Avoiding the Myths of Offshore Bank Accounts

Offshore bank accounts may be touted as the solution to every legal, financial and asset protection strategy but the myth of the working of an offshore bank account are often much more exaggerated than the reality. That said, offshore bank accounts do have benefits for individuals and companies but before you go out to open an offshore bank account either for yourself or for your company you must not only be aware of the facts but of a lot of other ancillary issues as well.

The first thing any individual should consider before rushing out to open an offshore bank account is their purpose of doing so. Read about offshore bank accounts and their benefits and look at your situation and see if you stand to benefit directly in your way of life and the nature of your business by opening one of these bank accounts. Opening an offshore bank account for the hell of it or just as a reason to crow to your friends is simply not worth it.

Another issue of concern with the offshore bank account is the location in which the bank account is being opened. Make sure the individual or company which is helping you open the bank account is well informed about the legal factors that may concern you in the country where this account is being opened. Also make sure the country the bank account is being opened has a stable economy and not one that is bound to collapse and seize your money along with it.

The third factor of concern about offshore bank accounts is the offshore bank itself. Individuals and companies should make sure that the bank they are about to maintain an account with has a history as well as a good reputation. Most offshore jurisdictions require low costs for people who wish to purchase banking licenses. This may result in unscrupulous individuals opening a bank without a reputation with the sole aim of taking advantage of unsuspecting customers.