Offshore banks are facilities located outside your own jurisdiction in which you can place liquid assets for safe keeping in order to reduce to the barest minimum the taxation on your wealth. While it may seem too good to be true, any offshore accounts you keep are technically untouchable by the government for taxing purposes. In fact, with the exception of warrants and requests for information issued for criminal trials and other such sensitive purposes, these banking institutions will not divulge any information concerning your profile, personal information, or amount of money deposited into bank accounts.
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, almost 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 only a few banks in the world that can rival the technology and compete with the security systems employed by the Swiss. However, you can also find offshore institutions in the US, Hong Kong, Singapore, the UK, the Seychelles Islands, 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 receive 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 or who simply feel they should not be subject to heavy tax burdens can make the switch. With offshore accounts, you have much more flexibility in the way your funds are kept and/or distributed. See opening your first offshore bank account.