With the advent of the internet and online services gone are the days when a prospective applicant needs to visit a bank in an offshore jurisdiction to open an account there. Clients can visit websites and with a few clicks gain access to all of the required services needed to create an offshore bank account with absolute privacy.



The process of opening an offshore bank account can be completed following these three basic steps;

1. Find a suitable Offshore Bank or Banking Service Provider

The first step is perhaps the hardest step. With so many vendors claiming to provide bullet proof asset protection services it can be hard to figure out who is actually telling the truth.

To make your research easier a favorite technique is to prepare a comparison chart of costs and benefits associated with offshore banks and offshore service providers as a guide. A spreadsheet can be set up in minutes using the rows to list the features / benefits and columns to list the various banks and companies providing offshore banking services.

Figuring out the Costs

Once you have narrowed your search down to 3 - 5 vendors who provide all of the services you need the next step is to evaluate the costs associated with working with them. A piece of advice: the cheapest option is not always the best option.

Privacy and Stability

In order to ensure your assets are protected properly one needs to investigate the banking laws governing the jurisdiction where you have identified suitable offshore banking services based on your initial benefit analysis.

Offshore banks that are in business in a stable jurisdiction are preferable. Besides, the economical and political stability conditions of the country in which the bank is located help determine the stability of the bank and whether it is trustworthy to investors.

Not all offshore banks offer high levels of privacy regarding your account and transactions. While many countries will respect your privacy, some will divulge important details regardless of your acceptance.

The Benefits of Offshore Banking

Research the local interest rates that banks in the jurisdiction you are interested in offer on deposits. Many will offer better rates than the banks in your own country in addition to the privacy and secrecy benefits they offer.

Consult an Expert

Offshore banking and asset protection can be a costly endeavor and using a lawyer or expert is definitely an additional cost. You need to weigh these costs with the potential risks that can arise from improper bank account setup. An offshore banking expert will have local contacts and relationships which they have built up with experience in the field. Use this experience to ensure you are making the right moves -- in the end this cost will actually save you money.

2. Understanding the Bank's Requirements

Each offshore bank has its own set of different requirements that you need to fulfill to be able to open an account there. Many offshore banks have a few of the below mentioned requirements in common.

a. Identity proof - Name, Address, Contact information, Passport#.

b. Stable Origin Country - many offshore regions will not accept clients from known politically unstable or corrupt countries.

c. Minimum Bank Account Balance - Many offshore banks will require you to maintain a minimum balance in your account or they will not approve your application and / or terminate your account.

3. Apply for the Account

Opening an offshore bank account might cost anywhere between $0 and $1,000, depending on the bank and the account type. You can submit the application either online or through paper.