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Why Bank Offshore? The term offshore banking probably conjures up in your mind images of tropical resorts, slightly shady dealings, or at least wealthy people stashing their cash far from harm's way. There's a mystique about it - and also a lot of mistrust and misinformation. From feedback I've received over the years, it would appear that many people believe offshore banking to be risky and unsafe, whereas the reverse is in fact the case. What do I mean? Well, you (like most people) probably bank at "home" in your own country. After all, this is the norm, it's what 99.9% of the population do. And you probably believe that such banking is safe. Nothing could be further from the truth. Money tied up in a home country bank account is a visible target for all sorts of unscrupulous people - mainly bureaucratic types who work for the government. Let me put it this way. If you are behind with your taxes, your child support, or any other payment deemed owed by you, then in most developed countries it's a simple matter for the authorities to "tap" into your domestic bank account directly and siphon off your funds while you sleep! Of course, that's not all that can happen. If you're earning interest, then chances are your interest is being taxed at source as well. In this way your home-grown bank acts as a tax collector and works more for the government than for you. No, if you are really concerned about the security of your hard-earned cash, then your typical domestic bank is shark infested waters compared to a well thought out offshore banking set up. But what exactly is offshore banking? Contrary to accepted wisdom, an offshore bank does not have to be in the Bahamas, or any other tropical place for that matter. The word offshore simply means in a country other than your own. It means doing your banking "overseas". For example, if you currently live say in Australia, then banking in the USA is "offshore". And if you live in the UK, banking in Singapore is offshore. Offshore banking involves choosing a country with good financial standing and practices, and opening a bank account there - instead of down the road. But isn't this inconvenient? Perhaps it was - once. But not anymore. With the internet you can conduct all your personal or business banking needs with ease, using online access, telebanking and even your mobile phone. Your offshore bank will give you a credit or debit card (like any other bank), to enable to you access your funds at will from any ATM machine in the world. And transferring money in and out is a relatively simple matter. However, finding the right offshore banking arrangement to suit your particular needs requires more than just an impulse decision. It requires an understanding of the various laws and regulations that could impact on such a decision, what your particular personal or business requirements are, and what country you currently live in. David MacGregor Offshore Banking Specialist Is
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