What is an offshore bank from the point of view of the client who seeks to preserve your cash assets?
It is a financial institution with which the clients (shareholders) can freely operate their funds abroad without the fear of being recognized (a high level of privacy – one of the advantages of such a bank), draw rather high dividends and bank interest which are not taxable (preferential tax treatment – another advantage of an offshore bank). Offshore banks can provide services that do not exist in the client’s country of residence (for example, to open a numbered or anonymous account, to make a loan at a favourable rate, etc.). Besides, using offshore bank you can transfer money assets out of countries with unstable political and business climate and high taxes.
Offshore Bank services include the opening of deposit accounts, currency exchange, remittances, loans, investments, cash management customer, corporate management, etc.
With the help of an offshore bank you can use the services of the world financial market, join the international banking community, and withdraw capital to various correspondent accounts worldwide.
Offshore bank services are available for legal entities and individuals (non-residents) as well as for offshore companies that are in the same offshore area as the bank. However, only non-residents can own offshore banks.
To incorporate an offshore bank, you need to obtain a banking license, which is issued after thorough check of the applicant. This can either be an unlimited general banking license issued by large well-known banks or limited license prohibiting to engage in certain activities.