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Offshore Banks

BARCLAYS BANK, BAHAMAS / B.V.I.

Barclays Bank PLC has been established in the Bahamas for over 45 years. It is a member of the Barclays Group, one of the world’s oldest and largest banking institutions, whose history can be traced back to the reign of Queen Elizabeth I of England. Barclays is one of the world’s leading international banks and together with its associated companies, is represented in some 70 countries, spanning six continents.

Company Barclaycard / Corporate Secured MasterCard

Minimum credit line for MasterCard: $5,000—Interest bearing deposit required for security: 200% (Example: $10,000 deposit required for $5,00 line of credit on corporate card) Maximum credit line: $100,000

SWISS AMERICAN BANK, ST. JOHN’S, ANTIGUA

Swiss American Bank Ltd. was established in 1981, and offers a full range of commercial and private banking services through five branches in Antigua. Swiss American Bank is protected by Antigua’s International Banking Act and thereby offers a high degree of confidentiality over the banking affairs of clients.

SwissAmericard / Corporate Secured Visa

With the SwissAmericard, transactions and records of cards issued by Swiss American are protected by Antigua’s Offshore Banking Secrecy Act. As SwissAmericard accounts must be backed by an interest bearing time deposit at Swiss American Bank, you can set your own credit limit. SwissAmericard accounts offer flexible repayment terms with minimum monthly payments as low as 10% of the outstanding balance. You pay no interest on purchases if you pay your balance in full each month. Minimum credit line for Visa: $1,000-Interest bearing deposit required for security: 150% (Example: $1,500 deposit required for $1,00 line of credit.) Minimum credit line for Visa Gold: $5,000

BELIZE BANK VISA

Membership fee is US $100. Additional Cards can be issued to your family or business partners on your credit card account at a fee of $25 per card, and charges made by these persons will be included in your monthly statement. You pay no interest on purchases if you pay your balance in full each month. Minimum credit line: $2,000—Interest bearing deposit required for security: 150% (Example: $3,000 deposit required for $2,000 line of credit.

Corporate Bank Account vs. Personal Bank Account

Offshore bank accounts may be opened in either a personal name or a corporate name. Most individuals looking for asset protection or privacy should not open offshore accounts in personal names. Wire transfers, credit card transactions and checks will identify you as the person holding this asset. Forming a corporation and opening a corporate bank account on the other hand, will give you more privacy and more options for transacting your business. For instance, wire transfers carry the company name and credit card transactions go through the system in the company name. Typically the company's bank accounts are the only places the owner and the corporate relationship meet, that is if the owner chooses to be the signer of the accounts. For this reason, the banking and other financial institutions you deal with will be a far more important decision and privacy concern than the jurisdiction of your company's incorporation.

Most all of the offshore banks require a very simple reference letter from your the bank of the signer of the account. Anyone signing the signature card and having access to the account is required to provide a bank reference letter. The letter must be an original. The banks will not accept fax or photocopies. Some banks, such as Barclays Bank, will spot check references by contacting your bank to verify that the letter was actually issued by your bank. A reference letter is fairly easy to obtain and most banks do them every day. If you wish, and to simplify the process, hand write your letter before going to your local bank. Usually you can ask the person in New Accounts or Customer Service to type the letter for you while you wait. The reference letter does not require a bank officer's signature.

Even though the reference letter is simple in form, it must contain specific information. For example, do not address the letter "To Whom It May Concern". The offshore bank requires that the letter be addressed to it. If you are concerned about your privacy, or a nosey bank employee, simply leave the jurisdiction out of the letter. Instead of addressing the letter to "Barclays Bank, Nassau, Bahamas", address the letter to "Barclays Bank, Attention: Manager". The letter must also state the date the account was established. The reference letter can be from a business account so long as the letter identifies you as a signatory. Often, banks fear or may hesitate issuing a reference letter because of the potential liability that is common in the lawsuit environment, especially in the United States. However, this letter is simple and is general enough that your local bank should have no objection to providing the letter for you.

The offshore bank requires a photocopy of a picture identification such as a passport or driver's license. Such picture i.d. reassures the bank that either the person personally appearing and presenting the bank application is the same person signing and making the application, or if your bank application was mailed to the offshore bank, the bank will have a tool to verify the correct signatory, should such verification be necessary. Most banks provide a form in the initial bank application documents that allow them to accept fax instructions from you. You will be able to make wire transfers and other banking transactions from a distance.

Most offshore banks require a minimum deposit of $1,000. Most have the same bank products that U.S. banks offer such as time deposits, savings accounts, etc. Offshore banks will hold the accounts in the most common currencies such as U.S. dollar, Swiss Franc, DMark, Yen, Sterling and Canadian dollar. A common perception is that offshore savings accounts in U.S. dollar pay a much higher rate offshore. The truth is that U.S. dollar rates are about the same or maybe a little less than what you see advertised at your local U.S. bank. If you have been told that you can get 12 % on your offshore account, you need to find someone else to deal with. Remember, once you get out from under the U.S. regulatory authorities, you will be fair game for any unscrupulous offshore operator. Offshore banks have no FDIC insurance or equivalent, so make sure you stay with the banks recommended. Most offshore banks are capitalized better than U.S. banks since they do not rely on the deposit insurance. Also, many offshore banks are bigger and stronger financially than U.S. banks.

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