Offshore Banking
W.T. LLC
4676 Commercial St.
SE # 274
Salem 97302, Oregon

Choosing banking services

Services. What offshore banking services are you looking for? What are you going to do with your bank account?

- Offshore investments. Some offshore banking jurisdictions are oriented mainly to keeping clients' money for a long time and building their wealth by managing their assets, placing them to different investment programs and instruments in accordance with your risk/earning instructions. Such banks providing private banking and assets management services will require their clients to keep substantial account balances and usually will not allow to make active business transactions by means of various restrictions including high outgoing/incoming transaction fees. Swiss bank account is a typical example here. When looking for jurisdiction and bank for offshore investment services, one should consider also the tax consequences. Some investments can be heavily taxed however others are not. For example, if you someone is opening the bank account offshore and then investing back in the stockmarket located in the country of his residence ? it is more likely that he will be asked to declare whether he is a taxpayer of this particular country or he is not and he will have to pay the same taxes as investing directly through the bank in the country of his residence. Therefore it makes sense consulting with a tax adviser or with the bank providing client with private banking service for finding the best investment products especially for this particular client. Another example of taking into consideration the tax issue is the fact that interest earnings in many countries are taxable. If you put money on the term deposit offshore ? for example in Switzerland, you can be taxed on 35% from the interest earnings in accordance with their local tax laws. Therefore in these jurisdictions it makes sense using the fiduciary deposit service when deposits are held by the same bank (in our example Swiss bank) outside bank?s country and are not taxed in accordance with local tax laws.
- Offshore business transactions. People having offshore business need bank accounts for receiving money for products/services sold and for making payments for products/services received. If a person has such a business he/she would look for the bank with good online banking system, with incoming/outgoing wire transfer services, check deposit services, documentary operations, availability of the bank account in different currencies, currency exchange services, ATM/debit cards etc. Before applying for the account, it is necessary to list all the banking services needed and to check whether they are available in the bank where the bank account will be opened. It is very important to describe one's banking needs in as many details as possible, as far as there are different banking traditions in different countries and what is an everyday service in the country of one's residence could be something extraordinary in some other country and vice versa.

For corporate offshore account opening it is necessary to make a decision on offshore company registration and administration. The choice of a resident agent is very important. Lately, the Seychelles has been a very popular jurisdiction for International Business Company formation. Seychelles IBC can be incorporated quickly and all the necessary additional documents can be arranged in due course as far as the Seychelles government pays great attention to this business. Documents are processed electronically, offshore service providers in the Seychelles are regulated very strictly.

Costs. Another important point is banking fees. If you are planning mainly to keep money on the account, it is more important to explore the account maintenance fees. There could be monthly or annual fees for bank account, ATM/debit card or Internet banking, fees for inactivity or fees for low account balance. If clients are going to make active transactions it is very important for them to explore the banking fees for various transactions they will use. Transactions can be fixed, or there can be a percentage of the transaction volume with some minimum and some maximum established. There could be different fees for transactions in different currencies. For example, fee for wire transfer in EUR can differ from fee for wire transfer in USD, AUD or GBP. Also there could be different fees for fast transaction execution. Some banks are differentiating the speed of services and transaction with very low cost can be quite slow and for ?normal? speed of the transaction it is required to pay much more. Another bank can indicate only one fee for transaction that could seem quite high, however when it becomes possible to get to know its quality and speed ? it becomes obvious it is a very reasonable price.

Individual approach. All the banks we are working with provide very good services. There are also medium-size or even small banks among them. The small banks are especially valuable if customer is looking for individual approach and his offshore account balance is not expected to be with six or seven digits. Small banks provide individual approach to every customer, however bigger banks having thousands of similar customers are going to provide good but more standard services to everybody. Of course, there are also VIP customers within big banks, however the balance criteria for VIP customer is proportional to bank?s size. If customer likes individual approach, sometimes finding not so big bank having all the services needed would be the best solution.