There are thousands of banks around the world but not all of them will provide services to foreigners, that is, to non-resident customers. The situation has become especially unstable with the introduction of international sanctions. Today, banks can deny services not only because the prospective non-resident client is unable to supply the required documents but also because he/ she comes from the ‘wrong’ country.
The recent changes in the global political situation require additional preparation and analysis if you would like to set up an account with a foreign bank. However, opening a non-resident bank account is still possible.
Where can you open a foreign bank account?
If you are thinking of banking in a foreign country, you are certainly looking to obtain high-quality banking services from the foreign bank. Probably, you are looking for some banking products that are unavailable in your home country. In addition to that, you may want to reduce the financial risks and find opportunities for making smooth transactions.
Offshore (or foreign) banks offer the following main advantages to non-resident clients:
- A fairy high level of personal information confidentiality;
- Flexible tariffs;
- Access to foreign markets;
- Easy full-time access to your money kept with the bank.
The choice of the jurisdiction where you want to open a non-resident bank account will depend on your country of origin and several other factors.
- What is your nationality? If you are a citizen of China, Russia, Belarus, or Ukraine, your choice of foreign banks is going to be limited. Even if you are prepared to make a personal visit to the foreign country to open a bank account there, let alone the opportunities for remote account opening.
- Do you have a residence permit in a foreign country? If you are a legal resident of an EU country, you should consider setting up a bank account in one of the member states of the Union. If you are a green card holder, you should apply for banking services in the States. Your nationality and your legal residence will have a bearing on the choice of foreign banks.
- Where does your money come from? All banks are going to inquire about that. You have to tell the bank administrators what sort of business you have, or who you work for and what your salary is. If you receive dividends or you have inherited some property, you will also have to make the sources of your income completely transparent for the bank officers. Otherwise, you won’t be able to open a non-resident bank account or it will be closed in the future without notice.
- Can you supply the required information in detail and in a timely manner? Banks always want to have fast and exhaustive answers to their questions. Any delay or lack of clarity can serve as the grounds for service denial.
Another important factor to consider is your main purpose in opening a non-resident bank account.
If you need a bank account in a foreign country to make investments, you will be well-advised to consider banks in Austria, Switzerland of Liechtenstein. Banks in these countries specialize in investment services and they have been successfully operating in this area since the beginning of the previous century. If you would like to use your non-resident bank account for investments, you need to have an experienced broker and an investment manager.
If you are interested in some non-standard investment objects such as gold, rare earth metals, wines, paintings, etc., you should look for a bank that has a safe vault where you can keep your assets. An investment advisor is also required.
If you would like to open a bank account for your offshore-registered company, you’d better give an eye to such offshore jurisdictions as Panama, Belize, or Nevis, for example. These countries have highly beneficial tax systems (in some places, you have to pay nothing in taxes at all). If you have an offshore company and an offshore bank account, your assets will be securely protected from seizures, confiscations, raids, and other sorts of property expropriation.
Finally, if you need a non-resident bank account for your active offshore company, it would make sense to choose the country where your offshore company is registered as the country where you also bank. Alternatively, you can open a bank account in an onshore jurisdiction that welcomes offshore companies.
In addition to traditional banks, you should also consider the opportunity to set up an account with one of the payment systems that offer banking services to customers. Payment systems are modern alternatives to banks and opening accounts with them takes less time.
What is the simplest way of opening a non-resident bank account?
There can be no definite answer to this question under the present conditions. Much depends on your country of citizenship/ legal residence.
For example, offshore banks dislike customers from the USA. They have a reason for that: they have to report to the IRS all the financial activities that their American customers perform and following the FATCA requirements means additional paperwork for no additional pay. This is why many offshore banks decline applications for services from American citizens.
Citizens of Russia and Belarus are considered high-risk clients because of the sanctions applied to these states. Bank administrators fear being accused of violating the sanctions.
Chinese citizens face a biased attitude when applying for banking services in the USA and Canada. This is due to the political tensions between China and the USA.
Therefore, you cannot just pick any bank and apply for services there. You have to ascertain beforehand that the bank that you are considering is going to take you onboard and that the quality of the banking services that it offers is sufficiently high.
We have vast experience in providing non-resident banking and foreign bank account opening services and we know what requirements banks in different countries put forward. Our experts will gladly help you choose the right bank depending on your citizenship, country of residence, main goals, sources of funds, and other important factors.
FREE EXPERT CONSULTATION
with seasoned professionals on international
banking
and where it is best to open
non-resident corporate accounts.
with seasoned professionals on international banking and where it is best to open non-resident corporate accounts.
Documents required for opening a non-resident bank account
If you are looking to open a personal non-resident bank account, you will have to supply the following application documents:
- Your passport;
- A proof of residential address (such as a utility bill not more than 3 months old);
- Your Residence card (if applicable);
- Proof of legality of your sources of funds (a tax declaration, a job contract, an inheritance certificate, etc.);
- Letters of recommendation;
- Your résumé.
If you are looking to open a non-resident bank account for a legal entity such as a business corporation, for example, you will have to supply the following application documents:
- Certificate of company registration;
- Information about the company activities;
- Personal document of the beneficial company owners (founders, directors, etc.):
- Their passports;
- Proofs of residential addresses;
- A bank statement (if the company already has a corporate bank account);
- Business plan, and so on.
The full list of required application documents will depend on the particular bank. Sometimes, banks request additional documents from applicants.
How should you choose an offshore bank to open a non-resident account there?
Choosing the right bank in a foreign country is not an easy task. You want your non-resident bank account to be functional and secure. Besides, the bank has to be able to provide high-quality financial services to you.
Probably the most important task is to find the right jurisdiction where you want to set up a foreign bank account. We have already dwelled on this issue above. If the financial institution that you choose is economically and politically independent, you will have a good chance to minimize all the risks involved in non-resident banking. Banks in some countries offer some additional bonuses to their international customers. For instance, all bank accounts in Europe are insured for at least 100,000 euros. Probably, it’s not very much but it’s something anyway.
The reputation of the bank is of great importance too. Is it a world-famous bank with a long history of success? Fine! But you have to inspect the bank’s past in any case. Even a healthy bank can be involved in a ‘bad story’.
Involvement in a ‘bad story’ means having problems with the national fiscal authorities. For instance, the IRS in the USA has a list of over 100 banks that pose a potential threat to the financial system of the country. If you are looking for an offshore bank for your personal or corporate needs, you should consider only the banks that have not been providing services to American customers over the last 3 to 5 years. Our professional consultants will be happy to help you find one of such banks.
Please write to info@offshore-pro.info and request our professional assistance in opening a foreign bank account. You are welcome to apply for a free consultation on opening an offshore bank account that will allow choosing the financial institution in a foreign country that will meet all your expectations.
