Offshore banking: key advantages of having an account abroad
October 15, 2015
Lately international banking, or offshore banking, has taken a significant niche all over the world due to its obvious advantages. As far as business has become international and most companies expand in order to open their new branches and make investments in various countries, offshore banking offers a set of options that make a process of transferring funds back and forward much easier. First, all funds remain in the bank which is not located in depositor’s country. Secondly, offshore banking provides its clients with secure and confidential services on the highest level. Moreover, it is still possible to make transactions with necessary sum from one currency to another according to the high requirements of offshore jurisdiction.
Speaking about the differences between a regular local bank and an offshore one, we should emphasize that general requirements for establishing an offshore bank are much higher and harder to achieve than while opening a regular bank. In addition, on the international level offshore banking system is accepted as a fully legal and credible financial institution with a necessary license as required.
Nevertheless, it is crucial for the customer to choose a bank of right jurisdiction for achieving all the goals of opening an offshore account. But if there are still doubts and questions whether the money is safe, the answer will be definitely “Yes”. Offshore banks are strictly regulated by local governments and international laws.
While deciding whether it is worth placing money on offshore account in a foreign country, usually the following question arises: Will it be legal to open an offshore account? Without any doubts, it is completely legal and furthermore, offshore banking is governed by the same laws and regulations of the Central Bank of the country where the client is planning to set an account. More than that, every single bank, especially an offshore one, must follow the legislation of the Anti-Money Laundering & Terrorism Act that makes a process of opening an offshore account more accurate.
Another outstanding advantage of offshore banking is its confidentiality. Notwithstanding the country where the bank is located, the client shall not have any doubts about his or her personal financial information being distributed by the bank employees or inside the offshore wire system. While being hired employees must sign confidentiality agreement that restricts them from sharing financial or personal information, generally any kind of the client’s information to the third party, including governmental institutions as well. Even in a case of criminal prosecution, legal actions of obtaining the client’s financial data are to be processed.
All banks use a moderating system that has been improved in order to serve the customers better. Nowadays, banks are capable of transferring the funds via checks, drafts, wire transfers and other various types of transfers. Another huge proof offshore banking is its numerous services, including money operations which are processed online, thus, the clients are secured even more from theft.
As a battle-line, having an offshore account is completely safe, secure, confidential and quite convenient as well. Most people believe such types of bank accounts are affordable only for well-off people, but the general procedure is much simpler and faster than most bank clients believe. In any case, offshore bank employees will always be eager to help any average customer with assistance and giving professional answers to any kind of the questions.