Is it illegal to keep Offshore Bank accounts?

Is keeping Offshore Bank Accounts Illegal?

Offshore accounts and offshore banking are not illegal. In reality, as they move overseas, many foreign executive professionals open offshore accounts, as these accounts provide easy access to funds anywhere in the world. Additionally, holding funds in an offshore bank account can be safer for those who live in poor financially regulated countries, or where capital controls or poor governance may exist.

Offshore banks are expected to carry out the due diligence of Know Your Client to track all transactions. The process of opening a simple offshore bank account can be easy for those who can keep funds offshore, i.e. outside their current country of residence.

Stability is one of the key benefits of holding an international investment in the United States, Switzerland, and other developed nations. Citizens living in nations with political and economic instability are afraid that their money and lives may be in danger.

Offshore bank accounts provide further incentives for account holders to invest abroad and act as currency protection against a potential fall in their home currency.