Overseas banking or Offshore banking is much like regular banking, but the fundamental difference is that you can build and operate this kind of account from all over the world. This word is also associated with multinational banks, companies, and investments. There are some big countries, the UK, the USA, Switzerland, and some less popular countries like Mauritius & Cyprus that have been suitable for Overseas banking.
Nowadays Overseas banking has become very popular and hassle-free with all the online services from the comfort of your home. Overseas banking is often confused with being wealthy or needing a massive amount of money, but it's just like your daily banking in foreign countries.
Overseas banking is often considered a negative practice as it is often correlated with money laundering, tax dodging, and the use of money for nefarious activities, but if the following points are retained, this practice is completely legitimate:
- When you spend a decent amount of time in that country - It's quite clear that if you never spend any time in that country or if you don't even visit that country, you're going to gather some suspicion. As people who open accounts for negative activities at foreign banks never visit that country.
- If you have a business in that country - It's really important to have some income stream in the nation where you want to open a bank account.
Requirements for Overseas bank accounts:
The requirements for opening a bank account overseas are simple and just like your daily banking. Opening an overseas bank account needs your personal information including your name, birth date, citizenship, address, and occupation.
Verification of the documents submitted is very crucial and for this, you must submit documents approved by your government such as a driving license, passport, or some other document verified by the government. The bank will also verify your address, as it plays a key role in making tax records that can be checked by providing any kind of utility bills such as water, electricity, or similar utility service registered at your address.
Also, in order to open bank accounts in some countries like the UK & the USA, you are required to hire a nominee director in your company from these countries.
Document verification plays a major role in creating a bank account overseas as it discourages money laundering, tax evasion, and bank account malpractice. It's very essential to provide genuine documents to the bank. If the bank suspects that the documents you have provided are not genuine then it will be considered a crime and that person will have to face the law according to that nation.