Offshore Bank Account for Expats

Expats have to bank offshore out of necessity. Learning the offshore banking world can be hard. This article covers a broad spectrum of offshore bank account related issues for expatriates.

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Learn a way to reduce taxation legally using your ex-pat or global investor status. Given the reports in the limelight about the issues a few expatriates have lived through in acquiring banking services at the time of their repatriation,Offshore Bank Account for Expats Articles there is considerably more of concern about this problem. Expats often find that the banking plans that they made leading up to leaving the US are now not adequate. Whatever the issue, it is not too late to get the banking products and services needed to make expat life a bit simpler and repatriation not as problematic.

Account

In spite of the fact that the laws that came out after the September 11 calamity make opening bank accounts while living overseas more complicated than it previously was … even for US citizens, it is still somewhat manageable. Many US banks provide their customers with the on – line ability to open checking, savings, certificates of deposit, and arrange for online account access and invoice pay services. Internet financial institutions are perfect for expatriates, because they let you maintain your account by mail, fax, and, of course, via Internet.

Overseas

Go for an offshore account from a multi-national financial institution that you trust and that has the ability to invest in internet security. One challenge with using overseas banks can be charges. Banking overseas with HSBC Offshore can assist you get the most out of your money. Statistics from HSBC Overseas reveal, that the number of the bank’s overseas customers approved for internet banking had improved, from one in five at the end of December 2001, to one in three at the end of July 2002. The first seven months of 2002, saw an improve of 50 % of original customers being apprised to HSBC Overseas via the web site, as compared to the whole of the year 2001.

Tax

When it comes to offshore banking and HMRC however, the Revenue Service is not in the business of allowing outstanding taxation slip through its fingers. A few of the UK’s biggest high street financial institutions are also present in jurisdictions such as Jersey, Guernsey, the Isle of Man and Gibraltar. The world is full of jurisdictions – the UK can be a jurisdiction for non – domiciled people for example, and certain states in America are even tax havens for those who do not reside therein but who use the states as places to register their business for example. However, the United Kingdom and US are not considered the best for most people when is comes to considering the world’s best jurisdictions. Most individuals associate low tax and offshore banking with tax havens like the Panama, British Virgin Islands, the Cayman Islands, Switzerland, Lichtenstein and Monaco. But in actual fact, dozens of the best tax havens in the world are far less glamorous. The partial taxes amnesty offered via HM Revenue and Customs ( HMRC ) last year to UK residents with undisclosed overseas bank balances and financial assets has turned out relatively successful in terms of the taxes and fines raised. There is a penalty line between the banks requirement to supply information relating to account holders suspected of illegally avoiding taxation due and their legal duty to maintain their clients personal secrecy. According to a recent poll conducted by KPMG, Cyprus is one of the most attractive overseas jurisdictions in Europe. Together with Ireland and Switzerland, Cyprus enjoys relative transparency in its tax strategies, suffers reduced levels of taxes change and upset annually compared to other European countries, and has the highest percentage of local nationals happy with the amount of of tax legislation in place according to the poll.

Ireland

The United Kingdom and Ireland offer several intriguing and handy products to on-line shoppers, not readily available in North America or Europe. Financial institution of Ireland Fsharp is an innovation in ex-pat banking. As one of Ireland’s biggest financial institutions, Financial institution of Ireland is greater than 200 years old. Official by Royal Charter in 1783, it was the established banker to the Irish government until the formation of the Central Bank of Ireland in 1942. In the past 50 years, Financial institution of Ireland has grown from its commercial banking roots into a broadly based financial services organization. For the year ending 31st March 2001, Bank of Ireland Group made profits prior to tax of US$881 million and has assets of US$69 billion. Financial institution of Ireland Fsharp is wholly owned via the Bank of Ireland Group.

Opening An Offshore Bank account

Additionally online access of the account opening forms, applicants do need to go through one of many procedures that will provide their US bank with positive proof of their identity so that the account opening process can be finished. Considering that this identity verification process can be relatively costly time wise, it should not stop those who have the desire and need to provide themselves with even more banking services.

Offshore Banking Questionnaire

Here is a fast check – up questionnaire that will aid you, as an US ex pat, determine the current status of your banking services: What can / should I do to raise my level of satisfaction with the performance of the invoice payment arrangements currently in place. What type of bank accounts and services do I have to have right away that I do not presently have. What banking services will I need when I repatriate. Whether you are preparing to move out of the US, you are already living abroad, or you are getting ready for repatriation, your banking needs can be provided from virtually anywhere on the planet.

Several expats experience a sharp increase in banking needs upon their return to the US. Ideally, expats take the time to establish a solid relationship with a financial institution that can meet all of their ex pat and repatriation requirements leading up to departure. Be sure you are working with a bank that has worked on the proper infrastructure and customer service to help with the specific issues of being an expatriate.

Internet Banking and Privacy Policies Information

Privacy policies and legislation all play a role in keeping your rights of privacy in a good place.

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Privacy policy legislation affects internet banking just as it does any other type of banking establishment. You might want to keep your personal information private. If so,Internet Banking and Privacy Policies Information Articles it is good to know how your bank treats privacy policy.

A study was done to determine how well different banks, including internet banking companies, dealt with privacy policy. All financial institutions should have privacy policies that are consumer friendly. This is in keeping with the spirit of the law.

The law in question is the Gramm-Leach-Blily Act, or GLB, as it is often called. This was enacted by Congress in July of 2001. It gives power to financial institutions to conduct business in many important ways.

More importantly to consumers, there is a section devoted to the privacy of banking customers, including internet banking customers. Banks must provide consumers with a copy of their privacy policy. This explains how your personal information will be used by internet banking operations and other banks.

Your personal information would include any information that can be identified as your particular information. It could be your name, address, social security number, internet banking transactions you have made in your name, and other information. It could also be any information that can be guessed by having some of this information.

The study evaluated bricks and mortar banks, clicks to bricks banks, virtual bank internet banking operations, and other financial institutions. It compared each company’s privacy policy, how they informed consumers about their privacy policy, and what options consumers had with them to “opt-out.”

If you opt-out, you are saying to the company that you do not want your information to be shared with other companies that are not affiliated with the bank. Under GLB, internet banking services still have the option of sharing your information with affiliates and marketing partners, but they should inform you that they are doing so.

One problem has been that the privacy policy statements sent out to consumers by internet banking companies and other banks have been impossible for most people to decipher. They are not exactly an easy read. There is a movement to make them easier to understand.

Another problem is that some internet banking companies have made it very difficult to opt-out of having their information shared with unrelated businesses. It should be the easiest with online banking. Indeed some internet banking companies have online forms to fill out so that you can be finished with it in short order.

However, some internet banking sites make it nearly impossible to opt-out. They make you go to an 800 number, or write for a mail-in form, or they may not have opt-out at all. These are in the minority, but you should watch for them when comparing online banks.

The good news is that virtual internet banking companies that offered standard banking services like checking and savings accounts scored the best in the study. If you want to keep your information private, check out your internet banking institution’s privacy policy before you sign up.