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It is worth remembering that having an offshore bank account is not considered something illegal and wrong. Such a financial diversification tool allows you to competently distribute the risks associated with the protection of assets, gives you the opportunity to use banking products, and make international transactions. With the right choice of the country where the issuing bank is located, it is also possible to maintain a certain level of confidentiality.

Why is an account called an offshore account?

When it comes to a personal offshore account, any account that is not opened in the tax residency jurisdiction of its owner can be considered as such. That is, if a person uses banking services outside the country in which he pays taxes, then such an account can be called offshore. It is not necessary to use the prefix “offshore” – it is enough just to call it a foreign account for an individual.

Why open a foreign bank account? 

A foreign or offshore account allows you to protect your money from devaluation in your country of residence, avoid illegal confiscation of funds by local authorities or raiders, protect yourself from the consequences of the introduction of currency control, as well as avoid a number of other negative consequences associated with the risks of keeping your funds in one bank. Financial experts recommend having not one, but several such accounts in different banks around the world. This will maximize protection from possible blocking and problems with the fiscal authorities of other countries.

If you choose the right bank, you can even earn certain interest on the deposit. Many foreign banks provide their foreign clients with the possibility of remote registration. Thus, the applicant does not need to spend time and money to travel to the right country For example, a private offshore account in the UAE can be opened remotely. Its owner can keep funds in both dollars and euros, transfer money to other banks around the world, use online banking services 24/7.

How to open an account in a foreign bank?

Foreign banks offering their services to foreigners usually have flexible terms of cooperation. In this case, a minimum of documents is required from the applicant: a scan of the passport, a document confirming the place of residence, a document on the solvency of the client, a resume, which indicates the sources of origin of funds. It is worth remembering that the bank has the right to require other papers on request. After submitting the package of documents, all papers are sent to the compliance department for verification. A decision can be expected in a few days. 

What should I pay attention to when choosing a suitable foreign bank?

Before opening a foreign account, it is necessary to make sure that the selected financial institution is reliable and liquid. It is desirable that the bank is located in a jurisdiction with a stable economic and political situation. Otherwise, there is a risk that the organization will burst and absorb the funds of its clients.

It is also worth paying attention to the tariffs of a certain bank: 

  • How much does it charge for account maintenance?
  • What is the fee for international transfers?
  • How much will you have to pay for issuing a plastic card?

 

It is also worth finding out about the minimum account balance requirements. All this information can be found on the Internet. It is recommended to find out in which currency it is possible to open an account. The most popular currency is considered to be the dollar and the euro. But some banks offer multicurrency accounts. In this matter, you should be guided by your actual tasks. And if you entrust the search for a suitable bank and check its reliability to professionals, you can significantly save time, devoting it to something else and more interesting.  

How to open an account abroad remotely?

The process of opening a foreign offshore account remotely involves submitting scans of documents online. The applicant must fill out the appropriate application, submit a package of necessary papers and wait for a decision. In some cases, banks conduct interviews in an online format. 

However, such requirements are not so common. Usually scanned documents are enough. It is also worth remembering that in some cases, banks may refuse to cooperate with a client without explaining the reasons. Therefore, we recommend applying to several foreign financial institutions at once, and subsequently choose the most optimal option(s).

Conclusion

Almost everyone can become a client of a foreign bank. Having a foreign offshore account will allow you to diversify risks, protect your assets, and insure yourself in case of blocking of accounts in the country of your tax residency. In addition, many countries do not participate in data exchange within the framework of the OECD Convention (CRS), which will allow you to maintain a certain level of confidentiality. In any case, you should not neglect such an effective tool, which is an offshore account. In conditions of turbulence, which is observed today in the world in many areas, it is always important to have a “reserve airfield” in the form of an account in a foreign bank with favorable terms of service.

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