Before Opening a Foreign Accounts
Before heading off to school or going into business overseas, it is always wise to do some research so that there are few surprises upon arrival in a foreign country. But as with almost anything in life, be it marriage, boarding a flight or going for a swim, risks are taken all the time. This is no different with local or foreign accounts, whether the risk may involve confidentiality, low interest rates or unreliable banking services, so doing a bit of research before investing wealth in any bank could avoid lots of headache and worry. For foreign accounts, political and economic stability are extremely important. It would be highly risky to take off on honeymoon to a country that is a war ‘for an adventurous honeymoon’, the same way it would be highly risky and even absurd to open securities investment foreign accounts in any country with bomb blasts every fifteen minutes. Wealth must always be secure and good repute, economic and social soundness are excellent signs of safety for foreign accounts in a territory or country.
Offshore companies are corporations with limited liability that are used for international trade. An offshore company is formed under offshore company legislation of an offshore tax shelter. Offshore company incorporation serves many purposes including tax mitigation, tax planning, trading companies, and as offshore holding companies. Offshore companies incorporation takes place in a number of countries called offshore jurisdictions around the world. For second passports, we promote two second citizenship programs, known as the Dominica Economic Citizenship Program which is a very reputable second passport program for acquiring a second nationality. The second citizenship program is the St. Kitts and Nevis Citizenship-by-Investment Program which offers a real estate investment option. Economic citizenship was designed to provide families and individuals who made a meaningful economic investment with the opportunity to apply for citizenship via a smoother, quicker path to becoming citizens.
Banks with branches internationally provide a great degree of comfort for opening foreign accounts since the customer would be familiar with the policies and services of a given bank. One could be sure that foreign accounts would receive equal benefits and treatment as local accounts and increased customer/bank relationships has the potential of strengthening customer profile and thus, the ability to obtain financing both home and abroad and privileged treatment in terms of getting lengthened loan payment terms and being able to enter friendly negotiations in terms of interest rates paid etc. Before opening foreign accounts in a new bank overseas, it is important to find out about the rates and services offered, especially if the services appear affordable but contain many hidden fees. Most importantly is convenient access to your foreign accounts so that should any situation arise, money can be withdrawn as soon as needed. Online, mobile banking and debit card facilities are necessary facilities and are the main tools that are used for accessing foreign accounts; any bank should have these facilities and make the management of foreign accounts hassle free and safe for non local customers.
The idea of owning foreign accounts is attractive, but not everyone has the resources to manage and maintain accounts overseas. Firstly, one should have sufficient financial resources to ‘spread’ around since it may prove very difficult to manage three or more accounts (one or more foreign accounts included) if income is not substantial and being able to save significant amounts of cash is not possible. It would be wise to accumulate a certain amount of wealth locally and if expanding business or need to protect accumulated wealth, foreign accounts can be opened to achieve greater privacy and to facilitate foreign transactions. This brings up the question of whether owning foreign accounts is based on mere ambition, misinformation or realistic goals and necessity. Foreign accounts do offer many benefits and have their uses, but must also be properly managed like any domestic account.