FAQ’s
What is offshore/international banking?
Offshore banking simply means you have a bank account in a location outside the country you’re living in.
Why bank offshore/international?
Wherever you live, banking offshore gives you the opportunity to access to financial opportunities that are not available trough your local banks or are too expensive. Banking offshore also makes it easier for you to manage your finances in multiple currencies across different countries.
What are the main benefits of banking Bermuda?
PRIVACY, SECURITY & ANONIMITY Bermuda banks have the highest bank secrecy to protect their clients. No client informations are disclosed.
TAX EFFICIENCY Banking in Bermuda could be the best way to manage your funds in regards of tax optimization. We understand that each client has their own needs and reasons for banking offshore. You may want a tax haven to benefit form zero taxation. You may want the strict bank secrecy the offshore countries offer, you may want to internationalize your business or you may want to have access to financial services that aren’t available locally. Whatever your reasons, our professionals help you to realize your need and goals and grow and protects your wealth.
Can you open the account without having to visit the bank personally?
Of course, many of the accounts we support to open do not require the physical presence of the owner.
What documents are required?
-Passport.
-Copy of utilities must be no longer than three months old. You may need to have these documents certified.
What means certificated/notarized documents?
Certification means that a bank official, cpa, attorney at law, notary public, embassy, consulate attests that the documents are true. As example, for each documents he writes: “I hereby certify this is the true copy of Mr. First Name, Last Name”. This comes with signature, date and professional stamp of the certifier.
How long does it take to open a Bermuda bank account?
From few working days up to 3 weeks.
What are the fees applied by Bermuda banks?
An offshore bank has higher rates compared to the banks around the corner; however this depends on the operations performed. Generally, the maintenance costs are in the range 8-20€ per month.
How can I withdraw money from my offshore/international account?
ATM card and credit card valid in all the world.
Can I open a Bermuda bank account as a non resident ?
Sure , many of our clients are non-residents. We have clients in more than 120 countries.
I’m Indian (south african, brazilian, etc,etc) citizen, can I open the account ?
Yes, you can.
Does the account have on-line banking?
Yes all account have on-line banking 24 hours/ 7 days always available.
Can I close my account whenever I wish ?
Sure There are no restrictions when it comes to closing an account in Offshore countries. You are free to close your account if you wish. The procedure is immediate and cost-free. Of course, if your money is invested, it generally takes a few days to liquidate positions, but even so, no one will prevent you from withdrawing your funds or charge you a financial penalty.
Which bank will my account be opened with ?
We have a large network of banks in Offshore countries. – Many of which have been in operations for over 100 years. Our company will select the bank with the best conditions at present from a permanently updated list of banks with the best price-ratio. We work with banks in all categories. Which bank is right for you depends on many factors, such your country of tax residence, where you reside, eventual treaties of exchange information that have been signed, how much you plan to deposit and what kind of operations will you perform with funds.
Can I choose the bank ?
Yes you can choice country and bank. We do not, however, give out the names of the banks before you actually pay in full an order. Each account we offer can be opened with different banks in the same country We select the bank that suits better the client needs and minimum deposit requirements. We do not offer “mass product”.
Why do I need to pay to open an account ? What benefits would you provide?
Opening a bank account in Offshore countries is not like opening one in your home country, where all you need is a walk into any bank down the street with your driver’s license and 10$. Offshore banks are very cautious in dealing with new clients that are not introduced by someone they know. Using our bank introduction services, you benefit from the advice of professionals specialists in international banking laws, international company and tax laws. We make sure the opening procedure is as quick and straightforward as possible. For a little fee you’ll save weeks of searches and many complications. Our service will help you in many ways: You benefit from a free top professional consulting from international specialists in fields like:International taxation, International company and Offshore banking. This enables you to get the most out of your Offshore bank account right away and be sure that no problems with your local tax authority will arise. We help you find a way to be in compliance with your home country tax regulation. In many cases we can obtain better terms for our clients lower minimum balance, lower commissions, less restrictions on facilities offered, etc… Most banks have many restrictions to what facilities you will actually get and you usually learn about it after you have opened your account. We can open accounts by mail. We opened hundreds of accounts for clients all over the world and can provide quick and reliable service. Through us you are assigned seasoned, professional and efficient account managers. In any given bank, there are good account managers and not-so-good ones. The good ones are always busy with clients and take only the most promising new clients or those sent by people they know. We specialize in helping international clients open an offshore bank account that will match their needs and more important that will not cause tax problem in their home country. We are not a bank and offer impartial advice and assistance in selecting and opening the right account for your needs in the right country
Account Opening Procedures & Requirements
Opening an offshore bank account via distance banking is slightly more cumbersome when compared to opening a domestic bank account, considering one actually walks into a branch when opening a domestic bank account. As one of the oldest professional offshore banking service providers & incorporation agents on the web, we have relationships with major offshore banks and financial institutions around the world, and stand ready to assist you every step of the way during the account opening process.
Generally speaking the procedure to open an offshore bank account consists of properly preparing and submitting the following documents:
Notarized copy of the Certificate of Incorporation and/or Articles of Association (for corporate accounts)
Certified copy of your government issued passport (for both personal and/or corporate accounts)
Original Utility Bill (for both personal and/or corporate accounts)
Bank or professional reference for the account signatory (for both personal and/or corporate accounts)
Completed banking applications and forms which we provide and assist in completing
Bank Due Diligence requirements
To comply with legislations, banks must collect adequate due diligence to verify the identity of the ultimate beneficial owners and controllers of the potential client wanting to establish a relationship with the bank. Below is the documentation required for the various types of entity the potential client may be established as.
Limited Company – please provide certified copies of the following: a) Certificate of Incorporation, b) Memorandum and Articles of Association, c) Register of Directors, and d) Register of Members. For at least two of the entity’s directors, for shareholders with an interest equal to or greater than 10% and for all other authorised account signatories please provide certified copies of the items laid out at i) through iv) below.
Limited Liability Company – please provide certified copies of the following: e) Certificate of Incorporation, f) Operating Agreement, and g) Schedule showing the members and their respective percentage interests. For at the entity’s managing member, for members with an interest equal to or greater than 10% and for all other authorised account signatories please provide certified copies of the items laid out at i) through iv) below.
Limited Partnership – please provide certified copies of the following: h) Certificate of Registration (where available), i) Limited Partnership Agreement, and j) Schedule showing the limited partners and their respective percentage interests. For the general partner, limited partners with an interest equal to or greater than 10% and for all other authorised account signatories please provide certified copies of the items laid out at i) through iv) below.
Trust – please provide a certified copy of the declaration of trust or deed of settlement as appropriate, and for any of the trust’s settlor, beneficiary(s) with a vested interest and for all other authorised account signatories please provide certified copies of the items laid out at i) through iv) below.
Foundation – please provide certified copies of: k) Certificate of Registration, l) Charter of the Foundation, and m) Register showing the Council of Members. For at least two of the Council of Members, beneficiaries and for all other authorized account signatories please provide certified copies of the items laid out at i) through iv) below.
Individuals – please provide certified copies of the documents below: i) Passport or drivers license, bearing their signature and photograph, AND one of the following to verify their residential address (PO boxes are not acceptable); ii) Recent (less than 3 months old) utility bill, OR iii) Recent (less than 3 months old) bank or credit card statement, OR iv) Reference from a ‘respected professional’ (lawyer, accountant or manager/director of a regulated financial institution), who has known the person for at least 2 years.
Funds If the potential client is a fund, instead of item d), g) or j) and due diligence on investors, i.e. items i) through iv) as specified, an AML comfort letter is required from the fund’s administrator or transfer agent confirming that they are responsible for performing due diligence on the fund’s investors – we have a standard template available for this. Where the potential client has an entity as either a director or shareholder, documentation as outlined above is required for that type of entity. If the potential client is a regulated financial institution we may be exempt from collecting due diligence on it. Source of funds Please ensure that sufficient, relevant information on the source of funds to be deposited with banks is provided with the application form.
Bearer Shares Most banks are unable to provide services to entities that have issued bearer shares; these must either be immobilized or cancelled and reissued to persons. Entities that haven’t, but are capable of issuing bearer shares must undertake not to issue bearer shares, or upon their issue the account(s) will be frozen until the bearer shares are either immobilized or cancelled.
Certification/Notarization of Documents The certifier (notary public, lawyer, accountant, manager/director of a regulated financial institution, for example) is to attest that the documents are a true copy of the original, sign each document, print their name underneath, indicating their position or capacity and include a contact address and phone number.
http://www.financialsecrecyindex.com/database/Bermuda.xml
| Overview of the Secrecy Jurisdiction |
| Summary |
| 30 |
History as Secrecy Jurisdiction Since |
1975 |
[Notes] |
| 31 |
Development and Role as a Secrecy Jurisdiction |
|
[Notes] |
|
The Global Forum wrote in 2010 about Bermuda’s economy and the role of financial services: “Whilst the Bermudian economy has traditionally been supported by a strong tourism industry, this sector has been faced with a significant downturn in the last few years, with a drop of more than 100 000 visitors per year, to 555 162 in 2008. In contrast, Bermuda’s banking and financial services sector has experienced continuing strong growth, particularly in the area of insurance, reinsurance and captive insurance, which saw a marked influx of business following the attacks on the World Trade Centre in September 2001, and Hurricane Katrina in 2005. […] Bermuda is a globally significant insurance centre which includes general insurers, composite insurers, long-term insurance and reinsurance, as well as being the world’s largest second captive insurance jurisdiction” (GF 2010: 10-11). |
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Lowtax.net complements this view as follows: “Every International Offshore Financial Centre has developed its own specialisations, and in Bermuda’s case it is insurance that stands out; mutual fund management is also strong, assisted by the existence of the Bermuda Stock Exchange. There has also been strong development in the trust management sector, fed particularly by an exodus of assets from Hong Kong when the territory reverted to Chinese rule. International banks were conspicuous by their absence due to the Government’s policy of excluding non-domestic banks; then HSBC was allowed to buy the Bank of Bermuda in 2003.” (Lowtax.net). Suprisingly, Bermuda escaped the European Savings Tax Directive in 2003: “When the European Savings Tax Directive came into effect in 2005, most offshore dependent territories of the UK and other EU member states rolled over and accepted the necessity of implementing a withholding tax on savings interest payments to EU residents. Bermuda, however, appears to have escaped the worst.” (Lowtax.net). |
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An interesting feature of Bermuda’s company formation regulations concerns the requirement for the chain of ownership being made transparent in order to identify the beneficial owners in cases in which shares are held by non-residents: “A company which is seeking to issue equity to a non-resident, as defined in regulation 3 of the Exchange Control Regulations, must seek permission from the Controller of Foreign Exchange under regulation 12, which involves the vetting of the non-residents including the full disclosure of the chain of ownership of any person owning 5% or more of the company. Changes after incorporation of more than 5% of ownership are required to be approved by the Controller of Foreign Exchange.” (GF 2010: 18). However, the regulation leave at least two small loopholes: first, the Controller may exempt a person of these requirements, and second, the changes of beneficial ownership does not need to be reported to a government authority if the BO is not a a non-resident. The latter provision opens the door for so-called private trust companies (GF 2010: 27-28) being used as structures to circumvent these requirements. |
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INCSR’s relative silence on Bermuda’s role in money laundering is surprising given the weak FATF-assessment score and the criticial comments by the IMF in 2008 on anti-money laundering efforts in Bermuda (see section on money laundering below). INCSR wrote in 2011: “Bermuda is not considered a major drug transit country; however, the majority of the money laundering that occurs in Bermuda is believed to be related to the domestic drug trade. Money laundering proceeds are controlled primarily by gangs, which have proliferated in recent years. There is no significant black market for smuggled goods in Bermuda. There are no free trade zones, hawalas or other informal financial sector entities in Bermuda in which money laundering/ terrorist financing occurs. However, there are cases where domestic criminals utilize the formal financial sector for money laundering purposes. Bermuda does not permit offshore banks; a foreign bank may establish a subsidiary as a Bermuda company with its own board of directors, but may not establish a branch. Bermuda does not permit bearer shares, nor does it permit shell companies.” (INCSR 2011: 52). |
| On ‘Black-Lists’ of |
| 32 |
International Bureau of Fiscal Documentation 1977 |
Yes |
[Notes] |
| 33 |
Charles Irish 1982 |
Yes |
[Notes] |
| 34 |
Hines Rice 1994 |
Yes |
[Notes] |
| 35 |
IMF 2000 |
Yes |
[Notes] |
| 36 |
OECD 2000 |
Yes |
[Notes] |
| 37 |
FSF 2000 |
Yes |
[Notes] |
| 38 |
FATF 2000 / 2002 |
Yes |
[Notes] |
| 39 |
Tax Justice Network 2005 |
Yes |
[Notes] |
| 40 |
Zoromé 2007 (IMF) |
Yes |
[Notes] |
| 41 |
Stop Tax Havens Act (USA) 2007 |
Yes |
[Notes] |
| 42 |
Lowtax.net 2008 |
Yes |
[Notes] |
| 43 |
OECD April 2009 |
Yes |
[Notes] |
