Tax
While offshore accounts could provide a tax-efficient way to save and invest, you need to disclose your income to any relevant tax authorities and declare any interest earned on offshore accounts.
Bank Account Opening
What is an International Bank Account?
An international, offshore, or overseas bank account is one that you have in a country that is outside your country of residence. They allow you to make and receive payments, invest in simple and sophisticated financial instruments, hold money and set up savings and investment accounts in multiple currencies.
How can I open an offshore bank account?
Consult our WhinChester Offshore Bank Specialist. They will assist you and present you with a myriad of options including HSBC Expat based in Jersey.
For your international bank account, consult with our WhinChester Bank Account Advisors. We can get you your International Business Account within quick time. Then send us your Orders, Enquiries and Questions.
Why use international or offshore accounts?
International accounts, or offshore accounts, also known as "offshore bank accounts" or "offshore savings accounts", can make it simpler to manage your financial commitments across multiple countries and regions. They can be useful if you need to make, or receive, regular international payments and transfers.
Most expats have a bank account in their home country and another account in the country in which they're living. Many people also consider opening an offshore account, as this can be an effective way to save, invest and manage money while abroad.
Reasons to open an offshore account include:
- you're already living or working outside your home country or abroad
- you're planning to move abroad, for work, or to retire for example
- you're an international assignee and move countries regularly for work
- you make frequent trips between countries for business
- you get paid in a foreign currency, for example, for freelance work
- you own assets abroad such as investments, or property
- you receive regular international transfers and make frequent international payments
- you have family members abroad who you support financially, for example, for a child's school fees, daughter's university tuition
- you want to invest outside of your home country
What are the benefits of offshore banking?
The benefits are endless. While each offshore account will come with different features and benefits, here are some of the primary common ones:
- Potentially tax-efficient savings and investments in various currencies, although any tax benefits would depend on your circumstances
- Hold money, make and receive payments in multiple currencies
- Manage foreign exchange
- Access international expertise and investment advice
- Keep your money in a secure and central location, connected to your local accounts
- Keep the same bank account every time you move
- Account longevity
They typically also come with regular banking features, such as a debit card, credit cards and online and mobile banking.
What Else Do You Need to Consider?
Costs
Some offshore accounts may have a monthly fee, or may charge for international transfers. Others don't. For example, the HSBC Expat Bank Account has no monthly fee and transfers between HSBC accounts are free. Other fees and charges may apply so you should read through the terms and conditions before opening an offshore account.
Security
Offshore accounts are not protected by the Financial Services Compensation Scheme covering UK institutions. However, some offshore accounts are covered by other schemes. For example, the HSBC Expat Bank Account is covered by the Jersey Bank Depositor Compensation Scheme, which offers protection for eligible deposits of up to £50,000.
International Bank Licence
International Offshore Banking Licenses are issued by the regulatory authority of the jurisdiction in which you have chosen to establish your bank. In order for you to secure a banking license, you must go through long-term complicated procedures, which primarily involves the applicant lodging an application for the license with the Financial Services Division of your choice jurisdiction. Banking licenses are divided into different categories, and the terms and procedure for obtaining license depend on the requirements of the category in which your bank falls. Fund Management is one of the specialized services provided by international banks. There are other services like card and settlement services, provision of retail services, cash management, trade finance and others. It is not a simple procedure to obtain a bank license. The most expensive and time-consuming process is obtaining package license combining all the services listed. However, you can apply for obtaining specialized banking license, which is aimed at providing only the banking services you intend to offer.
There are many reasons according to which companies tend to obtain international banking license. But the main advantage is time-efficient consideration of the application for obtaining banking license and relatively flexible system of requirements for establishment of a bank in the most favourable jurisdiction. Dominica is one favourable jurisdiction for the establishment of your international offshore bank.
What Counts as Banking Business
To obtain an international banking license in Dominica you must apply to the Minister through the Financial Services Unit in Dominica. The company applying for the license has to ensure that its operations can adequately be defined as banking business. Banking business according to the Offshore Banking Act Chapter 73:02 of the revised laws of the Commonwealth of Dominica, 2017 is described as:
- The business of accepting deposits.
- Receiving on current or savings deposits or on other similar account.
- Money which is repayable by cheque or order and which may be invested by way of loans or advances to customers or otherwise or which may be withdrawn or repaid on demand or after a fixed period or after notice and the employment of these deposits in whole or in part by lending or any other means for the account and at the risk of the person accepting such deposits, and a person shall, without prejudice to the generality of the foregoing be deemed to accept deposits of money if he advertises for or solicits such deposits from the general public irrespective of any terms or conditions under which deposits or money are solicited or received or whether or not certificates or other instruments are issued in respect of such deposits.
- The acceptance of monetary deposits that are repayable on demand or after notice or any similar operation.
- The sale or placement of bonds, certificates, notes or other securities and the use of them, either in whole or in part, for loans or investment for the risk of the customer; and
- Any other activity recognised by the Central Bank or the Authority as customary banking practice and which a financial institution may additionally be authorised to do.
Licensing Requirements
An interested party must first incorporate a company which will become the applicant for the license. The company in order to conduct banking business, thereafter, must first obtain a license from the Financial Services Unit [FSU] before it engages in banking business. The classes of international banks which are licensed by the FSU are Class A international banks with capital requirements of US$1M.
In addition to the above requirements, all international banks are required to have a physical place of business in Dominica, a minimum of three employees and a registered agent in accordance with Section 9 of the Offshore Banking Act, Chapter 73:02 of the Revised Laws of the Commonwealth of Dominica. For additional information on establishing a Class A bank license, you can contact our WhinChester International Banking Advisors.
In order to obtain a licence, they must establish a physical presence in the country, have at least three local employees (one at senior management level), and have at least two directors approved by the FSU. All international banks are subject to onsite inspections at least once every 12-18 months.
How WhinChester Can Help
WhinChester Corporate & Immigration Services PowerHouse conducts preliminary consultations with the purpose of clarifying the needs of clients and providing them with the necessary practical information and requirements that must be satisfied for the license. By consulting with us, you will have forged an alliance with giving you strategic directions which will save you enormous time in not only sourcing the documents but sourcing the correct ones to enable you to avoid financial costs on unnecessary items. We are able to deliver a valid license in quick time. Once you are settled on obtaining a banking license, then we will undertake the entire process for you until approval. We will work assiduously and efficiently to obtain a fully-fledged license for you.
