| If you search on Google, "bank introductions" have | | | | reputable consultant is that they will also have done |
| become quite an industry these days. Dr W.G. Hill, a | | | | due diligence on the banks first. To give you an |
| famous offshore guru back in the 1980s, once wrote | | | | example, I never ever recommend a bank to a client |
| sarcastically about this that he "would be happy to | | | | if I have not sat in the bank's offices, talked to |
| sell introductions to Sears and Roebuck." For our | | | | senior management there, studied their annual report |
| British readers, that might be more like offering to sell | | | | in depth, and used my gut feeling to test them out. |
| introductions to Marks and Sparks. | | | | Fortunately after so many years flying around the |
| The point, of course, is that in theory - to this day - | | | | world visiting banks, my gut feeling is quite well |
| you can just walk in to a bank, or even contact | | | | honed. |
| them over the internet, and open your account | | | | But the bottom line is you do not need an |
| directly. No need to pay any "consulting fees" to | | | | intermediary to open an account. You can make |
| intermediaries. | | | | direct contact with certain banks specifying that you |
| The reality these days, however, is that opening true | | | | wish to set up an account and asking about the |
| private accounts just by walking in off the street (or | | | | correct forms and procedures. Be prepared, |
| off the internet) has become very difficult. Banks are | | | | however, for some toing and froing. If this is your |
| running scared of governments and regulators. It is | | | | first time opening an offshore account you might be |
| estimated that opening an offshore bank account | | | | surprised at some of the documents the bank |
| requires at least five hours of a senior employee's | | | | requests of you! |
| time on the bank's side. Time is money, and when it | | | | How An Offshore Banking Expert Can Help You |
| comes to highly paid bank officers in offshore | | | | A good professional intermediary will review your |
| jurisdictions, all the more so! So banks do take | | | | requirements, recommend the most suitable bank to |
| applications more seriously and feel more comfortable | | | | you, help you put together the complete file of |
| with an introduction from a professional who is | | | | documentation required, and then introduce you to |
| known to them -- such as a lawyer, accountant or | | | | the bank. The introduction will consist of either |
| company formation agent. | | | | setting up a personal meeting, or arranging the whole |
| The banks particularly like these introductions | | | | account opening process by e-mail and post. All |
| because then if anything goes wrong - for example if | | | | information will be held in the strictest confidence, |
| the client turns out to be a criminal - the bank can | | | | and will be destroyed once the account is opened. |
| pass the buck to the professional who made the | | | | Always ask about the security aspects if you are |
| introduction. It's called "Cover Yourself" or CYA for | | | | thinking of making use of such a service. |
| short, and is an important motivation behind KYC or | | | | The bank introduction fees are typically quoted |
| "Know Your Customer" policies. | | | | assuming your requirements are normal. Your chosen |
| Of course, professionals don't work for free - | | | | consultant will however need to pass on to you any |
| especially knowing that they are taking that kind of | | | | out-of-pocket expenses he must incur on your |
| risk. That's why bank introduction services command | | | | behalf. Typical examples are notary and apostille fees, |
| high fees these days, especially when taken in | | | | certified copies, express courier fees and so on. |
| isolation. | | | | These fees if any should be notified and agreed in |
| Probably the biggest advantage of going through a | | | | advance. |
| good financial intermediary is the time-saving aspect. | | | | Banks also typically charge fees for their services. |
| Time is money. The professionals are already familiar | | | | Some charge for account opening, some don't. Some |
| with how the banks work - not just the written | | | | charge for internet banking, some don't. All banks |
| rules, but the unwritten ones too. You can ask an | | | | make charges for issuing plastic cards, for sending |
| intermediary theoretical questions that you might well | | | | documents by registered mail or courier etc, and |
| not want to ask an unknown banker directly for fear | | | | most also charge a fee for account closure. These |
| that the banker might be obliged to file a Suspicious | | | | costs are of course also responsibility of the client |
| Activity Report. The intermediary is your personal | | | | and should either be paid up front or can be |
| confidant. | | | | deducted from the account once it is opened, |
| There are, of course, good intermediaries and bad | | | | depending on the individual bank's policy. |
| ones. An advantage of going through a good, | | | | |