Author : Gregory Smyth
Offshore banking has been through some huge changes in perception over the past few decades It has gone from a practice that was unheard of outside of spy movies and considered nothing more than a money-laundering technique, to proper understanding of offshore banking’s benefits by the general public, to the recent debacle over sharing of information with the US by Swiss banks
However, legitimate companies continue to recognize it as a way to maintain privacy and preserve profits We look at the recommendations of business consultancy managers on bank choices for corporate offshore banking, as well as some broad jurisdiction advice
For legitimate companies looking to bank offshore, the most important factors in bank choice will be stability, range of services, accessibility, customer care, privacy and fee structure
Foremost among these, though, is the stability of the jurisdiction you will be opening a bank account in The financial crisis has taught us nothing if not that banks, once considered infallible business bastions, can also have feet of clay However, the pitfalls of individual banks can be avoided by ensuring that you choose a jurisdiction with good regulation of financial institution solvency
Business consultancy managers can advise on the best one for your situation, but in many cases, it is the well-established and well-known centers that offer the best choice Look for banks with more than one branch, and possibly in more than one country Ask the sales representative, or do your own research, on how long they have been in business
Where do they sit on the size continuum for their jurisdiction? And what size and reputation is their network of correspondents like? European centers, such as Switzerland, Luxembourg, Liechtenstein and Austria usually offer the most stable corporate offshore banking options
However, one drawback to large banks is that as they become more automated, to preserve efficiency and their own profits, customer care sometimes suffers While this may not matter to your choice of local bank, the tighter restrictions and greater volume of red tape for offshore bank account opening and operation can mean that customer care is the critical factor in your banking experience
In this area, it is possible to find excellent service options outside of the large centers, with up and coming companies or jurisdictions that are looking to impress, and not too large to care about individual customers You will also want a bank where most staff speak your language fluently Banks in Belize, Singapore, Hong Kong and some European jurisdictions usually have sound English skills, owing to colonization in the past They also usually have Western expectations of customer care in mind
Privacy is often one of the main reasons that business consultancy managers advise clients to move their banking operations offshore Look for a bank that has a published or written privacy policy with regard to client information, and where the client account managers are not shy to explain the institutions’ policy with regard to secrecy and confidentiality of banking information
Zetland Fiduciary Group provides the offshore investor with investment management,corporate advisory services and Financial consultancy in Hong Kong.
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