Offshore Online Banking Guide – Critical Information You Must Know

There are several legal and regulatory compliance implications with offshore banking that I’d like to cover in this article. However, please don’t construe information on this site as legal guidance. I am providing this information for free based on my own experiences. Please consult your professional attorney or CPA (accountant) before you get involved with offshore internet banking.

What is an Offshore Bank

To be over simplistic, an offshore bank is a financial institution outside the shores of your country. If you are in Australia, a bank in the United States is an offshore bank to you. If you are in the United States, a bank in Singapore is an offshore bank to you. Therefore, the idea of offshore banking is relative.

A business or an individual, in this case you, may select an offshore bank account in a jurisdiction that is typically favorable in terms of taxes (often referred to as a tax haven by media), as well as in terms of legalities. In addition to choosing a jurisdiction with no to little income tax, for many, privacy and “secrecy” of banking activities are two of the bigger key considerations.

It goes without saying that access to your funds is important, as well as protection from corruption and stability in terms of certainty.

List of Common Offshore Online Banking Services

This is a brief list of services offered by offshore banks. This list is by no means a full comprehensive list of an offshore bank’s offerings, but rather a list of some of the most common offshore online banking services that businesses and individuals are offered:

  • Remote Deposits of funds
  • Direct Deposits of funds
  • ACH / Wire Transfers / EFT – Electronic Fund Transfers
  • Consumer and Commercial Lending
  • All Basic Credit Activities
  • Access to Capital – Offshore Debit Cards
  • Forex – Currency Exchange
  • Wealth Management
  • Offshore Trading Account
  • Offshore Brokerage Account
  • Administrative Services
  • Trustee Services

Note: Offshore banks typically tend to focus on either consumer or commercial banking. Within consumer, banks differentiate between retail consumer (the average individual) or private banking (meant for high net worth individuals).

Because each concentration involves a different cost structure from the bank’s perspective, when selecting an offshore bank for yourself, be clear on what type of consumer you are and what offshore online banking services you need. Gaining this clarity will ensure you are not disappointed in your choice.

List of Common Offshore Banks

No doubt the two most common names in offshore online banking are Switzerland and Cayman Islands. Just pick up any business journal or pop in a business based Hollywood flick. There is likely a mention of a Swiss bank account somewhere.

This is because as of at least 2012, these two jurisdictions held the most number of total deposits amongst all offshore online banks. Some other jurisdictions that offer offshore online banking are the following:

  • Singapore
  • Malaysia
  • Panama
  • Cook Islands
  • Dominica
  • Saint Kitts and Nevis
  • Antigua
  • Malaysia
  • Anguilla
  • New Zealand
  • Luxembourg
  • Bahamas
  • Barbados
  • Bermuda
  • British Virgin Islands
  • Cyprus
  • Cook Islands
  • Channel Islands
  • Monaco
  • Mauritius
  • Hong Kong
  • Malta
  • Macau
  • Regulating Offshore Online Banking

With complexity comes increasing regulation. The regulation around offshore online banking activities has steadily increased over the years, but according to many of its supporters it is still not enough. This means much more is in the pipelines. Regulation has particularly increased significantly after the significant events of September 11, 2011.

Regulatory guidance is issued and monitored by global bodies such as the International Monetary Fund or the IMF, who require financial institutions worldwide to maintain a certain level of operating or performance standard, specifically in terms of capital adequacy and liquidity. These key performance indicators are to be reported by banks on a quarterly basis to its designated regulator (such as the Fed or the FDIC in the United States).

The list of regulations is endless and quite comprehensive to say the least. Some notables are the Anti Money Laundering (AML) regulation and the Bank Secrecy Act (BSA). These acts require banks and financial institutions to immediately report suspicious activity resembling money laundering to local government authorities despite stepping out of the BSA jurisdiction.

Another example is the information sharing requirements between a certain group of countries with regards to capital flow and taxation which was initiated by members of the European Union. On the other side of the pond, the taxing body of the United States, the Internal Revenue Service (IRS) requires financial institutions to report to it names of businesses and individuals who benefited from interest income resulting from deposits in US based institutions.

The most notable in my opinion of recently enacted regulations is the US Patriot Act, which permits the US Government to seize all assets of a financial institution if it suspects that the institution holds assets that belong to a potential criminal. Several other countries have since followed suit.

I personally feel these regulations strengthen the global banking infrastructure. But then again I am just one person. There are others who feel in all sorts of ways about offshore online banking.

Interesting Fact: Did you know that just until the 1990s, individuals were allowed to create their very own offshore banks. This practice was stopped and now only large institutions are allowed to do so.

Connotations and Implications of Offshore Online Banking

It is not illegal to conduct offshore online banking, but such activities tend to carry with them a certain set of connotations and legal implications that you must be aware of and comply with. There can be severe fines, penalties and legal repercussions if you fail to comply with the legal and regulatory requirements.

Why you must be thinking? Because offshore banking historically has been used and abused by those who intended to evade taxes, as well as those that used funds for illegal causes. For example, organized crime networks heavily use offshore online banking to launder money.

But like I said, conducting offshore online banking isn’t an illegal activity. All persons conducting offshore online banking are required by most countries (depending on their residency) to disclose the activities and the outcomes, such as interest income for example.

Specifically in the United States for example, a US resident’s income is taxed on a global basis. This means that even interest earned overseas is subject to taxation by US authorities. Now although financial institutions are not required to disclose this information to countries of interest due the bank secrecy guidelines, individuals are required to disclose this information.

Similarly, one can legally avoid taxes in certain situations. For example, a resident of Country X living and working in the United Arab Emirates (UAE) may not have to pay taxes if Country X does not tax the individual’s global income.

Because there is no taxation on income earned in many Arab nations, interest income earned from deposits in a UAE bank account is not subject to tax. Further, the income is also not taxed in Country X. This is a common reason why so many affluent folks change residency and citizenship status, one that resonates most with their financial goals and objectives.

It’s a very interesting dynamic and there is a ton of opportunity for strategizing as you can imagine.

Dollar Concentration in Offshore Online Banking

Although offshore online banking is not a subject delved into by the average individual, the numbers involved (concentration of wealth and financial activity) are quite significant. You may find a lot of these simply fascinating.

For example, specialized banking economists and analysts indicate that half of the global capital (money) flows through one of the many offshore banks out there. The so called Tax Havens (think Switzerland) have over a quarter of the global wealth (think high net worth individuals and big companies). These Havens also hold over 30% of profits generated by companies based in the United States.

And that’s not it. Over 6 trillion US dollars owned by high net worth individuals are also reported to be held in offshore bank accounts in one shape or another.

Illegal Monies in Offshore Bank Accounts

Opportunists have identified weaknesses in the offshore banking system and thus have taken advantage of the systems to launder monies generated through illegal means and used for illegal purposes. According to the IMF, this amount is as large as 1.5 trillion US dollars on an annual basis. To put things in perspective for you, this is roughly 5% of the world’s total Gross Domestic Product (GDP).

In addition to illegal monies, there are also monies that have evaded taxation as well as monies that were generated through fraud, graft and corruption. All in all, the amounts are super significant. And as I stated above, the two jurisdictions with the biggest concentration of these amounts are the Cayman Islands and Switzerland (as of 2012).

Offshore Internet Banking for Corporations of All Sizes

I have already stated this earlier, but offshore online banking is not only for large companies, but companies of all sizes as well as individuals. There are a certain set of requirements that any institution, an individual or a company have to meet in order to open and maintain an offshore bank account.

In fact, it is easier for individuals to open and maintain an offshore bank account before companies are required to complete additional forms in a specific manner when establishing an offshore internet bank account.

Corporations typically engage in offshore online banking when they contemplate one or any mix of the following purposes.

  • Cost containment (bank fees and charges)
  • Paying and receiving payments from vendors and customers in local jurisdictions
  • Asset protection strategies
  • International acquisitions and investments
  • Compensating local employees in an offshore jurisdiction
  • Political reasons – Stability and predictability
  • Establishing a local business presence
  • Again, this is not a comprehensive list of why companies engage in offshore online banking. There are several other reasons why a company may decide to establish an offshore bank account. The only true way to find out the best offshore bank for you, and whether your objectives will be met through offshore internet banking is by speaking to a professional who can walk you through the entire process.

Concluding Thoughts on Offshore Internet Banking

I gave you a ton of information to read and digest in this article. As you have read, offshore internet banking is used by several different constituencies for several different purposes with several different intentions.

There are some significant advantages that can be derived from opening an offshore bank account such as entering new global markets and some serious offshore tax planning. I obviously recommend opening an offshore bank account for the right reasons, with full compliance with laws and regulations. For those contemplating abusing the system, understand that bank secrecy is a weakening concept, and one that will continue to weaken over the years.

Countries are increasingly sharing information, some voluntarily and some while succumbing to pressure by more powerful nations such as the United States.

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The Art of Mastering

Struggling with Neck Pain? Here How Changing Sleeping Positions can Help Overcome the Problem

How you keep your head when using a smartphone, injury, and routine work are some of the things that can cause you to experience neck pain. You should, therefore, aim to learn more about how you can manage and prevent the neck aches. You need to learn how you can change various habits to heal from neck pain and avoid it. Here are tips on the ideal sleeping positions to help you prevent or relieve neck pain.

To prevent or relieve neck pain, the first crucial thing is to avoid sleeping on your stomach. The reason is that these sleeping positions force your neck on one side or the other. Thus, it causes a strain on the neck due to unnatural positioning. Therefore, if you have been experiencing neck pains you should opt to shift from stomach sleeping position.

Side sleeping position is ideal for its comfortable, and you will have an adequate sleep. Therefore, this position allows the natural alignment of your neck when sleeping. You may experience neck strains even after you choose to sleep on your side. The risk arises from the height of the pillow being too high or too low. You will need to acquire satin pillowcase to minimize neck movement when sleeping on your side.

The perfect sleeping position to avoid and get relief for neck pain is sleeping on your back. You will discover that this sleeping position offers natural alignment of your head and neck. The other gain of back sleeping position is decreasing pressure on your shoulders and neck. The other reason for choosing this sleeping position is decreasing pressure points on various parts of your body. It is essential; you ensure you have the right pillow that provides adequate support to your neck. The goal is to avoid placing your head too high from your neck and body, causing a strain due to the unnatural sleeping position.

It can be hard retraining yourself to change your sleeping position to heal from neck pain and avoid it. Once you fall asleep, it is hard to control how you shift and turn throughout the night. If you have been sleeping on your stomach, you should begin by shifting to side sleeping positions; then, after getting used to it, you move to sleep on your back. You should also seek more info on how to select the best pillow to help prevent neck pains. It is crucial you learn the above sleeping positions that will help you heal from neck pain. Thus, changing habits can help you heal and prevent neck pain.

Refer to: read here

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Factors to Look into When You Are Picking Scented Candle

At any time, when you are thinking of choosing a scented candles no matter where you want to place it, you should consider looking into a couple of things to make the best decision, which you will not have to regret later from your actions. When it comes to the choosing of the scented candles, you will find out that people have different preferences. When it comes to the choosing of that scented candles due to an increase in the number of producers, you might end up having a lot of challenges before knowing which will be the better for you. Also, before choosing that scented candles, you should consider what is the purpose that you intend for that candle first.

At first, you need to consider looking into the quality of that scented candle because of quality matters a lot You ought to consistently realize that when you are purchasing scented candles, you ought to systematically think about investigating the nature of that flame before choosing it. When you purchase them, you should consider confirming first if that if their scent is present even when it is still in the store for a confirmation that even after buying it, it will also work for you and fill your room with a great aroma. It may be perfect if you remembered to pick your scented light from a well decent shop where quality is guaranteed.

Moreover, you should find exploring your area. You should keep away from devouring a comparative sort of scented candle in the aggregate of the rooms in your home, and you should endeavor in any occasion expending different scented candles making an exquisite aroma in the house. Also, you should not just choose in the consideration that you want the distinct smell in your home because you might end up being disappointed in your action, but you should make sure that you choose those scented candles which you will be satisfied with their scent.

Additionally, it might be ideal that you had a go at stirring up things. Through this, you should have a go at using diverse scented candles simultaneously. Even if many people end up considering floral candles as being just for women, you should consider trying them out because you never know you might even find them being the best. You ought to likewise have a go at utilizing a wide range of fragrances if you may be as yet searching for the best aroma which will work for you.

At last, in case you might be getting a charge out of that specific aroma from your favored candle, by then you should consider holding fast to it.

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Figuring Out

What to Consider for Special Needs Financial Planning

Bringing forth a kid is a blessing from God. . In case if your youth was brought into the world with exceptional needs or unexpectedly has gone to that condition, it might be so overwhelming and you will know how to remove pool stains. It is the wish of every person that they would not have children with special needs but on the other hand, it is God’s choice to decide what He gives to you. We can’t denounce ourselves since one of a kind needs doesn’t mean the child in unfit. The following are a portion of the variables to unique needs arranging on how to remove pool stains.

Cash is the main interesting point. Compose your very own total venture assets, assets and your liabilities. this is to gauge your status. this should be done too to the youngster. In case they have a couple of save reserves, or if they owe someone anything, note that down. Guarantee that you distinguish the amount you wind up spending and how a lot of your kid spends as well. This should join the time that your child is at home and the time they will require your assistance while not at home. Scrutinize how much you are going to require, catering for your child’s needs in their lifetime. Ensure you protect your family, have the long-term disability insurance and consider having a medical insurance for all the family members. It is indeed important to save some cash for that child’s future. Screen and audit your uncommon needs arranging as often as possible. Guarantee you look for extraordinary money related counsel from an uncommon needs budgetary guide.

Government benefits. This is yet another factor of the special needs planning You Must apply for the benefits that your kid might be eligible to apply for. Question about the eligibility for an adult. Your child will be mature one day. You may want to ensure that they have support from the government at their old age and know how to remove pool stains. Keep the eligibility of your child as a concern if they don’t become beneficiaries at the moment.

A special needs planning trust is needed and know how to remove pool stains. Have the surety that there is no jeopardy to the government benefits this is bringing to your child. Your will should be clear of who owns what. You should ensure that you do not name your children equally.

Finally I would talk of the family and external support as a factor. The people who you want involved in your child’s affairs should know what you expect from them. Some friends might offer to have your child as part of their plans example, estate. They ought to have known that they may jeopardize the child’s eligibility for government benefits.

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