Anonymous Asset Protection - 5 Offshore Banking Misconceptions

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Today, persons residing in countries where the loss or confiscation of their assets is a threat are looking for viable anonymous asset protection strategies. A large part of any asset protection plan is the use of an offshore bank. All offshore banks are not alike though and here we explain why.

Misconception #1 - Offshore bank accounts are illegal

This is simply wrong. The majority of countries allow offshore accounts so they can obtain monies from entities outside the country, thereby increasing assets. (This includes the US.) They are happy to help foreigners practice anonymous asset protection to some degree. But, they frown on helping nationals because they lose tax and other income.

Misconception #2 - You can't practice anonymous asset protection and have your funds in a bank in your country

Actually you can. If you put your assets in a reputable offshore bank that then sends them to a bank in your home country (as an offshore entity) in certain cases, they are still offshore in terms of your positioning.

The general misconception is that if an international bank has a branch in the USA or EU it can be forced to divulge banking records from the offshore country where it also has a bank. This will not happen because both banks are separate entities bound by licensing requirements in their home country, and would be bound by jurisdictional secrecy laws. Therefore, it would be a violation to trade details.

Misconception #3 - Numbered bank accounts are still the norm

Using numbered Swiss and other bank accounts has been out of favor for around 30 years. This is especially true in the post 9/11 world. Numbered accounts make transfers and other account manipulation difficult and easily raise red flags with authorities. Now your personal identity is protected because your assets are placed under an offshore corporation. This is a legal and safe anonymous asset protection strategy that is practiced by some of the most savvy financial players worldwide.

Misconception #4 - All offshore jurisdictions are equal

Well…there are some striking differences, especially when it comes to cooperative legal issues. Some jurisdictions have signed tax and other treaties with the US and the European Union. This means that they may supply supposedly protected information about you and your assets to the IRS and/or the OECD. Some others have changed their laws to "ensure" more international transparency.

Misconception #5 - The bank's domicile is the most important factor

In reality the bank is. Location is important but doesn't help you if the bank fails. It doesn't help you if the bank is wiped out by a hurricane or other natural disaster. If the bank doesn't adhere to strict privacy standards, your asset protection strategy can be compromised. The lesson here is that treat your investigation into an offshore bank with the same thoroughness you would with your local bank.

We hope that this information regarding offshore banks as a part of your anonymous asset protection strategy will help you on the road to protecting your finances in the future.

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