It is inevitable that everyone of us own a bank account in your native country. The banks operating in one juridiction (say in your local country) are subjected to the local laws of the respective jurisdiction and abide by the laws of that local country. This way of operation is called 'onshore'. This is even applicable to your credit cards issued by the onshore banks. The main disadvantage of these 'onshore' banks is privacy and too much of taxation. For example, if the local authorities like I.R.S request an audit to your bank account, the bank MUST present the transaction statements of your accounts to the authorities. Thus, your privacy is NIL as far as the onshore banks are concerned. Some of the high taxable onshore countries are U.S.A, France, Germany, India, China, Russia etc.. Quite contrary to the above, is the operation of 'offshore banks'. Offshore banking means owning the foreign bank account outside your country. These accounts obey and abide by the laws of the jurisdiction, where that bank is located. It is a well known fact that many countries outside the United States recognize and appreciate financial privacy as a traditional and important right of their citizens. Countries in Europe and Carribean long preserved their tradition of bank secrecy and confidentiality of their bank accounts. Bank employees will never know who you are, and how much money is in your account. There are severe punishment for bank employees who divulge confidential records to anybody, as imposed by bank secrecy law in offshore havens. The significant advantages of 'offshore' is tax free, 100% privacy and confidentiality, great interest rates, attractive investments, direct access to trade markets worldwide and hence titled 'Tax havens of the world'. Everyday millions of dollars flow in and out of these offshore
But why move to offshore?
Disasters can strike you anytime, in the form of lawsuits. Alimony for divorses, business partners, personal enemies with predatory attorneys victimise you, if you are an attractive target. There have been never decreasing rate of divorce cases worldwide. This could devastate your lifetime's worth of savings, investments and real estate holdings at peril. Moving your assets offshore is a wise and effective means of protection from ruinous lawsuits. Privacy from your spouse, creditors and even your government, which is definitely a big attraction. Thus, because of these advantages hundreds of thousands of people flock to offshore havens from each country. Statistics show that there would be a dramatic increase of people move from 40% to 81% by 2006. If you are very much eager how predatory attorneys find you and prey your assets, please read the excellent information written by a famous attorney here. A few hundred dollar swiss account, could really save your millions of your assets. But, Who knows the future?
Most famous offshore zones are Switzerland, Austria, Luxemburg, Latvia, Bahamas, Cook islands, cayman islands and Panama.
Generally people panic, once they hear from media of somebody with swiss accounts, which makes them think that they are super-millionaires or corrupts or dishonest or criminials. This is mainly due to to lack of information and knowlege about the offshore world. It is very common that everbody in this world would like to save some money for their future, especially during their older age.
Tax havens of the world.
The main advantages of the offshore tax havens are no income taxes, no estate taxes, no capital gains, and bank secrecy laws are the strictest in the world. Everday millions of dollars go in and out of these offshore zones. The famous offshore tax havens of the world are Switzerland, Austria, Latvia, cook islands, cayman islands, Leichenstein, Luxemburg and in the carribean countries like panama, bahamas, belize and dominica. It is estimated that more than 50% of the worlds wealth is being deposited in these tax havens. Out of them more than 200 billions of dollars are from switzerland and cayman islands
Illegal Activities & Money Laundering
Switzerland can be a safe bet as far as money and privacy is concerned. But there is no room for moving any kind of dirty money into switzerland. Very recently, the swiss authorities are forced to cooperate with international community against combating drug trafficking and money laundering, which is a growing menace against world. Thus drug trafficking, terrorism, arms and money laundering etc. considered crime in switzerland. That is why most of the banks in switzerland ask about proof for economic origin of funds and every bank in switzerland operates on 'know your customer' policy. So there is no such thing called 'anonymous accounts' in