F.A.Q. - Bank Accounts

Topics
Offshore Banking: Reasons and Rules
Functionality and Structure of Offshore Bank Accounts
Everyone's Main Concerns with International Banking
Use of Bank Account with Merchant Account
Banking in Belize

Offshore Banking: Reasons and Rules

Why should I have an Offshore Bank/Brokerage Account?
Privacy, Asset Protection, and International Investment opportunity. One of the most important aspects of offshore banking and brokerage is personal or corporate privacy and banking confidentiality. Funds and other assets are significantly better protected from creditors, and/or any other form of lien or confiscation action, in an offshore jurisdiction than in your country of residence. Keeping assets offshore considerably reduces the likelihood of litigation from lawyers working on a contingency basis. Furthermore, it is possible to have much greater access to certain types of international investments at a reduced cost.
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Is it Legal to have an Offshore Bank Account and/or Brokerage Account?
This depends on the jurisdiction. It has never been illegal for Americans or Canadians to maintain bank accounts or investment accounts offshore. Similarly, most countries allow their citizens to own foreign bank accounts. You should consult a legal expert in your own jurisdiction to find out whether your resident country allows this, and if so, how you would report it.

Earnings in an offshore account are generally considered tax-free in the country where the bank or brokerage account is located. Offshore investors, including U.S. and Canadian residents, are expected to voluntarily report any income earned offshore. Offshore banks do not cooperate with, or provide reports to the IRS or Revenue Canada on your income earned from any form of investment, so it is entirely up to you to comply with the reporting requirements of your jurisdiction. Questions surrounding offshore banking legalities usually arise when a U.S. or Canadian citizen fails to report offshore income to the IRS or Revenue Canada at tax time.

In some cases, there are ways of structuring your affairs using offshore companies or trusts that can be used for tax reduction or deferral. The laws in each jurisdiction differ, so you should consult a local tax advisor to find out how.
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Functionality and Structure of Offshore Bank Accounts

How do I utilize offshore funds in my country?
You can wire money directly from your offshore bank account or brokerage account into your domestic account. The banks will allow you to wire transfer through an online banking system much like the ones you use with your local banks.

Offshore bands and brokerages issue Visa/MasterCard debit cards adn secured credit cards to account holders. These cards may be used to make purchases from merchants or to withdraw cash from an ATM.

The foreign company (IBC) or trust may purchase real estate, cars, businesses, etc. Typically, the founder/client acts as an agent of the IBC or trust to purchase assets on its behalf. By this, assets are held under a corporate or trust name, thus helping to protect the client's privacy.

The client may borrow funds from the corporation or trust. The IBC or trust is a seperate legal entity from an individual and may make loans to individuals or other entities.
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Everyone's Main Concerns with International Banking

Are my Deposits Insured?
International banks do not carry insurance on non-resident accounts. However, most of the banks are regulated by a central bank of the country they are in, which sets capital ratios and liquidity requirements in line with International Banking Standards.

For instance, the capital ratios and liquidity requirements of the bank we use for our clients in Belize are set by the Central Bank of Belize.
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Are there any International Treaties Regulating Depositors from the U.S. signed with countries you use for your clients' bank accounts?
No. However, it is generally the case that, if the Court of any particular country decide that any depositors funds are the proceeds of crime, they are still bound by the laws of their country to release the source of funds. However again, the Privacy in countries like Belize remains strong for law-abiding clients.
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How long does it take to get an account opened?
Once payment is received, we will send you the bank application along with detailed instructions on completing the application process. You will then fax us the complete package of documents so that we can review them for any errors or missing information. After you make the necessary changes/additions and send the original documents to the bank, the account can be opened the same day they receive the documents as long as all of the bank's requirements are fulfilled.
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Use of Bank Account with Merchant Account

What Bank Account should I use with my Offshore Merchant Account?
An already existing U.S. Bank Account can be used to accept the funds resulting from the credit card transactions of an international merchant account. However, we provide Offshore Bank Accounts to which a merchant can have funds from their credit card transactions sent as well. Our bank accounts safely secure and hide funds while offering many of the benefits U.S. bank accounts offer, including online banking & international debit cards for easy access to funds.
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Banking in Belize

How do I know the Belize bank you use is a strong bank?
The bank we use in Belize has been in operation since August 1998 and, as of December 2001, had total assets of USD 93,000,000. They are the largest International Bank in Belize and presently control in excess of eighty percent of the international banking conducted in Belize.
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For a breakdown of all costs, please visit http://www.1offshorebanksource.com/offshore_banking_accounts_rates.htm.