Frequently asked questions

A bank account is a money account with a banking institution that records the amount of funds belonging to a client. A bank account may have a positive, or credit, balance if the bank receives money from the client, or a negative, or debit, balance if the client owes money to the bank. In a broad sense, accounts opened to hold a credit balance are called deposit accounts, while accounts opened to hold a debit balance are called loan accounts. The names of some accounts come more from the function of the account than from the type of balance. Bank accounts intended for a large number of operations may provide both credit and debit and are therefore difficult to place clearly in one category. Such operating or current accounts have different English names in different countries: in the USA and Canada they are called checking accounts, and in the United Kingdom they are called current accounts. Accounts of legal entities, including offshore companies, are normally called business accounts.

In a broad sense, an offshore bank is a bank located in a jurisdiction or country different from the jurisdiction or country where the bank account owner lives.

In a narrower sense, it is a bank located in a region whose authorities do not have tax agreements with your country of residence and do not provide information about the account owner and account movements at the request of the courts of your country.

Classic offshore banks are banks located in Caribbean countries and other island states where offshore companies and tax-exempt international business companies can be registered.

In simple terms, an offshore bank account is an account with a bank located outside your country of residence. Such an account is normally in a low-tax jurisdiction and provides certain financial and/or legal advantages to the account owner.

When opening an offshore bank account and carrying out later operations, it is necessary to choose the right jurisdiction. Most offshore jurisdictions follow relevant rules intended to protect deposits and confidentiality. At the same time, some jurisdictions see their advantages in taxation while others focus on confidentiality and so on. Although all jurisdictions provide a relatively high level of confidentiality and security, you should first think carefully about your goals and only then choose the appropriate jurisdiction.

Any person can open an offshore bank account. It is well known that individuals and companies around the world have used offshore banking services for many years.

There is no single answer because everything depends on the client's individual circumstances. There are also many different types of accounts, and each offers its own possibilities and advantages. For example, foreign nationals living and working abroad and holding an account with an offshore bank may benefit from tax advantages where interest income on such an account is not taxed. If you want to move your savings and investments offshore, you may also reduce tax obligations in your country of permanent residence. Other advantages, not limited to expatriates, may include asset protection, estate planning, secrecy and confidentiality, higher returns on capital, low taxation, the ability to carry on active business abroad in low-tax or zero-tax jurisdictions, and global access to assets and income.

You may benefit if you plan to move abroad or retire and live abroad, or if you already live in another country. You may also benefit if you own property or have business in several countries. If you live in a country with a politically or economically unstable climate, you may place assets offshore for more effective protection.

Yes. With the Internet, email, fax, telephone and ATMs, you can access your funds much as you would with an account at a local bank. You can quickly transfer money to any part of the world by electronic payment transfer and can therefore carry out banking operations regardless of where you are located.

Some countries, for example the USA, require residents to declare income regardless of where it is received, so tax is paid on worldwide income. In some cases, income of a company you control may also be taxed. For this reason, many countries do not consider where you carry on business, make investments or hold bank accounts. You are responsible for declaring or not declaring your income to the relevant tax authorities. If you are not resident in a country that requires such tax declarations, you may not be required to declare all income you receive.

In principle, you do not have to visit the country where you intend to open the account or go there to carry out banking operations. Most offshore accounts offered by legitimate organisations allow you to conduct banking through the Internet, email, post, fax or telephone. Many offshore bank accounts also provide credit-card services and in some cases debit cards, giving direct access to your funds at any time. We have information about offshore accounts and investment opportunities in more than 60 countries. Tell us your requirements and we will provide the information you need.

Because some banks apply restrictions to citizens of certain countries, we can select a bank that is suitable for your citizenship.

It depends on the specific bank and the type of account you open. At some banks and for some account types, an account can be opened with a deposit of USD 1,000, while other banks require a deposit of at least USD 100,000.

Accounts can be opened in all major world currencies, including Swiss francs, pounds sterling, US dollars and euros.

Most banks require identity documents, for example a properly certified valid passport and one or two copies of a recent utility bill confirming your current address. A bank may of course request other supporting documents when needed. Some offshore banks may also require a reference from the bank you currently use; this again depends on the bank and its location.

Usually the process takes from 2 to 7 days after you provide the required documents and complete the bank forms, but it can vary depending on different factors. We undertake to process your application as quickly as possible.

As the person who signs the documents, you are the only person entitled to control your account. Only you can decide to whom you give authorised-signature rights on your account if required.

Yes. Unlike many other companies, we give a 100% guarantee of account opening, but only if you order the full service package, including fiduciary services.

If you personally act as the account signatory, we provide formal introduction and advisory services. Because we know bank requirements and maintain relationships with banks, we help you choose a suitable bank, choose the account type and make the application process easier. We also provide the necessary information, application forms and other documents required to open your business bank account. If a bank rejects your application, we can offer another bank as a replacement to meet your banking needs.

In this very unlikely case, we will either send your application to another bank without any additional charge or, at your request, immediately refund the fee you paid.

If you do not want to take this risk, we can offer companies with accounts already opened at first-class banks such as Barclays, Credit Suisse, UBS and Nordea, as well as the services of a professional account manager, giving 100% confidence that the bank will agree to serve your business.

Absolutely. We can recommend recognised, reputable banks with Moody's and Standard & Poor's ratings, operating for 100 years or more, with assets worth billions and a proven record of reliable banking services. After accounts are opened with a bank recommended by us, the money of an individual or company will be safe and protected.

When declaring your assets and savings income, the EU Savings Tax Directive of 2005 may limit the level of secrecy available to you if you carry on banking activity or live in a country covered by the Directive. These countries included Andorra, Anguilla, Aruba, Austria, Belgium, the British Virgin Islands, Cayman Islands, Channel Islands, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, the Isle of Man, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montserrat, the Netherlands, Netherlands Antilles, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turks and Caicos Islands and the United Kingdom. In other words, the EU Savings Tax Directive of 2005 was an agreement between EU member states for automatic exchange of information about clients receiving savings income in one EU state while living in another EU state. This was described as automatic exchange of information and was the final aim of the Directive. If the Directive did not apply to you, your assets and income received from them were protected by a certain level of secrecy. At the same time, although most offshore jurisdictions provide high levels of confidentiality, they cannot guarantee absolute secrecy because financial institutions worldwide must comply with lawful requirements to report suspicions concerning serious criminal activity such as terrorism. Personal data are protected by data-protection law, and breaches of confidentiality and unauthorised disclosure can lead to civil and criminal consequences. An offshore bank will not act against its own interests by breaking the law. If you want to reduce the effect of automatic information exchange, other offshore structures such as International Business Companies and/or offshore trusts may be considered. International initiatives for automatic exchange of information between banks and tax authorities under BEPS/OECD recommendations can make access to confidential data easier for residents of participating countries. Most EU countries have implemented relevant rules allowing bank information to be disclosed and sent to the tax authority of the account holder's country of residence. We therefore recommend following developments in your country and considering your tax-residence position if the country joins an automatic exchange programme.

Yes. Most banks provide online banking services, giving you direct control of your money from anywhere in the world at any time. You do not normally need to visit the bank personally. You can manage your funds remotely from where you are. You can also send instructions to add to, sell or exchange different international investments in real time.

Yes. Most banks can issue international debit or credit cards in pounds sterling, US dollars and euros. The number of cards is normally not limited, but a minimum balance may be required. This is usually from EUR 300 to EUR 1,000 or the equivalent in the selected currency.

Our advisers can provide assistance and recommendations on matters from investments to life insurance, including savings, protection of mortgaged property, pension plans and estate planning.

A current account is a deposit account in the United Kingdom and countries with an English-style banking system. It offers flexible payment methods allowing clients to transfer funds directly to counterparties. Most current accounts provide a cheque book, standing orders, direct debit and debit-card payments. A current account may also allow borrowing by overdraft. Current accounts are provided by banks, building societies and credit unions. Since the development of the Internet, most retail banks provide online access to current accounts.

A savings account, also known as a savings deposit, is a deposit account with a bank or other financial institution opened by a client to accumulate funds over a period during which interest is paid. Some savings accounts require the client to keep funds on deposit for a minimum period, while others allow unrestricted access. True savings accounts do not normally provide cheques, although some institutions call high-interest demand deposits savings accounts. Savings-account operations are normally carried out using a savings book or bank statements.

A fixed-term deposit, also known as a term deposit, especially in Canada, Australia and New Zealand, is a money deposit with a bank that cannot be withdrawn for a defined period. At the end of the period, funds may be withdrawn or left for another period. In general, the longer the period, the higher the return. A certificate of deposit takes into account two elements: the term and the amount. A deposit account places funds with a savings financial institution under an agreement providing that either the funds must remain on deposit for a stated period or the institution may require a minimum notice period before withdrawal.

Numbered bank accounts are offered by Swiss banks to many large clients. These accounts normally also have a code name for the convenience of the banker and client. This helps avoid confusion about which account is being discussed. A feature of numbered accounts is that the client's name does not appear on bank statements; only the account number and code name are shown. If statements are lost or stolen, it may therefore be unclear for some time who owns the account. Although numbered accounts may appear to provide anonymity, Swiss law requires banks to know the identity of their clients. For a numbered account, the identity may be known only to a small group of bank employees when necessary. Traditionally, the client's name may also be kept out of some ordinary account references, supporting confidentiality. Numbered accounts cannot lawfully be used to hide proceeds of crime. Swiss banks apply strict anti-money-laundering rules and must report suspicious cases to the Swiss authorities. Numbered accounts have nevertheless been used for criminal purposes, for example by corrupt politicians hiding misappropriated funds. Swiss banks have cooperated with governments in returning funds to relevant countries, one historical example being assets connected with Ferdinand Marcos. Numbered accounts have also been used for more ordinary privacy purposes, such as keeping money private from family members or other people who may try to claim it. In some countries the concern may be criminals, kidnappers or blackmailers, while in others it may include people bringing claims through the courts. Numbered accounts have also been used for tax evasion, although tax and information-exchange rules have reduced earlier tax advantages.

Bank secrecy is a legal principle under which banks protect personal information about their clients through numbered accounts or other methods. Strong bank secrecy has historically been easier to maintain in countries such as Switzerland or in tax havens where offshore banks follow voluntary or statutory levels of secrecy. In recent years, bank-secrecy law has changed significantly under pressure from international organisations and initiatives connected with BEPS, Base Erosion and Profit Shifting. This refers to aggressive tax planning in which part of the profit of an international group may be moved from high-tax countries where profit is actually created to lower-tax countries by artificial arrangements. OECD estimates cited in the source refer to substantial annual tax-revenue losses, and automatic exchange of information between banks and tax authorities has therefore been developed for accounts of non-residents, with information sent to the tax authority of the account holder's country of residence. These initiatives materially change the traditional concept of bank secrecy and limit tools that once allowed ownership information to remain confidential.

Private banks are large institutional banks offering financial services to private individuals. Such banks normally have clearly separated divisions, one serving private individuals and another serving companies. Historically, private banking was considered very exclusive because it was used mainly by wealthy people with substantial liquid capital, although some private-bank accounts can now be opened with lower amounts. A private bank may provide wealth management, savings, inheritance-related services and tax planning. The word 'private' also refers to confidentiality and careful structuring of funds. An offshore bank account may be used as part of such arrangements.

This depends on the bank, currency, amount and type of account. The basic principle is that a bank pays interest on savings, linked to relevant market rates. The original text refers to LIBOR as an example of a reference rate historically used in international banking. To increase income on offshore accounts, you should first choose a suitable jurisdiction, bank and account type for your circumstances. Important considerations include taxation, reliability, confidentiality and return on investments. It is useful to consult a tax and investment specialist who can compare options in different countries rather than only one country. Our network covers many low-tax and zero-tax jurisdictions and can assist with this selection.

The term 'tax haven' is used for jurisdictions where:

• there are no corporate taxes;
• only profit from commercial activity carried on inside the jurisdiction is taxed, rather than profit from outside it;
• special tax privileges exist for certain types of companies or business activities.

Such special tax privileges may result from the domestic tax system of the country or from a combination of domestic rules and international agreements. In general, a tax haven is a country whose laws, practice and in some cases international agreements allow the tax burden of companies or individuals to be reduced. Several types of jurisdictions have traditionally been described as tax havens, including:

• countries with zero taxation, for example the Bahamas, Bermuda, Cayman Islands, Nevis and Vanuatu;
• countries where only profit from business activity inside the country is taxed, for example Costa Rica, Liberia, Panama, Gibraltar and Hong Kong;
• low-tax countries that are parties to international double tax treaties, for example Cyprus, Ireland, the United Kingdom and Singapore;
• countries offering special tax privileges, for example the Channel Islands and the Isle of Man;
• countries with low taxation of individuals, for example Andorra and Monaco;
• countries that historically offered zero taxation for international companies, for example Antigua, Barbados, Grenada, Jamaica and Montserrat.

Nominee director is a director appointed to perform agreed formal functions. A nominee director may receive a fee for allowing an offshore structure to use the director's name and for performing certain duties. Nominee director services may be provided by our company. On registration, each company must appoint at least the number of directors required by the relevant law. In some jurisdictions, directors' names and personal details are entered in the company register and may be publicly available. For confidentiality or organisational reasons, some clients prefer not to act as the registered directors of the offshore structures they own. The powers and duties of any nominee director are determined by the company documents, agreements and applicable law.

The company document package received after registration includes the company documents normally required to apply for a business bank account, and you may submit the application independently. If you prefer professional support to reduce delays and prepare the application correctly, you can ask us to handle the account-opening formalities.

After the 2016 Panama Papers leak, a number of banks traditionally serving non-residents changed their client policies for offshore IBCs. This particularly affected some banks that introduced lists of accepted jurisdictions and additional requirements for offshore companies. Some jurisdictions that had previously been popular became more difficult for new account applications. For this reason, we recommend checking the current bank policy before submitting documents to avoid an unnecessary refusal.