Banks in the Cayman Islands offer a range of accounts to suit your needs. You can contact a Cayman bank via the internet too arrange a confidential consultation to discuss your needs, whether you would like an offshore bank account, investment fund account, or the highly prestigious private bank account, Cayman banking can provide an account ideally suited to your business and private needs.
Part 1 of 2: Understand the General Information and Requirements
1) Understand tax laws in your country. Know the penalties and jail terms for avoiding legal tax obligations through the use of offshore banking. If you are taxed on worldwide income, it is illegal to not report proceeds earned in an offshore bank/investment account, even though there may be no added tax from that country.
If your intention in setting up an
offshore account in the Cayman
Cayman islands is to skirt tax laws,
you cannot do so lawfully. If you
are caught skirting the laws, you
cannot do so lawfully. If you are
caught skirting tax laws by
deposting money into an offshore
account, you may face a variety of
civil and criminal penalties,
including forfeiture of money and
possible imprisonment.
2) Understand the different between an offshore account and an investment account. Having a bank account and an investment account are two different things, each hauling distinct tax implications.
•Offshore bank accounts are
administered by banks and offer
traditional services associated with
holding a bank accounts: spending,
receiving, and transferring funds,
along with earning some forms of
interest. If you want to hold money
in an offshore account, a bank
account is probably your way to go.
•Offshore investment accounts are
administered by investors and can
hold money in different currencies,
as well as stocks, bonds, and mutual
funds. They provide greater
flexibility than bank accounts, but
may come with higher fees. If you
want to hold assets in addition to
cash oversees, an investment
account may be your best bet.
3) Realize that you don't need to go to the Cayman Islands to open the account. Accounts can be opened by mail, precluding the need for you to visit Cayman in order to open an account. Additionally a number of services such as internet banking, mail retaining, credit cards and investment options can be set up on these accounts.
4) Find a Cayman Islands bank with competitive rates. You can use the internet or write to your local British embassy for a list of Cayman Islands Banks. Use search terms like "Cayman bank account," "Cayman banking," "Cayman Banks" for Cayman Islands banks that accept less for opening accounts. Cayman private banks are more about investment and portfolio management than normal banking.
Ask each bank you talk to what kind
fees are associated with setting up a
bank account. Use these fees to shop
around for competitive pricing.
These fees may not be insignificant.
It may cost somewhere in the area
of $500 to $1,000 to set up an
offshore account.
5) Ask banks if they require an "apostilles" stamp. An apostilles stamp is a special kind of certification that you may need to provide as part of an international treaty. If you are required to show an apostilles, you will need to visit your governmental office to obtain a state or national version of that stamp before continuing the application process.
6) Ask for a list of requirements needed to set up an account. Requirements are usually set in place in order to avoid money laundering, fraud, or other legal or other illegal activities associated with the international transfer of money. These requirements may inckude:
•Financial statements from your
current bank to prove a satisfactory
relationship.
•Wage slip from current job.
•Proof of identity.
•Copy of your passport. (May be
distinct from proof of identity.)
•Proof of residence.
•Description of the expected uses of
the money.
7) Note that so me, not all, offshore bank accounts mat require for fewer proofs and for less information. Banks that do not ask questions or require many documents exist for a reason: many people choose to consistently use them. If your intention in setting up a bank account in the Cayman Islands is to remain clean and lawful, you may find it in your interest to steer clear of these institutions.
8) Prepare for other requirements set up by banking institutions that act as safety measures. Because of increased publicity and security over the years, offshore banks are starting to ask more questions and see more proof. For the following contingencies, be prepared to supply additional information:
•You may need to provide sales
contracts if the money you're
depositing is from a real estate
transaction or significant business
venture.
•You may need to provide a letter
from your insurance company if the
money you're depositing is from an
insurance contract.
•You may need to provide letter
from an executor of the estate if the
money you're depositing is from an
inheritance.
Part Two: Use Your Offshore Bank Account
1) Choose what currency your want your money to be held in if possible. One perk of having an offshore bank account is being able to choose what currency your money is held in. This, however, has its major advantages and disadvantages.
•The advantage of holding your
money in a foreign currency is the
ability to hedge against depreciation
or an unstable currency. If your
currency is unstable and/or steadily
losing value, this perk might be a
significant advantage.
•The disadvantage of holding your
money in a foreign currency is that
you may be subject to foreign tax
laws and you will experience fees to
exchange currencies.
2) Learn how to deposit finds into your account. Most modern offshore bank accounts effects transfer by electronic wire transfer. Many offshore banks do not accept foreign checks, and carrying money around may be impractical and/or dangerous.
Shop around for competitive rates,
as banks will typically charge a wire
transfer fee when you deposit
money. If you can find a bank that
does not charge wire transfer fees,
you might consider banking with
that institution.
3) Learn how to withdraw funds from your account. Although most banks will issue a debit card associated with your account, you may need to pay fees in order to withdraw funds from your bank account.
•Offshore banks generally do not
issue checks for withdrawal
purposes, for privacy reasons.
Additionally, checks drawn on
foreign accounts are often not
accepted by other banking
institutions.
•For this reason, consider holding
money in two accounts: one
offshore account, and one domestic
account. You'll be able to wire
transfer funds from the offshore
accounts over to the domestic
account, where you won't have to
deal with unknown hassles.
Tips
To find a Cayman Islands bank use the internet or you can write to your local British embassy for Cayman bank list.
Account officers can be appointed speaking English, French, Spanish, German, Italian, Russian and Arabic and the service can be customized to your needs.
Make sure your chosen bank has internet banking facilities.
Warnings
Expect to be asked where your money come from.
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