a lot of money!

Can you sleep at night?

Many offshore tax havens are no longer safe either. The Patriot act has enabled the US to attack the privacy laws in the Bahamas, and the UK has even forced the Jersey Islands to fully disclose beneficial ownership information.

Indeed there are very few places now with real asset protection. However, the tax haven of Panama is one such place that still enjoys complete company formation privacy and asset protection.

Panama constitution provides the highest Read more…

Offshore instruments of asset protection no longer belong in the realm of the wealthiest individuals with high paid financial advisors. Thanks to the internet and globalization of financial markets, there are plenty of firms that can help just about anyone “go offshore”. What follows is a brief introduction to some of the most popular tools of offshore asset protection and how they can be used by online business people and internet marketers like yourself to protect and grow your business.

1. Offshore Trusts

An offshore trust is a very simple agreement that helps put some distance between you and your hard earned assets. A trust is simply a legally binding agreement between two parties – the grantor and the trustee. The grantor “grants” control over specified assest and property to the trustee, who is then responsible for them. Beneficiaries are listed in the trust, who will “benefit” from the assests being entrusted. Often this is in the form of receiving the assets upon the death of the grantor, or by receiving the profits generated by the assets listed.

The main point is that this agreement helps separate the grantor – you – from these assets in a legal sense, making it more difficult for someone to take them from you. By moving the trust offshore, there is an added layer of protection. If you’ve ever worried about a frivolous lawsuit destroying all you’ve worked for in your internet business, this is certainly a form of asset protection you’ll want to look into.

2. Offshore Incorporation

There are many benefits for the internet marketer who chooses to incorporate offshore. Protecting your privacy from the prying eyes of an ever more invasive government – especially in the area of online information, legally limiting the amount of taxes you pay on your online income, and protecting your business against lawsuits are just a few of the ways an offshore corporation or IBC can benefit the internet marketer.

Properly planned and executed, forming an offshore corporation need not be any more expensive or time consuming than forming a corporation within your own borders. Be sure to deal with a legitimate and established firm when establishing your IBC, make sure your asset protection needs are being met and that all of your questions are answered.

3. Offshore Bank Accounts

Again, keeping with the theme of protecting the internet marketer’s wealth from both lawsuits and privacy invasion, the offshore bank account will also help address these issues.

Most companies that offer offshore incorporation will also help you set up an offshore bank account. Choose a country where information privacy laws are respected and enforced, and preferably keep the account in non-US funds. The acccounts are usually offered with an international debit card, so you can access your funds from ATMs around the globe.

4. Offshore Merchant Accounts

Of particular interest to those who create their income online is the option of establishing an offshore merchant account for handling all of your credit card transactions.

Besides Read more…

First it needs to be stated that no one has a crystal ball which predicts the future. These thoughts are just opinions and should be taken as such not as legal or tax advice. We will try to show the political positions of the countries that are not in favor of the tax haven offshore jurisdictions and the position of the tax haven countries. The countries most outspoken against offshore banking and offshore corporations are Australia, UK and USA.

Today there is a great outcry from these and other countries about the tax saving benefits afforded to citizens of certain countries by going offshore. These countries claim that their constituents are cheating them out of billions of dollars of taxes by going offshore. The offshore jurisdictions that are considered the tax havens say that is a nice allegation but we are not your collection agency and do not ask us to change our bank and corporate privacy laws because your constituents do not want to pay taxes, this is your problem not ours. The actual amount of taxes that are avoided unlawfully is a figure that one can only take a guess at. Many people set up offshore structures to do business outside of their home country and are not in violation of any laws the way they conduct their business affairs. Many people live in other countries and need to own offshore bank accounts, offshore corporations, offshore real estate, etc. Many people use offshore privacy to protect themselves from identity theft, kidnapping, blackmail, and possible extortion.

Let me use an analogy to make a point. In Latin America there is an organization of five states called Mercosur. Mercosur consists of Argentina, Brazil, Paraguay, Venezuela, and Uruguay. Mercosur also has associate members which are as follows: Chile, Bolivia, Peru, Columbia and Ecuador. The Mercosur countries engage in free trade and easy border controls with no passports, just national identity cards for border crossings. Mercosur recently issued a statement that they would in the future strive to resist any further attempts to get them to spend more resources on narcotics enforcement that stems from the UN. The UN says its member countries must enact certain kinds of laws to control narcotics and states these laws and insists on enforcement policies. The Mercosur spokesperson stated that this was an irrational policy since it has not worked for over a quarter of a century and it was severely draining the resources of their countries. Essentially they said they were sick and tired of the United States which is the nation driving these policies through the UN, making their problems, the problems of other countries and they were going to collectively attempt to legalize narcotics in their own nations to free themselves from this heavy burden of narcotics enforcement. This has already begun to happen in Bolivia, Paraguay, Argentina and Venezuela with the abundant legal availability of cocoa leaf. The cocoa leaf has cocaine alkaloids (real cocaine) and is commonly used as a chew like chewing tobacco leaf or made into tea leaves. Street cocaine is perhaps 30 times as potent and is diluted with harmful substances like turpentine, ether, etc. Cocoa leaf is a natural plant product used for centuries as a stimulant by people living in the high altitudes of Bolivia, farm workers etc. One can now see coca tea being sold freely on the internet but I would strongly advice you not to order any because you may get charged with narcotics importation, seriously because it can be lab tested to contain cocaine. So my point is a lot of countries have said ok enough is enough when it comes to narcotics. It is not working leave us alone, take care of your own problem. So Mercosur countries are now worrying about their own problems more and less about the narcotics issues in the USA and other nations. I think you will see more of the same type of thinking when it comes to offshore banking, offshore corporations, offshore foundations, offshore stock brokerage accounts etc.

Offshore jurisdictions have to go through all sorts of compliance that is not needed in say the USA or the UK. One offshore formation agent went to the USA and was able to open eight USA bank accounts in one day. In Panama a bank account can take five days after you collect and submit the reference letters and documents. In the USA and UK no bank reference letters are required to open a bank account, neither are any professional references required. In the USA and UK they do enforce money laundering protective measures strictly. One can buy USA corporations or UK corporations without any of the due diligence requirements that are required from offshore jurisdictions. So the playing field is not exactly level yet these countries are screaming for more controls not on themselves but on other countries. It seems that the offshore jurisdictions will scream enough is enough if any further controls are imposed on them and resist them. Of course one wonders what further controls they could come up with that they haven?t already imposed.

Let?s look at history a little to see how things deteriorated in the past regarding offshore privacy and offshore banking. Most of the older offshore tax havens are also tourist destinations such as Cayman Islands, Nassau, Bermuda, Grenada, Belize etc. These countries usually have little if any natural resources and need to bring in everything they consume. While some of them avoid income taxes instead they impose taxes on goods imported. These countries got heavily involved in tourism as a way to keep their economies moving. A cruise ship docking at these ports usually carries 2500 people. Each person probably spends an average of $100 a day when in this ports buying t-shirts, duty free liquor, tobacco, jewelry etc. many spend a good deal more. That is $250,000 per cruise ship. These jurisdictions get from 3 ships per week, to 40 ships per week docking there. The money from the cruise ships exceeds what would be earned from their previous offshore banking and incorporation activities. Remember a bank that controls hundreds of millions of dollars of deposits can only have 50 or so employees. A thriving cruise ship port can have thousands of employees working in the shops, restaurants, as tour guides, taxi drivers etc. So more jobs are at stake in the tourism business. We also have to take into account the resorts these countries have which create even more jobs and generate revenue in the form of a hotel room tax built into the rates. These countries also charge a head tax on every person coming into their country. Bottom line is there is much more money in the tourism business than there is the offshore business for the government of these jurisdictions. The governments of these countries don?t make much off of a bank account for instance, actually nothing. They have no income or capital gains tax. The offshore corporations would pay a few hundred dollars a year in taxes but that was it. The banks would pay a few thousand dollars a year for their licenses. So these countries sold out on offshore privacy to protect their tourism. If they did not do so the countries allowing tax free importation from these countries of tourist bought items might go away. Tourists returning from these countries by ship or air might find themselves stuck in long lines while they are searched and interrogated by authorities of various affected countries which would quickly and seriously discourage tourism to these countries. Other countries like Read more…

Having an offshore banking account, corporation or trust are common themes in legal thrillers, spy novels and eastern European politics. There is a reason to be concerned about the legality of such accounts, for although many people would like to include them in their estate planning, a legal misstep regarding the use of any of these asset management tools could result in thousands of dollars lost in back tax payments and legal problems with none other than the IRS in addition to the possibility of spending time in prison. With that in mind, it is not surprising that many Americans shy away from offshore banking altogether.

As any good tax attorney will be able to explain to you there is a difference between tax avoidance and tax evasion. Tax avoidance is the use of legally employable strategies to reduce the amount of tax one has to pay. Tax evasion, on the other hand, is the use of illegal means to do the same thing. So the goal of any transaction that you would like to undertake offshore is to make certain that you are a tax avoider and not a tax evader. A lawyer will never be a willing party to tax evasion, if that lawyer is behaving within the cannon of professional ethics as well as the accepted norms of safeguarding their client?s best interest.

To begin with it is illegal to have a secret bank account in another country that you don?t tell the IRS about. It is also illegal to move unreported cash even if it is your money. The penalty for either of these offenses makes bank robbery look like a more attractive option.

However, with our own country continuing to advance the goal of globalization, of course it is legal to invest in, and to interact with, foreign markets and there are some tremendous incentives to do so. The key to taking advantage of these opportunities is to start modestly and remember that if it sounds too good to be true then it probably is too good to be true. Secondly, it is your duty as an American citizen to report your financial activities to the IRS. So divest yourself of notions of secrecy in the absolute and think in terms of tax savings rather than not paying taxes. If someone tells you that they can help you avoid paying any tax whatsoever, they are offering to help you engage in a criminal enterprise. And if you already are a criminal of some sort then perhaps you should look into the matter, but for the vast majority of those reading this article, don?t endanger a life spent being a law abiding citizen by buying into an outrageous scheme.

As I said before, U.S. citizens and permanent residents are required to disclose their banking accounts abroad, where they are located and what the account numbers Read more…