subject: Offshore bank accounts & required documents [print this page] Offshore bank accounts & required documents
The requested documentation by offshore banks (passports, bank references, proof of source of funds, etc.) can appear to be a demanding experience if it is your first time around. But don't let that upset your applecart. Yes, there is logic to this seeming madness. Once you understand the process it can go quite smoothly.
Never forget, banks are in the business of opening accounts they need you.Normally, there are three basic requirements that the bank must have to open your account:Your Identity, Your Good Reputation, and Your Source of Funds.
YOUR IDENTITY:
Of course, from an international perspective, your passport is the best ID document to get the job done. If you desire to open accounts or invest offshore make sure your passport is valid and keep it updated.Some banks may even accept other documents like government-issued ID cards or driver's licenses.However -- get a passport be prepared!
If you want to impress your potential offshore banker good -- meet him in person in his offshore office.When using this approach simply show your passport, and the banker will make a bank-file copy and you can immediately get down to business.
Naturally, if you go the other way by mail -- the process can become a little more toilsome.Why?You will need a passport photocopy it will need to be certified as a genuine copy it must be mailed offshore received by the offshore bank, and then they must notify you whether everything is in order or not.
Though requirements between banks and countries may vary, public notaries are usually internationally accepted for certifying photocopies.Also, consulates, embassies, attorneys and officers of international financial centers may be accepted as official certifiers.When in doubt ask.
YOUR GOOD REPUTATION:
For proving your integrity a bank reference letter from your existing banker(s) is ideal. A straightforward example of a bank to bank reference letter can simple say:"Mr. and Mrs. Adams have been clients of our bank for "X" years and have always kept their accounts in good standing."Yes, keep it simple!Also, be aware, in some cases banks may refer to reference letters as "certificates."
Sometimes clients are concerned that their bank may hesitate when asked to issue references.Yes, this can happen, in that you don't know someone who personally works in the bank.Regardless, don't allow this be an issue.Why?You are only requesting a routine document that can be proven by your bank records, and you have the right to request and receive one.
Of course, some banks will be difficult to deal with the rotten apple in the barrel.However, don't be pushy, but mind your manners and stand your ground.Yes, they will issue you a bank reference letter.
Some countries have unique rules:example the UK states that reference letters must be requested by a hard copy letter via the mail. But banks in other countries such as Australia , Canada , most countries in Europe, USA and etc. will usually write bank reference letters on request, even when contacting them via telephone or email.
When in doubt about specific requirements it is always best to check with both your new bank and old bank. For example, can the reference letter be addressed "To Whom It May Concern" or must it be addressed to a specific bank.
Furthermore, it is good to know that some banks will accept bank references from professionals:accountants, lawyers, corporate service providers and etc. Such professionals can become very useful if a "To Whom It May Concern" reference is not acceptable, and you don't want the old bank to know where your new account will be opened. Whatever happens, don't fret about letters of reference--they are not a problem. When in doubt, talk to a financialprofessional for specific case-by-case advice.
YOUR SOURCE OF FUNDS:
This simply means where is the money is coming from.Of course, the logic behind this is for bankers to know they are not accepting laundered or ill-gotten gains.All they want is documentary proof that your funds are clean.Examples of acceptable documents are:inherited money or family trust documents,real estate sale contracts, business monetary withdrawal records, an employment contract showing your regular income, and etc.
Accordingly, the documents presented must equal the amount of money you are depositing. If you present documentation showing you earn $8,000 a month net, that's good, as long as your average bank balance will be under $35,000.The bank is looking for figures that make sense to them they cherish moderation.But, if a large sum is suddenly deposited into your account the bank's emergency light begins to blink!
Accordingly, if you do deposit a large sum of money good for you.But, being "wise as a serpent and gentle as a dove" you need to provide advanced documentation to the bank for this unusual deposit.For example, if you sold a million dollar property or you sold your business for cash, let the bank know immediately, thereby relieving the bank's pressure valve, and you will be destined for special bank treatment.
Now that your banking house is in order you can relax.You have satisfied the three major requirements that your bank needs.However, some banks will ask for proof of your residential address.Again, relax this is not a big deal.And, naturally, if you are opening a corporate account the bank will want to see the proper documents connecting you to the corporation.When this occurs it's best to let your offshore corporate service provider take care of this matter for you he's the expert.
Keep in mind:banks are in business of opening accounts and accepting deposits.Therefore, when in doubt about what specific documents are needed, or you are not able to supply the requested document(s), simply be straightforward and explain the situation.Normally, they will desire to do business with you and they will find a common sense solution that is agreeable to both parties.If not, bait your hook -- there are more fish in the stream.
In conclusion, this banking documentation process is not as troublesome as it is reported to be.And, if you decide to use an intermediary, the process even gets easier.Why?Normally the intermediary can give you more personal time than banks will give you, though the banks do charge for this service.Naturally, larger accounts get more considerationyes, money still talks.Many times, a short telephone call to an intermediary can help you put all your required documentation in order, and can provide you with the finished documents to sign.
By Jack Godwyn
Ref: REWRITE#1 Offshore Bank Accounts & Required Documents
