Offshore banking

[bridge 0]

I need some advice on banking outside my home country - the U.S. I plan to live and work in Asia for the next twenty years. I will probably move around a bit, so the question is not directed at a specific country.I would prefer to open an account/s outside the U.S.

 

My income is not taxable, as it will be below the the limits. However, I will always file a return as required, so the IRS may suspect I have an account offshore. Just in case anything was to come up from previous years in which I have had buinesses, some protection from the IRS would be helpful.

 

My best case scenario:

 

1. Very safe

2. Cheap tranfers into and out of account

3. Check card (Visa) with cheap ATM withdrawals

4. Some privacy

5. Interest earning

6 Completely online ( I will probably stay in Asia, may work in Europe, might...)

 

 

Thanks in advance for any advice you can give me

Edited September 16, 2007 by bridge

[torrenova 644]

Years ago they were all safe but I heard that in Europe at least and I suspect the rest of the world (for the average Joe), the governments have had some success in getting them to open up their account information.

 

To give you an example how it was, I had HSBC onshore try to find my HSBC offshore accounts giving them sort codes (branch identifiers) and account numbers. They could not find them and believed I had given them incorrect information regarding onshore acounts (I never mentioned they were offshore accounts).

 

Citibank are good but you need to retain some minimum balances (not high in some countries, high in others). HSBC likewise, a presence in all ports.

 

It doesn't seem like you'll be doing it to hide large sums of money so what is wrong with an offshore branch of your main USA bank ?

 

The main adavantage of a global player is that they know you from back home and you don't have to jump through the local hoops (work permit etc.) in many places. They just open a ocal account for you.

Edited September 16, 2007 by torrenova

[bridge 0]

With the initial deposit and monthly deposits, the account will be 6 figures in 4 to 5 years. A US bank will not do.

 

It sounds like an HSBC account holder is fairly hard to find.

[PattayaPete 530]

The Isle of Man is good as long as you are not British. They abide by UK banking rules and will not disclose your account info accept to the UK governments if requested.

 

I have one with Abbey and one with Lloyds TSB. Of the two the TSB seems easier to deal with. You can nominate the currency for your account either US$ Euros or GBP.

 

Lloyds TSB info here.

[torrenova 644]

So you do want to hide it. You initially said your "income is not taxable, as it will be below the the limits".

 

I think there is more you need to open up to so I suggest you seek professional advice on tax mitigation (or in layman's terms, avoidance).

[Eneukman 1]

The Isle of Man is good as long as you are not British. They abide by UK banking rules and will not disclose your account info accept to the UK governments if requested.

 

I have one with Abbey and one with Lloyds TSB. Of the two the TSB seems easier to deal with. You can nominate the currency for your account either US$ Euros or GBP.

 

Lloyds TSB info here.

 

My offshore account is with Nationwide International in the Isle of Man. To get interest paid gross, you now have to ensure they are aware that you are not resident in the EU. As I am now non-resident for UK income tax purposes, the UK government cannot tax the interest I receive each year.

 

Alan

[Owen` 2]

My income is not taxable, as it will be below the the limits. However, I will always file a return as required, so the IRS may suspect I have an account offshore. Just in case anything was to come up from previous years in which I have had buinesses, some protection from the IRS would be helpful.

 

There is a line on your US 1040 tax return that you have probably never even thought about before, but it will become operative now. It asks "Do you own or have control of any foreign bank account or an account at any foreign financial institution?" The IRS will not "suspect"you have an account. They will know, and they will know what it is and what bank has it because you are required to tell them each year.

 

If you lie on that question, it is perjury.

 

It sounds like you have some past possible liabilities and you want to dodge them. This method you are considering is not going to work, if you want to obey the law.

Edited September 16, 2007 by Owen`

[bridge 0]

Owen,

 

I consider anything that comes from the Internal Revenue Service a rule that has yet to be changed, not a law. What they have not been told would fill more books than the ridcoulous, unfair, and subjective U.S tax code.

 

Looking for banking advice, not tax advice

 

It seems more European members are taking advantage of offshore banking.

 

Thanks for you replies

[Owen` 2]

Okay, I am not going to be snide here. I will just ask you to extrapolate the situation to its most likely progression.

 

It doesn't matter if you think it's an IRS rule or a law. Here is what happens.

 

You file the 1040. Whatever past liability you have that is concerning you -- that party can subpoena your past tax forms. This is standard procedure in any civil litigation. The existence of the accounts will then become known to that plaintiff. The maneuver will thus be unsuccessful.

 

If you lied on the 1040 form and committed perjury, and the plaintiff finds your account through any of hundreds of other ways (direct deposit to a foreign account from your employer whose records can be subpoenaed, or simply a subpoena of your own current bank records -- from which you presumably move money into the new account) then you face not only a plaintiff that has found your money, but also the IRS chasing you for perjury. You will have converted a possible monetary liability into both money confiscation and jail time.

 

Do not think you can fund the new account without leaving a record trail. The only way to do that is withdraw cash, hand carry it to the new bank, and deposit it. If that amount is over $10,000, you must report carrying monetary instruments out of the country. If you get caught, that would be yet another federal crime you will be tried for. Beyond that, do you really want to walk around carrying $10,000 cash? Why bother? If the amount in question is less than $100,000 it's probably not worth all this bother and risk anyway. So I will change the question, do you really want to be walking around with $100,000 in cash on you?

 

And let's add to all this the possibility that you move the money out of the US, and a judgment is declared by the court in favor of the people you are fleeing. The court says pay up. You say no, the money is overseas and you're not paying it. Well, you go to jail then. Contempt of court. If you try to do all this while having fled the country, then you can never come back. Ever. There is no statute of limitations on this. They will arrest you at the gate if you do.

 

Feel okay with that? Now imagine that the amount of money, or the anger of the court or plaintiff, is enough to freeze your passport. Come renewal time, then what?

Edited September 18, 2007 by Owen`

[Sammy 30]

I do my banking with HSBC in Singapore. However a good friend has recommended FBME. FBME. They are based in Cypress and have a good reputation for privacy and excellent internet banking.

[bridge 0]

Owen,

 

Relax man. You already have me convicted of tax invasion and forever barred from the U.S. Have a beer and get laid. I am just trying to open a bank account.

[Owen` 2]

My income is not taxable, as it will be below the the limits. However, I will always file a return as required, so the IRS may suspect I have an account offshore. Just in case anything was to come up from previous years in which I have had buinesses, some protection from the IRS would be helpful.

 

I am just trying to open a bank account.

 

Opening the account will be easy. Just be sure you fully report it to the IRS on your 1040. That's also easy.

[iono 0]

What about internet banking such as ING, they were promoting big time when I was in Udan Thani a few months back. They pay decent interest rates and are based solely on the internet? Just a thought.

[horizons 1]

Lloyds TSB, Isle of Man is good. Plenty of support. Good secure internet banking. ATM work well.

[jacko 8,813]

I am looking into an Alliance and Leicester account based in the IOM. Great interest rate (6.5%) Internet only. Certified copy of passport and a utility bill required.

 

 

 

Alliance and Leicester

Edited October 26, 2007 by jacko

[bart 0]

There is a lot of uncertainty in the western/global banking system at the moment. I'm an amateur with all this offshore business, so reading this on a financial advice website gave me the jitters bigtime:

 

"when you head offshore, such as to Guernsey, Jersey or the Isle of Man, you get nothing like the protection which you enjoy in the UK. Indeed, there is no depositor protection whatsoever in Guernsey and Jersey! In the Isle of Man, your money is covered by a scheme under the Banking Business (Compensation of Depositors) Regulation 1991. However, this protection is limited, as only three-quarters (75%) of the first £20,000 of savings with an institution is covered, so the maximum payout is £15,000."

[jacko 8,813]

Yes, very few offer 100% security. The only UK one may be National Savings, as they are guaranteed by the UK treasury. But doesn't he sleep with the taxman!

 

What is a man to do? Money under the mattress earns 0%.

Edited November 2, 2007 by jacko

[bart 0]

Yes, very few offer 100% security. The only UK one may be National Savings, as they are guaranteed by the UK treasury. But doesn't he sleep with the taxman!

In the wake of the Northern Rock debacle, deposits in UK based banks are now guaranteed by the government 100 percent up to £35,000 I believe.

 

And quite a few such banks now offer (or seem to offer!) in excess of 6 percent interest gross.

 

But, yes, it might depend on your relationship with the taxman and where you live/reside/are domiciled etc.

 

For tax purposes where are you, pray tell? (If you wanna!)

[jacko 8,813]

(bart)For tax purposes where are you, pray tell? (If you wanna!)

Well I guess I would like to be 'off the map'......but check my flag!