What is offshore banking?
Offshore banking simply means you have a bank account in a location outside the country you’re living in. This location is usually an high privacy and low tax jurisdiction.
Why bank offshore?
Wherever you live, banking offshore gives you the opportunity to grow and protect your funds and reduce the overall taxation. 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 offshore?
PRIVACY, SECURITY & ANONIMITY Offshore banks have the highest bank secrecy to protect their clients. No client informations are disclosed. TAX EFFICIENCY Banking offshore 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 BVI 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, 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
Is the opening guaranteed?
Yes the opening is guaranteed or You will get 100%MoneyBack. Paypal payments are welcome
How long does it take to open a BVI bank account?
From few working days up to 3 weeks.
What are the fees applied by the BVI 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 8-15€ per month.
How can I withdraw money from my offshore account?
ATM card and credit card valid in all the world.
Can I open an Offshore 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”. We select the banks with the best conditions at present from a permanently updated list of banks with the best privacy&security policy.
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.
| Overview of the Secrecy Jurisdiction |
| Summary |
| 30 |
History as Secrecy Jurisdiction Since |
1984 |
[Notes] |
| 31 |
Development and Role as a Secrecy Jurisdiction |
|
[Notes] |
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The IMF reported in 2010 a specific feature of BVIs finance sector: “The British Virgin Islands (BVI) hosts the largest registry of international companies in the world and, thus, holds an important place in the global financial infrastructure. The central business of the jurisdiction is to incorporate companies and trusts that are financial holding companies; asset management companies; captive insurers; and the like. Most of the 400,000 registered companies undertake all of their financial activities outside of the BVI, which is to say that money and transactions do not flow through the BVI, unlike in other offshore centers. The BVI provides administrative; audit; and legal services to international business companies, and these ancillary services are another key component of the economy. Financial services in the BVI are otherwise fairly limited, comprising local banking and insurance companies.” (IMF FSSA 2010: 6). |
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The IMF went on noting: “The BVI is an important global financial services center because of its role in the registration of corporations and trusts. The BVI is also the second largest global domicile for investment funds. The mainstay of the sector is the incorporation of corporations or trusts that are financial holding companies, asset management companies, captive insurers, and the like. For the most part, these entities are set up in the BVI and subject to BVI law, but conduct all of their business (and hold all of their assets) elsewhere. The asset holdings of BVI incorporated companies are estimated to be US$615 billion. While the BVI does not have direct linkages to other financial capitals via cash flows, it is linked through the corporations and trusts that have made the BVI the first port of call for those setting up offshore businesses.” (IMF FSSA 2010: 12). |
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INCSR reported on BVI’s “offshore” economy in 2011: “The economy depends greatly on tourism and its offshore financial sector. […] BVI‘s unique share structure that does not require a statement of authorized capital as well as the lack of mandatory filing of ownership, pose significant money laundering risks. Tourism accounts for 45 percent of the economy and employs the majority of the workforce. Financial services are very important, however, contributing over half of government revenues. BVI remains vulnerable to money laundering practices through its drug trafficking trade and the exploitation of its offshore financial services. BVI’s proximity to the U.S. Virgin Islands and the use of the U.S. dollar for its currency pose risk factors for money laundering. The BVI are a major target for drug traffickers, who use the area as a gateway to the United States. Drug trafficking in general is a serious problem. BVI is a well established center offering accounting, banking and legal services; captive insurance; company incorporations; mutual funds administration; trust formation; and shipping registration. The FSC is the sole supervisory authority responsible for the licensing and supervision of financial institutions under the relevant statutes. While gaming is prohibited in the BVI, casinos have been incorporated in the definition of relevant business under the AML/CFT regime.” (INCSR 2011: 62). |
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In the same report, a specific concern about the anti-money laundering efforts of BVI is mentioned: “The lack of prosecutions for money laundering and a reported decline in number of inspections suggests that the FSC should work closely with law enforcement and other authorities. In addition, while real estate agents, lawyers, other independent legal advisers, accountants, dealers in precious metals and stones are covered by the AML/CFT regulations, there appears to be no effective mechanism to ensure compliance with AML/CFT requirements.” (INCSR 2011: 63). |
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The Global Forum identified some weaknesses in its 2011 assessment: “Although the Virgin Islands has made progress in improving its legal and regulatory framework in order to be able to effectively exchange tax information, the report identifies a number of deficiencies and makes recommendations to address those.” (GF 2011: 7). For instance, the Global Forum questions if beneficial ownership information of companies and of trusts is always available (ibid.). Similarly, financial reporting and record keeping obligations by companies are identified as being deficient (ibid.: 8). |
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On the history of BVI’s tax system, GF noted in 2011: “Until 2005, the Virgin Islands levied an income tax on all companies, except International Business Companies, and individuals. To comply with the EU Tax Code of Conduct for Business Taxation, the Virgin Islands moved at the beginning of 2005 to a zero rated income tax regime for all corporate entitites in conjunction with a move to one corporate statute.” (GF 2011: 12-13). A surprising link exists with Liechtenstein: “ATU General Trust (BVI) Limited (‘ATU’) is a fully licensed Trust company established in the British Virgin Islands in 1995. It is a subsidiary of ATU Allgemeines Treuunternehmen, one of the oldest trust companies in Liechtenstein – established in 1929.” (Law-Lambert.com). |
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In 2008, the INCSR added about the marketing efforts of BVI’s offshore centre: “The BVI International Finance Centre (BVI IFC) was created in 2002 under the Ministry of Finance and Economic Development to promote and market the BVI as an offshore financial center. The BVI IFC recently announced a new outreach program that includes ‘ambassadors’ from the public and private sectors. The ‘ambassadors’ include senior executives and officials from the private sector and the government, including regulators. These individuals will promote the BVI’s offshore regime at select trade shows, international conferences, media interviews, and networking events. […] |
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While the IBCA [International Business Companies Act 1984] only permitted the incorporation of companies limited by shares, the BCA [Business Companies Act 2004] offers seven different types of companies: companies limited by shares, which is the most widely used vehicle; companies limited by guarantee authorized to issue shares, which are typically used for structuring transactions by combining equity and guarantee membership; companies limited by guarantee not authorized to issue shares; unlimited companies that are authorized to issue shares; unlimited companies that are not authorized to issue shares; restricted purposes companies, which are used primarily in structured finance and securitization transactions; and segregated portfolio companies, which are presently limited to insurance companies and mutual funds.” (INCSR 2008: 136-7; [TJN-note]). |
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The BCA permits the use of numbered names for businesses, i.e. BVI Company (followed by a number). If a company chooses this format, it will also be permitted to have a foreign character name; an English translation of the name is not required. The BVI reports that Asian countries continue to be a high user of BVI companies, and predicts that the use of BVI companies by Asian countries will increase in the future.” (INCSR 2008: 136-137). |
| 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) |
No |
[Notes] |
| 41 |
Stop Tax Havens Act (USA) 2007 |
Yes |
[Notes] |
| 42 |
Lowtax.net 2008 |
Yes |
[Notes] |
| 43 |
OECD April 2009 |
Yes |
[Notes |
