Banking & Investment

Offshore Banking and Its Benefits

Why is Offshore Banking more beneficial than conventional banking ? The answer to this is found by explaining the major advantages of this system; Security and Privacy, Stability, Tax Havens and Remote Banking. Here is a breakdown of these properties;

Security and Privacy

Countries hosting Offshore Banks such as Panama, Latvia, the West Indies and others have passed laws in favor of such systems. These laws cater for complete privacy for the bank account holder whose details are not revealed even to the request of other goverments. Such locations are safe havens for investors wishing to secure their funds to protect against unforseen scenarios that could result in the loss of financial security. An example of this is divorce; funds deposited in private and secure offshore bank accounts can be legally withheld from the spouse in case he or she decides to claim funds in a divorce agreement. Similarly the seizure of funds by the goverment can be protected against by depositing funds in such an offshore account invalidating the reach of the seizing authority in the offshore bank haven.

Stability

With emphasis on the use of physical Gold bullion in such offshore bank accounts guarantees that the funds will not be affected by political or economical instability. The majority of such accounts keep the investor’s funds in the form of physical gold bullion (deposited as ounces of gold at the current value) stored in a secure vault and NOT in the form of paper currency. The stable value of gold as recorded over the past decades guarantees the stability of the funds deposited in any paper currency form. Thus in a hypothetical situation if the country of residence is affected by political instability such as a military coup d’etat or any other tragedy, the offshore investment will remain at the same value when deposited probably appreciating with the rise of the value of the Gold commodity.

Tax Havens

Countries supporting Offshore Banking pass laws and regulations under which no taxes whatsoever are levied on the funds involved. This means that funds stored in such accounts are not liable for any taxes. In addition to this any income deposited in thesse accounts is not liable for any taxes either. This is a completely legal process under the accomodating laws of the country hosting the account.