When we talk to potential clients about where they bank, most seem to think that the accounts that they use in their home country are all they require. But are they? Let’s take a look at the positives of international bank accounts.
Increased privacy: Since your money is outside your own country, it becomes invisible to information brokers and the prying eyes of most authorities. Even in countries lacking a bank secrecy law, financial privacy is generally respected to a far greater degree. Whilst Common Reporting Standards (CRS) and US FACTA have been agreed and signed up to, most international banking centres do not implement these declarations.
Being able to hold multiple currencies: If you’re being paid in a currency that is not your home currency, then you can have multiple currencies in a single account. There are also the advantages of being able to move or transfer money between these multi-currencies to hedge against the others you hold.
Asset protection: If authorities perform a domestic asset search to determine if you have recoverable assets, your international assets won’t show up. It’s also more difficult for the government in the country you live in to seize any assets you have internationally.
Tax, what tax? International bank accounts are generally located within tax-efficient jurisdictions, then there is no tax to pay on the money within the account. Unfortunately, with no tax also comes typically no (or virtually zero) interest figures on your money either! But there is not much in the USA, UK or Eurozone either, is there?
Global Banking Institutions: Instead of just having access to localised banks in your home country, you can access some of the world’s leading banks. HSBC, Standard Chartered, Standard Bank, BNP Paribas… to name just a few, all of which can offer international bank accounts in secure, highly regulated jurisdictions.
Repatriation: You can still use and run international accounts after you go back home, but moving money either out or in from other accounts will show up to the authorities. The best advice is to let the authorities know about the account(s) and declare the assets.
And with the above positives, there is always the flip side to consider.
Where to open the account: You must choose your international jurisdiction carefully. Whilst you may well be aware of how the banking industry operates in your own home nation and how it is regulated, the rules and regulations abroad differ massively. Also, some international centres are less stable than others.
Charges: It’s also important to look at the terms and conditions of an international bank account. Will you be charged higher fees if you fail to maintain a minimum balance, what are the fees and charges for the account and the services you may wish to utilise?
You cannot physically see anyone: It can be more difficult to resolve any issues that may arise with your account if you hold it internationally. This is because you cannot physically visit your branch and speak to someone in person. Most international banking providers utilise telephone, mobile app and internet banking services that are exceptional compared to local banks in your home country.
So, are international bank accounts easy to open?
Yes, very much so. The larger banks will offer online applications, and all have downloadable forms to complete and send to their head offices. You will be required to prove who you are and where you live, but these checks are standard across the banking industry as a whole.
Austen Morris Associates specialises in helping individuals reach their personal financial wealth targets, and there is no one investment option that fits everyone, which is why we like to sit down and talk to our potential clients about their own personal situations and see if we can be of benefit.
If you would like an introduction to Austen Morris Associates and how we can help with international banking options, then please do contact us, at https://austenmorris.com/contact-us/
From the desk of: Kirk Mcardle, Austen Morris Associates Associate Partner
