An offshore bank account is an offshore bank operating under international banking jurisdiction, that usually bans the bank from conducting any business activities on the territory of the country of establishment. Because of greater transparency and lesser regulation, offshore banking has become increasingly popular over the last years, mostly used by the wealthy and those with criminal records.
While offshore banking has gained increasing popularity among the rich and famous, it is also very attractive to the tax haven’s governments and the corporations they protect. In a way, offshore banking is a very lucrative market and is being exploited by the offshore banking industry as much as it is by the financial institutions.
Offshore Bank Accounts – 6 Myths About Offshore Banking You Might Have Believed
Offshore banking provides you with a lot of advantages. The following are some of the benefits of an offshore banking account:
- You can have good rates of return. Most offshore banks offer relatively high returns as compared to other traditional banks. Moreover, they are generally considered safe because they are not subject to governmental taxation.
- They are also preferred by investors because they do not require them to invest large sums of money in securities. The majority of the times, offshore bankers charge minimal annual fees for offshore banking services. Some of these fees may also be deferred until you make your payments in your home country.