Offshore bank accounts are only for spies and criminals and money launderers -- Although no-one can claim that criminals don't use offshore bank accounts, their uses in this regard have been severely limited due to the MLAT treaty. In fact, many fortune 500 companies now bank offshore to protect their assets and to gain competitive tax advantages.

Offshore banking is too complex for the average person -- Nothing could be farther from the truth. All the complicated work is done by your offshore professional and only takes about a week to complete. Typically an offshore setup includes a bearer share corporation. The combination of a bearer share company and an offshore bank account is roughly equivalent to the old numbered swiss bank accounts of the past.

Only a rich person can afford an offshore asset protection setup -- This is totally false. The basic package, which is adequate for 90% of clients, costs less than $2000 US. The basic package includes an offshore bank account and a Panama bearer share corporation. It has proven time and again to be a very solid protection mechanism for our clients and is very useful for tax planning as well.

9/11 has weakened bank secrecy -- This is certainly true onshore! Even though pretty much all the offshore countries are now in the MLAT treaty, this has not weakened bank secrecy unless the matter is criminal in nature. Even at that the issue must a crime in both countries. In Panama, for example, tax evasion is not a crime. As such a MLAT request for information based on a tax evasion case would be flatly denied by the Panama government.

To open an offshore bank account you need to visit the country in question -- This is a falsehood. We open bank accounts regularly for our clients without ever seeing them. Everything is done by fedex, phone and fax.

The MLAT treaty has ruined the effectiveness of offshore jurisdictions -- This is true for any major criminals. Requests made through the MLAT treaty must be a crime in both countries (Tax evasion is not a crime in Panama for example.) The requesting country must show that it has strong evidence and is not on a fishing expedition. There is a great deal of flexibility in the treaty. The requesting country cannot force co-operation. If a country like Panama doesn't think the case has merit, they can keep asking for more documentation, or simply deny the request. Panama, for example, doesn't like co-operating on minor crimes.

Tax information is shared between most countries now -- It is true that many countries have entered into tax treaties, but other more reputable offshore jurisdictions have not. Panama, for example, has no tax treaties with anyone.

Its hard to manage a bank account offshore secretly. -- Today all the major banks allow you to do your banking online using encrypted communications. Offshore banks are no exception. Online banking a common feature of an offshore bank account. In fact, you can even send a bank wire using your offshore bank account. This is a service many onshore banks don't have.

A court can order me to bring back the money -- If you are in a lawsuit already, and you move the money offshore, you must be careful under what circumstances. This will be considered a fraudulent conveyance. If, however, you take the money offshore before a lawsuit starts, and say donate the money to an offshore foundation, the money is not legally yours anymore. The judge cannot force you do something illegal. If the money is not yours he cannot order you to go and get it!

Someone will be able to track the money to its offshore destination -- It is true that if you send a wire to an offshore bank their will be a trail. This is avoided by first wiring the money to another offshore bank usually in another offshore haven. For example, the money is wired to a bank account located in Belize and then wired again from Belize to Panama. Now someone would have to break Belize bank secrecy to even know what country the money is now in. This is very strong security.

I can use my offshore account do do the same things I do with on local personal bank account - This is true except for one feature. You cannot pay bills online in most offshore jurisdictions. Actually some banks have this feature but it will not apply to your local country. International bill payment is not offered by any bank I know of. Also this would likely not be a wise action anyway. Typically money kept offshore is not intended for day to day payments. Having said that, many offshore clients carry a bank card that they can use to withdraw cash anywhere in the world. Of course the bank card does not have their name on it or tie to them.

It is illegal to use an offshore bank account -- There is no doubt that you could use an offshore bank account to do something illegal, but opening up an offshore company and bank account is 100% legal. In fact many fortune 500 companies keep much of their assets safe in offshore countries.

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If you have property or have money that you don't want to lose to an angry spouse or a legal battle be sure to read more of Doug Snarder's teaching on the Offshore Banking Account and Offshore Asset Protection You can get a unique content version of this article.