Right now, in the time of the COVID-19 pandemic that has spread around the world, asset holders are looking for smart protection strategies, and offshore banking promises a viable alternative. Although the offshore system is almost always a target by the media as being affiliated with money laundering, tax evasion, and other financial crimes, this is simply not the truth for the vast majority of transactions conducted offshore.
Swiss Banking is Evil (or Not?)
While many people think that the Swiss bank account is the holy grail of hiding finances, this is not true. Swiss banks excel in maintaining high level of service to their clients, while making sure that banking operations are upheld at the highest standard of governance. This is one of many reasons why, despite the pandemic, they continue to thrive.
Of course, such services are available to everyone. And due to the service quality and private nature of the banking activities, the list of clients might include questionable individuals and organizations. You cannot blame Switzerland for running a fundamentally sound banking system.
Moreover, if you think that Swiss banks deserve the bad publication, you should think again, because there is one jurisdiction that's more secretive than Switzerland: The United States. In fact, the United States is ranked higher in secrecy in terms of offshore banking versus Switzerland.
The United States is the second most secretive jurisdiction in the entire world. Altogether, secretive jurisdictions like the United States are estimated to hold upwards of $32 trillion in private wealth. The United States isn’t a part of AEoI or CRS, which means that outside investors don’t have to worry about reporting requirements, but they do make their own citizens report their offshore assets. This seems to be an unfair situation for many United States residents who are looking to protect their assets abroad, and that’s not entirely wrong.
So, Is it Safe to Bank Offshore?
The good news is that if you are participating in offshore banking legally - meaning you are not looking for a way to escape taxes or launder money - then you don’t have much to worry about.
Offshore banking isn’t the problem it has been made out to be. Instead, offshore banking is a solution to the poor handling of the pandemic that’s been demonstrated by some of the biggest countries. This poor management of the pandemic has destroyed economies around the world and put life savings and other investments into a precarious situation.
How to Pandemic-proof your Assets - Offshore
Right now, during the COVID-19 pandemic, offshore jurisdiction offers a way to hedge against the poor state of many global economies. If your domestic economy is performing poorly, then you might be afraid of what will happen next. This is a valid concern and must be considered.
While there are many ways to safely diversify, there are few ways that are as secure as taking your wealth management strategy offshore. Other ways to diversify right now might include withdrawing huge sums of money and using different investing strategies, but are these really safe right now?
If you are wondering what you can do to pandemic-proof your assets, the good news is that it can be done. It will take some groundwork, though.
Define your Strategy
The first thing to do is to consider what your asset management strategies are. If you are looking for a solid long-term investment option and a way to pandemic-proof your assets, then taking your assets offshore could be a contender. Also, if you are looking for a way to potentially reduce your taxes, then you might find that taking your assets offshore is a great way to bring your tax liability down a bit.
If you are worried about privacy, then you could find that offshore banking helps in that arena, too.
No More Account Hiding
Here’s the thing: offshore banking is no longer about secrecy.
More and more governments are requiring that their citizens report their assets distributed globally, as in the case of the United States, and many governments are aligning with initiatives such as AEoI and CRS to ensure that assets are properly reported.
If you want total privacy, you would have to find a jurisdiction that didn’t do these things. Of course, that’s a matter of personal preference and determining what your goals are. If you go that route and seek a jurisdiction that offers more privacy, then you’ll have to be sure you are banking in a reputable jurisdiction. Banking in the wrong jurisdiction can put all of your hard work in jeopardy.
If you want to get the most from your asset management strategy, then you should be sure that you are banking in a safe offshore destination.
Takeaway
COVID-19 has changed the financial industry forever, including heralding in a new age of financial technology. This is helping to make offshore banking safer and more convenient than ever. Once upon a time, you had to stand in the offshore bank where you wanted to invest, but now, you can open an account online and begin transactions without ever having to visit the country where you open your offshore bank account.
If you have ever considered offshore banking, now is the time. It’s easier, safer, and more convenient than ever, and in the face of the pandemic, the timing couldn’t be better.
NOV
2020
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