The question on how to secure personal deposits has gone for years without yielding convincing answers. A closer look at the local western banking systems reveals they are under attack from numerous threats. Most banks keep a very limited amount of money that makes it difficult to get your cash in case of Lehman-style economic stress. Even if the shock does not become an imminent threat immediately, your deposit only earns very little interest, and there is limited asset protection. Is there a way out? Instead of waiting to see the money shrink by the day or get frozen because of an unnecessary lawsuit, you can open a bank account for alien in one of the top regions such as Hong Kong.
Selecting the best place to open an offshore bank account
While a bank account for alien provides numerous benefits, it is as good as the place it is located. Top destinations for opening an offshore account such as Hong Kong have a history of more than 100 years crafting evolving policies to protect clients’ investments. Here are specific tips for selecting the right place to open a foreign bank account.
Stable political system
The greatest threat to people’s deposits in the west is the political system. In a region like Hong Kong, the political system operates independently from the mainland China to guarantee extra stability. No effort is spared to strengthen the banking system and guarantee utmost security for people’s deposits.
A straightforward tax system
The systems in the west target people’s deposits by imposing heavy taxes on deposits and interests. You should, therefore, look for a country/state that has a straightforward tax system. For example, Hong Kong taxes are low and do not extend to people’s interests and dividends.
A hub for top banks in the world
The best regions to open a bank account for alien are those designated as financial hubs. In Hong Kong, over 30 international banks have a huge presence or use it as their headquarters. This provides numerous opportunities for various types of bank accounts. Ensure to assess the benefits of each bank and account.
A state/region with easy to travel policies
Though it is possible to open a bank account for alien without travelling, the logistics involved if travelling is necessary should be an important factor. For example, people from about 170 countries can travel visa free to Hong Kong and stay for a maximum of 180 days.
The process of opening a bank account
Once you have decided to open a bank account for alien, you need to follow the right procedure. While various banks might differ slightly on requirements, here is the common process that every client has to follow.
- Identify the bank of choice: Understanding the bank of choice to open an offshore account is critical to reinforce personal expectations. Review the bank’s policies, interests, and procedure for closing the account.
- Prepare and give all personal identification details: Every bank wants to know its clients as much as possible. You have to identify yourself vividly using personal identity cards, occupation, referees, and passports.
- Proof personal identity and residence: The copies of your personal travel documents and others such as driving licence are not enough. You need to move a step further to prove your residence. Some banks ask for a local administration letter (apostilles stamp), utility bill, bank accounts, and precise geo-location data.
- Confirm the reason for opening an offshore account and source of income: While many banks encourage you to open accounts and be their client, they take extra caution on who they are dealing with. You must, therefore, proof the main reason for opening a bank account. If you have a good reason for it, the bank will also want to know your source of income. If you are employed, provide details of the employer as well as bank statements. Besides, those in business should provide copies of invoices, tenders, and other operations.