Bowman Offshore Bank Transfers How to Open and Access an Offshore Bank Account | Page 2

Second, many offshore banks ask about the nature of transactions expected to take place through the
account. This may seem overly intrusive, but offshore banking centers have been under increasing
pressure to stop illegal activity. For this purpose, many offshore banks want additional documentation,
noting the source of the funds you are depositing in the bank.
If the money is from your job, a wage slip from your employer will likely suffice. To verify your investment
income, an offshore bank may ask for information about your investments and where they are held.
If you have significant funds from a business or real estate transaction, you may need to provide sales
contracts or other relevant documents. If you are depositing funds from an insurance contract, you may
need to provide a letter from your insurance company. If your money comes from an inheritance, the
bank may ask for a letter from the executor of the estate testifying to this effect.
Choosing a Currency for Your Offshore Bank Account
Unlike domestic accounts, offshore bank accounts offer an option of which currency to hold the funds in.
This can be a highly valuable feature of an offshore account, especially if one's domestic currency is
unstable or expected to depreciate.
It is important to understand the consequences of holding your account in different currencies. For
example, holding funds in certain currencies may allow you to earn interest on your deposits, but it can
also result in foreign tax liability. Also, you may need to exchange currencies to make deposits and
withdrawals, which could be a significant expense depending on the fee structure and exchange rates
offered (see 6 Factors That Influence Exchange Rates.)
Depositing to an Offshore Bank Account
Offshore bank accounts are most often funded electronically through international wire transfers.
Unfortunately, the systems that enable free electronic transfers common in domestic banking are typically
not able to transfer money internationally.
Sending a wire transfer is a simple operation, but almost all banks charge international wire transfer fees
to send or receive funds. Pricing for wire transfers varies from bank to bank, so be sure to look for deals.
Unfortunately, there are few good alternatives. Domestic checks are generally not accepted in foreign
jurisdictions, and depositing funds in person on a regular basis is impractical.
Withdrawing from an Offshore Bank Account
Offshore banks offer a variety of ways to withdraw funds to maximize the convenience of using their
services. Many offshore banks issue a normal debit/ATM card that allows you to easily access your funds
worldwide. You will want to look into the fees for using this method, since they can be expensive.
Withdrawing larger amounts of cash at one time may help to minimize these fees.
Some offshore banks offer checks. However, this is usually not a preferred method– primarily, because
confidentiality is often desired in offshore accounts. Problems may also arise since checks drawn on
foreign accounts are not always accepted locally.
The best option may be to use two accounts: one offshore, one domestic. In this way, electronic wire
transfers can be used to transfer larger amounts of offshore funds to a domestic acco