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Offshore Banking
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uk Managing Director Ramesh And foreign nationals working in the UK will only be taxed by the Revenue on the money they earn or bring into the country. 020 8290 4999 melanie@em-jays.with a brief review of Editor Martin Fagan. what precisely “offshore” means. No responsibility can be taken for contributions lost or damaged in the Editorial Director Nia Williams. All advertising is subject to the terms of our current rate card. Romantic as this notion is. Conditions of sale and supply: this periodical is sold subject to the following conditions. Internet services. namely that it shall not without the prior written consent of the publishers be lent. discount air travel and the benefits of the digital world that enables us to monitor anything 24/ Offshore banking has many uses and many people can embrace its benefits – and the good news is you don’t have to be a millionaire or a member of the Jet Set to bank offshore. photographs etc published in Investment International anywhere in the world. In this guide we’ll look at the brief history of offshore banking. Offshore Banking Guide 03 Offshore banking has many uses and many people can embrace its benefits www. passports and a handgun. pension assets .co. it’s also completely wrong: safe deposit boxes are one thing. literary or pictorial matter Information carried in Investment International is checked for accuracy. gets access to a safe deposit box containing bundles of cash. Editorial contributions requiring an answer should be accompanied by a stamped self-addressed in this era of globalisation. editor nce seen as the province of the wealthy Jet Publisher Marco Callegari. an offshore bank account is something else entirely. or whose job requires quite a lot of international travel. drawings. 0207 490 0588 martin@thepublishinggroup. hired out or otherwise disposed of in a mutilated condition or in any unauthorised cover by way of trade or affixed to any advertising. ADVICE TO READERS Investment INTERNATIONAL Offshore Banking Guide . take legal advice before entering into any transactions. We’ll also look at what kind of services are on offer multicurrency card but we recommend that you make enquiries and. private banking. the legislation surrounding it.Contents 4 7 9 10 12 Investment INTERNATIONAL The real picture You don’t have to be rich to take advantage of offshore banking so should you consider it? Choosing your offshore jurisdiction A look at regulation and how to choose your offshore jurisdiction Changing legislation A look at how legislation has affected offshore investors Offshore banking services A look at the products and services on offer Security is key Ray Clancy talks to Pete Horrell. We hope this guide proves useful to you. All rights reserved in respect of all articles. tax management. 0207 490 0588 Marco@thepublishinggroup. MD of Barclays Wealth International and Wealth Intermediaries O Not just for the Jet Set Martin Fagan. the regulation to protect offshore customers. many people perceive an offshore bank account as a mythical thing. offshore banking can benefit UK citizens who decide to retire abroad. Any views or opinions expressed in this magazine are solely those of the author and do not necessarily represent those of The Publishing Group Subscriptions Andrew Goldsmith. investment funds. resold. best characterised by the movie The Bourne Identity. where Matt Damon as Jason Bourne armed with only the number of a Swiss bank account and his palm Head of Production Melanie Jones. so any overseas earnings or savings are better off in an offshore account. 020 7490 1382 Andrew@thepublishinggroup. Reproduction or imitations of these are expressly forbidden without permission of the publishers. if necessary. 0207 490 0588 Nia@thepublishinggroup. However. the tax consequences of banking offshore and the advantages. 0207 490 0588 Ramesh@thepublishinggroup.

an offshore bank was simply a bank located outside your country of residence. before your country gets the money out of you”. consider all your options. The appeal of offshore banking is that it offers the potential for tax efficiency. good service and accessibility are key elements of today’s offshore banking industry. f you think that offshore banking is exclusively for the rich and famous then you are very much mistaken. for some. You may reside in the country in which you’re a citizen or the country where the bank account is registered – or neither. the same can be said of the offshore sector. online. there are other advantages. Expatriates. By its very nature such an account is flexible – and when you’re living abroad or sending money back and forth between more than one country or transacting in more than one currency. it becomes crucial that your money is put into a bank that you know and trust. if you’re thinking of upping sticks and heading abroad. or if you already own an overseas home or you perhaps regularly work abroad for your company. Fortunately the internet helps makes sure each provider’s service. a service reserved for the rich and famous or a plan to evade or even avoid taxation! Many of the leading high street banks offer offshore banking services to clients – so accessible is offshore banking to all. you may benefit substantially from an offshore bank account. Plus providers tend to have lower operational costs and can therefore pass these savings on to their customers through So. There are many tax breaks as well. with potential tax holidays. is quoted as saying: “Get your money out of your country. of the UK banks offer offshore banking services alongside their onshore banking services reflects this. rather than trust local banks / governments / economies with your hard-earned cash. the convenience of easy international access and a safe haven for your money. WG Hill. In fact offshore banking is much more relevant now than it has ever been and the fact that many. products and fees are completely transparent – you can easily check out the huge range of products and services available. usually in a low tax .’ can all potentially profit from an offshore bank account. such as free travel insurance. AA cover and so on. Is it for you? higher rates of interest or reduced or no charges on certain accounts or products. Just as onshore banking has developed with more providers adding extras to their products. Common misconceptions of offshore banking include theories on hiding money. Offshore banking is really just the practice of banking in a country other than the one you’re a citizen of. And this. Basically offshore banking is the management of www. then the very thing you need is flexibility from an offshore account. is the central tenet of what offshore banking is all about. the author of the underground classic PT (for Perpetual Traveller or Permanent Tourist). In addition to that peace of mind regarding the safety of your finances.investmentinternational. With more and more people working overseas. if not most. those who own a property abroad or people termed as having an ‘international lifestyle. Before Offshore Banking Guide Asset protection. trust.4 | Offshore Banking The real picture I You don’t have to be rich to take advantage of offshore banking so should you consider it? So what is “offshore”? Safe haven the EU introduced the European Savings Directive (ESD – to be discussed in greater detail later in this guide) in July 2005. Stability is key and.

but neither is part of the United Kingdom. These gained popularity for the same reasons the small island offshore financial centers did: they implemented sound banking practices codified in law and regulations guaranteeing confidentiality. Pink Floyd. low taxation and security. This became particularly popular in the small island nations of the Caribbean. their assets could be moved “offshore” to Channel Island banks and tax could be saved that way. live and work anywhere. rather than a person leave the UK to save tax. both of whom are British Crown Dependencies. Michael Caine. the roots of the modern offshore banking industry. Although an abridged and streamlined version of history. but for the vast majority of us. you’ll probably remember the UK and Europe levied the highest. Offshore Banking Guide . As word spread across Europe and indeed throughout the world. The offshore banking industry was born. The Channel Islands assisted dejected investors with two key offerings: confidentiality and lower taxation. free from the scrutiny plaguing the mainland and the UK. where the likes of the Rolling Stones. The Channel Islands fall into two separate self-governing bailiwicks – Jersey and Guernsey. For those of you who can remember the 1970s. these are. And then the government and financial institutions in the Channel Islands – predominantly Jersey and Guernsey – realised that. jurisdictions characterised by low . Barclays or Lloyds and learn about the services they offer.Offshore Banking | 5 www. Austria. as well as having some degree of banking confidentiality. Investors and depositors seeking politically and economically stable jurisdictions found their way to these offshore financial centres and this practice continues today. Over time this term has evolved to include other popular banking jurisdictions such as Switzerland. This will give you a good grounding and help you see whether an offshore bank account could actually be of value to you. which many tend to associate with offshore banking jurisdictions. The History of Offshore Banking financial assets from a jurisdiction other than the one in which you live. If you want to know more about the fundamental basics and benefits of offshore banking – speak to any of the main banks such as HSBC. most punitive taxes in the developed world. with high earners in the UK having their earnings taxed at a rate of 85 per cent. Offshore banking in its simplest form suits those who make the very most of the fact that we can travel. thus becoming offshore banking jurisdictions and offshore financial centres.or zero taxation on interest. and would be liable for minimal taxation. other small island nations and jurisdictions seized upon the opportunity and began strengthening regulations regarding banking practices and client confidentiality in the hopes of attracting foreign depositors. Lichtenstein. Singapore and Hong Kong. invest in properties overseas or different money markets and who think outside the small box that is the UK. Rightly or wrongly. royalties and foreign derived income. giving rise to the phrase “tax exile”. fundamentally. it is all about simplicity of money management.investmentinternational. For some people it does have very real and legitimate taxation advantages. offshore banking has become synonymous with "tax haven". dividends. Luxembourg and more recently the United Arab Emirates (UAE). Sean Connery moved abroad for years at a time to avoid paying high rates of income tax. The Channel Islands bankers persuaded their clients that any deposits placed into offshore banks would be anonymous.

There are mountains of questions and paperwork to be dealt with. whether on a regular or one-off basis can have serious taxation implications for your assets. It is absolutely legal service provided by a licensed financial institution. Relocation. Depending on where and exactly how you bank offshore. Esplanade. Some investors for example may like to buy into a currency recognised for its stability like the Swiss franc. you want to know that your money is in safe and experienced hands. HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking. Take advantage of our expat expertise: Visit www. Sending and receiving large wire transfers abroad can be a nightmare when using a domestic bank. When people decide to move part of their wealth offshore.investmentinternational. whether you’re a professional expatriate. or for making an offshore investment. with specialist offshore products and services to help you make the most of your savings and investments while you’re living overseas. international developments have rendered them less private than they used to be. Issued by HSBC Bank International. Copies of the latest audited accounts are available on request. AC18141/LV/2206311 Is it too good to be true? Many of the leading high street banks offer offshore banking services to clients – so accessible is offshore banking to all Who is it aimed at? Why should I have an offshore bank account? In the real world inhabited by you and I. nobody will come and arrest you for having offshore bank account. Jersey JE1 1HS. This makes them extremely valuable to those who work in a different country or travel frequently.offshore. Licensed by the Isle of Man Financial Supervision Commission. Put your trust in the hands of HSBC Bank International and you will be dealing with people who really understand what it’s like to be an expat. The offshore bank account is often a portal to other investments such as foreign equity. London E14 5HQ. Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for . an offshore bank account could prove invaluable. barring unforeseen events. An offshore bank account can also act as a hedge against financial instability at Call +44 (0) 1534 616111 Offshore bank accounts are frequently available in more than one currency. 8 Canada Square. offshore funds and financial instruments that give high rates of interest. usually attracting favourable taxation and higher returns. St Helier. Philippines When you’re looking for someone to look after your savings and investments. It is also very useful to your average investor as a hedge against dramatic currency movements. you also need someone who can help you maximise the potential tax opportunities that expat life But if they are safely anchored in an offshore jurisdiction. On the other hand. Because we’re experts in expats. Approved for issue in the UK by HSBC Bank plc. © HSBC Bank International Limited 2010.6 | Offshore Banking Put your offshore banking in the hands of the expat experts 13°N – Rizal. Offshore banking is legal. Deposits and investments made with non UK members Financial Services and Markets Act 2000. The reasons for wanting this privacy are numerous and. they can remain there for the duration of your expatriation (and beyond). or for being a shareholder of an offshore company. All Rights Reserved. a trading name of HSBC Bank International Limited. But there is nothing wrong with this. Collective Investment Schemes and Investment Business. while Swiss bank accounts and Cayman bank accounts are traditionally viewed as the most secretive. globetrotter. international investor. to prevent keeping all their money in one currency such as the dollar. Domestic bank accounts are really for in-country transactions and not equipped to deal with large volumes of foreign transfers. much was made by the Labour government of the Conservative peer Lord Michael Ashcroft’s ‘offshore’ status as if there was something wrong with his decision to maintain his (not inconsiderable) finances ‘offshore’ in Belize. including the Financial Services Compensation Scheme. In the run up to the 2010 General Election. That's understandable. we can help you take advantage of the opportunities your circumstances offer. or consultant. offshore bank accounts can be much more confidential than an onshore account. we may monitor and/or record your communications with us. Offshore Banking Guide www. HSBC House. Some of these investments may be available completely tax free depending on your personal situation. offshore bank accounts are specifically equipped to send and receive money from outsider countries. General Insurance Mediation. and make the process as fast and efficient as possible. it is often not just a bank account they are looking for. and in the interest of security. To help us to continually improve our service. And if you live and work abroad.

Although there is certainly scope for good returns in the offshore arena. This is why you have to pick the jurisdiction – the country you choose to base your account – with care. Although the presence of a physical mailing address. and there are several things you can do. Any bank is governed by the laws of the country it is licensed to operate in. a banking licence. If you come across the institution via its website. These include political and economic stability. You need to make sure that the bank you intend to entrust with your cash is the real deal (i. Initially. assets. Where you currently live in the world impacts on where you can bank offshore. In this way. make sure it is possible to make contact by other means than e-mail. It is for this very reason that Offshore Banking Guide . First of all. Not all jurisdictions (countries) are equal.The only way you can discover if a jurisdiction is right for you is by due diligence . It can even involve your offshore bank deducting a non-declared rate of tax from your interest bearing accounts – called a withholding tax . simply because banks in that jurisdiction are obliged to comply with increasingly intrusive regulations which demand disclosure of the bank's client information. fraught with anxiety and time consuming. and other aspects in order to evaluate the soundness of the decision you’re about to make. it is still important to consider the geographical location of the country in which you intend to bank). is exhausting. Also be wary of banks or providers offering interest rates that seem unusually There are several key criteria which any offshore jurisdiction should fulfil before you consider banking there. convenient location (although this differs as you move from country to country. and sometimes between institutions).e. things that seem too good to be true usually are. for the inexperienced. Although longevity is an important point for an offshore bank. staff. their absence should trigger alarm bells. it is not the only factor to be considered.Choosing your offshore jurisdiction he very nature of being ‘offshore’ means your account is subject to the laws and regulations of the jurisdiction in which the account is based and not the laws and regulations of the country you reside in or are a citizen of.investmentinternational. has an office. this means doing a little research for yourself. in so doing. look at the established institutions in your jurisdiction of choice. For example.which may be just the thing you’re trying to avoid. T A look at how regulation protects you and how to choose your offshore jurisdiction Criteria Choosing a jurisdiction | 7 www. you can gauge the standards of the Research industry there and. But due diligence requires you do an enormous amount of spadework and analysis of the jurisdiction and its financial institutions which. and investor/customer protection (standards can vary tremendously from jurisdiction to jurisdiction. legal. (a modern and reliable business infrastructure is usually a fairly good indicator of the stability of a jurisdiction). give yourself a frame of reference. if you live in the eurozone. It is also governed by a plethora of internationally generated financial oversight regulations. etc). and telephone and fax details do not in themselves indicate that a bank is legitimate. then it would generally be unwise to open a bank account in the Isle of Man. strong infrastructure.the process of evaluating a prospective financial decision by getting information about the financial.

Know your Customer legislation means that if there is any suspicious or unusual account activity (i. Offshore Banking Guide How do I open an offshore bank account? There is no absolute low limit. l A bank reference letter drawn on your domestic bank’s letterhead (or on the form sometimes provided by the offshore bank).000. and accountant in your country of residence. costs are being reduced. ‘Residence’ is normally determined by an individual's status at a particular time. all of which offer offshore services to existing and new customers. This will vary from institution to institution.will depend on the bank. l A letter of intent on source of funds.8 | Choosing a jurisdiction What’s the difference between domicile and resident? many people who require an offshore bank account use the offshore divisions of the UK’s major high street banks.000 or more. it may be worth your while contacting one of the high street providers and talking through their offshore services www. However. This is where you must lay out the projected account activity. With the advent of 'Know your Customer' legislation in the last few years. lawyer. transaction costs mean offshore investment is unlikely to be worthwhile for those earning less than £25.e. they are used to express two very different states. l The required minimum deposit. and also the expected source of any funds deposited. Each offshore bank will have its own requirements. phone communication at a distance. the banks must investigate this. but the extra costs of taking advice. l A recent utility bill (or equivalent document) with details of your permanent address. ‘Domicile’ normally relates to the country or state that an individual regards as their permanent/ultimate home location. but for a personalised 'private banking' service. because of the internet. stating that you are a reliable and suitable customer. Remember – this doesn’t oblige you to open an account with that particular bank. and/or a notarised copy of your birth certificate and/or driving licence. and if necessary pass the information on to the relevant authorities. opening new bank accounts. but you should be prepared to submit: l The original or a ‘notarised copy’ (signed by a solicitor. If it is something you’re seriously considering. How much money do I need to invest offshore? Domicile or residence may sound like two words to describe the same thing .000 a year. it may be worth your while contacting one of the high street providers and talk through their offshore services with one of their advisers. The electoral roll may also be checked. etc) of your passport. Offshore banks will take deposits down to £1. used in the context of offshore banking. your doctor. A person's domicile is established at birth and this remains until an individual resettles with the firm intention of remaining in that new location and/or takes out citizenship of that country.investmentinternational. but in many cases presence in a country for more than 183 days in any one tax year is enough to constitute residence for tax purposes. The nature of these checks – and the proof the bank will need to establish you are who you say you are . so these are meant as a rough guide. Many have decades – some even centuries – of experience in offshore banking and so. The rules vary from country to country. l A professional letter of reference from a doctor. The recommendation is that the reference letter is completed by a bank with which you have had a two-year banking relationship (six months is really the bare minimum). the number of checks banks are required to conduct on potential customers have increased greatly. if the actual amounts deposited or frequency of deposits differ from your projections). and signed by the bank manager. you may need to deposit £100. if offshore banking is something you’re seriously considering.

The US sought to crack down on potential terrorists who were using the offshore banking network to move money around by initiating far-reaching banking regulations . whose original 40 principles form the basis of most international responses to money laundering. the bank is checking you out to make sure you are who you say you are. Any interest you receive on your accounts can either have tax withheld at source.J Changing legislation A look at how legislation has affected offshore investors ust as you would undertake due diligence on the prospective offshore bank with which you’re considering opening an account. which authorises the US authorities to seize the assets of a bank where it is believed that the bank holds assets for a suspected criminal. Perhaps the most prevalent tax on offshore banking is a withholding tax. you may continue to receive gross interest. This What taxes will I be liable for? raft of legislation has certainly complicated the next question: Legislation | 9 www. if that money is not remitted into your country of residence. If there is a double tax treaty between the two countries concerned. the governments of Europe saw an opportunity to use terrorism as an excuse to clamp down on what really annoyed them about offshore banking . In addition. mainly because of money laundering and its association with terrorism. Depending where you live. also known by its French name. but the bank will have to report details about you and the interest you have received to the tax authority in the EU member state where you are resident. Offshore Banking Guide . it is expected an increasing number of offshore banks will be affected by this decision. Also. but part of it is the clause entitled: “Know Your Customer” which is the due diligence and bank regulations that financial institutions must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. contains the so-called European Union withholding tax. a tax deducted from interest earned by European Union residents on their investments made in another member state. in jurisdictions such as the Isle of Man and the Channel Islands. there’s generally no tax deducted on interest earned. On the other hand. When a dividend (or royalties or interest) is paid internationally. This increase in the tax rate is viewed as a way of eventually forcing all account holders in offshore banks to choose the first option mentioned above . Over time. This doesn’t impact the ‘normal’ offshore client directly (we assume your desire to open an offshore bank account is a legitimate one). Similar measures have been introduced in some other countries. the country from which the payment is made usually taxes the payment as it leaves. usually between 10 per cent and 30 per cent.applicable to all accounts (worldwide) that were transacted in US avoidance. capital gains tax or death duties. As well as the opportunity to curtail terrorist financing activities. or to reclaim some or all of the money. Groupe d'action financière (GAFI). if some of the ideas above struck a chord with you. The legislation governing offshore banking was forever changed as a consequence of what happened on the morning of September 11th 2001. the institution you open the account with and the jurisdiction in which it operates. Some receiving countries allow the withheld tax to be set off against domestic tax liabilities. There's no point in setting up an offshore account if you do not really need one. the bank will want to know a lot more about you than it would have a few years back.investmentinternational. which came into effect in July 2005. that's the best course to follow. The international response to money laundering has been coordinated by the Financial Action Task Force (FATF).namely allowing those banks to report directly to their country’s tax collecting agencies. As a rule of Your tax situation and potential benefits of placing your money offshore will depend on your personal circumstances. Moreover. income on an offshore bank account or investments may not be subject to tax in your country of residence. In effect. maybe it is a good time to move offshore. Following 9/11 the US introduced the USA PATRIOT Act. any offshore income may not be subject to tax. This directive makes EU residents with offshore bank accounts choose between one of two options: 1) Allowing their offshore bank(s) to report savings income directly to local tax authorities. by the state in which the investment is held. it’s often possible to reduce the tax. 2) Pay tax immediately at such time income is provided to the account holder by their offshore bank. by 'withholding' a proportion of it. If you could easily do what is required with a simple domestic account. if the account holder chooses the second option mentioned above. The European Union Savings Directive (EUSD). or alternatively. there’s no inheritance tax. then the tax rate used to collect monies due is scheduled to rise in 2011.

private equity and fund of funds and then work with you to reach your ideal investment approach. investment and mortgage services. US dollars or euros. we look at the most common ones with a brief explanation of each.10 | Products and services O Offshore Banking Services Banking and investing offshore means a consistent. probably in tandem with an accountancy group (for example. A fund qualifies as an offshore investment if it is incorporated in an offshore centre and intended for use by non-residents of that jurisdiction. simply because you have to be approaching the high net worth bracket to qualify. A trust works by taking assets (cash. An offshore trust is simply one based in an offshore jurisdiction and its profits are usually not taxable there. if there’s a particular product or service you require from an offshore bank account. long-term financial relationship wherever you are in the world . reduce corporate or personal income taxes and maximise tax advantaged retirement programs. As with onshore funds. Below. Others help your money grow over the long term by investing in shares. quarter or year. The trustee normally follows the wishes of the settlor. no matter how complex. but people’s tax circumstances also change. sophisticated savings. It should offer bespoke domestic and international strategies designed to legally reduce or eliminate taxes. The list merely scratches the surface and so. taking into consideration your individual circumstances and financial goals. This service is generally (although not always) Offshore Banking Guide In a nutshell – offshore investment funds. depending on where and in which assets they invest. no matter which country you're in. These could include: managing your cash in a range of . the scales may be tipped in their favour by other considerations. property) out of the ownership of the person establishing ('settling') the trust and putting them into the hands of a trustee. pooling investors' money to provide the benefits of a well diversified and professionally managed portfolio of investments. this is the basis of all your offshore banking services. property or investment portfolio. wherever you are in the world. it’s best to enquire of the bank you’re seeking to open an account with. Offshore tax legislation is constantly evolving. The type of investment may simply not be on offer onshore. But an offshore banking service will. A personal Relationship Manager and their back-up team will be your first point of contact to the extensive range of products and services available at your financial level. Anything lower and fees may apply. www. It gives you instant access to your money along with control over your day-to-day spending. Hedge funds are an example of the former and currency funds the latter. And with 24 hour internet banking – and some banks offering 24-hour telephone banking – access is not problem. Such funds generally pay little or nothing in the way of local taxes. Tax Management Offshore Trusts A good offshore banking service will be able to offer advice on a comprehensive range of fund types. this is a dynamic and tailored service. Not only are tax regulations changing.investmentinternational. As a general rule. Barclays Wealth International uses Ernst & Young). minimise taxable gain from the sale of a business.and the ability to manage your money in a range of currencies International Bank Account Relationship Manager Service International Portfolio Management Services ffshore banking offers a multitude of services – far more than you might actually need – but it’s a good idea to be aware of the scope of what products and services an offshore bank account has the potential to give you access to. Offshore funds work on the same principle as onshore investment funds or mutual funds. Usually available in sterling. specialised borrowing. and have comprehensive knowledge of all major jurisdictions as well as local and offshore tax issues. including hedge funds. you’ll need to hold a balance of £50. which the fund manager believes will appreciate in value. investments.000 or more (or currency equivalent in cash or investments) and/or an annual individual gross income of £100. New and wide-reaching measures continue to be introduced and the courts continually add to an already massive body of rulings and interpretations. property. although they may receive dividends or interest net of withholding tax. some offshore funds give you an income by paying dividends every month. help you with tax returns. due to regulatory prohibition or a lack of demand. free.000 or more (or currency equivalent) paid into your international account. Designed to help affluent clients manage and maximise their wealth. credit card and international finance options. If tax is not the deciding factor in using offshore funds or an offshore trust.

Offshore credit cards work pretty much the same as their onshore brethren: they can be used both to pay merchants and to withdraw money from ATM machines worldwide. set up. which are based in 600-year old English common law. An asset protection trust may. especially if they are intending to stay put in retirement. the currency aspect is dealt with in their offshore account. are not really concerned with the distinction between 'pensions' investment and 'non-pensions' investment. Pension Assets provide a security deposit with your application. therefore. which can be distributed when and where you want it in future – unbounded by the legislative whims of governments. the ability to transact online has become a must. if you lose money to fraud. the fax machine and now the internet. The protection that a Trust can offer is unique and far reaching but not always relevant. compliant or legal in certain jurisdictions or for certain nationalities. This means an offshore bank customer could hold several cards in various currency denominations (US dollars. including planning for the preservation of the settlor’s estate from a variety of risks which would threaten to dissipate the estate if one or more of the risks materialised. An APT is typically established in a jurisdiction other than the settlor’s home country. transfer money between accounts or into someone else's bank account. as governments prescribe tight laws on how pension funds have to be converted in an annuity income before a certain age and how income from an annuity is taxed. in the past. First there was papyrus and charcoal. the telegraph wire. Online access to your offshore bank is pretty much the same as accessing your onshore account: access your account 24/7. for many offshore customers. will refund it completely. however. A trust designed to accomplish a number of estate planning goals of its settlor.investmentinternational. offshore banks are committed to keeping your money and your personal data secure and use the highest levels of industrystandard security so you can access your accounts online with confidence. euros. tax-efficient fund. you should take advice from an adviser at your offshore bank. in some circumstances. but as a general rule. it may well be the case that they should build their pension provision inside the tax-net of their home jurisdiction. before and after death. since there are probably no taxes to consider either way. particularly in the UK and. a long time later. those wishing to establish them should do so only after taking qualified financial advice Pension Funds vs. For residents of high-tax countries. Although most ‘onshore’ cards deal with buying goods and services in many currencies and the card holder settles the bill in the currency of the country the card is issued in. People who already live offshore and have no intention of moving onshore. is that the latter are. pensions investment means simply building up a secure. help to safeguard portions of an individual's assets in the event that bankruptcy (or divorce) proceedings were instituted against them. For many people wishing to access banking services. Like any form of trusts. the telephone. meaning that the contrast between onshore and offshore returns may not be as marked as it is for many types of investment activity. Whichever route you chose to go down. But taking retirement income from an onshore pension is bound up with miles of legislative red tape.Products and services | 11 Asset Protection Trust www. which means that you are required to Unlike most other forms of investment. have been in common use for offshore asset protection for nearly 100 years. for the most part ‘secured'. Asset protection trusts are frequently seen as amongst the more esoteric of trust types. Like any bank. then. sterling) to be used in countries using those currencies so only pay one layer of currency conversion charges. Offshore Banking Guide . Internet Services Offshore. most banks will protect you from fraud and. The deposit required depends upon the desired credit line. Where onshore and offshore cards differ. change or cancel standing orders and direct debits. usually ranges from between 125 per cent to 200 per cent of the credit line requested. asset protection has been considered the preserve of the super rich. pay bills like credit cards and utility bills. Provided you take reasonable steps to keep your security information secret at all times. the ability to check your balances and transactions. pension investment is normally tax-privileged in high-tax countries. and you do not have to undergo a credit Multicurrency Offshore Card Services Trusts.

An offshore account provides banking services. often higher than is required by the regulations.” says Pete.investmentinternational. “We are well positioned in this respect. With clients all over the world we need to be innovative from the offshore perspective so that they can access products and services and utilise the very latest applications. ith over 300 years of expertise in banking. especially in riskier locations. which customers may experience. he points out that people should not confuse having an international account with tax issues. “The UK tax rules allows people.12 | Barclays Wealth International Security is key W Barclays puts safety and service first as Pete Horrell. tells Ray Clancy Tax issues Although tax issues can dictate the need for an offshore bank account. under certain circumstances.managing director of Barclays Wealth International and Wealth Intermediaries. or whose career means frequent changes of location. “So being able to offer a safe and secure banking environment will push demand forward. managing director of Barclays Wealth International and Wealth Intermediaries. Offshore Banking Guide New regulation In the post recession world new regulation is inevitable and he believes that Barclays is poised to ensure its offshore customers are protected not least because it already operates to such high .barclays. He admits that the recent furore in the UK over the tax status of non doms has clouded the waters.” Innovation is also important as international banking grows and Barclays has been at the forefront including introducing a number of information guides in the form of podcasts.” he or call +44 (0)141 352 3899 www. They could be those that move overseas for work. ”Security and safety are major priorities. Barclays is one of the largest and most respected financial institutions in the world and is taking a leading role in ensuring that its offshore customers are putting their wealth into a secure and safe environment.” Extras such as relationship managers and investment advice are often required.” he explains. He appreciates that people need flexibility. To find out more about Barclays Wealth International visit www. ”We pride ourselves on having high standards. Many clients work in overseas locations and he needs to make sure his team delivers and understands the stress and complexity of moving abroad and back again to the UK. products and investments to the best possible standards in the location where you live and work. “Offshore banking is about ensuring that you don’t have the additional burden of changing your account when you move or have an additional layer of tax that you shouldn’t be paying. that demand is going to continue to grow. “We need to be providing the right solutions and the right services to people wherever they might be. More and more people are working or moving abroad so they need an account that can operate wherever they are. “Clients always welcome new ideas in how they access information. retire abroad.offshore.” he says. There’s an increasing demand to ensure that your finances are looked after in a safe and secure environment. “We are not providing tax advice. They want the same access to products and services and don’t want to have to keep moving their account with all the complexity that can be involved in overseas jurisdictions.” says Pete.” he says. Indeed increasing globalisation means that offshore accounts are needed by more and more people.” he says. according to Pete Horrell. They all need to manage their money and investments often in a country where the banking standards are below those of the UK. The need to keep standards high and offer safe and secure banking is one reason that offshore accounts are currently a growth area. to not pay tax on their non-UK earnings and an offshore account gives them access to these funds.

barclays. contact Barclays Wealth International today on +44 (0)141 352 3899 or visit us at www. To discover what investment opportunities there are for you. discounted international payments and access to international telephone and online Barclays Wealth is the wealth management division of Barclays and operates through Barclays Bank PLC and its subsidiaries. London E14 5HP.BROADEN YOUR HORIZONS The UK’s number one wealth manager1 offers you a range of offshore and international accounts in sterling. 1 As ranked by Private Asset Managers (PAM). Barclays Wealth International has an extensive range of actively and passively managed investment strategies and a variety of offshore. Registered Office: 1 Churchill Place. US dollars and euros. Barclays Bank PLC is registered in England and is authorised and regulated by the Financial Services Authority. Registered No: 1026167. For further Information on these companies and Barclays Wealth please read the Important Information. . Rules and regulations for the protection of investors and/or depositors under the UK Financial Services and Markets Act 2000 [may] not apply to business conducted from offices located outside the UK and investors and/or depositors conducting business through our non-UK offices [may] not be able to benefit from the provisions of the UK Financial Services Compensation Scheme. onshore and overseas mortgages.offshore.

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