Ibf Project Viru

8/22/2019 Ibf Project Viru

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INTRODUCTION

Rupert Murdoch and Offshore: one of the wealthiest US citizens uses

offshore to reduce tax.

George Soros is known as the wealthiest speculator of all time. His trading all

took place in the Netherlands Antilles, where his earnings compounded tax

free. If you think he has this advantage only because of his wealth read on.

Here is a list of Trend Followers with operations offshore:

John W. Henry Global Strategies Ltd.

Sjo Global Fund Ltd.

Eckhardt Futures

Mark J. Walsh Global

Chesapeake Fund Ltd.


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OFFSHORE BANK

An offshore bank is abanklocated outside the country of residence of the

depositor, typically in a low tax jurisdiction (ortax haven) that providesfinancial

and legal advantages. These advantages typically include:

Greaterprivacy Low or notaxation(i.e.Tax havens) Easy access todeposits(at least in terms of regulation) Protection against local political or financial instability

While the term originates from the Channel Islandsbeing "offshore" from

theUnited Kingdom, and most offshore banks are located in island nations to this

day, the term is used figuratively to refer to such banks regardless of location,

including Swiss banks and those of other landlocked nations such asLuxembourgandAndorra.

Offshore banking has often been associated with the underground economy

andorganized crime, via tax evasion andmoney laundering.
http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Deposit_(bank)http://en.wikipedia.org/wiki/Deposit_(bank)http://en.wikipedia.org/wiki/Deposit_(bank)http://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Swiss_bankshttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Tax_evasionhttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Tax_evasionhttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Swiss_bankshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Deposit_(bank)http://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Bank


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In other words, offshore banking is just the practice of banking in

another country with tax haven jurisdictions characterized by low or zero

taxation on interest, dividends, royalties and foreign derived income as well as

strict banking secrecy laws.

Offshore banking denotes carrying on banking activity which is

insulated from the monetary regulations of the host country. Very often, such

banking centers are set up deliberately to attract international banking

business of dealing in non-resident foreign currency denominated assets and

liabilities by exempting, reducing or eliminating restrictions upon banking

operations as well a lowering tax and/or other levies.

TAX HAVENS

The term "tax haven" means a location where particular taxes are

levied at a low rate, or not at all.

At times, Individuals and organizations can move themselves to areas with

lower tax rates. This creates a situation of tax competition between

governments. Different tax jurisdictions tend to be havens for different kinds

of taxes, and for different kinds of people and organizations.

The former economic adviser to Jersey defines a tax haven as such:

"What ... identifies an area as a tax haven is the existence of a

composite tax structure established deliberately to take advantage of, and

exploit, a worldwide demand for opportunities to engage in tax avoidance."

This is a pretty good definition, however, some other have gone

further to say that any country that modifies its tax laws to attract foreign

capital could be considered as tax haven.


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Switzerland created what is perhaps the first popular modern tax

haven in the early part of the twentieth century. Swiss banks quickly became

a banking haven for citizens of Russia, Germany and parts of South America

avoiding social, political, or economic problems in their home countries.

OFFSHORE BANK ACCOUNT

Any bank account opened outside of one's native country can be

considered an offshore bank account. Offshore bank account can be used for

savings, or as the main means of banking. It may be opened by any individual

or business in most countries, to have major benefits in terms of asset

protection and tax relief.

Service and benefits offered by local banks and offshore banks are quite

similar: offshore banking may be used as savings account, or as the main

means of banking, making investments, purchasing insurance and loans.

Difference lies very much in the taxation area. Some offshore banks

require a substantial initial deposit or other restrictions but the benefits of a

lower tax obligation or higher interest rate usually overweigh this.

Now, many people consider opening offshore bank account for

absolutely legitimate financial reasons, - For Example: to move finances in a

jurisdiction more stable economically or politically.

Regular onshore banking is subject to the tax rules, foreign exchange

rules and charges of the country the account is located in. These rules are also

subject to foreign exchange regulations, and are not covered by the offshore

banking confidentiality and asset protection legislation. On the other hand,

offshore banking is tax free, all account information is confidential and there

are no foreign exchange regulations.
http://www.quantusbank.com/Offshore.Banking/Offshore.Banks/http://www.quantusbank.com/Offshore.Banking/Offshore.Banking.Benefits/http://www.quantusbank.com/Offshore.Banking.FAQ/Offshore.Bank.Account/http://www.quantusbank.com/Offshore.Banking.FAQ/Offshore.Bank.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Banking.Benefits/http://www.quantusbank.com/Offshore.Banking/Offshore.Banks/


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OFFSHORE BANKING IN THE INDIAN CONTEXT

India has made a cautious beginning in offshore banking by permitting

for the first time Offshore Banking Units (OBUs) to be set up in Special

Economic Zones (SEZs). The SEZs have been set up with a view to providing

an internationally competitive and hassle free environment for export

production.

SEZs will be specially delineated duty free enclave and deemed to be a

foreign territory for the purpose of trade operations and duties / tariffs so as

to usher in export-led growth of the economy. The OBUs virtually would be

foreign branches of Indian banks located in India. These OBUs, inter alia,

would be exempt from reserve requirements and provide access to SEZ units

and SEZ developers to international finances at international rates.

The Reserve Bank of India (RBI) has permitted banks operating in

India, whether Indian, public/private sector or foreign, to set up OBUs in the

SEZs. The OBUs would carry out essentially wholesale banking operations.

The OBUs will be set up as branches of the banks and therefore no separate

assigned capital will be required. All prudential norms applicable to overseas

branches of Indian Banks would apply to OBUs. Thus, the necessary risk

management practices that are in vogue internationally would have to be

adopted by the OBUs. The OBUs will be regulated and supervised by RBI.

They will be required to scrupulously follow Know Your Customer and

other anti- Money laundering directives of RBI from time to time.


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FEATURES OF OFFSHORE BANKING IN INDIA:

They will be permitted to be set up in Special Economic Zones.

These banks will be virtually (almost) foreign branches of the banks but

located in India.

The Overseas Banking Units (OBUs) would be exempted from CRR, SLR

etc.

The OBUs would operate and maintain balance sheet only in foreign

currency and would not be allowed to deal in Indian Rupees except for having

a special Rupee account to meet their day to day expenses. These branches

will not be allowed to participate in domestic call and money market etc.

These accounts can be opened by Non-Resident Individuals, Corporates,

Trusts or Offshore companies.


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FINANCIAL SERVICES BY OFFSHORE BANKING IN INDIA

Offshore banks in India offer lot of financial services:

Acceptance of Multi-Currency Deposits

Multi-Currency borrowing option

Loans against deposits in foreign currency

Derivatives products

Issuance of L/C, Bank Guarantee, Bill Discounting

and collection & negotiation of trade bills

Long term finance and short term finance (working

capital) in all countries

External Commercial Borrowings (ECB) etc.

STATISTICS CONCERNING OFFSHORE BANKING

Offshore banking is an important part of the international financial

system. Experts believe that as much as half the world's capital flows through

offshore centers.

Tax havens have 1.2% of the world's population and hold 26% of the

world's wealth, including 31% of the net profits ofUnited Statesmultinationals.
http://en.wikipedia.org/wiki/Tax_havenshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Tax_havens


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According toMerrill LynchandGemini Consulting's World Wealth Report

for 2000, one third of the wealth of the world's HIGH NET-WORTH

INDIVIDUALSnearly $6 trillion out of $17.5 trillionmay now be held

offshore. Some $3 trillion is in deposits in tax haven banks and the rest is in

securities held byinternational business companies(IBCs) and trusts.

The IMF has said that between $600 billion and $1.5 trillion of illicit

money is laundered annually, equal to 2% to 5% of global economic output.

Today, offshore is where most of the world's drug money is allegedly

laundered, estimated at up to $500 billion a year, more than the total income

of the world's poorest 20%. Add the proceeds of tax evasion and the figure

skyrockets to $1 trillion. Another few hundred billion come from fraud and

corruption.

"These offshore centers awash in money are the hub of a colossal,

underground network of crime, fraud, and corruption" commented Lucy

Komisarquoting these statistics.

Among offshore banks, Swiss banks hold an estimated 35% of the

world's private and institutional funds (or 3 trillion Swiss francs), and the

Cayman Islands(1.9 trillion US dollars in deposits) are the fifth largest banking

centre globally in terms of deposits.
http://en.wikipedia.org/wiki/Merrill_Lynchhttp://en.wikipedia.org/wiki/Merrill_Lynchhttp://en.wikipedia.org/wiki/Merrill_Lynchhttp://en.wikipedia.org/wiki/Capgeminihttp://en.wikipedia.org/wiki/Capgeminihttp://en.wikipedia.org/wiki/Capgeminihttp://en.wikipedia.org/wiki/International_business_companyhttp://en.wikipedia.org/wiki/International_business_companyhttp://en.wikipedia.org/wiki/International_business_companyhttp://en.wikipedia.org/wiki/Trustshttp://en.wikipedia.org/wiki/Illegal_drug_tradehttp://en.wikipedia.org/wiki/Illegal_drug_tradehttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Swiss_bankhttp://en.wikipedia.org/wiki/Swiss_francshttp://en.wikipedia.org/wiki/Cayman_Islandshttp://en.wikipedia.org/wiki/Cayman_Islandshttp://en.wikipedia.org/wiki/Cayman_Islandshttp://en.wikipedia.org/wiki/Swiss_francshttp://en.wikipedia.org/wiki/Swiss_bankhttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Illegal_drug_tradehttp://en.wikipedia.org/wiki/Trustshttp://en.wikipedia.org/wiki/International_business_companyhttp://en.wikipedia.org/wiki/Capgeminihttp://en.wikipedia.org/wiki/Merrill_Lynch


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REGULATION OF OFFSHORE BANKS

TERRORIST FINANCE TRACKING PROGRAM

A series of articles published on June 23,2006, by The New York Times,The

Wall Street Journal and The Los Angeles Times revealed that the United States

government, specifically the Treasury Department and the CIA, had a

program to access the SWIFT transaction database after the September 11th

attacks rendering offshore banking for privacy was severely compromised.

They argue that offshore banking offers a competitive threat to the

banking and taxation systems in developed countries.

International banks may also choose to set up branches or offices at centers
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abroad including offshore centers with a view to avoid conformity to stringent

domestic monetary policy regulations. The basic characteristic of offshore

banking is its segregation from the banking system of the host country. In

sense, the banking centers remain offshore and uncontrolled. Several of the

US international banks set up branches at an offshore center such as Bahamas

to get away from the restriction of the US federal government on domestic

banking in USA

In the 21st century, regulation of offshore banking is allegedly

improving, although critics maintain it remains largely insufficient. The

quality of the regulation is monitored by supra-national bodies such as the

International Monetary Fund (IMF). Banks are generally required to maintain

capital adequacy in accordance with international standards. They must

report at least quarterly to the regulator on the current state of the business.

Since the late 1990s, especially following September 11, 2001, there have

been a number of initiatives to increase the transparency of offshore banking,

although critics such as the Association for the Taxation of Financial

Transactions for the Aid of Citizens (ATTAC) non-governmental organization

(NGO) maintain that they have been insufficient.

A few examples of these are:

The tightening of anti-money laundering regulations in many countries

including most popular offshore banking locations means that bankers

are required, by good faith, to report suspicion of money laundering to

the localpoliceauthority, regardless ofbanking secrecyrules. There is more

international co-operation between police authorities.
http://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/September_11http://en.wikipedia.org/wiki/September_11http://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/Transparency_(humanities)http://en.wikipedia.org/wiki/ATTAChttp://en.wikipedia.org/wiki/ATTAChttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Anti-money_launderinghttp://en.wikipedia.org/wiki/Anti-money_launderinghttp://en.wikipedia.org/wiki/Policehttp://en.wikipedia.org/wiki/Policehttp://en.wikipedia.org/wiki/Policehttp://en.wikipedia.org/wiki/Banking_secrecyhttp://en.wikipedia.org/wiki/Banking_secrecyhttp://en.wikipedia.org/wiki/Banking_secrecyhttp://en.wikipedia.org/wiki/Banking_secrecyhttp://en.wikipedia.org/wiki/Policehttp://en.wikipedia.org/wiki/Anti-money_launderinghttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/ATTAChttp://en.wikipedia.org/wiki/ATTAChttp://en.wikipedia.org/wiki/Transparency_(humanities)http://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/September_11http://en.wikipedia.org/wiki/International_Monetary_Fund


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In the US the Internal Revenue Service (IRS) introduced QualifyingIntermediary requirements, which mean that the names of the

recipients of US-source investment income are passed to the IRS.

Following9/11the US introduced theUSA PATRIOT Act, which authorises

the US authorities to seize the assets of a bank, where it is believed that

the bank holds assets for a suspected criminal. Similar measures have

been introduced in some other countries.

The European Union has introduced sharing of information between

certain jurisdictions, and enforced this in respect of certain controlled

centres, such as the UK Offshore Islands, so that tax information is able

to be shared in respect of interest.

Banks are generally required to maintain capital adequacy in

accordance with international standards. They must report at least

quarterly to the regulator on the current state of the business.
http://en.wikipedia.org/wiki/Internal_Revenue_Servicehttp://en.wikipedia.org/wiki/Internal_Revenue_Servicehttp://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/USA_PATRIOT_Acthttp://en.wikipedia.org/wiki/USA_PATRIOT_Acthttp://en.wikipedia.org/wiki/USA_PATRIOT_Acthttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/USA_PATRIOT_Acthttp://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/Internal_Revenue_Service


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BANKING SERVICES

It is possible to obtain the full spectrum of financial servicesfrom offshore

banks, including:

Deposit taking Credit Wire-andelectronic funds transfers Foreign exchange Letters of credit and trade finance Investment management and investment custody Fund management

Trustee services Corporate administration

USES OF OFFSHORE COMPANIES

Investment Holding Trading Property Investment Financing Patent, Royalty and Copyright Holding Entertainment, Consultancy and Professional Services Ship Management and Yacht Owning International Trade - Letters of credit, documentary collections, Cross-

border guarantees and global banking services at locations around the

world.

Risk Management: Foreign exchange, Interest rate, Equity and EnergyPrice Risk Management Tools.

Financing. Payment, receivables and payroll solutions.
http://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Credit_(finance)http://en.wikipedia.org/wiki/Credit_(finance)http://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Electronic_moneyhttp://en.wikipedia.org/wiki/Electronic_moneyhttp://en.wikipedia.org/wiki/Electronic_moneyhttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Letter_of_credithttp://en.wikipedia.org/wiki/Letter_of_credithttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Fund_managementhttp://en.wikipedia.org/wiki/Fund_managementhttp://en.wikipedia.org/wiki/Trusteehttp://en.wikipedia.org/wiki/Trusteehttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Trusteehttp://en.wikipedia.org/wiki/Fund_managementhttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Letter_of_credithttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Electronic_moneyhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Credit_(finance)http://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Financial_services


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Selling Solutions: Point of sale, E-commerce and MerchantProgrammes.

Speciality solutions, such as dealer, shareowner and fund services. Expertise in matters such as energy, aviation, shipping or real estate.

CREDIT CARD AND DEBIT CARD SERVICES

Most banks offer a comprehensive range of credit and debit card

services for either personal or corporate accounts. In many cases, the

currency of the card is dependent upon the country in which the bank

operates. Many banks have introduced US Dollar cards to cater for the

international market.

CLIENTS

1. INDIVIDUAL CLIENTSThe majority of people who open an offshore bank account fall into one

of the three following general categories: -

1) HIGH NET WORTH INDIVIDUALS - These are people with a disposable

income in excess of one million US dollars.

2) EXPATRIATES - These are people who are located overseas away from

their home country either on an employment assignment or in retirement.


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3) BUSINESS OWNERS - Generally these are individuals who own

companies whose shares are owned by family members or a close working

partnership.

According to statistics the majority of individual offshore banking

clients come from Europe, Australia and North America, but more recently

larger numbers of Eastern European, African, Indian and Asian individuals

have found that offshore banking structures suit their own personal

requirements.

The type of person who falls into the above three categories range

from those with inherited wealth to those who have earned it by themselves

and they all utilize offshore banking for the following benefits: taxation

planning, estate planning, pre-immigration or repatriation planning, privacy

and asset protection.

2. CORPORATE CLIENTSThere are far more corporate clients with offshore banking needs than

individual clients. They fall into one of the following categories:

1) Multi-national corporations.

2) Large industrial and trading companies.

3) Shipping companies.

4) Financial services and banking institutions.

The benefits of offshore banking for such companies are diverse and

range from the fact that a large number of companies actually outsource parts

of their operations overseas and require accounts in these countries to the fact


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that many offshore jurisdictions have tax free zones through which companies

can operate all or part of their operations tax effectively.

CRITERIAS TO OPEN OFFSHORE ACCOUNT FOR A CLIENT

Aspects considered are:

The nationality, residence and domicile of the client. Banks often have

policies that deny, restrict or place conditions upon certain classes of clients

from having access to their services, and these policies change from time-to-

time.

OFFSHORE

BANKING CONSIDERATIONS


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The best offshore bank account will depend very much on personal

circumstances and account requirements

For example whether you are looking for a bank account, tax solution

or an asset protection plan. If you need advice make sure you get independent

assistance and always do full due diligence before moving your assets to an

offshore bank's account.

* Any banks you considered should be located in a secure offshore jurisdiction

where they are subject to the regulation, supervision and licensing of an

independent statutory body. This is necessary to ensure the security of funds

placed in an account;

* You should be sure that the particular offshore bankyou are interested in

has a reputable parent company, good reputation and history.

* There is much difference in account costs and transaction fees, but many

people do not look at fee structures when opening bank account. This

information always remains available to the customers.

* Offshore bank accounts usually come with extra account options and

features such as the ability to conduct transactions in more than one currency,

etc., and they are often more expensive than current accounts in local banks.

If you do not need so many extra features, you can obtain the cheaper variant

of the offshore bank account excluding extra features you do not require.

IS IT LEGAL FOR ME TO HAVE AN OFFSHORE BANK ACCOUNT?

Yes, absolutely legal. Offshore banking has been routinely and legally

used for many years by individuals and organizations worldwide. Because

many countries encourage international trade and enterprise, there are

usually only limited restrictions on residents doing business or having bank

accounts in other countries. However, reporting requirements on these

accounts differ from country to country.
http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Jurisdictions/http://www.quantusbank.com/Offshore.Account.Opening/Choosing.Offshore.Bank/http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Fees/http://www.quantusbank.com/Offshore.Account.Opening/Range.of.Services/http://www.quantusbank.com/Offshore.Account.Opening/Range.of.Services/http://www.quantusbank.com/Offshore.Account.Opening/Range.of.Services/http://www.quantusbank.com/Offshore.Account.Opening/Range.of.Services/http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Fees/http://www.quantusbank.com/Offshore.Account.Opening/Choosing.Offshore.Bank/http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Jurisdictions/


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OPENING OF OFFSHORE BANK ACCOUNT

PROCEDURES & MAINTENANCE

OPENING AN OFFSHORE ACCOUNT

Opening a foreign bank account is not that easy as numerous people

think. You can't just walk into a place and start signing a form that will open

your account after you're done filling in. Unluckily, the banking facilities you

might be dealing with are placed in that foreign country. They might have

unique identification laws that you'll have to agree with in order to open an

account.

Luckily, you do not have to travel all the way to every corner of the world just

to open an account. Internet is one of the most prestigious inventions these

days. By accessing a site, you can easily open your account behind your desk

and within no time you can shift money at anytime from anywhere in world.

First off, it is best to get some more info about obligations and your

requirements with a specialist in this area if you are ready to open a bank

account. After you are done with this and you fully understand everything, it's

time to take a look at which country offers the lowest taxes.

Setting up offshore bank accounts at an offshore bank is a great idea,

but you have to know on the dot what you are dealing with and what the risks

are. Take a look at Offshore Banking for more information.
http://www.zimbio.com/go/Tua5O-01kRF/http:/offshore-banking.blinkweb.com/http://www.zimbio.com/go/5oGg-pw6cG8/http:/sites.google.com/site/offshorebankgroup/http://www.zimbio.com/go/1zrcRg7osPW/http:/www.myoffshorebanking.info/http://www.zimbio.com/go/1zrcRg7osPW/http:/www.myoffshorebanking.info/http://www.zimbio.com/go/5oGg-pw6cG8/http:/sites.google.com/site/offshorebankgroup/http://www.zimbio.com/go/Tua5O-01kRF/http:/offshore-banking.blinkweb.com/


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ADVANTAGES OF OFFSHORE BANKING

WHO COULD BENEFIT ?

You could benefit if you're planning to move or retire abroad, or are

already living in another country. You may also benefit if you have homes or

commitments in more than one country. If you live in a country which is

politically or economically unstable, you may choose to place your money

offshore in order to protect your assets more effectively.

The purposes to open offshore bank account may include tax liability

minimization, asset protection, estate planning, confidentiality, better returns,

and the chance to exploit active business interests offshore from a zero tax

jurisdiction.

Large part of the companies establish accounts with international and

offshore banks rather than domestic banks because of the following

characteristics:

* TAX EFFICIENCY:

In most offshore jurisdictions tax benefits, including interest on offshore

accounts and investments, are paid without the deduction of tax. Offshore

banks and private companies are not liable to income tax, also considering

capital gains tax and stamp duties on property as exempt. There is no need to

visit the bank to open an offshore account.

* CONFIDENTIALITY:

Most offshore banks provide high level of confidentiality, security and

convenience. All personal data and the details of your banking, including the
http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Jurisdictions/http://www.quantusbank.com/Offshore.Account.Opening/Choosing.Offshore.Bank/http://www.quantusbank.com/Offshore.Account.Opening/Choosing.Offshore.Bank/http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Jurisdictions/


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account balance, are protected by modern legislation. The amount on an

offshore bank account is not liable to inheritance tax.

*ACCESS TO SPECIAL INVESTMENT OPPORTUNITIES: One of offshore

banking benefits is easy global access to deposits, at least in terms of

regulation. Most jurisdictions offer less restrictive legal regulation for

offshore accounts, compared to the accounts opened in local banks. Some

offshore banks offer bankingservicesthat may not be available from domestic

banks such as anonymous bank accounts, higher or lower rate loans based on

risk and investment opportunities not available elsewhere.

* NO FOREIGN EXCHANGE CONTROL: it is possible to conduct business

in the country in which you have your bank account with the local currency.

* Offshore banking also provides protection against local political or financial

instability because offshore bank accounts do not become subject to local

litigation.

* Global investment and business prospective, familiarity with offshore and

international business. Banking operations can be made from any place of the

world, via Internet, e-mail, post or telephone.

Because of the costs of establishing and maintaining offshore accounts,

offshore private banking is usually more accessible to wealthy persons.

* Offshore banking is often linked to other structures, such as offshore

companies,trustsorfoundations, which may have specific tax advantages for some

individuals.
http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Offshore_trusthttp://en.wikipedia.org/wiki/Offshore_trusthttp://en.wikipedia.org/wiki/Offshore_trusthttp://en.wikipedia.org/wiki/Private_foundationhttp://en.wikipedia.org/wiki/Private_foundationhttp://en.wikipedia.org/wiki/Private_foundationhttp://en.wikipedia.org/wiki/Private_foundationhttp://en.wikipedia.org/wiki/Offshore_trusthttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Customer_service


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* Offshore finance is one of the few industries, along with tourism, in which

geographically remote island nations can competitively engage. It can help

developing countries source investment and create growth in their economies,

and can help redistribute world finance from the developed to the developing

world.

* If you set up an offshore bank account, you will be provided with the

ability to protect your money against local creditors. This is because your

offshore accounts aren't subjugated to the local litigation laws. if you get

financially insecure, the funds you possess in your offshore bank account are

protected. But even though your assets and your funds may be saved against

threat from local creditors, it's still essential to have a look at the dangers in

which accounts you choose to open.
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DISADVANTAGES OF OFFSHORE BANKING

Offshore banking has been associated in the past with the undergroundeconomy and organized crime, through money laundering. Following September

11, 2001, offshore banks and tax havens, along with clearing houses, have

been accused of helping various organized crime gangs, terroristgroups,

and other state or non-state actors.

Offshore jurisdictions are often remote, so physical access and access toinformation can be difficult. Yet in a world with global

telecommunications this is rarely a problem for customers. Accounts

can be set up online, by phone or by mail.

Offshore private banking is usually more accessible to those on higherincomes, because of the costs of establishing and maintaining offshore

accounts. However, simple savings accounts can be opened by anyone

and maintained with scale fees equivalent to their onshore counterparts.

The tax burden in developed countries thus falls disproportionately on

middle-income groups.

Historically, tax cuts have tended to result in a higher proportion of thetax take being paid by high-income groups, as previously sheltered

income is brought back into the mainstream economy.

Offshore bank accounts are sometimes touted as the solution to everylegal, financial and asset protection strategy but this is often much more

exaggerated than the reality. The existence of offshore banking encourages tax evasion, by providing

tax evaders with an attractive place to deposit their hidden income.
http://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/Terrorismhttp://en.wikipedia.org/wiki/Terrorismhttp://en.wikipedia.org/wiki/Terrorismhttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economy


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Developing countries can suffer due to the speed at which money can betransferred in and out of their economy and can increase problems in

financial disturbance.

In some jurisdictions it is necessary to deposit large sums of money,therefore you should be aware that your money could be at risk if

anything should happen in the country you choose for offshore banking.

Offshore banking always needs professional advice. It is important toconsult a lawyer or a financial adviser before investing in an offshore

banking account, because you need to catch all the details before

making a deposit.


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OFFSHORE BANK ACCOUNTS:

CLASSIFICATION

Offshore bank accounts, exactly like onshore, may be classified by

different parameters.The first and the most clear classification principle is PERSONAL

BANK ACCOUNT VS CORPORATE BANK ACCOUNT.

The second principle is by the way how they are utilized, For example:

Numbered offshore bank account, offshore merchant account, offshore

investment account, offshore savings account or offshore business account.

1. PERSONAL OFFSHORE BANK ACCOUNTAs the name shows this is bank account opened on a physical person.

Normally the client himself is the account holder and beneficial owner of
http://www.quantusbank.com/Offshore.Banking.FAQ/Numbered.accounts/http://www.quantusbank.com/Offshore.Banking.FAQ/Numbered.accounts/http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Savings.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Savings.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/http://www.quantusbank.com/Offshore.Banking.FAQ/Numbered.accounts/


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money on the account. Notwithstanding it is governed by the same banking

secrecy laws as other types of offshore bank accounts, it is the least protected

asset protection vehicle. To overcome this privacy issue without introducing

more advanced offshore protection schemes, in some offshore jurisdictions it

is available to open the numbered bank account where bank account title

differs from person's name. Normally it is some combination of numbers and

letters, not similar to any persons name.

2. CORPORATE OFFSHORE BANK ACCOUNTNormally is opened on offshore company incorporated in the same or,

more often, in the other offshore jurisdiction. To open corporate bank

account, you need to choose carefully the jurisdiction for opening offshore

bank account, as well as the jurisdiction for offshore company incorporation.

Also, it would be important to consider offshore legislation of both countries

and see how it answers the purposes pursued by the establishing of offshore

bank account. The title of such corporate bank account is the name of the

company. Normally, the company name differs from beneficial owner's name

thus protecting one's privacy when sending in and out the money.

3. NUMBERED OFFSHORE BANK ACCOUNTSimilar to the way how private offshore bank account is opened on

private person's name, but for numbered offshore account a number or some

neutral word is used instead of person's name in the account title. Numbered

accounts are not easy to open, and there are very few banks providing this

kind of service.

Swiss banks are the most known place where to open genuine numbered

account. To open numbered offshore bank account, personal visit to the bank
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is the must. Customer should physically go to the bank in Switzerland to go

through very serious due diligence procedures, and be ready to place

substantial initial deposit. Also the annual or monthly maintenance costs are

very high. And remember, the numbered offshore bank account is not

anonymous since the bank definitely knows who is the owner of the money on

the account.

Other popular types of offshore bank accounts are OFFSHORE

MERCHANT ACCOUNTproviding the ability to accept credit or debit card

payments from customers; OFFSHORE SAVINGS ACCOUNT, similar to

onshore savings accounts; OFFSHORE INVESTMENT ACCOUNT that

provides offshore investors with wide range of offshore investment

opportunities less limited both in terms of risks and earnings than those for

offshore savings account.

4. OFFSHORE MERCHANT ACCOUNTAn offshore merchant account is an account providing the ability to

accept credit or debit card payments from customers for goods and services.

An offshore merchant account establishes a relationship between credit card

processor, the bank and business willing to accept the credit card payments.

Unlike with regular merchant account, funds generated from sales and credit

card payments are deposited with offshore bank.

Offshore merchant bank accounts are very popular in various industries

starting from mega online gambling projects and adult industry sites to small

businessmen selling some software or unique products or ideas to everybody

in the world through the Internet. When opening offshore merchant account,

the offshore bank assigns unique merchant ID to business. Such offshore
http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Savings.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Savings.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/


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merchant account is associated with offshore business current or checking

account.

Funds debited from customers credit cards are processed through

merchant account and placed on the business account, less commissions as

well as security deposit which is widely used with offshore merchant accounts,

especially at the early stage of customer and bank relations. Security deposit

means that some portion of processed money is "freezed" for some time as

collateral against chargeback.

5. OFFSHORE SAVINGS ACCOUNTOffshore savings account is similar to onshore savings accounts. The

main difference is that interest is generally paid by offshore banks without tax

deducted. From one side, it is an advantage to individuals who do not pay tax

on worldwide income, also to expatriates in particular cases, however every

client of offshore bank should get tax advice before receiving benefits from

such arrangements.

Offshore savings account is a wise way how to reduce tax burden, but it

should be used only if it is allowed by one's country.

Taxation is not the only benefit of offshore savings account, some

offshore banks operate with lower costs and can provide higher interest rates

than the rates of onshore banks, due to reduced expenses and less government

intervention.

6. OFFSHORE CURRENT ACCOUNTA flexible international current account for your-day to-day banking

needs, and a convenient, secure and potentially tax efficient way to manage

your money.


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Available in sterling, US dollars or euro. View debit/credit card options Accounts based in Jersey, Channel Islands or Isle of Man 24 hour internet and phone banking - Info Make international money transfers Interest paid without deduction of tax* Minimum balance 5,000, US$ 10,000, or 10,000. No account openingfee

7. OFFSHORE INVESTMENT ACCOUNTOffshore investment account provides offshore investor with wide range

of offshore investment products to choose from. Unlike offshore savings

account, offshore investment account provides less limited opportunities both

in terms of risks and earnings. There are thousands of offshore investment

funds, offshore bonds and other offshore investment vehicles. These offshore

investment instruments are flexible enough to fit around today's changing

lifestyles. However with offshore investment account the customer should be

prepared for higher initial investments and less liquidity of funds placed to

such account. Offshore bank will not allow this account to be used as offshore

business account. Too frequent inward and outward transactions may be

penalized by additional fees and penalties. The main difference between

offshore and onshore investment accounts is taxation as well as the fact that

offshore banks normally provide wider choice of the investment products.

Investor protection laws are in place in every offshore jurisdiction.
http://www.offshore.hsbc.com/1/2/international/currency-cardshttp://www.offshore.hsbc.com/1/2/international/bank-accounts/offshore-current-account?WT.srch=1&WT.mc_id=HBIB_2008_11_2004&quid=5196933222S918956T&gkid=39--rkcng_onaxvat--Svanapvnyyl_Fniil_Rkcng--Pbagrag--615b704b237#1http://www.offshore.hsbc.com/1/2/international/bank-accounts/offshore-current-account?WT.srch=1&WT.mc_id=HBIB_2008_11_2004&quid=5196933222S918956T&gkid=39--rkcng_onaxvat--Svanapvnyyl_Fniil_Rkcng--Pbagrag--615b704b237#1http://www.offshore.hsbc.com/1/2/international/currency-cards


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CONCLUSION

An Offshore Banking are an important part of international financial

system as half of the capital of world economy flows through Offshore

Banking.

People generally operate their offshore account during vacations as they

spend their holidays abroad. So they do require foreign currency, which

offshore bank provides. Also a lot of advantage is provided apart from those

of commercial banks like privacy.

However it influence crimes as full confidentiality about the account is

maintained. Any person after fulfilling certain criteria can open an offshore

account.

From the project, I would like to infer that a wide spectrum of offshore

banking centres are known. Offshore banking makes avail of tax exemptions

and higher interest rate in foreign currency. This helps to earn foreign

currency. It becomes mandatory for the businessman and the organizations

who have a global business.

Thus, Study about offshore banking will help to acquire more

knowledge & certainly have a positive effect in future.

Ibf Project Viru

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