Foreign Banking

Foreign banking has over the years gained popularity as the governments of many countries have allowed foreign banks to operate n their countries. Foreign banking is often used to describe offshore banking which in itself has many distinctions from foreign banking.

It is important to note that foreign banking creates many possibilities and makes available various banking facilities in addition to offshore financial services by making it possible for individuals, offshore investment vehicles to be used, agencies and corporations to wire and receive money from one country to another. People with second citizenship gain a lot as they undertake estate planning and enjoy the benefits of both worlds, one of which includes greater real estate options. Plus as a result of internet based services, promote international relations, trade and asset management strategies. This is so especially if they are investors and can more easily do offshore companies formation and engage in healthy asset protection in different offshore tax havens. Check Dominica citizenship by investment program as a possible strategy.

Countries which allow foreign banks to register and operate offshore business within their countries do so providing that these banks are in compliance with the banking legislation of that country. Therefore a foreign bank account does not have many differences from a local or onshore bank account.

Foreign banking is a practice carried out by many business persons and corporations for the benefits it presents. When carrying out business foreign banking aids trade and the exchange of funds and payments. Foreign banking facilitates trade if a business company has investments or trading partners in one country business is made easier if the corporation or person establishes a bank account at a foreign bank in that country. Most persons will choose to deal with banks that they are familiar with or have confidence in.

Other than business persons there are groups of persons who engage in foreign banking. For example students, retirees, and persons who work abroad. Such persons who move to foreign countries always find themselves more assured in the banking institutions that they know and have come to trust from their own countries. Therefore they will be more inclined to set up an account at a foreign bank.

Foreign banking has over the years improved as these banks takes step to develop services to make banking easier and more convenient for customers. Most of the countries which allow foreign banking have very secure economies which are amongst the world’s fastest growing economies.

To engage in foreign banking an individual or company must set up a foreign bank account with a foreign bank or one its branches or subsidiaries. The rules of foreign banking are strict and no foreign banks will set up a foreign bank account for an individual without a valid passport. Some banks ask for additional types of photograph identification mainly government issued identification cards and driver’s license. Foreign banks also require proof of address from all applicants. Persons who are not citizens of the country should provide documentation to prove why they reside in the country including work visas, student visas and permits. Students must provide a letter from the institution which they attend. Business corporations must show copies of their incorporation certificate and sometimes business license are required. Bank references must be submitted by all parties applying for foreign bank accounts.

Foreign bank accounts take at least one (1) month to set up. To open any type of foreign bank account the applicant has to visit the bank personally. An interview is normally carried out with the bank officials.

Foreign banking may be carried out in more than one (1) currency in certain countries. Foreign bank accounts receive the services that any bank account benefits from. Foreign banking has many benefits and foreign banks sometimes give higher interest rates

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