Wed. Oct 28th, 2020

Business News on the Fly

What Is Offshore Banking?

Offshore banking refers to establishing a bank account with a financial institution that is outside an individual’s home country. While offshore financial institutions have their own rules and regulations for who can open an account they usually require proof of identity and financial status as a minimum; some institutions may also require information about the source of the funds that are deposited.

The main benefits of holding an offshore account are that the money is held in a foreign currency which is not subject to depreciation or currency fluctuations and that tax treatment may be more advantageous.

These types of accounts are normally funded through international wire transfers which can be subject of fees and charges. Once money is deposited the bank normally issues a debit card through which funds can be accessed worldwide, though other methods may also be used.