| There is no need to use the many middleman | | | | itself. Avoid Latvia! |
| websites you will find via a search engine. In fact, | | | | 3. Do not give anyone Power Of Attorney. |
| most of these are *bogus*, even the slick-looking | | | | You can kiss your money goodbye. You may have |
| ones. More and more banks are offering offshore | | | | legitimate reasons for not wishing to broadcast what |
| internet bank accounts direct. Just get a list of banks | | | | you're doing. The problem is: *How can you obscure |
| in the country you're interested in, and go to their | | | | that you are the owner of the company, or bank |
| web sites. | | | | account, without losing control of it?* |
| See the Google Open Directory here: here: the list at | | | | Don't get too clever, or too greedy. |
| Opening an offshore bank account is like opening one | | | | 4. Avoid web sites where: |
| in your high street; meet their criteria, and you're in. | | | | The business address is a P.O. Box, or a 'Suite'; |
| The only difference is you're not there in person. | | | | The site is on a free web host; |
| The first thing is to find out whether they will accept | | | | The site is badly translated into English; |
| citizens or residents of your country. For example, | | | | You have the sense you are dealing with Africans or |
| Swiss banks tend not to want US customers; they | | | | Eastern Europeans; |
| don't want the hassle from the IRS. | | | | The site has not been updated recently e.g. the |
| You will need to prove your identity, and the legal | | | | Copyright reads 2001; |
| existence of your company, if you wish to open an | | | | They've only been running for a few years; |
| account for it. | | | | They offer a range of dubious products - second |
| If applying by mail, DO NOT PART WITH ORIGINAL | | | | passports, citizenships, anonymous debit cards; |
| DOCUMENTS. Get copies notarised by a notary public. | | | | You cannot pay via credit card - it's much harder to |
| Originals can be used for fraud or identity theft. Or | | | | get refunds on banker's drafts, Western Union and |
| they can get lost. | | | | e-Gold etc; |
| A Notary Public is a public officer commissioned by | | | | They require you sign a confidentiality agreement, or |
| the State to perform notarial acts. A Notary is an | | | | you have the sense you are entering quasi-legal or |
| impartial witness. The notary is empowered to issue | | | | illegal territory. |
| an apostille. | | | | Bogus offshore banking sites can threaten to report |
| Apostille - Is a method of certifying a document for | | | | you to your tax authority if you question their |
| use in another country pursuant to the 1961 Hague | | | | methods. It's an old con trick; get the mark involved |
| Convention. With this certification by apostille, a | | | | in something illegal, then he can't go to the authorities. |
| document is entitled to recognition in the country of | | | | How do I know all this? Well, dear reader, let me |
| intended use, and no certification or legalization by | | | | take you back to 1997, when ecommerce was a |
| the embassy or consulate of the foreign country | | | | new word. Merchant accounts were not easily |
| where the document is to be used is required. | | | | available to individuals in the UK, especially if you |
| In practice this means you provide evidence to this | | | | wanted to sell intangibles. So I found a website that |
| man that you are who you say you are, and/or that | | | | offered one, with a Latvian bank account, and a |
| your company is what you say it is, and take an | | | | company registration in Panama to go with it. The |
| oath on the Bible. Oh yes, that's right, it's not a joke. | | | | latter was necessary to open the account, or so I |
| Due diligence: Banks need to show they have | | | | was told. This 'package' was on a 'discount', and cost |
| checked who their customers are, and how they | | | | about $400+. |
| came by their money. | | | | All worked well, until the bank went bust in 2001. One |
| Passport - If you apply by post a notarised copy is | | | | sorry fellow reported on Usenet that he'd lost |
| needed; | | | | $10,000. I lost the sum of $232 (business was |
| Proof of your economic background - documents | | | | diabolical!). I decided in 2002 to shut down the |
| showing how you earn your money (work contract, | | | | company, as it cost $500 a year in fees to maintain, |
| bank statement, tax return, company documents); | | | | I was skint, and I had no real use for it. To |
| Proof of the origin of your deposits - documents | | | | de-register it cost another $500. Which I paid. Only to |
| showing how you earned your deposits. For example | | | | find out later that that the middleman website hadn't |
| if you sell a house, proof of the sale, a copy of the | | | | de-registered it, and that the yearly fees to the |
| estate agent's listing, etc.; | | | | Panamanian registrar had not been passed on either. |
| Information about yourself and your deposits - | | | | Result: No merchant account, and a company in bad |
| Name, date of birth, address, etc., as well as how | | | | standing. Total loss: About £2000 GBP. |
| much you plan to deposit on the account and what | | | | That Latvian bank is open for business again, with no |
| you plan to do with the money once it is in the | | | | mention of their previous collapse on their website |
| account. | | | | (well, you wouldn't, would you?). |
| If opening a company account, you send an apostilled | | | | The moral of this story? Offshore bank accounts and |
| copy of the certificate of incorporation to the bank | | | | company formations are just like their onshore |
| providing your account, along with evidence of your | | | | equivalents; there's no big mystery about them. If |
| identity, an application form, and any other | | | | you want a company formation, contact a local man, |
| documents they ask for. | | | | who speaks English, in the country of registration. |
| If you want to get an offshore bank account, | | | | Then use another local man to check what the first |
| *consider visiting the bank in person*. If you can, | | | | one's done. |
| travel to the country in question, and open a bank | | | | Open your bank account yourself. |
| account there. You probably live near one tax haven | | | | One last thing: don't think that because your bank |
| at least. This especially applies if you are planning to | | | | account and company are offshore you can do |
| deposit large sums; find out who you're dealing with! | | | | business in your home country, and/or with fellow |
| NOTES: | | | | residents, and avoid taxes there. You'll find plenty of |
| 1. Don't pay a middleman to open a bank account for | | | | websites that'll purport to help you, right up until the |
| you. See above. | | | | time you get a small brown envelope from your |
| 2. Do not use services which offer bank accounts in | | | | country's tax inspectors, inviting you in for a little |
| Eastern European countries. | | | | chat. |
| You are likely to be cheated, possibly by the bank | | | | |