An offshore bank account is simply an account held with a bank which is located in a country other than the country in which someone is resident.An offshore bank account is typically associated with a very high degree of confidentiality. The reason for this is that the most renowned offshore banking jurisdictions, such as Switzerland, Luxembourg or the Cayman Islands, have adopted extremely strict laws protecting account holders, to the extent that any bank officer who releases information relating to the bank account holder or any transaction passing through the account would be guilty of a criminal offence.
An offshore bank account can be a great benefit if you live in a country whose banking system does not offer the level of security you would expect. By keeping your wealth in an offshore bank account located in a jurisdiction which is renowned for security of capital, you would be protecting it from such unexpected risks.
We could summary the benefits as follows to answer you why offshore bank account would be your best choice for your offshore company:
.Operate your businesses from a country that is friendlier to your industry than your home country.
.Use tax laws that allow the repatriation of intellectual or physical assets with the objective to reduce taxable income.
.Ensure that, after death, their estate will be transferred to their spouse, offspring and other heirs without double taxation.
.Be Protected from illegal asset forfeiture or government overreach.
.Have a plan B in case of government, currency or bank failures.
.Prevent Identity theft. Privacy has become of paramount importance as government databases are at the mercy of hackers who are already compromising the personal financial information of millions of people.
The maximum level of confidentiality is obtained by maintaining the offshore bank account in the name of a company and not that of an individual. It is therefore preferable first to establish an offshore company and then to use that company to open the bank account.
Whereas you should be aware that offshore banks are highly vigilant and will not tolerate the abuse of their services by persons whose activities are of a doubtful nature. Should a bank have reason to suspect that transactions passing through an offshore bank account may relate to criminal activities, such as terrorism, money laundering or drug trafficking, it would be obliged to report this to the authorities.
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