The Offshore Banking sector has matured in recent years and legislation has been tightened up across most key jurisdictions to help protect investors and add more regulation to the industry. But like any investment strategy, those thinking of going offshore to protect their assets or operate in a more flexible and potentially more profitable climate would do well to consider these strategies to help safeguard their interests.
1) Conduct proper due diligence on the banker, accountant or offshore practitioner you are considering to handle your offshore business. Do not depend on appearances and expensive looking offices.
You must conduct your own due diligence into professional service providers and any proposed offshore financial activity. Ask for and check references and professional credentials.
2) Do comparison shopping. You usually get what you pay for. A careful comparison of service providers fees is in order – if very cheap beware.
3) Get independent professional advice on any proposed legal structure or money investment. Get competent legal counsel responsible to you, and only you, with experience to realistically evaluate a deal.
4) Turn your back on too-good-to-be-true deals of quick profits. The best money making opportunities require hard work, risk and time. Easy money and promoters that guarantee unrealistic profits – more than 10% to 15% annually, or guaranteed and consistent profits are red flags.
5) Don’t rely on secrecy. Dealing with an offshore banking promoter who claims that he can help you “hide money” from tax authorities is fraught with risk.
6) Diversify. Do not risk everything on one venture. Wise investors diversify investments in stocks, bonds, mutual funds, currencies, and sovereign debt.
7) Stay abreast of latest news in the offshore banking sector. One easy way is to set up a Google or Yahoo News Alerts for example and receive daily updates on the industry. Remember you are are primarily responsible for securing your assets.