Flag 4: Offshore Banking

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Offshore Banking- Fourth Flag of Internationalization Strategy

This is part of our Pillar Content of Flag Theory where we detail how you can take a billionaires strategy for
internationalization (Flag Theory) and apply it to your life (for free) whether you have $10,000 or $10,000,000 The
strategy is comprised of 7 flags, and Offshore banking is the 4th flag.

Flag Theory Foundation

Flag 1: Second Passport

Flag 2: Tax Residency

Flag 3: Offshore Company

Flag 4: Offshore Banking

Flag 5: Physical Assets

Flag 6: Digital Security

Flag 7: Digital Assets

Depending on your individual citizenship and passport situation, you might have a much greater or lesser option for
offshore banking. Countries and individuals facing sanctions might have difficulty opening up an account in certain
jurisdictions. However, there are plenty of benefits to offshore banking for most nationalities. Here is a list:

List of the Best 102 Offshore Banks

Jurisdiction Bank Minimum Remotely

Jurisdiction Bank Minimum Remotely

Andorra Credit Andorra 100,000 EUR No

Antigua and Barbuda Antigua Overseas Bank 5,000 USD Yes

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 Jurisdiction Bank Minimum Remotely

Antigua and Barbuda Global Bank of Commerce 2,000 USD Yes

Antigua and Barbuda North International Bank 5,000 USD Yes

Anguilla National Bank of Anguilla PBT 1,000 USD Yes

Austria LGT Bank 350,000 EUR No

Austria MEINL Bank 5000 No

Austria Unicredit 100,000 EUR Yes

Bermuda Bermuda Commercial Bank 25,000 USD Yes

Bermuda Butterfield 2,500 USD Yes

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Showing 1 to 10 of 101 entries

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Continuing from the last two articles: where to form a company, and where to set up a merchant account we cover
another vital component of any business set up: a bank account. Much is already known and transparent about
traditional banking onshore. In this article, Ill attempt to demystify and explain the process, benefits and options for
offshore banking. If you are new here, you might check out The 6 Flags of Flag Theory.

What is an offshore bank account

An offshore bank account is a bank account that is off the shores of where you currently live. In other words, it is a
foreign bank account located in another country. Oftentimes it makes sense to setup this account in a different
country then where you have your offshore company flag. This is because when you hold the account in a different
country, it gives you additional redundancy, time and protection against a frivolous lawsuit.

Are offshore bank accounts legal?

Yes! International bank accounts are legal. There is nothing inherently illegal about owning an offshore account and
they are not shady or unprofessional in any way. Trillions of dollars are stored in offshore jurisdictions and they
remain an integral piece of international finance.

When Can Offshore Bank accounts cause a problem?

If you dont file the right forms to report the accounts. Oftentimes the beneficial owners of offshore bank accounts
create problems because they dont properly report the accounts, because they are trying to hide something.

Offshore banking is powerful, and thus it can be abused. You must make sure to file the correct forms with your
relevant government agencies. This is why a professional approach is always helpful.

Special Notes for Americans who own an offshore bank account. American taxpayers with a foreign financial
account must report all accounts every year using an FBAR form that your accountant can help you with. This form
is required f the total amount across all foreign accounts exceeds $10,000 USD equivalent in any year. Other forms
such as 5471 if you own shares in an offshore company and if the total amount is more than $50,000 then form
8938 also may apply. The main but you should check with an accountant for your unique situation. This is not tax

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advice, and should not be used to avoid taxes in any way.

Why open an offshore bank account

Currency risk
Sovereign risk
Asset seizure
Different investments
Ease of money transfer
Merchant Accounts

There are many reasons why an offshore bank account could be beneficial, not the least of which is to decrease
your sovereign risk. The country where you live now could look dramatically different or fall apart, the government
could institute exchange controls, meaning money cannot flow freely. Ask any Argentinian about the currency in their
country and youll hear all about so called capital controls.

Where can I open an offshore bank account

There are a number of different offshore jurisdictions which offer bank accounts. In order for a bank to call itself a
Bank and have Bank in its name there are a number of different requirements needed to be met.

Therefore, if the company comes from a reputable jursidcition you can be assured of capitalization or bonding
requirements. A bank with a class A license can trade with the public, and a bank with a class B. If in doubt, you
can check with the company government agency, who maintains the compliance for all of the banks in the country.

For instance if you were looking to set up a Bank account in St. Vincent and the Grenadines, and you wanted to do
due diligence, you could first make sure that bank has the proper licenses, by looking at the government registry like
this one.

How to open an offshore bank account

Introduction

It helps to a large extent, to have an introduction or pre-existing relationship with the bank where you are seeking to
procure an account. Bankers are by nature very risk averse and dont want to lose their fat salary by signing up a
high risk client which later turns into a nightmare.

Pass KYC

However, if you have an introduction and can tick all the proper boxes, there shouldnt be a problem to open the
account. Youve bypassed their internal controls, and the burden of proof has been met. This burden of proof always
included (at a minimum) AML:KYC requirements. [Anti-money laundering act, and Know Your Customer
requirements] Basically you need to meet 3 tests to pass KYC.

1. Proof of identity (easy when meet up in person, otherwise is a certified passport)

2. Proof of residency ( this is utility bill and should have your name and address)
3. Proof of wealth (letter from accountant or bank is best who can confirm your earnings).

These KYC standards are what banks do in order to satisfy thier regulatory compliance. Youll need to meet at least
these standards to open an account at most banks.
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Initial Deposit

After meeting the KYC requirements, youll likely be required to make an initial deposit into the bank. This can
sometimes be immediately withdrawn, other times it will have to remain in the account as an ongoing account
minimum.

Corporate Accounts

For a corporate account youll need to provide the following in addition to your proof of identity, residency and
wealth:

M&AA (your incorporation documents, memorandum and articles of association)

Certificate of incumbency apostilled (who are the shareholders, certified copy)
Certificate of good standing apostilled (are the government fees paid, certified copy)

Beneficial Owners

Be careful as many providers try to sneak this in for an additional fee. Youll be unable to open a bank account
without these documents, which show the true beneficial owners of the company. There will always have to be some
record of who is the rightful owner of the bank account.

Directors Resolution

Youll also need a directors resolution to open up a bank account, or power of attorney for whoever is indeed
opening the account.

Banking Signatories

Some time should be dedicated to thinking about who will be a signatory on the account, and for which amounts they
will be able to move money in and out of the accounts. If the account is to be a joint signature account different
banks have different technical abilities. Some, for instance, are far better at allowing for complicated signature
requirements.

Banks in Hong Kong and Singapore (which are ideal for corporate banking) tend to be better in this regard. Offshore
banks that are more for private individuals typically have less options when it comes to control of the company via
signature and less robust online banking.

Americans
There are many places around the world that will open a bank for you if you actually live there, have a work permit
and other necessary documents. However, particularly in terms of offshore banks, and those with remote account
opening your choices are rather limited.

Americans Being Shut out of Offshore Banks?

This is largely due to FATCA the foreign account tax compliance regulations, part of the HIRE act which has
been pushed back and is due to come into effect this month. FATCA requires that banks report back to the IRS on all
of their accounts (if they accept any US clients) or simply refuse US accounts all together. The penalty for non-
compliance is a 30% withholding tax when utilizing the US banking system. For Americans.

FATCA (foreign account tax compliance act) has been fully implemented and well over 70,000 banks have complied.

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You can look up any bank or FFI on the IRS website using a tool on their website. It is likely that any of these banks
still accept US clients since they are going through the hassles of being an FFI compliant with the IRS.

In 2016, there are still many banks that take on American clients. There are additional forms which are required on
the banks behalf, but as a consumer you wont notice much of a difference (perhaps you will also need to file form
8938 but your accountant can easily assist you with this.)

Here is a shortlist of my favorite banks that still accept American clients:

1. SAI Bank in Curacao, this is one of the best options, but they do not have cards. Remote account opening.
2. BES Portugal or Luxembourg, if this will be Nevis LLC, opening will take about one month after bank
receives hard copies of the documents. Remote account opening.
3. GBC in Antigua and Barbuda, opening might take up to one month. Remote account opening.
4. Andbank in Monaco, also one the best options, but min. required deposit is 500k+. Meeting with the bank
rep. required.
5. BPA in Andorra or Panama , also good option, but deposit of about 500k is required and balance has to be
about 100k, meeting with the bank rep. is required.

Oftentimes it helps greatly to have an introduction as an American as banks are increasingly suspicious of
Americans opening an account. You need to know how to answer their questions in order to get them to accept your
business. We would be happy to assist you with the provision of an international bank account, and we can also
introduce you to a qualified, licensed CPA in our network who can help you remain in compliance with the IRS.

Im not American
This list may be overwhelming to some, where do you start?

I would recommend starting with Euro Pacific Bank, which is an offshore bank which allows for normal traditional
offshore bank accounts but also provides a dedicated banker for each account.

Another very interesting product they offer is a Gold backed debit card.

This is essentially a gold account, where each time you swipe your card, a % of your holding (equal to the spot rate
at gold) will be deducted from your account to pay for the item.

If you are here, reading this, you probably dont need me to reiterate the power of gold. Want to know how you can
open up an offshore account backed by gold today?

Ive talked about it at length including my gold mining stock picks, 5 rules for buying gold, a Guide to Gold, and an
explanation of a gold backed debit card, and how to move gold overseas.

If you cant already tell, Im a huge proponent of the shiny metal luster. Why?

Gold is a hedge against an unsafe and fragile monetary system. Gold is a boring but safe investment, and it
makes perfect sense to keep a portion of your portfolio allocated to gold in some form.

The worlds oldest store of money

Inherently valuable
A commodity (giving it greater value due to its use in wire and cable)

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 Decorative (giving it greater value due to its use as jewelry)
A economic store of value (giving it greater value due to its reserve status for central banks)
Scarce (you cannot conjure gold out of thin air)
Growing demand in emerging economies (gold has tremendous value in countries such as India and China)
Exchangeable (any where in the world, it can be bought or sold for the same value as the spot price on
worldwide markets)
Fungible (it can be broken down into smaller parts through smelting)

The main problem with gold is was that it lacked the liquidity of paper money or credit cards, until now

I know that readers of Flag Theory are predominantly permanent travelers, and when traveling its difficult to store
and bring gold. It also is difficult, unsafe or even illegal to carry a large amount of gold across borders, unless you
have a gold backed debit card that is

How it works: you open up a regular bank account at the offshore bank. This functions the same as any other
bank. There is no cost to open an account. From there, you can look at the different products they have one of
which is a gold backed debit card. essentially, an allocated gold account in your name will be stored in a vault in
Australia, and every time you use the card an amount of gold equal to your purchases for the month will be
deducted from your account at the current spot price. Or you can simply hold on the card and not spend
anything, in which case youll have the gold, but be able to immediately liquidate the account if need be.

Professional Offshore Bank Account Opening

Choose from our popular offshore banking jurisdictions and open an account that is suited to your personal,
business or investment needs.

-Open a Bank Account-

This is a fantastic opportunity to keep your money in an appreciating

asset AND retain the liquidity of fiat currency by using a credit card.

All the best aspects of owning physical gold backed by the conveniences
of a credit card you can carry in your wallet.

Euro Pacific bank is located in the Caribbean Island nation of St.

Vincent and the Grenadines. They have notable privacy policies that
restrict the sharing of information. However, they are not FACTA
compliant and absolutely do not take on US clients. Persons from most
other countries of the world can apply, however. Chances are you
should be able to apply and be accepted for a gold backed debit
card.

There is no fee to open the account, and a private banker can explain to you the full process in detail. Click here to
read more (opens new tab)

Does this excite you? Get even more information about offshore bank accounts below

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