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There are many customers who would like to open a foreign bank account which would be absolutely confidential, helping them remain an incognito owner and avoid paying taxes. And sometimes they are really disappointed to hear that absolute anonymity no longer exists. It was possible some years ago when the offshores were good hiding places for your money, but they are as transparent nowadays as any other jurisdictions. And still, is there any way to remain a more or less confidential owner of a bank account? Fortunately, there is something you can do about it, and we are going to discuss the concept of anonymity in this article.
We would like to invite you to our portal to read more about ways of legal money protection. We write about international banking, asset protection, investment, business, and anything related to wealth. If you have some issue related to money, you are thinking about more reliable asset protection, or you struggle with the choice of a good bank for your needs, you can schedule a session with our expert and receive assistance at no charge. We also provide some paid services if you decide to delegate all the red tape to us: for instance, we can open an account for you in many jurisdictions remotely with minimum involvement on your part. Get in touch with us without delay!
What is an Anonymous Bank Account?
An absolutely anonymous bank account was declared illegal about 20 years ago. Nowadays, you can only achieve a certain level of privacy by opening an account in some jurisdictions (usually offshore ones) and complying with certain conditions (for instance, some people renounce their US citizenship to pay less taxes and have more confidentiality).
There are jurisdictions where financial institutions are focused on customers who want more privacy and use legal ways of providing greater confidentiality to them. And if this is your top priority, we recommend becoming a bank client in the following jurisdictions:
- Hong Kong
These are the financial destinations that can give you as much privacy as is reasonably possible in the present-day world considering all existing agreements and tracking devices, and they also ensure reliable protection for your deposits. The banking sector in these countries is very stable, and they do their best to cater to their customers’ safety. It should be clear, though, that confidentiality does not mean that you can hide from everyone and engage in any illegal practices. All you can do is to minimize the information that may be potentially accessible to any authorities and individuals about perfectly legal operations you are engaged in.
Reasons to Open an Offshore Account
Let’s look at the main reasons why people look beyond their home banking sector and take their money to foreign jurisdictions:
- Succession planning
- Enhanced privacy
- Diversification and reduction of currency risk
- Money protection from unfair competitors, business partners, relatives, and even national/international regulators
A foreign bank account can help you strike the balance between safety, protection, and confidentiality.
Opening an Anonymous Account in Switzerland
Swiss banks do not offer complete anonymity, and yet they offer as much privacy to their customers as they can. This is even a part of the country’s banking policy: the bankers are heavily penalized if they violate customer confidentiality in any way. If you want the best results, use Swiss private banks.
If you want to open an account in Switzerland, you will have to pass KYC procedures, prove the legal origin of your funds, and identify your personality. No serious bank will work with you without these steps.
Please keep in mind that forging your name to open an account is strictly forbidden.
Feel free to contact us to get up-to-date recommendations on Swiss banks.
Opening an Anonymous Account: Possible Options
If confidentiality is your first priority, consider opening an account with a proven payment system. They offer the same range of financial services as regular banks with the only exception: you cannot get a loan.
The main advantage of this decision is that payment systems do not exchange the data on transactions made. You can open a personal or a corporate account, and compliance requirements are more relaxed than in the case of banks. What is more, opening an account with a payment system may take less time (from 1 to 10 days).
There are really good payment systems in Lithuania, Great Britain, Hong Kong, and other countries. You can talk to our expert to select the best one that will suit your needs and preferences.
Let’s dispel the myth about the absolute anonymity of cryptocurrency transactions: unfortunately, they are not secret. Any Bitcoin transaction can be tracked, and it is not impossible at all to find out who really owns the wallet. However, you can use other cryptocurrencies as well to take advantage of fast transfers and lower fees. There are very few risks attached in this case:
- Price drops and rises that may occur all of a sudden
- High volatility
- Cryptocurrency has to be converted into fiat (regular) currencies
The latter case means that you will have to use the bank, and any bank service entails identity verification.
If you need to carry out crypto transactions without any obstacles, we recommend opening an account with banks in Georgia or Dominica.
Citizenship-by-Investment: An Unexpected Alternative
Many business owners acquire second citizenship and thus achieve more anonymity with regard to their financial operations. How does it work? Well, they become citizens of a low-tax jurisdiction and no longer have to report their assets to the authorities.
At the moment, you can use two ways of reducing your taxes:
- Set up a company in a country with territorial taxation, like Hong Kong or Panama, and thus pay no taxes on your income derived abroad.
- Obtain tax residency in a low-tax jurisdiction (Nevis, Grenada, St. Lucia, and so on).
You can also acquire citizenship by investment by investing in business, real estate, or securities (at least 100,000 US dollars will be required) and thus achieve anonymity. A well-selected citizenship-by-investment program comes with multiple perks for companies and individuals, so don’t miss an opportunity to add this gem to your collection. Click on the link above to get help with the choice of a proper jurisdiction.
Need as much anonymity as possible? Click on the above link to discover more details!