Having an offshore bank account is a must for any family office, high net worth individual, and, in fact, for any mid-level investor.
However, the OECD and the EU have doubled down their fight against financial freedom and against offshore banking. CRS and AOEI are just two examples of this.
That’s the main reason why KYC requirements for offshore banks have grown enormously. The golden days of offshore banking when you could open a bank account in a couple of days and filling out a few forms are unfortunately over.
That doesn’t mean you can’t do it nor that it isn’t worth it. Precisely due to this crackdown, it’s vital to have an offshore account.
What are the KYC requirements for offshore bank accounts?
It varies from jurisdiction to jurisdiction. In general terms, they have grown, but they depend on various affairs. It depends if you’re opening your account remotely, it varies if you’re looking for a corporate or personal bank account, and it depends on your nationality. If you’re American, certain offshore banks will charge an additional fee (thanks FATCA for that) or will not open an account and being Venezuelan blacklists you immediately in some jurisdictions.
However, even if they vary, you can break down KYC into three parts:
● Who you are: You need an ID, especially a passport, and proof of residence. If you’re opening the account in person, this is easy because you just need to show your passport, and the bank officer will take a copy. If you’re opening remotely, you will need to have your copy certified as true copy, or, in other words, notarized. If we handle the process, we’ll help you with this.
● Reference letter: In this part, you will generally be required a reference letter from another of your bankers that says you’re in good standing. In certain cases, you may be asked, additionally, for professional references, such as from a lawyer or accountant. In other cases, the professional reference can substitute the banking reference.
● Source of funds: This is the stringiest part. You need to prove where the money comes from. With this, the banker is sure that he is not accepting laundered or irregular money. You can prove the source through contracts for the sale of property, shares, products, inheritance documents, family trust documents, business ownership documents, or employment documents. The document must match the amount you’re depositing.
● The principle with corporate accounts is basically the same: Identity and address of all UBO, main shareholders, directors, etc., corporate documents (Articles of association, business plan in some cases); references, and source of funds (invoices, contracts, etc.).
Where to go?
Some jurisdictions like Belize are relatively simple. And we can help you open a bank account remotely in the best offshore bank of Belize.
Panama is particularly known for being a jurisdiction that will make you fill out a mountain of forms and paperwork. However, it’s still a much sought-after jurisdiction, and we can also help you open an account remotely.
And there are many options somewhere in the middle, like the Cayman Islands. If you like to think outside the box and maybe stretch the concept of “offshore” a bit, Georgia is the way to go. You can open an account remotely in less than ten days. And, as usual, we can help you.
The KYC requirements for offshore banks can be difficult to navigate, but you cannot let them become an impediment towards your financial freedom. As long as you are a reputable person with a legal business and source of funds, there will always be a way to prove this. Contact us right now, and let us help you open an offshore bank account!
