What do places like the Bahamas, Cayman Islands, and Switzerland have in common? They all have a renowned special type of banking that secures and safeguards your hard-earned fortune. This is called offshore banking, and the rich know how to use it to their advantage.
The definition of offshore banking is as basic as the term itself: letting a bank outside the client’s country handle the latter’s money. The term was first used by the U.K. in referring to the Channel Islands, a group of islands off the northwest coast of France. At the time, Europe wanted a solution to high tax rates and lack of financial security. Today, offshore banking is no longer limited to islands, as it is practiced even in landlocked countries such as Switzerland.
This is the basic principle behind offshore banking: move banking to a place with low taxes and guaranteed privacy. Since the money is in a bank overseas, the client’s country of origin cannot touch the account. This ensures the safety and security of the client’s cash even when his country is politically or financially unstable.
This was the case in Argentina in 2001 when it was on the brink of economic collapse. Many people opted to convert their pesos to U.S. dollars when the government froze all bank accounts in the country to prevent a bank run. Most of them transferred their money to foreign bank accounts.
Throughout history, offshore banking has been associated with organized crime due to its unparalleled benefits in terms of political and financial security. However, this is no longer the case with an Bahamas offshore bank has today. Some offshore banks in other countries have agreed with various governments like that of the U.S. to help crack down on criminals and other offenders. Authorities are working to ensure that crooks’ assets can no longer be protected by offshore banking.
Despite the rich and powerful being the most frequent and prominent clientele of offshore banking, it is actually open to everyone. If you would like the best kind of protection for your amassed fortune, then saving away your money in any bank offshore banking in the Bahamas may be the ideal option for you. After all, your hard-earned cash deserves topnotch security.
For more information about offshore banking and bank formation offshore, , visit the website at OffshoreBankingAdvise.com. You may also choose to meet with financial consultants and the like who could provide you with more useful information on the matter.
The Importance of Offshore Financial Centers in the World of