Foreign Bank Account
A foreign bank account is a bank account established in a country which is not that of the account holder and furthermore the account is created in a bank whose headquarters is registered in a another country. When referring to foreign bank accounts people tend to think offshore bank accounts which in their own rights are foreign bank accounts too since they are also established in a country which is not that of the account holder.
Moreover foreign bank accounts fulfill fundamental banking functions and other financial services by making it possible for individuals, offshore corporations, agencies and corporations to wire and receive money from one country to another. Plus as a result of convenience, promotes international relations, trade and market security investments offshore. Holders of second passports benefit largely as they enjoy the benefits of both worlds, one of which includes greater real estate options. This is so especially if they are manufacturers and can confidently sell their goods in new markets in the Caribbean or elsewhere. Freedom of movement becomes the highlight in various contexts where people with dual nationality are concerned.
Foreign bank accounts are often created by students abroad, persons who have business entities in foreign countries, retirees who decide to live out their days elsewhere among other persons. Foreign bank accounts are very appealing these days especially in those countries where terrorism is on the rise and where economic crisis seem to be on the increase. Foreign bank accounts can be used as a means of asset protection.
Opening a foreign bank account may seem to be a lengthy process but in the end it pays off. In order to establish a foreign bank account most countries require that clients submit the following:
- Photograph identification. A valid passport is the document of choice in fact banks will not open a foreign bank account if the customer does not possess a valid passport. Jurisdictions which ask for two types of picture identification normally request government issued identification, driver’s license or Social Security card.
- Bank references
- Persons who are not citizens of the country must produce documents which show proof of residence- work permits, retirement visas, job letters among others
- Students must submit copies of student visas along with documents from the school or university which proves that they are matriculated and attending classes at the institution
- Verification of local address can be provided by submitting a recent utility bill. Please note that banks do not accept utility bill older than three months
To open a foreign bank account the potential bank account holder has to visit the bank of choice in person where an interview is normally conducted with bank officials.
The process of opening foreign bank accounts can take up to a month and in some cases more time. All this depends on the country where banking is to take place and the rules and regulations they have in place for the operation of foreign banking institution. Extra steps are being taken these days so as to prevent money laundering and other legal issues.
When acquiring a foreign bank account persons may choose to do so at a bank with whom they previously had business relations. This provides some sought of stability and security. Foreign bank accounts receive the standard offshore services enjoyed by bank account holders around the world. Such services include traveler’s cheques, credit cards, internet banking, debit cards, wire transfers among others. There are foreign banks at which customers can be hold foreign bank accounts in more than one currency. Other foreign banks only allow accounts in one currency which is that of the country where the account is established.
Business foreign bank accounts allow corporations to trade easily. Setting up a bank account in a country where a business corporation is registered and operates makes it easier to deal with local trading partners who will feel more assured working with banks they are accustomed to. Foreign bank accounts help making moving to another country easy and worry free. Foreign bank accounts also make good investment tools.