I tried to open my first offshore bank account in 1986, at the Chicago office of a major Swiss bank (NOT something I would recommend today). After being ushered into a conference room, an attractive 30-something woman came in and introduced herself.
"What makes you interested in a Swiss bank account,?" she asked me.
I wasn't prepared for the question. But I told her that I was interested in holding Swiss francs as a hedge against the declining value of the U.S. dollar, and potentially make investments in other currencies. I didn't mention anything about my desire to protect financial privacy.
Nonetheless, I was still turned down, although for a more prosaic reason—lack of funds. I wanted to open a US$20,000 account, but the minimum at the time was US$100,000.
Introducing the foreign country...
I'll give you a hint...it's not Switzerland. It's not Panama. It's not even Liechtenstein.
But this country's bankers have steadily and quietly maintained their clients' financial privacy for the more than half a century!
And those "in the know" don't even think of this country as an "offshore haven."
So it's the last place private investigators, contingency lawyers or nosy relatives will look for your wealth. Click here to learn more about this fascinating country.
I was reminded of this incident last week, when a reader—I'll call her Sue—who told me of an incident she recently experienced at an offshore bank. When asked the same questions I was asked 20 years ago, Sue told the representative that she wanted an offshore bank account because of privacy concerns. Her major concern was being targeted for a frivolous lawsuit because of her vulnerability and the ease of retrieving financial information in the United States. Sue also told the banker that she wanted to learn about foreign investments through the bank account. Finally, she mentioned that she was concerned about the possibility of being wrongly targeted for asset seizure due to some trumped up charge.
Sue was told that the offshore bank did not offer accounts for the reasons she had stated. The banker's decision could be appealed to a manager, but only if Sue sent the bank certified copies of:
· A reference letter from her U.S. bank,
· A letter from her personal lawyer,
· A letter from her employer verifying employment and length of service, and
· A letter from her accountant certifying that her U.S. taxes were in order.
This was in addition to information Sue had already provided, including copies of her passport, a utility bill (to verify her residential address), and a notarized statement stipulating that all funds that she would be depositing into the account had a legitimate source. The additional information was needed, the banker stated, in order to comply with the bank's anti-money laundering policies.
Learn more about offshore investments, offshore banking, offshore bank secrecy, and offshore asset protection by clicking here.
Copyright © 2007 by Mark Nestmann
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