Most people I’m talking about believe that they don’t need an offshore bank account. We claim that offshore banking is for criminals and tax evaders only. Or, maybe, they assume a Swiss Bank is only for the wealthy.
Much of this thought is due to a lack of knowledge. And that’s because there are several misconceptions about offshore accounts. The article will once and for all debunk these theories. And it may help you to understand that if you are the type of person who wants to take care of their own financial future, an off-shore bank may be just what you want.
Myth 1— Offshore banks in unstable countries are housed.
As soon as you mention someone’s term offshore account, they immediately think of some politically dangerous country they can’t trust. However, any bank account not under your jurisdiction is an off-shore bank account. Technically speaking, each country would need to be deemed unstable if offshore bank accounts were in unstable countries alone.
Myth 2— Banks on offshore banks are illegal.
Offshore banking is legal and must continue to be legal. Money must be transferred between different countries to facilitate trade in a global economy. Companies and individuals therefore require bank accounts in various jurisdictions and are thus offshore.
Myth 3— Offshore banking is for the wealthy only.
Offshore accounts have been used by businesses and rich people for many years. And it was a shame they kept for themselves until recently. But that doesn’t mean they’re just for the wealthy.
Offshore accounts, including an offshore company that holds the account, sometimes cost less than one thousand dollars. In fact, personal accounts can often be set up free of charge with only a small deposit of a few hundred dollars.
Myth 4–Offshore banks are uncertain.
It depends on your choice of offshore destination. Because many of the advantages of offshore banking are derived from banks in low-tax countries, this is something of a truth. But that’s mostly because these banks aren’t regulated as US or other banks by the FDIC. It means you will lose your deposit if the bank fails.
But proper research will help you to stay safe. Most major offshore banks are worth billions of dollars. They probably won’t fail. You simply need to diversify and evaluate the risk.
Myth 5-100% private offshore accounts.
That is partly true. If the country dictates the privacy of the bank. Nevertheless, only if all the laws of the country where your bank account is based are followed. Countries such as Panama and Belize are fiscal paradises that protect your privacy. Other countries will gladly share with almost anyone who asks your personal information.
If, however, you violate the laws of the country that holds the bank account, that confidentiality dissolves. If you are involved in illegal activity such as drug crimes, murder, and theft, banks can reveal their “private” records, no matter where these crimes occur. This privacy voile will also be removed in certain forms of cases in some “private” countries.