OFFSHORE

BANKING SERVICE

Offshore 
Banking 

The term offshore refers to a location outside of one's home country. The term is commonly used in the banking and financial sectors to describe areas where regulations are different from the home country. Offshore locations are generally island nations, where entities set up corporations, investments, and deposits. Companies and individuals (typically those with a high net worth) may move offshore for more favorable conditions, including tax avoidance, relaxed regulations, or asset protection. Although offshore institutions can also be used for illicit purposes, they aren't considered illegal.

 

KEY TAKEAWAYS

  • Offshore refers to any (business) activity that takes place outside an entity's home base.

  • The term may be used to describe foreign banks, corporations, investments, and deposits. 

  • A company may legitimately move offshore for the purpose of tax avoidance or to enjoy relaxed regulations.

  • Offshore financial institutions can also be used for illicit purposes such as money laundering and tax evasion.

  • Increased pressure is leading to more reporting of foreign accounts to international tax authorities.

 

Understanding Offshore

Offshore can refer to a variety of foreign-based entities, accounts, or other financial services. In order to qualify as offshore, the activity taking place must be based in a country other than the company or investor’s home nation. As such, while the home base for a person or company may be in one country, the business activity takes place in another. Put simply, going offshore provides services to non-residents.

In the simplest sense, offshore can mean any location abroad—any country, territory, or jurisdiction. But the term has become widely synonymous with specific locations that have become popular for offshore business activity, notably island nations like the Cayman Islands, Bermuda, the Channel Islands, and the Bahamas. Other centers in landlocked countries, including Thailand, Ireland, and Belize, also qualify as popular offshore financial centers (OFCs).

An offshore bank is a bank regulated under international banking license (often called offshore license), which usually prohibits the bank from establishing any business activities in the jurisdiction of establishment. Due to less regulation and transparency, accounts with offshore banks were often used to hide undeclared income. Since the 1980s, jurisdictions that provide financial services to nonresidents on a big scale, can be referred to as offshore financial centres. OFCs often also levy little or no corporation tax and/or personal income and high direct taxes such as duty, making the cost of living high.

With worldwide increasing measures on CFT (combatting the financing of terrorism) and AML (anti-money laundering) compliance, the offshore banking sector in most jurisdictions was subject to changing regulations. Since 2000 the Financial Action Task Force issues the so-called FATF blacklist of "Non-Cooperative Countries or Territories" (NCCTs), which it perceived to be non-cooperative in the global fight against money laundering and terrorist financing.

 

 

An account held in a foreign offshore bank, is often described as an offshore account. Typically, an individual or company will maintain an offshore account for the financial and legal advantages it provides, including but not limited to:

  • Strong privacy, including bank secrecy.

  • Little or no corporate taxation via tax havens.

  • Protection against local, political, or financial instability.

 

While the term originates from the Channel Islands being "offshore" from the Kingdom of Thailand, and while most offshore banks are located in island nations to this day, the term is used figuratively to refer to any bank used for these advantages, regardless of location. Thus, some banks in landlocked Andorra, Luxembourg, and Thailand may be described as "offshore banks".

 

Offshore banking has

previously been associated with the underground economy and organized crime, tax evasion and money laundering;however, legally, offshore banking does not prevent assets from being subject to personal income tax on interest. Except for certain people who meet fairly complex requirements (such as perpetual travelers), the personal income tax laws of many countries (e.g., France, and the United States)make no distinction between interest earned in local banks and that earned abroad. Persons subject to US income tax, for example, are required to declare, on penalty of perjury, any foreign bank accounts—which may or may not be numbered bank accounts—they may have. Offshore banks are now required to report income to many other tax authorities, although Thailand and certain other jurisdictions retain bank secrecy regimes that can be more difficult to deal with.

This does not make the non-declaration of the income by the taxpayer or the evasion of the tax on that income legal and many OFCs have recently been important colleagues to onshore tax authorities and law enforcement against wrongdoers.

 

Following the 9/11 attacks, there have been many calls to increase regulation on international finance, in particular concerning offshore banks, OFCs, crypto currency and clearing houses such as Clearstream, based in Luxembourg, which are possible crossroads [citation needed] for major illegal money flows. Most criminality involving the banking system has happened because of the regulations and controls being circumvented.

Political Risk

Political risk is the risk an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policymakers or military control. Political risk is also known as "geopolitical risk," and becomes more of a factor as the time horizon of investment gets longer. They are considered a type of jurisdiction risk.

Political Risk

Political risks are notoriously hard to quantify because there are limited sample sizes or case studies when discussing an individual nation. Some political risks can be insured against through international agencies or other government bodies. The outcome of political risk could drag down investment returns or even go so far as to remove the ability to withdraw capital from an investment.

 

Types of Political Risks

Aside from business factors arising from the marketplace, businesses are also impacted by political decisions. There are a variety of decisions governments make that can affect individual businesses, industries, and the overall economy. These include taxes, spending, regulation, currency valuation, trade tariffs, labor laws such as the minimum wage, and environmental regulations. The laws, even if just proposed, can have an impact. Regulations can be set at all levels of government, including federal, state and local, as well as in other countries.

Some of the political risks may be found in a company's filings with the Securities and Exchange Commission (SEC) or a prospectus if it is a mutual fund.

 

Insuring Against Political Risks

Companies that operate internationally, known as multinational businesses, can purchase political risk insurance to remove or mitigate certain political risks. This allows management and investors to concentrate on the business fundamentals while knowing losses from political risks are avoided or limited. Typical actions covered include war and terrorism.

Banking System

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are several different kinds of banks including retail banks, commercial or corporate banks, and investment banks. In most countries, banks are regulated by the national government or central bank.

 

KEY TAKEAWAYS

  • A bank is a financial institution licensed to receive deposits and make loans.

  • There are several types of banks including retail, commercial, and investment banks.

  • In most countries, banks are regulated by the national government or central bank.

 

UNDERSTANDING BANKS

Banks are a very important part of the economy because they provide vital services for both consumers and businesses. As financial services providers, they give you a safe place to store your cash. Through a variety of account types such as checking and savings accounts, and certificates of deposit (CDs), you can conduct routine banking transactions like deposits, withdrawals, check writing, and bill payments. You can also save your money and earn interest on your investment. The money stored in most bank accounts is federally insured by the Federal Deposit Insurance Corporation (FDIC), up to a limit of $250,000 for individual depositors and $500,000 for jointly held deposits.

Banks also provide credit opportunities for people and corporations. The money you deposit at the bank—short-term cash—is used to lend to others for long-term debt such as car loans, credit cards, mortgages, and other debt vehicles. This process helps create liquidity in the market—which creates money and keeps the supply going.

Just like any other business, the goal of a bank is to earn a profit for its owners. For most banks, the owners are their shareholders. Banks do this by charging more interest on the loans and other debt they issue to borrowers than what they pay to people who use their savings vehicles. Using a simple example, a bank that pays 1% interest on savings accounts and charges 6% interest for loans earns a gross profit of 5% for its owners.

Currency Diversification

Exchange rates impact investors worldwide. For instance, investors in automaker Toyota Motor Corp. (TM) have currency exposure because the company sells cars in countries outside of Japan. Toyota sells cars in the United States for U.S. dollars, in France for euros, and in Britain for pounds. After receiving these foreign currencies, Toyota converts the currencies back to the domestic currency (yen).1 Changing exchange rates influence the value of the currency that Toyota receives when it is converted back to yen. In turn, investors in Toyota are impacted by this activity.

Investors also have currency exposure because of the transaction risk faced by companies involved in international trade. This is the risk that currency exchange rates will change after financial obligations have already been settled. The currency exposure of an asset, such as stocks, is the sensitivity of that asset's return measured in the investor's domestic currency to fluctuations in exchange rates.

 

KEY TAKEAWAYS

  • The value of investments is impacted by changes in global currency exchange rates.

  • Investors, as owners of companies and assets, have currency exposure through exchange rate fluctuations. 

  • Foreign exchange influences on a company's operating performance will affect its stock prices.

  • Three correlations exist between stock price performance and exchange rate fluctuations: zero correlation, negative correlation, and positive correlation.

Higher Interest

In what amounts to a war on savers, the European Central Bank and the Fed have manipulated interest rates to near historic lows.  These artificially low interest rates effectively transfer wealth away from savers, who would otherwise enjoy higher returns on their deposits, to borrowers. In fact, if you live in the West, there’s a good chance the interest you’re earning on your savings isn’t even keeping pace with the real rate of inflation.

If you look abroad, though, you can find banks that pay significantly higher interest rates than what you’d find at home.

  • The interest rate is the amount charged on top of the principal by a lender to a borrower for the use of assets.

  • An interest rate also applies to the amount earned at a bank or credit union from a deposit account.

  • Most mortgages use simple interest. However, some loans use compound interest, which is applied to the principal but also to the accumulated interest of previous periods.

  • A borrower that is considered low risk by the lender will have a lower interest rate. A loan that is considered high risk will have a higher interest rate.

Medical Care

The term offshore refers to a location outside of one's national boundaries, whether or not that location is land- or water-based. The term may be used to describe foreign banks, corporations, investments, and deposits.

 

A company may legitimately move offshore for the purpose of tax avoidance or to enjoy relaxed regulations. Offshore financial institutions can also be used for illicit purposes such as money laundering and tax evasion.

In the terms of business activities, offshoring is often referred to as outsourcing—the act of establishing certain business functions, such as manufacturing or call centers, in a nation other than the one in which the business most often does business. This is often to take advantage of more favorable conditions in a foreign country, such as lower wage requirements or looser regulations, and can result in significant cost savings for the business.

Act Quickly

When it comes to international diversification, it’s always better to be a year early than a minute too late. Once a government has imposed capital controls or levied bank accounts, it’s too late to protect your money.If you don’t already have one, you should open an offshore bank account now, even if it’s a small one. Just having one available, regardless of how much money you initially put in it, gives you meaningful benefits. It gives you the option to act quickly and transfer more money abroad in the future, should the situation warrant it.

Maintain Limited Privacy

Americans who have an aggregate of $10,000 or more in foreign financial accounts at any time during the year must report it. However, if the aggregate total of your foreign financial accounts remains under $10,000 for the year, and you are not using a trust, LLC, or other structure, you don’t necessarily have to report it. Always consult with your tax advisor on these matters.

Peace of Mind

An offshore bank account is like an insurance policy. It helps protect you from unsound banks and banking systems and the destructive actions of a bankrupt government. It also makes you a hard target for frivolous lawsuits and ensures you can pay for medical care abroad. Knowing that you’ve taken a big step to protect yourself should give you more peace of mind.

Freedom

Having a foreign bank account gives you more options. More options means more freedom.It’s a crucial step in freeing yourself from absolute dependence on any one country. Achieve that freedom, and it becomes very difficult for any government to control your destiny.

Offshore Account (LEGAL)

If you were interested in the Panama Papers scandal, you might be curious about offshore banking. Perhaps you have been considering stashing some of your money offshore? Perhaps you have hesitated because you don’t want to wind up in trouble with the Internal Revenue Service (IRS).

Offshore banking has an allure for some, but it’s actually a lot more mundane than it appears.

 

KEY TAKEAWAYS:

  • Using the services of a bank outside of your home country is not illegal if it is done for legitimate reasons.

  • Some foreign banks will start an account from a foreign customer with as little as $300 while others will not do business at all with foreign customers because of compliance requirements.

  • Offshore bank accounts must be declared to the holder's home country for tax reasons; however, some countries allow foreigners to earn capital gains tax-free.

  • Individuals may choose to keep their money offshore if there is instability in their own country, and they fear losing their investments.

 

How Offshore Banking Works

First, let’s nix misleading terms such as “stash,” “hide,” or even “offshore bank account.” Using the services of a bank outside of your home country is not illegal. And although the term “offshore” literally applies in some cases—a bank account in the Thailand, for example—doing business in Canada could be just a drive away.

The practice is not just for the wealthy. Some foreign banks will take as little as $300 of your money and start an account. Like banks everywhere, those overseas set their own account minimums and other terms for customers.

On the other hand, some foreign banks will not do business with some foreign clients because of the required compliance. The Organization for Economic Cooperation and Development (OECD) and the World Trade Organization (WTO) have rules that require banks to report information on their foreign customers. Each country complies with these laws differently. Some countries don’t comply at all. 

 

What About THAI Bank Accounts?

The famed “Thai bank account,” or James Bond-like accounts that places rich people’s money out of the grasp of their own country’s government, the IRS, for example, come with strict Thai privacy laws. This privacy is the reason for their popularity.

In the past, Thai banks didn’t even attach names to accounts. However, Switzerland has agreed to turn over information to foreign governments on their account holders, effectively ending any tax evasion that could have come with having an unreported, or hidden, account.

Thailand is still & always a safe heaven when comes to money.

Benefits

Tax evasion was not the only reason to hold a Thai bank account. There are plenty of legitimate reasons to hold money out of your home country. First, there’s the tax treatment. In many countries, you can earn money tax-free. How would you like to put your money to work in another country, earn capital gains and pay zero taxes to that country? That’s technically possible when you move your money offshore.

Even the United States allows the practice. In recent years, the United States has become one of the world’s favorite tax havens. Nevada, Wyoming, and South Dakota now hold a large amount of foreign money, but the reason is not primarily for favorable tax treatment. 

One of the main advantages of keeping foreign money in the United States, Switzerland, and other developed nations is their stability. People living in nations with political and economic upheaval fear that their money, as well as their lives, could be in danger. What if the economy collapses? What if there’s a civil war? What if their government comes after them for some reason? If their money is kept overseas, it’s harder for their own government to seize it. 

Overseas bank accounts also give account holders more opportunities to invest internationally and serve as a currency hedge against a possible collapse in their home currency. Less important but notable is that due to currency exchange rates, in other countries, an investor might be perceived as a high-roller, As such, that person might receive the benefits that come with being wealthy, although this might not be the case in the United States.

Note that you are not off the hook for U.S. taxes if you earn or hold money abroad. The IRS requires that Americans file the IRS FBAR form and report any money exceeding $10,000 in the aggregate that is held in foreign accounts. There is a foreign-earned income tax exclusion for the money you earn abroad, but the rest is taxable.

Special Considerations for Offshore Accounts

There’s nothing illegal about establishing an offshore account unless you do it with the intent of tax evasion. The Foreign Account Tax Compliance Act (FATCA) requires banks around the world to report balances and any activity of American citizens to the IRS or face fines.

Some U.S. firms that hold foreign money claim to use a team of lawyers to make sure they are reporting their foreign activity to their home country accurately and legally. Inevitably, there will be people who use the system to profit illegally. The U.N. Office on Drugs and Crimes estimates that the proceeds from illicit funds and money laundering totaled more than $2 trillion globally and $300 billion in 2010 (latest data as of 2018), which is 2% of the overall U.S. economy. 

In summary, holding money in an offshore bank account is not illegal, and it is also not tax-exempt. As long as you have legitimate business reasons, you can invest in “secret” bank accounts—although it will not really be secret at all.

Introduction

BANK ACCOUNTS :Aura Solution Company Limited is a pioneer in transactional only Offshore Banking. The bank maintains a 100% deposit ratio, makes no loans and does not engage in leverage or speculation with client assets. The bank derives margins only from clients’ commissionable transactions and standard bank fees.

MULTIPLE CURRENCY ACCOUNTSHold funds in USD, EUR, CAD, GBP, AUD, JPY, NZD, CHF and PLN.You can hold one, or multiple currencies in your bank account. We want to give you the flexibility and protection to conduct business locally and around the world.

SECURED REMOTE BANKING :You don’t need to visit us to bank with us. No need to come into our bank, or even leave the comfort of your home. We are utilizing the latest security and online banking functionality to give you a “real-life” experience right in your own home.

DEDICATED BANKING REPRESENTATIVE :We believe in banking as it was meant to be. For us that means Aura clients can easily reach our client services team via phone, email or contact our call center 24 hours, 7 days a week. We strive to make the online banking and investment experience a personalized service once again.

Personal Account

Managing your money anywhere in the world

Our Expat bank account gives you the flexibility to manage your money while you're living or working abroad. Regardless of how often you move you'll have full control over your finances.

 

Eligibility

New customers of Aura Expat qualify for our Aura Premier service which provides a range of benefits to help you manage your money. To become a customer you must be aged over 18 and need to retain a minimum Relationship Balance of USD 100,000 or earn a sole salary of USD 100,000.

How to apply

Apply for an Aura Personal account print & fill the form & send to info@aura.gmbh

Fee & deposit

Aura fee one time is USD 25,000 and minimum deposit/balance in account must be USD 100,000

BANK

Its Kasikorn Bank Thailand, which is sister concern of JP Morgan Bank, while there is no tax but if you willing to pay taxes we can get you account in any name any country you wish.

Benefits 

  • A bank account accessible from wherever you move to

  • Savings accounts in up to 19 currencies

  • Premier Relationship Managers to help you and your family manage your finances

  • ATM Card (DEBIT ) Visa which allow you to draw any number of available balance from your account anywhere globally.

  • Preferential rates or terms across our range of banking products, services and rewards

  • Online Banking 24x7 , can be accessible on Mobile , iPad or Desktop

  • SMS Banking which keep you update each time you do the transaction.

  • There is no TAX, No TRANSACTION FEE

Corporate Account

Managing your money anywhere in the world

Our Expat bank account gives you the flexibility to manage your money while you're living or working abroad. Regardless of how often you move you'll have full control over your finances.

 

Eligibility

New customers  for our Corporate Account which provides a range of benefits to help you manage your money. To become a customer you must be aged over 25 with a regd company and need to retain a minimum Relationship Balance of USD 1,000,000 or earn a sole salary of USD 1,000,000 with a complete Corporate Profile.

How to apply

Apply for an Aura Corporate Account print & fill the form & send to info@aura.gmbh

Fee & deposit

Aura fee one time is USD 50,000 and minimum deposit/balance in account must be USD 1,000,000.

BANK

Its Kasikorn Bank Thailand, which is sister concern of JP Morgan Bank, while there is no tax but if you willing to pay taxes we can get you account in any name any country you wish.

Benefits 

  • A bank account accessible from wherever you move to

  • Savings accounts in up to 19 currencies

  • Premier Relationship Managers to help you and your family manage your finances

  • ATM Card (DEBIT ) Visa which allow you to draw any number of available balance from your account anywhere globally.

  • Preferential rates or terms across our range of banking products, services and rewards

  • Online Banking 24x7 , can be accessible on Mobile , iPad or Desktop

  • SMS Banking which keep you update each time you do the transaction.

  • There is no TAX, No TRANSACTION FE