The only drawback seeing that seen by individuals is how much cash required to open a forex account, which is mostly for the higher side. Although, the deposit amount varies from bank to standard bank and country to nation. Offshore banking is not only an option or option, it is the fastest and the most popular investment tools in the world today.
OK, so you've decided to open a account. You have done pursuit and have found many banking 'possibilities. ' They look fine to you, and you appear for being acceptable to them. With that first milestone over, you need to apply even more selection criteria. When choosing an ocean going bank, there are two main factors you must consider (besides of training course privacy and confidentiality)
- Stability - is it a well established, solvent bank?
- Quality of Program - are they fast and efficient
Due diligence and KYB ("Know Your Banker") is vital. There's no point in jumping outside the frying pan into the fire.
There is no reason just to save your hard-earned cash from a taxman or avaricious ex-spouse, only to have it disappear right virtual black hole when your offshore bank closes it is doors. Neither do you would like your investment manager to churn away your money on "hot" deals which never pan out, but that bring him or her fat commissions.
These days with the web, it is relatively easy for anyone to create a bank. You need a permission, but jurisdictions you seldom knew existed, like Montenegro or Somalia, will for a charge, provide all comers having a valid government-issued banking permit. Try to avoid checking in these high-risk parts as they attract far too many con artists and dreamers. Before investing any funds, make sure the bank you are investing in is operate by professional bankers rather than by some Eastern American teenager with good net programming and design skills, who just decided last month that it would be profitable to be a bank president!
Most offshore financial houses seem solid until they collapse unexpectedly. The Marc Harris Operation in Panama attracted a lot of clients. Marc Harris is currently serving a protracted jail sentence in California. Swedish-run Bank Crozier connected with Grenada and St Lucia in addition seemed highly professional. Paritate Bank in Latvia impressed many men and women with innovative products, flexibility and good customer service. Now they are all defunct. They all sank, taking with them the clients' money. (Actually Paritate is back ready to go again, but the old investors never did manage to get their money back).
Another thing to consider when reviewing web sites of banks in unique locales: Any bank anywhere that appeals to shady characters will possibly be (sooner, rather than later) turn off by regulators. You don't want your hard earned money to get mixed up such ugly messes. So stay away through banks that explicitly encourage one to hide your money.
It is almost unheard of for big banks in civilized, well-regulated first world personal centers like Luxembourg, to be corrupt completely. But, of course, even the unlikely can happen! That is exactly what did happen not too many years ago while using the Bank of Credit and Commerce International (BCCI) which was registered in england and Luxembourg.