Is Offshore Banking Right For You?

What you need to know before opening a bank account abroad.

One of the biggest draws to offshore banking is security. For some, depositing money into a bank in their home country is not safe. Do you trust your bank? Do you think that your money could be safer or that your bank could be doing more with your money? Maybe it’s time to try offshore banking.

Luckily, you can choose a country that has historically had higher regulations, transparent jurisdictions, and an all around more secure banking system. This is also beneficial for those who have chosen to expatriate. Many expat destinations don’t have the safest banks.

For those feeling the restriction of the investment opportunities at home, offshore banks offer a wide choice of funds and investments that aren’t available in your home country. It’s an easy and great way to diversify your portfolio.

Confidentiality is another leading advantage of banking overseas. Many countries have laws that hold banks to strict confidentiality with serious consequences if it is broken.

In terms of investment, banking offshore can help diversify your portfolio, protect your assets, and is the first step in moving your assets out of your country. Opening a bank account offshore also plays a key role in forming an offshore corporation, offshore SD IRA, or international trust. Many offshore banks offer investment opportunities, managed investment accounts, and foreign exchange services.

Holding money abroad has also proven to be a smart asset protection technique. In the event in which it’s needed, having money in an offshore account can assure you don’t lose everything.

Below are two popular offshore banking destinations.

Monaco

Monaco offers a unique political and economic environment that can be great for banking and wealth management. Large private banks offer the usual cash counter, safety deposit box, direct deposit, and other usual banking services. Leading banks also offer investment services like multi-currency deposit accounts, equity and fixed income trading, precious metals, foreign exchange, and commodity trading platforms. Many also provide managed investment portfolio services.

The country offers nearly ninety banks, wealth managers, family offices, and financial advisors that manage almost 100 billion euro. All licensed banks and portfolio managers in the Principality of Monaco belong to the Monégasque Association of Financial Services, a member of the European Banking Federation. This means Monaco is in the Eurozone of the Single Euro Payments Area.

Switzerland

Banks play an important role in the Swiss economy. Because of this, Swiss banking is also highly regarded around the world. They are well known for sophisticated and discreet banking services. In 2017, it was reported that $7.5 trillion in assets are held in Swiss banks and almost 51% of that is generated from clients outside of the country. Choosing Switzerland as a banking destination is choosing years and years of financial stability and growth.

Privacy is a leading factor for those looking to bank offshore. With the same expectations as doctor/patient confidentiality, Swiss laws forbid bankers to disclose that someone even holds a bank account or any information about it without the consent of the account holder. If any of the information is divulged, laws require that immediate prosecution begins.

Holding a bank account in Switzerland is ideal for many because their home country is not as economically nor politically stable as the Swiss government. They are worried about the security of their domestically stored funds.

Opening a bank account in Switzerland is not hard, it just may take some time. You may also be asked to have a valid passport, various documents about your financial history and income, and documents proving you are who you say you are.

Alpen Partners and Offshore Banking

Alpen Partners partners with many banks around the world, the most significant and prestigious being in Monaco and Switzerland. Building on many years of experience in private banking in Switzerland, Alpen Partners Wealth Management International AG provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well known for being sophisticated and discreet. Choosing Switzerland as a banking destination is choosing years and years of financial stability and growth.