The word offshore banking refers to a type of banking institutions, generally located in so-called tax havens, which are regulated via special laws that grant them greater freedom in their operations &more favorable tax dealing.
Following the categorization of banks that we saw in the article on foreign banking, offshore banks can be alienated into two groups:
Retail & commercial banking
Generally an initial deposit is necessary to open an account for offshore banking. They basically proffer the same services as any bank you could find in your nation of residence. They’re primarily designed to be used for trade & small-scale savings, but also proffer some investment opportunities. It’s very common for them to operate through multicurrency accounts, or the alleged multiple currency accounts. In the initial case, it’s a single bank account that accepts deposits & withdrawals in different currencies, whereas in the second case, the bank opens numerous account numbers for the same client, each of which is denominated in a dissimilar currency.
Usually there’s no close contact between the user & these banks because their services are standard & can be managed easily by the Internet. Most of the offshore entities have up to date banking systems, which allow transactions from anyplace in the world. They’re very secure applications that incorporate the newest technology in encryption or even authentication using electronic devices for example the renowned “Digipass”.
Offshore banking organizationsfocused to saving & to high-level investing & they’re usually accessible only to relatively rich people. In some very exclusive banks, customers who deposit less than a million dollars aren’t accepted. Obviously, these institutions offer a premium service & develop a personalized investment pattern for every customer, who has their own personal manager. They proffer all kinds of investments, some very exclusive, only accessible to their customers.
Thus, offshore banking has various types to give different opportunities to their customers. An offshore bank account is a word that refers to any bank account opened exterior of the account holder’s usual place of dwelling.