If there is one thing that most people care a lot about, it
is their money. Everyone wants to ensure that they take care of their money in
the best possible way and obtain positive returns on any investments. Is international banking the right choice for your hard-earned dollars, or your company
profits? Interest in offshore banking is currently very high, especially in the
financial hubs of Hong Kong and Singapore.
Before you decide to invest your money in this type of banking option, you should know exactly what it is. Like a traditional bank account in your country of residence, international bank accounts are one of the many choices available for storing your savings in what you hope will be a beneficial way.
International, or offshore, banking has been notorious for association with tax evasion, money laundering and other illegal activities. However, international efforts, led by the Organisation for Economic Cooperation and Development (OECD), to implement global taxation standards have progressed well in the past 12 months. Enforcement of guidelines for disclosure of bank account information does not mean bank account holder details are available to anyone who asks, extensive evidence to support illegal activities is required.
Avoiding taxes is not the only reason that people opt to spread their savings out from within their own country. This type of banking has advantages, including:
- International banking is available in multiple currencies, allowing efficient transfer of money.
- Banking offshore can provide favourable interest rates as interest can be paid tax-exempt.
- Increased global wealth has generated higher demand for quality offshore banking services and hence has the affect of improving the overall standards.
- International banking is a secure and legitimate way for corporations, and individuals, to make tax-efficient international financial transactions.
Offshore banking provides good investment opportunities, especially during recession where offshore jurisdictions may show a more stable economic environment than your country of residence.
Opening an offshore corporate bank account is not a difficult process and can improve the efficiency of funds transfer for organizations with international business operations. Sourcing a good corporate services provider can be advantageous as they can manage the entire process, possibly without the account holder having to visit the offshore jurisdiction.
When deciding if international banking is right for you, do your research thoroughly, or seek professional advice. Choosing the right jurisdiction according to your objectives is a crucial step to ensure positive outcomes.