When you come to us to set up an offshore account you will find that, unlike other companies our site does not direct you to a payment page, take your money and then direct you to a series of links. You will find many companies that tend to do this but it is a pointless way to assist clients with setting up an account. The reason for this is that, if you are directed to a series of forms but not provided with the advice to enable them to be correctly filled in the whole application process will become extremely difficult. Without sound advice all sorts of problems often arise. To give you an example, the items below have been mentioned by clients in the past and are good examples of the nightmares which can crop up.

• Mrs N went to a company she found on the Internet intending to set up an account in Italy. She registered the account to a UK address not realising that the Italian Tax Authorities report accounts held by UK residents to the UK tax collector, HMRC! Had she opened the account and given the address of her home in Florida this would not have arisen because there is no automatic exchange between Italy and the USA. The problem was she did not speak to anyone and was simply pointed to some forms to complete with instructions to fill them in and send them direct to the bank.

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• Mr and Mrs S, who live in South Africa, were buying a second home on a golf course in Faro, Portugal and went to a so called banking expert in the Isle of Man. Following a discussion with him they decided that, to avoid local tax and currency hassles in South Africa, they would register the account - which was being set up in Portugal - to their second home in Ireland. This seemed an option on the surface but the reality was that the South African tax collector would never have received information from the Portuguese bank whereas there is automatic exchange of details between Portugal and Ireland under the EU savings tax directive.

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• Mr N went to a firm in London who advised him that, if he needed an account for British clients to credit pounds at a High Street bank in the UK, a branch in Gibraltar or Jersey was ideal as both were offshore but accessible through any High Street bank. He opted for Jersey and they informed him that he needed a mailing address and phone number outside the EU to avoid Jersey reporting the details under the requirements of the EU savings tax directive. This was wrong because Jersey pays a proportion of the interest to the UK government but does not disclose any information about the actual account holder's identity. As a result, Mr N paid around €700 or £500 for an address and phone number outside the EU which he did not need. Okay, he would pay a bit of tax on the interest but, as the account was to enable him to access his funds via an ATM, the balance was never going to exceed £4000 or £5000 at any particular time. In any case, the deduction by the bank would have been no more than £25 per annum! He had therefore wasted £475! Had he opted for Gibraltar he would have found that they accept UK cheques at any UK Barclays for credit to a Barclays Gibraltar account but, if his clients wanted to pay with cash, they would not accept it as cash credits via the UK to Gibraltar are not permitted by the Gibraltar Government so this would have made the account pointless.

The above are just three examples. Fortunately, we put the people on the right track and sorted everything out. These examples simply indicate that it is an absolute minefield trying to get it right because you can sometimes phone five so called experts who give five different solutions and, in many cases, they do not have a clue what they are doing and will simply send you a pile of forms and leave you to get on with it! We favour a hands-on approach where we speak to you about your circumstances and needs before we do anything. Once we work out the options between us, you complete the forms for the chosen bank and we then check them prior to submission to the bank.

The banking arrangement needs to be 100% right because offshore banking and card facilities are central to all tax efficient trading, savings or investment structures. Of course, the type of financial arrangements currently available can range from a simple account with a debit or ATM card right up to a comprehensive banking solution involving multiple currencies and a whole variety of sub accounts with various credit and debit cards. The key to getting it right lies in determining exactly what is needed to achieve the required results. Matching our clients to the right account is our area of expertise; normally a quick conversation on the phone or an exchange of email enables us to pretty much define the ideal solution for your particular needs. After all, there is little point in going through all the hassle and expense of arranging a high maintenance structure involving merchant and bank accounts when a simple account to receive funds which is, in turn, linked to an international debit card and perhaps a PayPal account (see www.paypal.com) will meet all your day to day needs. An additional point which should be considered at this time is that, the more complex the arrangements are, the more expensive and time consuming they will be to set up. For example, to set up a straightforward account and debit card we need only one piece of ID, to set up most bank accounts we require notarised or certified passport copies, utility bills and often bank references.

This section provides details of our most popular tried and tested accounts which we arrange on a daily basis although, after over 20 years in the business, we have so many bank contacts that this list is, in reality, only a small cross section of what we provide. If you do not see anything here which is ideal for your personal needs, contact us because we provide numerous bespoke solutions tailored to meet your exact requirements. Our primary aim is to offer our clients a comprehensive range of banking facilities. These facilities include offshore personal and corporate accounts, high yield savings accounts, ATM and debit card based accounts and confidential numbered accounts. The requirements for passport copies and other ID documents when opening accounts can be a concern to individuals and corporations wishing to retain a low profile in these days of continual snooping. It is important to keep in mind that, regardless of the pressures from the OECD and the EU, rock solid banking secrecy still exists in many reputable jurisdictions such as Austria, Luxembourg or Switzerland. Other banking centres such as Panama, Nevis or Cyprus also maintain high levels of discretion.

Some countries have become so obsessed with money laundering and dirty money that things have gone well beyond what is needed to prevent the proceeds of crime getting into the system. In both the US and UK, bank employees are now effectively government informers under threat of draconian penalties for failure to inform government of even trivial irregularities. This is the opposite of many offshore jurisdictions which impose heavy fines and prison sentences on bank employees who breach the privacy of account holders.

Although most clients will not have a problem with banks ID requirements, if you have particular worries let us know, we are here to assist you. We can generally deal with most ID problems that arise as various alternatives exist. For example, some banks insist on a passport but if you do not have a passport they will often accept a certified driving licence copy. The key to successful offshore banking lies in selecting the correct location to fit you requirements. An illustration of this is that, whilst the Channel Islands are defiantly not ideal for UK residents, they are OK for Canadians; the Bahamas are not good for an American but generally fine if you are European, and so on. What we have endeavoured to achieve here is to offer a selection of facilities that offer the most flexible range of facilities to meet our clients' banking needs

THE MYTHS, HALF-TRUTHS AND WHOLE TRUTHS ABOUT OFFSHORE BANKING

Offshore banking is not illegal, immoral or unethical although many people think there is something unsavoury about it.

Exact figures of how much money is held offshore are difficult to come by but US studies estimate that offshore banking has grown by an astonishing 30% to 40% annually over the past five years. Although there is no official statistic, it is believed that at least 65% of the worlds money is kept offshore in a number of leading finance centres, the biggest of these is still Switzerland by a large margin but the Channel Islands, Isle of Man, Panama, Andorra and numerous others such as Dubai all want a slice of the action. Amazingly, even the US has its fingers in the pie but more about that later.

What is an Offshore Bank?

An offshore bank is any bank that operates outside the jurisdiction of your country of residence. It is, however, important to be mindful of any exchange of information agreements in the case of personal accounts. For corporate accounts this is not an issue. The key is to keep in mind that branches of Barclays, or of Citicorp located in the Bahamas, are subject to the laws of the Bahamas not the laws of England or the USA. For the same reason, UBS in the UK or Italy will not be able to offer the same level of secrecy as UBS in Switzerland.

Where are the best banks located?

For general efficiency, you cannot beat Switzerland or Liechtenstein. Most Austrian banks are good as are banks in Cyprus, Austria, Luxembourg and several Caribbean locations. Dubai is also very up and coming, as are Hong Kong and Singapore, since the European savings tax directive took effect in July 2004. Many formerly good banking countries are no longer worth considering. Latvia is grim, to put it mildly, no end of reputable clients have been to hell and back with all sorts of hassles which involved Latvian banks.

What about the UK Banks?

The UK used to be quite good but these days quality banking services are limited to the more well healed Private Banking clients and the total overkill on the due diligence requirements makes the application procedures a nightmare for many non residents. Unfortunately, in the UK Mr. Average has to put up with what must be one of the worst domestic banking systems in a developed country. The fact is that banking in the UK is more like something from the third world but this is probably because most UK banks use call centres in places such as India. With most UK banks you cannot even call your own branch anymore, you get through to someone in Delhi or Bangalore who is completely clueless and sounds like a cross between an automated system and a sub human. Sometimes you do not really know for sure which it is! In reality, they can do little more than tell you your balance without going away and making further enquiries. If you need a UK account, and we accept some clients do, we can arrange it but it won't be easy or fast - whatever anyone else tells you! - and the paperwork is a real source of stress with endless details required.

You are probably asking whether we can recommend any UK banks. The answer is yes but only two and they are both owned by the same parent company. If you need a UK account we tend to recommend NatWest or Royal Bank of Scotland because they are not bad generally and you can at least call your branch direct. Most reports we get from UK clients seem to support these two banks with both Barclays and Abbey getting a consistently bad feedback although HSBC is not bad because of the international dimension. The worst of all seems to be LloydsTSB. Maybe you have a story to contribute about UK banks and, if you do, we would love to hear it.

Why Bank Overseas?

When you deposit your money in an offshore bank, your account is subject to the privacy laws and regulations of that particular country. For example, the US or UK government is powerless to investigate anybody's activities outside the US or UK without the consent and active cooperation of the country in which the investigation is taking place. Moreover, unless you are an international terrorist, a major drug dealer or a fraudster, most governments are very reluctant to assist with an investigation into your financial affairs. It is even more difficult to get cooperation from countries whose laws differ from those in the country seeking the information. For example, tax evasion is not a crime in Switzerland but, in most other countries, it is a serious crime. Shipping of tobacco products such as Cuban cigars from Canada to the USA might be a crime in the USA but in Canada they are totally legal hence a massive black market in illicit cigars. Whatever your business, it is a case of picking the right location to keep things within the law. If you are cautious and keep everything on the level it will all run smoothly. The key is working within the rules.

Example: Some countries such as the Bahamas and Andorra do not levy income tax. Therefore, since income tax evasion is not a crime in those countries, they are loath to help any government investigating anyone suspected of tax evasion although the Bahamas does tend to be helpful towards the US due to its close proximity so we do not recommend it as a good banking location for American citizens.

A further advantage of banking offshore is that it is virtually impossible for non-governmental snoops such as private investigators, family members, business associates etc. to find out anything about your financial affairs. This is because, firstly, they need to know where the account is and, secondly, the security procedures in most offshore centres are so rigid it is hard for anyone to bluff their way round them.

The degree of protection of a depositor's privacy and confidentiality differs from country to country. Switzerland is one of the most vigilant protectors of privacy and the privacy culture is endemic within the entire banking system while Monte Carlo, France and Italy offer little more privacy to its residents than the UK or US.

Whatever Your Personal Reason for 'Going Offshore'

It is important to keep in mind that there are many offshore centres with large numbers of high quality banks which are very happy to provide you with a discreet private banking service. The vast majority are secure, perfectly respectable and as experienced as your home bank.

Unfortunately, whatever the advantages offshore jurisdictions may offer, some accounts can be as awkward to open as those at home and, in many cases, more so! Our job is to simplify the process as much as possible by smoothing the path through our knowledge of each banks' particular procedures.

The setting up of all offshore facilities requires careful planning to avoid making errors. By nature, some facilities are always a compromise but it is in the area of the banking and financial arrangements that exceptional care is needed because these services are the most crucial to success or failure of both a business and in the area of personal financial planning. Unfortunately, the banking arrangements are the most complicated part of the structure to put in place so defining exactly what is needed is absolutely imperative. An example of how things can go wrong is illustrated by a client who came to us after contacting an offshore service provider who had sold him a Belize company with banking facilities in Anguilla. At first sight this was fine except the client earns 80% of his money (around $60,000 per month) from eBay and could not link his PayPal account to the Anguillan bank account! A complete disaster and he had pointed out what he was doing from the outset. Fortunately, we solved the problem for him by setting up a new PayPal account and a bank account in Singapore and this is working fine because over half of the items he sells originate there and he can transfer direct from the account to the suppliers.

The key to getting everything right lays in balancing the need for confidentiality with the need for day-today operational capability. Many clients ask us how confidential their accounts need to be. We can usually determine this based on a few simple questions; if you are a non tax payer living in several different countries over the course of the year absolute confidentiality would be unlikely to be the number one requirement as your tax position would most likely be favourable already. However, if you move around a lot then ease of use would be important and a first class online banking system becomes essential. In this situation, an efficient bank in one of the middle of the road finance centres such as Jersey, the Isle of Man, the Bahamas or Cyprus may be a good choice. This is because they offer an ideal compromise between discretion and ease of operation. If, on the other hand, your primary goal is to ensure that no one can possibly discover who operates and controls the business and its bank accounts then choice of location is going to be more restricted.

The Rules of Successful Offshore Banking

1. Do not link your onshore and offshore accounts together. If you transfer money directly to your Offshore Account or pay in a personal check, even if it is only once, your account is no longer secure! If you get divorced or entangled in litigation, a good private investigator could trace the account. The key is to keep your offshore and onshore facilities entirely separate as mixing them up can lead to all sorts of nightmares! Even better, if you are actively trading, why not accept payments by credit card? The credit card processor transfers the payments direct to the bank on a weekly or daily basis and sits between you and the client giving an extra layer of security.

2. Do not receive your statements at your home or office. For maximum security opt for internet banking. This makes sense for a number of reasons but, with identity theft rife in most countries combined with the ever present threat of speculative litigation, why have paper records lying around? Even I forget to shred old statements occasionally and the risk is always there whenever you throw something out. The increase in security that doing everything electronically provides is invaluable.

3. Make sure you leave details of your offshore account where it would be found if you died. Unfortunately, catering for this eventuality is difficult without compromising security while you are alive. Banks love clients who die; they end up sitting on piles of cash! Some bankers call it windfall profit. If you live in the UK whatever happens do not discuss your offshore accounts with your accountant or solicitor. If they have even the slightest suspicion of tax evasion or any impropriety they are obliged - since March 1st 2004 - to inform the UK government. You might be 100% on the level but they might not see it that way.

4. Be discreet. Your partner today could be your enemy tomorrow. A client of ours once said "I never really knew my wife until I fought it out with her in Court". The fact is 80% of problems tend to originate from ex business partners or lovers who want revenge. A colleague recently fell out with a business associate of 12 years standing due to putting a deal his way which lost him some money. The loss was beyond his control because it turned out that the client he introduced was a scammer. What had been a close business relationship descended within weeks into an attempt to destroy each other. Fortunately, our client had never disclosed much about himself on a personal level and, as a result, he got through it although his counter attacks will probably undermine his opponent for years.

5. Live a low profile. Don't go around dripping in gold like Mr T, who played BA Baracus in the A Team, or drive around in over flashy expensive cars! Neighbours can be very jealous and vindictive which can cause them to spread malicious and unfounded rumours which often invite unwelcome attention.

6. Don't take risks. It is vital to have a structure that you can operate on a day-to-day basis which will not become an administrative nightmare. Try to keep a few good accounts in the right locations.

Kontakt / Contact
 
Deutschland / Germany:
Potsdamer Platz 10, 10785 Berlin - Tel: 030 80 93 29 02 (International: +49 30 80 93 29 02)
Email: info@privacyservices.de

Großbritannien /  England:
Dorset House, Regent Park , Kingston Road, Leatherhead, KT22 7PL - Tel: 0844 585 8865 or 0844 484 7467 
(International +44 844 585 8865 / +44 844 484 7467)
Email: info@psi-international.com

Schweiz / Switzerland
Aeschenvorstadt, CH-4051 / Basel - Tel: 033 534 9417 (International: +41 33 534 9417)
Email: mail3@haeflirusterholz.com

Shop online at at Swiss store for Services and Facilities at www.haeflirusterholz.com