Skip to content Skip to sidebar Skip to footer

Offshore Banking 12 Myths Busted

Daftar Isi [Lihat]

Offshore bank accounts are a loophole for criminals, criminals, and money launderers – Although no one can claim that all criminals do not use offshore bank accounts, their use, in this case, is very limited due to MLAT agreements. There are even many Fortune companies over 500 now offshore banks to protect their assets and to gain a competitive tax advantage, do you agree with this?

offshore banking
Offshore Banking

Offshore Banking 12  Myths Busted

Offshore banking is too complex for the average person. Nothing could be farther from the truth. All the complicated work is done by your offshore professional and only takes about a week to complete.

Typically an offshore setup includes a bearer share corporation. The combination of a bearer share company and an offshore bank account is roughly equivalent to the old numbered Swiss bank accounts of the past.

Offshore bank accounts are only for rich people. A typical offshore package is less than $2000USD to set up. Once in a place of an offshore bank account, an offshore company is the basis for solid asset protection and tax plans.

9/11 has weakened bank secrecy -- This is certainly true onshore! Although almost all of the countries that are on the coast are now on the MLAT agreement, this has not weakened bank secrecy unless the case is criminal.

This is a crime on both sides of the country. In Panama, tax evasion is not a crime. Thus the MLAT's request to provide information based on several cases of tax evasion will be rejected outright by the Panamanian government.

You are obliged to visit the offshore jurisdiction where the bank is located and this is something that is not justified. Because everything can be done by phone, fax, email, and courier who is already professional in offshore banking.

Offshore banking has been destroyed by the MLAT treaty -- If you are engaging in serious criminal activity this statement is true. For most people just trying to protect their assets, this statement is totally false. In fact, countries like Panama, only comply in serious criminal cases and deny many requests.

The requesting country has to show that they already have strong evidence that a crime has taken place AND the activity in question has to be a crime in Panama too. So tax evasion, for example, is not a crime in Panama and so Panama would not entertain MLAT requests for information relating to tax evasion.

Tax information is shared between most countries now. It is true that many countries have entered into tax treaties, but other more reputable offshore jurisdictions have not. Panama, for example, has no tax agreement with anyone.

The authorities will find out if you use a bank account abroad and that's not true. The entire E-commerce &banking today rely on more secure online encrypted communications.

The world's big banks use it - it's completely safe. It's impossible for others to see what you're doing. Companies like can add a second layer of security for those who feel they need it.

Offshore banking doesn't protect me from a lawsuit because the judge will just order me to bring the money back. If you were to open a personal bank account offshore this would be true. However, an offshore bank account is typically owned by a bearer share corporation and or a foundation.

In the example of a foundation, if you donated money to the foundation you cannot get the money back. The foundation can only give money to the purposes set in its governing documents. That does not include giving money to you. Basically, the money is out of your control legally speaking and so you can't bring the money back.

It's impossible to move money offshore without someone being able to track down where it went. Moving money to a secret offshore bank account is done by passing the money through a second offshore jurisdiction.

For example, if the money is wired to a bank in the Cayman Islands and the money is wired again from the Cayman Islands to Panama, it is impossible for anyone to know the money is in Panama.

I can use my offshore account to do the same things I do with on local personal bank account - This is true except for one feature. You cannot pay bills online in most offshore jurisdictions. Actually, some banks have this feature but it will not apply to your local country. International bill payment is not offered by any bank I know of. Also, this would likely not be a wise action anyway.

Typically money kept offshore is not intended for day-to-day payments. Having said that, many offshore clients carry a bank card that they can use to withdraw cash anywhere in the world. Of course, the bank card does not have their name on it or tie to them.

Offshore banking is very illegal to use an offshore bank account – There is no longer any doubt that you can use an offshore bank account to do something illegal, but opening an offshore company and bank account is 100% legal. There are even many Fortune 500 companies keeping most of their assets conducive to offshore countries.