Anonymous cards for settlements abroad are a beneficial alternative to standard banking products. But, many people wonder about the level of privacy of such offshore prepaid cards. Do financial institutions share owner and transaction data as part of the CRS automatic information exchange?
We will try to understand the level of anonymity of prepaid offshore cards. First, we will consider Union Pay cards, which today have received worldwide recognition and are available to citizens of many countries.
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Pros and cons of offshore prepaid cards
Why are people increasingly using prepaid offshore cards that are unnamed (anonymous)? This is primarily due to the coverage of a large number of countries for customer service and, secondly, due to product availability and confidentiality.
Pros and cons of prepaid cards you should be aware of:
- You can withdraw money in any currency due to the built-in conversion at the bank’s rate and make payments in more than 160 countries worldwide.
- Transactions outside the domestic country of the offshore card issuing bank may be charged, but these costs cover the owner’s anonymity, whose name is not indicated on the card.
- The Union Pay prepaid card is not subject to the CRS exchange of financial information. The cardholder’s data is stored in the servicing bank and may be disclosed in exceptional cases at the request of the inspection authorities
- An offshore card will be a convenient wallet for short-term settlements within the established limit (per day, month, or even hour) but will not be suitable for storing large amounts of money and protecting assets. For these purposes, it is much more profitable to open an account abroad by contacting our specialists.
Our experts will tell you how to protect your assets in the best possible way. We offer a range of services, including opening foreign bank accounts and asset protection through trusts, funds, and investment products.
Which offshore cards transmit information under the CRS
The essence of the automatic exchange of financial information lies not in the conditions of banks but in the Agreement that countries have concluded. If the state has signed such a document, information on all types of accounts will be transferred under the CRS, regardless of the type of financial institution. This also applies to cards, payment systems, and trust accounts.
Our customers often ask questions about transferring data on offshore prepaid cards, as it has a double perception.
On the one hand, an anonymous card does not have the holder’s name and is usually limited in the volume of transactions and the foreign exchange reserve. At the same time, clients do not transfer the TIN to the bank when issuing such a card, primarily required to identify the taxpayer in the country of residence.
On the other hand, if the bank is located in a country that has a CRS financial information exchange agreement, then the data will be transferred to the tax authorities in any case. To be sure that your card does not fall under the tax authorities’ control, you should check if the country of the issuing bank servicing your offshore card has such an agreement. The easiest way is to ask our experts for assistance in issuing an offshore card and save yourself from any hassle.
Important! We offer to open a UnionPay prepaid offshore card, which does not fall under CRS standards and guarantees confidentiality for all transactions.
Non-CRS countries that do not exchange tax information
The OECD lists several dozen countries that have not yet joined the CRS. When opening an account in these jurisdictions, your financial information will not be automatically transferred.
Among these countries are:
- Armenia, where you can freely open a bank account and register a business.
- Dominican Republic, which is known for its favorable policy on offshore companies. Many migrants from America and Canada choose this state for obtaining a residence permit and business migration.
- Georgia plans to join the CRS countries in 2024, but so far, this has not happened. At the same time, many economic observers call Georgia the most affordable option for opening a bank account.
- Paraguay is an attractive option for foreign investors who can take advantage of the affordable program for obtaining a residence permit and open a bank account or make payments using a prepaid card.
- Philippines is the headquarter of UnionPay prepaid offshore cards. Due to the absence of this country in the CRS list of countries for the exchange of financial information, a prepaid anonymous card will allow clients to legally remain out of sight of the tax authorities and regulators of their residence country. However, the Philippines is very friendly with the United States, and the banks are fully FATCA compliant.
- USA is a country that has introduced the concept of a one-way exchange of bank information with FATCA but is not a member of the CRS. However, the United States does exchange information, but on its own terms.
Where to open a prepaid offshore card without CRS reporting
We offer the most advantageous option for issuing a UnionPay prepaid offshore card headquartered in a country that does not exchange information under the CRS. This is the Philippines mentioned earlier.
To get it, it is enough to contact our experts and provide only two documents for issuing a prepaid offshore card:
- passport copy
- proof of residence.
Nowadays, this is the best option for people who plan to pay for goods and services abroad in different currencies. The geography of the offshore card coverage includes more than 160 states.
For further consultation, contact us in any convenient way and get an answer as soon as possible!