Private Bank Offshore The Inside Scoop on Latin American Private Banking

Offshore Private Banking

In order to benefit from the best private banking has to offer, many HNWI’s choose to bank offshore. A private offshore bank is in a better position to keep client information confidential than a domestic onshore bank, especially when chartered in a jurisdiction with strong financial privacy.

Balmy tax havens can offer a favourable climate for private offshore banking

Switzerland is a jurisdiction famous for its bank secrecy, codified into law by the 1934 Swiss Banking Act. Large numbers of HNWI’s choose to use swiss private banks because of the secrecy laws. Breaking Swiss bank secrecy will result in fines and/or prison for the offending banker. That said, the secrecy law has been steadily diluted over recent decades.

Anti-Money laundering laws introduced in 2004 prohibit the famous ”numbered bank accounts” - all swiss bank clients must now fully identify themselves prior to opening an account.

A tax evasion scandal involving Switzerland’s largest private bank, UBS AG, and US tax authorities resulted in bank secrecy being lifted from 4,500 secret accounts of wealthy US citizens. Previously tax evasion was not considered a crime in Switzerland - only tax fraud. However in the case of these accounts, the Swiss government was prepared to reinterpret its definition of tax fraud in order to reach a settlement with the US.

The world’s most affluent people and large companies recognize that its not clever to depend on bank secrecy in any one country. Keeping to the old adage ”don’t put all your eggs in one basket”, they understand that making yourself dependent on the laws of one jurisdiction is a recipe for offshore disaster.

HNWI's and Large Corporations Enjoy the Tax Benifits of Re-locating to Switzerland

That’s why their assets are spread throughout the world. Part might be invested in Uruguay private banking, some in Swiss private banks, and in the name of offshore companies or trusts.

With assets spread throughout the world and structured in the right way, offshore private banking can help a wealthy indivifual vastly reduce his/her tax liability. Often their assets are placed in complex groupings of offshore companies, holding companies and trusts.

An excellent private bank account will ensure that your account remains confidential between you and the bank regardless of changes in bank secrecy and geo-political maneuvering. This has become all the more important as high-tax countries set their sights on removing bank secrecy in “traditional” offshore jurisdictions.

Find out more at this secure provider of offshore private banking.

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