Offshore banks are facilities located outside the United States Federal Jurisdiction in which you can place liquid assets for safe keeping in order to reduce the taxation on your fortune. While it may seem too good to be true, any offshore accounts you keep are technically untouchable by the United States government for taxing purposes. In fact, with the exception of warrants and requests for information issued for criminal trials and other such delicate purposes, these institutions will not divulge any information regarding your profile, whereabouts, or holdings within your account.
In many ways, there is no more secretive place to stash your cash than in offshore banks. Where are these institutions located, and how can they be accessed? In the past, in order to open up an account in a foreign country, you would have had to travel abroad and physically attended the financial institution of your choice to open an account. However, in this age of technology practically everything can be set up by phone and internet services.
You will need to schedule a wire transfer to the bank account you have opened in order to place your holdings in the offshore bank. You’ll set up some sort of password or PIN with the bank so that you can access your account in the future. Offshore banks are located in thousands of locations around the globe. One of the most popular jurisdiction to open an offshore account is Switzerland. The country maintains neutrality in times of war and is known for its secure banking practices.
There are few banks in the world that rival the technology and complete security systems employed by the Swiss. However, you can also find offshore institutions in China, Japan, Hong Kong, the Philippines, France, the Galapagos Islands, Argentina, and several other South American countries. Added security comes from the fact that you have the ability to set up accounts without any personal information at all, aside from a name to place on the account and a way to contact you should the bank need to.
In many cases, an account number can be set up anonymously into which you can transfer the funds from your current account, and for a fee, the amount will then switch to another account of your choice. The middle step of a nameless source helps to eliminate paper trails coming from the original source to your new account that give away the sum of money you are stashing. Without a paper trail, the government has no way of knowing how much you have in your offshore bank account. The use of the internet to perform transactions and confirm information has severely cut back on the amount of work involved in opening accounts in offshore banks, and even people with smaller amounts of money that they simply feel should not be subject to tax penalties are making the switch.
With offshore accounts, you have much more flexibility in the way your funds are kept and/or distributed, making it a more preferred method of storing liquid assets than a standard American banking source. See opening your first offshore bank account.