Providing offshore financial services is one of the world’s most lucrative forms of banking today. According to the International Monetary Fund (IMF), offshore banking accounts for more than $7 trillion of global personal wealth. More people are opening offshore bank accounts today than ever before because of the benefits it offers with asset management.
What are offshore financial services, and how do they work? What benefits can you derive in asset management by opening an offshore account? This article sheds light on these critical questions about offshore banking. Let’s dive in!
What Are Offshore Financial Services and How Do They Work?
According to the IMF, offshore financial services are commercial products that financial agents like banks provide to non-residents. These products include borrowing from and lending to non-residents, accepting monetary deposits from non-residents, and investing them in other financial markets. Although you can find some records of offshore transactions in the Bank for International Settlements (BIS), most are held in trusts and not subject to government scrutiny.
If you want to keep your financial life private, offshore banking is your best bet. Offshore banks will keep all your financial records in trust because it does not mandate you to share such information with anyone else, including the government. These banks will offer you monetary privacy that most local financial banks cannot afford.
One benefit of offshore banking is that it allows you to open offshore foundations. According to The Internal Revenue Service, there are two types of offshore foundations: private operating foundations and private non-operating foundations. These foundations are instrumental in private asset management because they allow you to manage your wealth under favorable foreign conditions that do not exist in your home country.
Choosing offshore financial services is also a great way to diversify your investment portfolio. You can invest in different financial instruments that are not easily accessible in your local financial system through an offshore account. This investment can be extremely vital in cushioning you against your home country’s financial risks.
Establishing an offshore banking account can be extremely tough and risky if done individually. Contact First Nevis Trust Company today and enjoy expert guidance in your asset management journey.