Choosing to go offshore is a decision that requires much research and contemplation. But worrying over the legality of it is not something that should be an issue.
Initially offshore business formation was a simple process which required very little in the form of verification or paperwork. Unfortunately, criminals took advantage of this fact, twisting the beneficial process into one that fit their needs – and concealed their identity and actions. Those involved in money laundering were able to hide the details of their bank transactions, and thereby hide from the law.
Changes were made to offshore banking to help stop those involved in illegal activities. It is no longer possible to conceal any electronic money transaction – be it bank to bank transfer or credit or debit card transfer. It is also no longer possible to conceal your identity behind an offshore business if that company has an offshore bank account. These changes were made to prevent illegal activities and allow legitimate investors to continue with business as usual.
Offshore banking has become increasingly popular, especially as investors attempt to protect their investments in a global atmosphere of unstable economies. Offshore banking provides a security and flexibility that is unavailable in homeland banking.
When choosing an offshore bank, one should talk to a knowledgeable agent to prevent making costly mistakes. Offshore banks are accountable to government regulations. Therefore, choosing a jurisdiction that fits your needs is especially important. The offshore bank itself should fit your banking requirements. Some offshore banking centers are larger than others and each is different. Qualified agents will know which one will be the best option for meeting your particular situation.
Unless your purpose is money laundering, tax evasion, or financing criminal activity, offshore banking is completely legal and actually quite popular. Today’s offshore banking centers require proper proof of the company’s existence and the account holder’s identity.