For many people, the ability to open a foreign bank account is critical to their lifestyle. Whether you are planning to start an international business, work for a foreign company, or are simply looking for a more economically stable environment, you may find an offshore bank account a great solution. Find more about the benefits of international bank accounts.
Despite the developed access to Internet technologies around the world, some challenges remain to be solved. Once you’ve figured out why you need a bank account abroad, it’s time to learn how to do it right. What are the ongoing challenges for opening offshore bank accounts remotely? What are the requirements? How to finally open an offshore bank account successfully? Find the answers to these questions in today’s article.
First things to start
As part of your due diligence, do your offshore banking research to learn the ins and outs. The biggest key in doing offshore banking the right way — making sure you comply with any regulations and laws that might apply to you.
Find out how remote banking works. First of all, you will need to fill out various forms, have a notarized copy of your passport and send all the necessary documentation to the bank of your choice.
You will also encounter the question of choosing the right bank to figure out which one is best for your needs. Each jurisdiction and bank differ by conditions, rules, and proposals.
Find more about how to choose your offshore bank and account here.
Keep in mind that opening an offshore bank account from home can be a trickier process. There is a long list of verification factors that can take time. Additional levels of verification are necessary since some people are seriously trying to use offshore banking for illegal things like money laundering and tax evasion. To this end, both jurisdictions and banks have enacted a long list of items and requirements to prevent financial crime.
We have already mentioned some of the reasons why the remote opening is challenging. There is pressure on banking centers around the world from governments, regulators, and multilateral organizations. They want to eradicate tax evasion, drug trafficking, terrorism, and other crimes. These measures are correct at their core, but it makes it much more difficult for convenience to open an account remotely.
Another aspect when opening an account abroad is that you not only need to think about whether you can open it remotely, but you also need to know if you can manage your account remotely. In other words, you have to make sure that you can maintain an account, keep it open, have 24/7 access to your assets, and be able to transfer them both in and out remotely.
Some banks will require you to provide your local residential or mailing address. Others will require you to provide a local phone number (sim card) to receive instructions or security codes to access online banking, unlock your account, send transfers, or deal with future security alerts.
If an address or phone number is only needed once, a quick and affordable one-time solution can usually be found. But if you require a cell phone or an address to maintain your account on an ongoing basis, these costs can start to rise.
Be sure to factor these lesser-known costs into the estimated cost of opening and maintaining an account. These costs can change the economics of opening remotely versus showing up in person.
Key to success
Considering all of the above, it is not surprising that opening an account abroad has become difficult. In fact, it is still possible to open and maintain open bank accounts with large banks for both personal and business purposes. You can significantly increase your chances by taking these steps into consideration.
- You should conduct your research into the jurisdictions that are most suitable for you, as well as the banks headquartered in those jurisdictions.
- Determine what vulnerabilities in your client profile may concern the bank before applying.
- Decide on the requirements for your international bank account. By asking yourself the following questions:
What will be my initial deposit? What is the average monthly account balance I can maintain? How many transactions would I like to make per month? How much annual commission am I able to pay?
Perhaps the best option to successfully open an offshore bank account is to partner with a reputable international corporate services provider. Such a provider has established strong relationships with foreign banks in various offshore jurisdictions. Access to some of the best offshore banking services is not available to the public. Since some of the best offshore banks in the world don’t work directly with clients, they choose an ‘agent’ to prepare and validate clients’ documentations required for the account opening, enabling remote account opening that’s safe and secure for all parties involved.
Let’s get started
There are many reasons for opening an international bank account as a smart financial move. Once you’re ready to take action and open your international bank account, Finscanner is here to oblige and set up the right account for your needs.
Find the bank that suits your needs at the Finscanner marketplace and explore all the benefits of the financial world!
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