An offshore bank offers financial services, like payment accounts and lending, to both foreign individuals and companies from an offshore financial center. Offshore banks have their own policies with whom they do business, however, all must adhere to global know your customer and anti-money laundering requirements. An offshore bank headquartered in an offshore financial center can, for instance, extend credit to residents of various countries.
While international banking simply happens across international borders, offshore banking takes place from a jurisdiction in which the majority of financial clients reside elsewhere. The majority of government revenues mostly come from financial services in these jurisdictions.
There are many benefits to banking offshore, including access to different markets, multiple currency and asset options, more asset-classes to choose from, international diversification, a global banking network, and access to foreign client advisors.
Offshore banks are often located in countries with tax neutrality, including Dominica, the Cayman Islands, Belize, Panama, and the Isle of Man. Moreover, offshore banks are generally based in countries with low or no income and estate taxes, such as the Cayman Islands, Belize, Panama and the Isle of Man.
Clients of offshore banks might enjoy protection from domestic interest rate fluctuation, for a robust offshore bank can lend and borrow on international markets. If interest rates are sinking in an individual’s or corporation’s home country, then they might consider an offshore bank.
Offshore banks are uniquely positioned to offer financial services for international trade, including payroll services for companies with employees and contractors in other countries. Offshore banks fulfill many of the functions of an onshore bank, such as presenting letters of credit ensuring companies in different countries pay one another for goods and services. Offshore banks might also be able to offer support to businesses facing the large costs of importing and exporting products.
Multiple currency options can come in useful if one’s domestic currency is depreciating – a service some offshore banks offer. When holding funds in various currencies you might have a greater number of options when it comes to interest rates on your deposits.
Funding an offshore bank account is as simple as electronically sending money through an international wire transfer. You will, to be certain, incur an international wire transfer fee to send over receive funds.
A reputable offshore bank offers normal debit/ATM cards that allow you to easily access your funds globally, as well as checks. Sometimes cheques drawn from a foreign account won’t be accepted locally. In our experience, clients have both an offshore and domestic bank.
International banking is a must for HNWIs and corporate executives who spend significant time traveling. Why not enjoy all of the benefits of an offshore financial center while banking internationally?
Located in Dominica, EQIBank has experience working with international clients. Dominica is a member of the Caribbean Development Bank (CDB), the Caribbean Community (CARICOM), and the Organisation of Eastern Caribbean States (OECS).
In addition, innovations in Dominica’s banking licensing enable faster payments and digital onboarding provide for a streamlined banking experience. At EQIBank, no physical presence is required. Dominica offers world-class banking confidentiality, enabling clients to maintain tax neutrality and at an offshore financial center.
EQIBank provides our offshore banking clients the following:
• Tax Neutral
• A choice of currencies
• Exclusive EQIBank debit cards
• Mobile banking
• 24 h. a day easy access to your money
• 24 h. access to international money transfer
• Dedicated relationship managers with expert knowledge
• Custody services
Let’s achieve your goals.
The information contained herein is for discussion purposes only. It does not represent legal or tax advice. You are advised to seek independent legal and tax advise when considering investments, whether on or offshore.