Most Common Myths Surrounding Offshore Bank Accounts

Many people think that offshore banking services are only for tax evaders or for the rich. Much of this thinking comes from a general lack of knowledge and the prevalence of different myths and misconceptions surrounding offshore bank accounts. This article will dispel those myths once and for all. And, it may help you understand that if you are the type of person who wants to take responsibility for their own financial future, an offshore bank account may be just what you are looking for.

Myth #1. Offshore bank accounts are illegal

Offshore banking services are legal, and they have to be in the global world we are not an apart of. In today’s global economy, money has to move between various countries to facilitate trade, so companies and individuals need bank accounts in different international jurisdictions.

Myth #2. Offshore banking is only for the rich

Giant conglomerates and wealthy individuals have been using offshore bank accounts for many years. And up until recently, it was a secret they kept to themselves, however that does not mean that they are only for the rich. Today, offshore accounts can often be opened with opening deposits as little as $100.

Myth #3. Offshore banks are unsafe

This depends on the offshore jurisdiction you choose. Since a lot of the benefits of offshore banking are derived from banking in low tax countries, there is a certain element of truth to this.

Also bear in mind offshore banks are not FDIC insured like banks in the US. What this means is that if the bank fails, you could lose your deposit. But, doing proper research will prevent you from that scenario. Many large offshore banks are worth billions of dollars and are not likely to fail. You just have to diversify and evaluate your risk.

Myth #4. Offshore accounts are 100% private

This is partially true. Countries like Panama and Belize are tax havens that protect your privacy to a certain extent. Other countries will happily share your personal information with almost a legal request.

If you break the laws of the jurisdiction where the bank account is held, that privacy will dissolve. Banks will release your “private” records if you are involved in illegal activities such as drug trafficking and fraud, no matter where those crimes occur. Also, in some “private” countries, that veil of privacy will be lifted in certain types of lawsuits.

Myth #5. Privacy is the only real benefit of offshore banking

Much of the benefits of banking offshore indeed come from privacy. But there are many other reasons to consider it. Among those are:

• Better range of investment opportunities
• A wider array of banking features and benefits (interest rates or other benefits)
• Merchant processing for Higher risk online business are acceptable
• Access to your cash while traveling abroad
• Diversified currencies
• More flexibility with a large movement of funds.

There are a number of different myths surrounding offshore banking and offshore bank accounts. But, as you can see, much of this is based on misinformation. It is your job to learn the right information to make a decision for yourself. Offshore banking services have been used for years to help companies and individuals maintain privacy, protect their financial lives, reduce taxes legally, and build their wealth.

Because there are so many myths, many people who may benefit from an offshore account don’t end up utilizing them. But, if you believe that your financial future is your responsibility, offshore bank accounts, and offshore banking, in general, are more accessible than you might have thought.

Liberty Enterprises offers a wide array of offshore and US domestic credit card and Ach/E-check merchant solutions.For more visit www.confidentialbanking.com