Doubt Arises in the Confidentiality of Offshore Accounts
Tax Evaders End up on Comprising Lists
When opening up an offshore account, it is imperative that all risks are considered. Just recently, a fifteen thousand account holders of a Swiss bank had their names revealed by lists retained by lawyers and now they are under investigation by tax authorities. The existence of these lists shows the comprising situation that exists between corrupt governments that will buy lists, financial institutions, and offshore lawyers that keep lists of clients and their accounts.
By using these lists of tax evaders, governments are attempting to intimidate individuals and businesses that choose to invest and protect their capital overseas. In the case of Switzerland, however, the authorities have already said that they will not use stolen data. But many other countries are already verifying the existence of these tax evaders.
Who’s to say that other countries won’t be next after Switzerland and Liechtenstein? For this reason it is important to research banks carefully, trough a law office or a financial expert, before opening an offshore account. Most of the names on these lists are of those with personal accounts. This is why it is not recommendable to open a personal account. Not only are they easily identified by these lists, but all transactions can be traced back to the account holder. It is much more advisable to use business accounts for security reasons. The lists only identify the name of the company, so it is more difficult to find out who the beneficiary is. Therefore, when opening an account overseas, never open up a personal one.
Although there may be reasons to deter those from opening offshore accounts, with insight and caution, they can safely be opened and managed. There is no reason to compromise your own financial security, solely due to the ignorance of others.
Certain precautions can be taken to insure security in offshore banking.
First of all, as mentioned before, only open company accounts with anonymous companies in countries that guarantee anonymity.
Secondly, do not transfer money from an offshore account to your personal account or to any other personal account that can be traced back to you.
Thirdly, do not receive transfers from an offshore account to your personal account or to a personal account that can be traced back to you.
Fourthly, utilize security programs that ensure that no sensitive data or histories of searching offshore banking websites be traced back to you.
And last of all, obtain a second citizenship and then use a legal second passport to open up foreign bank accounts.
By following these precautions, no problems should arise in offshore banking.
It is also important to consider what bank to open an account in. Banks that are convenient for account holders may also be convenient for authorities to investigate. Big banks are often selected due to safety reasons, but the reality is that these banks have suffered the most during the economic crises and are therefore more willing to sell out. Also, big banks have more issues in controlling their numerous employees than smaller banks, therefore putting your account more at risk of being released to a list by a corrupt official.
Overall, although these lists do pose a threat to some, savvy offshore bankers can still safely manage their money overseas.