With the advent of the internet and online services gone are the days when a prospective applicant needs to visit a bank in an offshore jurisdiction to open an account there. Clients can visit websites and with a few clicks gain access to all of the required services needed to create an offshore bank account with absolute privacy.

Three basic steps have to be completed, in order to open an offshore bank account:

1. Find a suitable Offshore Bank or Banking Service Provider

This step is of course the hardest part of the process as there are many variables to consider. Is the offshore jurisdiction stable, are the banking secrecy laws strong, how much is the vendor charging for an account, what are the fees one can expect to incur operating an account among others.

To make your research easier a favorite technique is to prepare a comparison chart of costs and benefits associated with offshore banks and offshore service providers as a guide. A spreadsheet can be set up in minutes using the rows to list the features / benefits and columns to list the various banks and companies providing offshore banking services.

Figuring out the Costs

If you are satisfied with basic features and benefits, your best bet is to pick a vendor which will cost you less.

Reliability / Stability

In order to ensure your assets are protected properly one needs to investigate the banking laws governing the jurisdiction where you have identified suitable offshore banking services based on your initial benefit analysis.

Offshore banks that are in business in a stable jurisdiction are preferable. Besides, the economical and political stability conditions of the country in which the bank is located help determine the stability of the bank and whether it is trustworthy to investors.

Not every offshore bank account is created equally. Many offshore jurisdictions have made drastic changes to their banking secrecy laws in the post 9/11 world. While many banks claim to respect your privacy they will turn over your details to authorities who ask for it.

Benefits of Offshore Bank Accounts

Research the local interest rates that banks in the jurisdiction you are interested in offer on deposits. Many will offer better rates than the banks in your own country in addition to the privacy and secrecy benefits they offer.

Consult an Expert

It can save you a lot of money in the long run to enlist the services of an offshore banking expert. The experience they have as well as the relationships they have built with local companies can go a long way to making the offshore banking selection process easier.

2. Understanding the Bank's Requirements

Understanding what is required of you by the offshore banking institution can provide you with valuable clues as to how protected you will be in that jurisdiction. Some of the requirements common to many offshore destinations are listed below;

a. Identity proof - Name, Address, Contact information, Passport#.

b) Stable Country of Origin - some offshore jurisdictions will not accept applicants from countries that are politically unstable or corrupt.

c) Minimum Balance - Many offshore banks require that a specific minimum balance be maintained in the account. Some also require that you make a term deposit.

3. Apply for the Account

Before applying for an account make sure you have all of the requirements fulfilled and the necessary funds to pay for the account setup, lawyer / intermediary fees, minimum balance deposit and money to support the ongoing account costs. By now you should have narrowed the field of choice down to a jurisdiction and a bank account vendor.

Finance Products on our marketplace

Find out more about offshore bank accounts at OffshoreLegal.org of Panama.