How to Identify Top Offshore Banks: Expert Tips

In countries with stringent economic regulations, offshore banks are often seen as facilitating aggressive tax planning schemes and money laundering. However, there is a growing belief that offshore banking services are solely for “gray” businesses and affluent individuals who seek to conceal their income from tax authorities. Yet, is this perception accurate, and do offshore banks and personal or corporate accounts in tax-free jurisdictions still have a place in the digital economy of the 21st century? 

While offshore banks may be utilized for questionable purposes, such usage is becoming increasingly untenable in light of stricter regulations and the ongoing fight against “gray” financial flows. As such, the continued relevance of offshore banking remains uncertain.

An offshore bank account can be a useful tool for legal purposes. In such cases, clients can access a full range of quality and affordable services, backed by the reputation of the financial institution. As long as the offshore bank adheres to current regulatory requirements, its clients should not encounter any issues.

Below, laws and principles are listed that financial institutions must stick to religiously:

• Foreign Account Tax Compliance Act (FATCA): the law that requires US citizens and residents to report their foreign financial accounts to the IRS
• Know Your Customer (KYC) Principle: a set of regulations and procedures that financial institutions must follow to verify and identify their clients and ensure that they are not involved in illegal activities
• Anti-Money Laundering (AML) Principle: a set of laws, regulations, and procedures that financial institutions must follow to prevent, detect, and report money laundering activities. The goal of AML is to combat the use of illegally obtained funds for criminal purposes.

Negative reviews of offshore financial institutions are often the result of either a misunderstanding of how to use them or the selection of an inappropriate bank. For example, if a client engages in suspicious activities, a reputable offshore bank will typically freeze their account or deny them service. In such cases, negative feedback is unsupported by facts, and any grievances against the financial institution are unfounded.

Dissatisfaction with the terms of cooperation is another common issue with offshore banks. However, clients often make the mistake of choosing the wrong financial institution when opening an account. For instance, if an offshore bank specializes in investment banking, it may not prioritize basic retail banking services. Alternatively, the bank may focus on providing sophisticated asset protection and diversification solutions, rather than simply offering a standard checking account. Clients need to do their research and choose an offshore bank that aligns with their specific financial needs and goals.

If you are considering an offshore bank, there are several important factors to keep in mind:

• Firstly, avoid using the bank for questionable financial transactions. 
• Secondly, be meticulous in your selection of both the offshore bank and the jurisdiction in which it is registered.
• Finally, carefully consider your banking needs and the specific services and features you require. It’s important to note that the best offshore bank for, say, wealthy individuals, regular transactions, and cryptocurrency trading will likely differ in terms of selection criteria.

Offshore banks and accounts: myths and legends

Misconceptions about offshore bank accounts are still common. Many of them are baseless rumors and speculation without any real evidence to support them. Many of the perceived “drawbacks” of offshore banks are caused by their clients. To avoid unreliable sources, it’s best to consult with our experts to get accurate information.

Below you will find a list of the main misconceptions about offshore financial institutions:

Myth No. 1. Offshore banks are above the law

Certain financial transactions conducted through a bank may be illegal or questionable. If the bank’s security service detects suspicious activity on an account, it will be blocked, and the customer will be asked to provide documents confirming the specific transaction. It is important to conduct all financial transactions in compliance with the law and to ensure that all necessary documentation is available to avoid any potential issues.

Myth No. 2. Offshore banks require that the customer is present while their bank account is set up

Whether or not this is possible depends on the particular financial institution. Nevertheless, the majority of offshore banks are willing to open accounts in a remote format.

Myth No. 3. Offshore banks eagerly open numbered accounts that preserve the account holder’s anonymity

While some financial institutions offer this service, it is important to note that the account holder’s information is still required when opening the account, which means complete confidentiality cannot be guaranteed. Even if some banks are willing to work with anonymous clients, there is a risk of losing their license, and the offshore account holder may face issues when conducting cross-border transactions.

Myth No. 4. Offshore banks facilitate tax evasion

Engaging in such activities is considered unlawful. Therefore, banks try to keep their distance from questionable clients and carefully monitor account activity. However, offshore financial institutions can offer assistance with lawful tax optimization, and these services are legally permissible.

Myth No. 5. Only financially prosperous individuals decide in favor of offshore banks

While it’s true that offshore bank accounts are often used to secretly store money, such accounts are promptly shut down by security services when detected. It’s not entirely accurate to say that only wealthy people have access to offshore banking, as the process of opening a new offshore account typically costs just a few thousand dollars.

Offshore banks and their features

Many people who are not familiar with the business world think that there is no difference between traditional and offshore financial institutions from a consumer standpoint. However, this is not true. When objectively analyzed, an offshore bank account has numerous advantages, many of which are not available to a regular financial institution. Therefore, if you have no strict jurisdictional requirements, choosing an offshore bank would be a reasonable and logical choice. What are the key characteristics that you should pay attention to?

1. Stability of the incorporation jurisdiction

When selecting an offshore bank, it is important to choose a country without significant political, social, or economic problems to ensure jurisdiction stability. However, keep in mind that the stability of the jurisdiction doesn’t necessarily guarantee that a particular offshore bank will operate smoothly for the entire duration of your account holding. Therefore, avoid choosing a country with an unstable situation as well. It is important to carefully consider the political, economic, and social stability of a jurisdiction before selecting an offshore bank.

2. Confidentiality level

While it’s not possible to achieve complete anonymity in today’s geopolitical landscape, if confidentiality is of utmost importance to you, it’s advisable to choose a country where financial laws are highly respectful of bank deposit secrecy. Nonetheless, it’s important to consider that the downside of anonymity is the hidden instability in the long run.

3. Rights of non-resident customers

In most cases, there are no issues when it comes to opening offshore bank accounts for foreign clients. These banks are primarily designed to cater to the needs of foreigners, which means that you will have access to the same benefits as residents when you open an account with them. Some issues you may encounter refer to transactions in sanctioned jurisdictions or currency conversions, but these apply to all customers and are not just limited to foreign clients. Overall, opening an offshore bank account can be an excellent way to manage your finances, and it’s essential to choose a reputable institution that can help you navigate any challenges that may arise.

4. Communicating with offshore banks

When it comes to communicating with offshore banks, there are no significant challenges, thanks to the remote format of their services. Translation programs can be used to facilitate communication, and the language requirements (which are typically limited to English) are manageable. While some financial institutions may only work with clients in their native language, this is a relatively rare exception. The communication process with offshore banks is typically straightforward, and with the right tools and resources, you should have no trouble staying connected with your financial institution regardless of your location.

5. Account types

Offshore banks offer many different types of accounts, but only a few are commonly used. If you’re looking for something more specific or specialized, it’s crucial to discuss your needs with the International Wealth experts during a consultation. The International Wealth team can help you identify the right type of account for your unique financial goals and ensure that you have access to all the features and benefits you need to succeed.

Standard account types:

• checking account
• savings account
• money market account
• Certificate of Deposit or CD for short
• Individual Retirement Arrangement, a.k.a IRA
• brokerage account.

6. Opportunities for investment, protection, and/or diversification of assets

Such services are not necessary for everyone, but if you are interested in investing, protecting, and diversifying your assets, make sure to choose a financial institution that offers them.

7. Offshore bank commissions

When you open an offshore bank account, you will need to pay a fee for the bank’s services. While the additional expenses are typically quite low, it’s important to be aware of the cost of maintaining your account. Knowing how much you will be charged can help you budget appropriately and avoid any unexpected fees down the line.

8. Remote access

While online banking is almost always available, some smaller offshore banks may not provide this service. It’s important to avoid opening an account with such banks because the lack of remote access will severely limit your options.

9. Multi-currency accounts

While not essential for day-to-day transactions, having a multi-currency account in an offshore bank can be beneficial for minimizing losses and providing an extra layer of asset protection, especially if you use the account for savings purposes.

10. Offshore bank reputation

The reputation of an offshore bank is a critical criterion for both affluent individuals and ordinary people. Reputation is a complex concept that considers the bank’s recognition, the comprehensiveness of its services, the opinions of other clients, and several other parameters. Relying solely on reputation would be a mistake, but ignoring it is not advisable either. Therefore, it is essential to consider reputation in combination with other criteria when choosing an offshore bank.

Choosing the best offshore banks for business purposes in 2023

The choice of the right offshore bank largely depends on individual requirements. What may be the best offshore bank for one potential client may be a common (but functional) option for another, and unsatisfactory for a third. It’s impossible to determine the best bank without understanding the purpose for which the account will be opened. The list of offshore banks below is a selection made by our experts with a focus on business clients, but the listed offshore banks can also be a good alternative for individuals.

The best offshore bank for demanding clients – DBS Treasures / DBS Private Bank (Singapore)

DBS Private Bank tops the offshore bank ranking, making it a perfect choice for demanding clients.

Below, you will find the key features of DBS Private Bank:

• Inclusion in the top 3 banks in Singapore
• Excellent reputation in the financial world
• Comprehensive range of services
• Wide range of opportunities for asset protection/diversification
• Exceptionally convenient and functional online banking
• Loyal requirements for new clients.

Top offshore bank with a simple account opening procedure – TBC BANK (Georgia)

Headquartered in Tbilisi, TBC BANK is a popular choice in Georgia.

Advantages of Banking with TBC Bank in Georgia:

• quick and easy registration process
• convenient location in Georgia
• business-friendly approach
• favorable cooperation terms
• low minimum deposit requirements (starting from USD 10 USD for the basic option).

Best Offshore Bank with Maximum Liquidity – Capital Security Bank (Cook Islands)

Capital Security Bank stands out as the best bank overall, thanks to its excellent range of characteristics that prioritize reliability and predictability.

Below, the characteristic features of the above bank are listed:

• simplified account opening procedure
• business model based on fiduciary management, minimizing risks for clients
• classic offshore banking services tailored to the needs of international clients.

Best Offshore Neobank – Neat (Hong Kong)

It is a classic next-gen bank. Neat operates without physical branches, offering all its services online. 

Here’s why customers choose Neat:

• top choice for opening a transactional account
• accounts with the neobank in Hong Kong provide business people with additional advantages as opening a traditional bank account can be difficult
• opportunity to seamlessly link neobank accounts with Stripe, Amazon, and PayPal accounts for easy transaction management.

Best offshore bank for US non-residents – Wells Fargo Bank (USA)

Here’s your exceptional chance to establish an offshore account with an American bank even if you don’t have an SSN (Social Security Number).

Below, you will find the characteristic features of Wells Fargo Bank:

• Inclusion in the deposit insurance system
• Extensive range of services and amenities
• High reputation in some cases (especially if you require an account with a US-based bank).

Top offshore bank onshore – TD Bank (Canada)

For clients who are involved in business and seeking to open an offshore account in a reputable and stable jurisdiction, this is the perfect choice.

Please, get acquainted with the key features of TD Bank:

• Strong ties with the United States
• Stability and predictability in operations
• Attractive partnership terms for new customers
• Ability to store funds in USD/CAD.

Top offshore neobanks in 2023

Whether digital banks can be classified as offshore is a matter of debate. However, based on formal criteria, there are no contradictions. The typical definition of an offshore bank is a financial institution that is exempt from national regulation. Non-banks, on the other hand, are considered offshore since they operate online. Moreover, they offer a comparable range of services, with account opening procedures being greatly simplified and working conditions being highly attractive.

Account with Revolut (Great Britain)

The above is the best neobank option for expats and digital nomads.

Here’s what Revolut is famous for:

• multi-currency accounts
• additional privileges and bonuses for customers
• no monthly fees for basic accounts
• no need to verify your residence and credit solvency.

Here’s how the International Wealth experts rated Revolut (final rating – 8.6)

• trust in the bank and its reliability rating: 8.9
• service quality and customer support rating: 7.9
• financial conditions and collaboration rating: 8.3
• attractiveness of the bank for clients rating: 9.4.

Account with a neobank or the Wise payment system (United Kingdom)

This is the best neobank for those in need of multi-currency accounts.

Bank features:

• bank provides customers with bank details for payments in EUR, GBP, AUD, JPY, CAD, HUF, CZK, BGN, USD (including international payments), PLN, CHF, SEK, DKK, SGD, NZD, HRK, TRY, BRL
• free account setup
• transparent fees
• mandatory confirmation of residential address.

Here’s how the International Wealth experts rated Wide (final rating – 8.9):

• bank’s credibility and reliability – 9.3
• service quality – 8.9
• financial partnership terms – 7.6
• customer appeal of the bank – 9.6.

Account in Neobank N26 (Germany)

This is the top offshore neobank option for those seeking a full EU banking license

Bank features:

• fully functional digital bank account
• government-backed deposit insurance in Germany
• postal address in the European Union is a must to open an account
• bank details are provided for EUR transactions only
• full integration with Wise
• possibility to use the account balance for earning money.

Here’s how the International Wealth experts rated N26 (final rating – 8.3):

• bank’s credibility and reliability – 7.9
• service quality – 8.0
• financial partnership terms – 9.3
• customer appeal of the bank – 8.1.

Account in Neobank Chime (USA)

The above is the best neobank for those seeking the number one mobile app with withdrawal options available at ATMs.

Bank features:

• social security number is required
• no fees for cross-border money transfers
• access to free ATMs
• bank details for USD money transfers
• 3 account types, including cheque, savings, and credit account
• possibility to increase credit rating.

Here’s how the International Wealth experts rated Chime (final rating – 8.8):

• bank’s credibility and reliability – 8.9
• service quality – 8.1
• financial partnership terms – 9.8
• customer appeal of the bank – 8.4.

Account in neobank Starling Bank (Great Britain)

Starling Bank is the top neobank for customers interested in comprehensive financial services and free access to banking services.

Bank features:

• wide range of services including overdrafts, loans, joint accounts, youth cards, pensions, EUR balances, interest rates, no foreign transaction fees, and more
• lots of transactions are free
• top-notch customer service
• Starling Bank account can serve as a complete alternative to a traditional bank account
• multi-currency accounts
• top pick for UK expats
• multiple savings opportunities.

Here’s how the International Wealth experts rated Starling Bank (final rating – 9.3):

• bank’s credibility and reliability – 9.3
• service quality – 8.5
• financial partnership terms – 10
• customer appeal of the bank – 9.3.

Account in neobank Monese (Great Britain)

The neobank is preferred by customers with no permanent UK address.

Bank features:

• GBP and EUR accounts
• no requirements for real address or creditworthiness verification
• IBAN is issued to neobank customers
• basic service plan comes with no additional expenses
• classic and premium plans come with zero fees for cross-border transactions.

Here’s how the International Wealth experts rated Monese (final rating – 8.0):

• bank’s credibility and reliability – 7.6
• service quality – 9.0
• financial partnership terms – 6.6
• customer appeal of the bank – 8.7.

Account in Payoneer (USA) neobank and/or payment system

The above is the best neobank and payment system for digital nomads and customers interested in business accounts.

Bank features:

• great collaboration opportunities for small and medium-sized businesses with favorable conditions
• free registration
• access to local bank accounts
• Mastercard debit bank card linked to the payment service
• integration with Google Adsense, AirBnb, Rakuten, and eBay.

The International Wealth experts did not rate Payoneer due to its focus on business clients. Therefore, the selection criteria that take into account non-bank services and payment systems for individuals are unlikely to be indicative of the business service quality.

Traditional offshore banks

To have an understanding of alternative options, it is important to consider the key points and features of other banks, in addition to the financial institutions described earlier. Any details you are interested in can be provided upon request. The International Wealth team presents a list of offshore banks that are deemed to be of significance, accompanied by concise expert evaluations for each.

Jyske Bank (Gibraltar):

• strong overall reliability
• competitive tariffs and rates
• standard documents are required to set up an account
• starting deposit – EUR 150,000
• attractive cross-border transfers within the SEPA zone (EU).

HSBC Bank (Hong Kong):

• impeccable technical support
• offshore bank is well suited for conducting business in most tax-free jurisdictions
• multi-currency accounts
• UnionPay cards for non-resident corporate accounts
• visit to Hong Kong is a must
• minimum balance for small enterprises – HKD 25,000.

Hang Seng offshore bank (Hong Kong):

• HSBC bank’s branch, the list of services and features is about the same
• lower fees compared to the parent company
• better card issue terms.

Crèdit Andorrà offshore bank (Andorra):

• multi-currency accounts
• fast cross-border transfers
• multiple investment opportunities
• unlimited number of virtual cards
• no minimum balance requirements when opening an account.

Banque de Luxembourg / BDL offshore bank (Luxembourg):

• full range of services
• highly reliable incorporation jurisdiction
• account with external asset management is a possibility
• low transaction fees.

Abu Dhabi Commercial Bank / ADCB (UAE):

• credit cards for small businesses
• excellent customer support
• all accounts are multi-currency ones
• Islamic banking is available.

Banque Audi offshore bank (Lebanon):

• favorable interest rates
• welcoming embrace of new customers
• super-high confidentiality
• broad range of corporate services.

United Overseas Bank / UOB (Singapore):

• multi-currency accounts
• streamlined account setup
• comprehensive services
• enhanced e-banking transactions
• free foreign currency accounts.

Multibank (Panama):

• minimum document requirements
• appealing card products
• Multibank mostly works with USD
• multi-currency accounts are available (with some restrictions).

Top countries and territories for offshore banking

For those about to open a personal or corporate account, choosing the right offshore bank is key. It is also important to take into account the country where the financial institution is incorporated. Different jurisdictions offer varying advantages – some are better suited to regular individuals, while others are more beneficial for digital nomads or expats. Many of them may provide robust asset protection or favorable business conditions.

To help guide your decision-making, the International Wealth team of experts has compiled a list of top offshore banking jurisdictions. If you need more information or would like to become a client of a suitable financial institution, please reach out to us to schedule an individual consultation.

Below, the advantages are listed that an account with a Swiss offshore bank comes with, with the reason to choose it being bullet-proof asset protection:

• proven international reputation;
• perfect stability
• highest confidentiality
• Swiss laws contain numerous legal provisions that allow for the circumvention of CRS, a.k.a. Common Reporting Standard;
• offshore account with a Swiss bank comes with unparalleled reliability
• full range of financial services.

Below, you will find some services that the International Wealth experts offer in Switzerland:

• Corporate Account for a Trading Company in a Swiss Bank.
• Open A Swiss Bank Account Remotely for Your Personal Needs.
• Open a Corporate Bank Account and a Personal Bank Account in Switzerland Remotely.

Account with the offshore bank in Singapore, with the bank’s reputation being the main choice criterium:

• golden standard of banking, if you are interested in the Southeast Asia region
• political, economic, financial, and social stability
• with no currency control, all transactions made from the bank’s offshore accounts
• proven international reputation.

Here are some of the International Wealth services in Singapore:

• Set up Corporate Account in Singapore Payment System Remotely
• Open a Private Bank Account in Singapore Remotely
• Open a Corporate and a Private Bank Account in Singapore Visiting the Country in Person.

Accounts with a Serbian bank:

• favorable financial terms;
• well-established relationship with the EU
• favorable terms for new customers.

Below, you will find some of International Wealth banking services in Serbia:

• Open a Non-Resident Corporate Bank Account in Serbia Remotely Upon Request
• Personal Account with UniCredit Bank in Serbia with a Personal Visit.

Offshore bank account in the Cayman Islands (chosen for its good balance of characteristics):

• simplified compliance procedures
• wide range of services
• many offshore banks offer their customers to set up an offshore account remotely for them
• well-developed Internet banking.

Here are some of the banking services the International Wealth team provides in the Cayman Islands:

• Open Savings Account with NCB (Cayman) Ltd

Offshore bank account in the Bahamas (chosen for its high level of confidentiality):

• bank’s jurisdiction is not far from the US
• account opening with the offshore bank above is as speedy as possible
• non-resident customers have the right to open checking and savings accounts
• affordable service fees
• minimum account balance – EUR 1000.

For the International Wealth banking services in the Bahamas, please refer to the list below:

• Open Your Corporate Bank Account in the Bahamas
• Opening a private bank account remotely in a Bahamian bank.

Account in the Belize offshore bank, with jurisdiction stability as the reason to prefer it

• banking system has a very high liquidity ratio (the minimum requirement for offshore banks in the jurisdiction is 24%, compared to only 3-4% in the US)
• minimum initial deposit is USD 500 (may vary depending on the offshore bank)
• remote account opening is an option with many financial institutions
• bank accounts are easy to set up.

Below, you will find some of the banking services the International Wealth experts provide in Belize:

• Private Account with an Offshore Bank in Belize.
• Open a Corporate Account with an Offshore Bank in Belize.

Offshore bank account in Hong Kong (a strategic choice for those with business or investment interests in the region):

• stable legal system
• competition within the banking system guarantees a superior level of customer service
• highly developed online banking
• top option for those with businesses in Hong Kong.

Here are some of the services International Wealth offers in Hong Kong:

• Open a Business Account in Hong Kong Payment System Online
• Open Personal Account in Hong Kong Payment System

BVI offshore bank account that is favored for the high confidentiality it comes with:

• financially stable jurisdiction
• favorable taxation
• no currency control
• wide range of banking services.

Offshore bank account in Mauritius preferred by those who need a bank account easy to set up:

• almost no jurisdiction restrictions
• no restrictions for Mauritius non-residents
• bank operates in line with FATF and OECD regulations
• accounts with the bank in Mauritius can be set up remotely.

Offshore bank account in the Cayman Islands that is a preferred choice with bank customers due to its favorable characteristics:

• non-resident corporate accounts
• excellent technical assistance and customer support
• highly developed online banking
• easy and transparent account setup with the offshore bank
• multi-currency accounts.

Here are some of the banking services International Wealth offers in the Caymans:

• Open Savings Account with NCB (Cayman) Ltd

Offshore bank accounts in Puerto Rico are favored by customers due to  proximity of the jurisdiction to the US that is often referred to as the 51st state of America

• favorable tax legislation
• bank allows its customers to open offshore bank accounts remotely
• no requirements as to customers’ residency
• sufficient confidentiality protection
• US citizens enjoy an opportunity to legally save on taxes.

Please, find some of International Wealth banking services in Puerto Rico below:

• Opening a Personal Bank Account in Puerto Rico Online
• Set Up a Corporate Account in Puerto Rico Remotely

Offshore bank account in the UAE boasting reliable asset protection and diversification:

• favorable tax rates
• increased bank stability
• terms advantageous for offshore investors;
• top choice for those about to start a business in the UAE
• highly developed online banking.

Are you wondering how to choose the right offshore bank based on your preferences? Do you need help deciding on a specific jurisdiction that meets your mandatory requirements? Can an offshore bank account provide adequate levels of confidentiality?

Knowing the answers to the above questions is essential if you wish to succeed in the offshore world. At International Wealth, we suggest that you get in touch with our experts at info@offshore-pro.info and discuss scheduling a personalized consultation.