Offshore banking is opening a bank account in a country that is outside of one's home country. For example, if a U.S. citizen/resident opens a bank account at any bank outside of the U.S., that person is now engaged in "offshore banking". If a citizen/resident of the United Kingdom opens a bank account in Germany or in the U.S., that person has opened an offshore bank account.

However, the term "offshore banking" is normally used in a more specific manner than the broad definition given above. Opening an offshore bank account typically refers to opening a bank account in a tax haven (offshore jurisdiction, international financial center) country. A tax haven country will not levy any taxes on interest or capital gains earned by the account holder and also has secrecy/privacy laws that ensure the confidentiality of the bank account owner and related transactions. For a more detailed explanation of a tax haven go to What is a Tax Haven.

Offshore banking is very safe as long as accounts are opened with reputable, well-known and well-capitalized international banks. HFS can recommend established, internationally-recognized banks that have been in existence for over 150 years, have billions (or more) in assets and have proven themselves to be service oriented. View the list of banks we refer clients to here.

HFS does not recommend banking with any offshore bank that is located in an unstable country, does not release its financial statements or does not have a physical presence in the country where it operates.

1. Choose an account from the list of banks on our website and place an order. The list can be found on the Services and Fees page. You may place the order online, or you may Contact Us and place an order over the phone, or you may download the Printable Order Form and send it to HFS by mail.

2. When HFS receives an order for an account, we will assemble the application and send it to you. The application comes with instructions and will need to be completed, signed and returned to HFS. The application is highlighted in each place that needs to be filled in (e.g. with the client's address) or signed. When we receive the completed application back from a client, we will review the application and then forward it to the offshore bank. The offshore bank will then open the account and send the account number and wiring instructions to the client.

3. Once the account has been opened, you may make the initial deposit via wire transfer or check. Once the MONEY is in your offshore account, you may then withdraw it using a debit card, wire transfer or checks.

The minimum deposit requirement to open an offshore bank account varies by bank and can be as low as $500. There are some offshore banks that require $1M or more to open an account. However, most offshore banks, including large, reputable, multi-national banks have minimum deposit requirements between $1,000 and $2,500.

The banks that HFS refers clients to and the deposit requirement for each bank are listed on the Services and Fees page.

Yes, once the offshore bank account is opened and funded you will receive a debit card or secured CREDIT CARD linked to the account. Many offshore banks also issue check books. However, international checks take 1 to 2 months to clear and thus may not be practical in many situations.

Yes. Offshore bank accounts can receive wire transfers from virtually anywhere in the world. Wire transfers can also be sent from the offshore account to nearly any international location. Most offshore banks allow clients to submit an outgoing wire transfer request through online banking.

Yes. Virtually all offshore banks have complete online banking services. Online banking through an offshore bank allows a client to check the account balance, send wire transfers, exchange funds in the account into a different currency, etc.

You do. The client is in complete and total control of all accounts at all times. You will be the only signer on the account and therefore no one but you will have any knowledge or control of the account. No other parties will ever have access or control of your offshore account.

HFS recommends that clients open offshore accounts in the name of an offshore corporation, rather than in their personal name. There are two specific reasons for this:

1. Opening a personal bank account offshore will provide a moderate level of additional privacy and safety. However, because a personal account is opened in the name of the client, any transactions (wire transfers, debit card purchases, checks, etc.) conducted with the account will be in the client's own name. This may very well negate any privacy gained by opening an account in an offshore tax haven country. And a personal offshore account will not give the client any asset protection advantages. For an explanation of how going offshore helps protect assets see How does going offshore help me protect my assets?.

2. Opening an offshore bank account in the name of an offshore corporation (also known as an International Business Corporation or IBC) allows the client to conduct all banking transactions (wire transfers, checks, etc.) in the name of a private offshore company, rather than his/her own personal name. This provides a significant level of privacy to the client that cannot be obtained with a personal offshore bank account. There are many other benefits to owning an offshore company. The client may make INVESTMENTS in the name of the offshore company, purchase real estate and vehicles in the company's name and carry out business transactions in the company's name. There are also asset protection advantages to owning an offshore company: see How does going offshore help me protect my assets?. Given these considerations, HFS recommends opening offshore bank accounts in the name of an offshore corporation, rather than opening a personal account offshore.

Offshore accounts (personal and corporate) may be opened in any of the following currencies:

USD (United States Dollars)
GBP (Pounds Sterling)
EUR (Euro's)
CHF (Swiss Francs)
JPY (Japanese Yen)
ZAR (South African Rand)
AUD (Australian Dollars)
CAD (Canadian Dollars)

Not all banks offer accounts in all of the above currencies. Please see our list of banks at Services and Fees for information on which banks offer accounts in specific currencies. As a general rule, all offshore banks offer accounts in USD, EUR and GBP.

Yes. Offshore banks generally allow account holders (personal and corporate) to hold up to three currencies simultaneously in an account. For example, an account may have ten thousand U.S. Dollars (USD 10,000), five thousand Euro's (EUR 5,000) and eight thousand Pounds Sterling (GBP 8,000) at the same time.

Wire transfers may be sent or received from an offshore bank account in any currency allowed by the bank. For example, the above account could receive a wire transfer in Euro's. This would be added to the existing Euro's in the account. The account holder could also send a wire transfer in Pounds Sterling and the amount of the wire transfer would be subtracted from the existing Pounds Sterling balance.

Yes. An offshore account (personal or corporate) can be opened with 1, 2 or 3 signers. A husband and wife or multiple business partners may sign jointly on an offshore account.

A personal offshore account typically takes 2-3 weeks to establish once HFS has received an order.

Forming a new offshore corporation takes 1-2 weeks. Setting up the new corporate account takes 2-3 weeks once the company has been established. Accordingly, the total turnaround time for establishing a new offshore company and an account is 4-6 weeks. This time frame can be shortened by paying a rush fee or purchasing a "shelf company" - a company that has already been formed and is available for immediate purchase. The process for forming an offshore structure and opening offshore accounts is explained in detail at How It Works.

** Please note: There are services that claim to open offshore accounts in days. Some offshore banks even claim on their websites that they open accounts in very short periods of time (1-2 days). However, this is simply, unequivocally not true. Offshore banks, once they receive an application nearly always take 1-2 weeks, or more, to open an account. This has been the case for many years and is consistent regardless of the bank or the location of the bank. The only exceptions to this are banks that require the client to make a personal appearance at the bank in order to open an account; they can open accounts quickly. But most clients prefer not to incur the expense (not to mention the time and hassle!) of traveling. Opening a new bank account at a reputable offshore bank takes time. Unfortunately, there is no way around this.

No. Not all offshore banks require references to open an account. One of the oldest, largest banks in the world will open an offshore account without any references - they do not require a bank or attorney reference. Please contact HFS and we will be happy to discuss banking options with you.

To open an offshore account, the signer on the account will need to provide at least three items:

1. A copy of a driver's license or passport
2. A copy of a utility bill
3. A copy of a document that indicates how the client earns the funds that will be sent to the offshore bank account (bank statement, pay stubs, work contract, etc.)

Some offshore banks also require a reference letter from a bank and an attorney or accountant. However, it is possible to open an offshore account at one of the oldest, largest banks in the world without having to provide any references. Please contact HFS and we will be happy to discuss banking options with you.

The initial deposit into the bank account should be sent to the bank AFTER the account is opened. In countries such as the U.S., an individual may walk into a bank and open an account. The initial deposit is made at the same time as the account is opened. The process for funding an offshore bank account is different. Offshore, a bank will open an account with a $0 (zero) balance after receiving the account application. The bank will send the account number and wiring instructions to the client via email, fax or mail. Once the client receives the account number he/she then has approximately 30 days to make the initial deposit into the new account.

There are many ways to bring MONEY back from an offshore account:

1. MONEY may be wired directly from an offshore account into a domestic account.

2. The client may write a check from the offshore account or have the bank issue a Cashier's Check.

3. Offshore banks and brokerages issue Visa/MasterCard debit cards and secured CREDIT CARDS to account holders. These cards may be used to make purchases from merchants or to withdraw cash from an ATM.

4. An offshore company (IBC) or offshore trust may purchase real estate, cars, businesses, etc. Typically, the founder/client acts as an agent of the IBC or trust to purchase assets on its behalf. By this means, assets are held under a corporate or trust name, thus protecting the client's privacy.

5. The client may borrow funds from the corporation or trust. The IBC or trust is a separate legal entity from an individual and may make loans to individuals or other entities.