Ever since the Panama Papers were leaked, the world has become apprehensive about offshore banking. The media has constantly been targeting overseas banking to evade taxes and hide black money in an offshore jurisdiction. And all these have left the people questioning - is offshore banking illegal?
Here are the five common myths busted that will help you get at ease with offshore banking:
Myth 1 - Opening Offshore Bank Account is a Way to Evade Taxes
Yes, there are high-profile incidents of tax evasion related to offshore bank accounts. But more often, a majority of individuals using offshore banking are common people who are looking to accumulate and grow their wealth in a secure and more stable jurisdiction - politically, economically, and financially.
An offshore bank account can help cut down your overall tax payments because tax regulations vary from one country to another. So, opening a bank account in a jurisdiction with more lenient tax laws can help save on your tax bills.
Myth 2 - Offshore Banking is Illegal
This is one of the most common misconceptions about offshore banking - it is either illegitimate or associated with illegal activities. But the truth is that offshore banks such as SUISSE BANK function 100% legally. Using an overseas account is legitimate, provided appropriate procedures are followed as per the regulations in each jurisdiction.
With an increased number of Mutual Legal Assistance Treaties today, criminals get limited opportunity to use offshore banking illegally. Rather, high net-worth individuals and Fortune 500 companies mostly use offshore bank accounts to safeguard their assets and minimise tax payments legitimately.
Myth 3 - Offshore Banking is for the Rich
Many private banks specifically cater to high net-worth individuals and large enterprises with millions of dollars. But there is also an equal number of offshore banks serving customers and businesses from middle-income groups. You might consider it unnecessary to open an offshore bank account worth only a few thousand dollars. However, there are numerous advantages that you can enjoy in the long run.
Myth 4 - You Need to be Present Physically to Open a Bank Account
The client is often not required to visit the bank and be present physically to open an offshore bank account. Bigger banking institutions like SUISSE BANK have advanced due diligence practices in place that allow clients to open, access and transact through their bank accounts via phone, email, fax or courier. They have a user-friendly mobile app and internet banking facility that provides 24/7 access to bank accounts.
The bank provides each approved client with an all-in-one wallet that facilitates digital KYC onboarding in less than 30 minutes. So, unlike the common myth, it is more or less a hassle-free process of opening an offshore bank account.
Myth 5 - Offshore Banks are Located in Dodgy, Far Flung Locations
This is untrue. There are offshore banks located across the world, and sometimes, in popular locations like the Caribbean, UAE, Switzerland, and Singapore. These are all highly regulated, well-run jurisdictions and known for their top-notch financial credibility.
Hopefully, the above myth-busting facts will help you make a wise decision and get started in offshore banking with reputable institutions like SUISSE BANK.