Everything You Wanted to Know About Seychelles Offshore Bank Account

Opening an offshore bank account is an attractive proposition for anyone who wishes to protect their financial assets and take advantage of various benefits of having a foreign account. Offshore accounts are often maligned as relating to unlawful deeds and shady activities, which does happen, but money laundering is very closely watched these days and no country’s banks are immune from money laundering in any case. An offshore bank account is best held in countries or jurisdictions that understand the offshore structure you have established and can provide the types of services required to facilitate your business or investment goals. Anyone who needs fast access to funds in order to manage a business or an overseas investment property is a good candidate for an offshore account. If you are thinking of opening an offshore account in Seychelles, below are some important things you should know:

·         Offshore accounts are completely legal. There is nothing innately illegal about opening and owning an overseas bank account. The problem lies with account holders who deliberately avoid declaring their income and earnings from the account in their annual tax return. Do this, and you will find yourself straddling the law and crossing over to the wrong side.

·         Depending on the bank or financial institution you wish to partner with, the process for opening your own offshore account may vary, as well as the types of documentation they may require. Generally, you will have to provide basic documents like your passport, your proof of address, and a verified (signed) declaration of the funding source for the account you are opening. Deposits to your brand new offshore account are typically made through international money transfer.

·         To open an account from your home country, you will need to follow certain procedures laid out by your Seychelles bank of choice. In line with due diligence and international laws, all banks must verify the identity of any customer on the basis of official documents. This is why it is not possible to open an account anonymously.

Offshore Trust Formation and Its Benefits

One of the strongest vehicles for asset protection is the offshore trust. As long as offshore trust formation is done in an appropriate jurisdiction, you should be able to protect your assets by preventing them from being attached to local judgements and financial enemies from accessing them. Popular jurisdictions do not recognize any civil judgements from a foreign country. Hence, if your creditor tries to pursue your assets in an offshore trust, it will have to initiate an expensive litigation process in the jurisdiction where your trust is domiciled and many jurisdictions provide protection in that any purported creditor must prove that the settlor intentionally defrauded the creditor by transferring the assets to the trust. Most creditors will not waste time and money to do that.

Offshore trust formation can also be beneficial for succession and estate planning. Assets in your offshore trust are separate from your estate. Hence, the trust can protect your assets against unwanted heirs. Trust deeds ensure that you, the settlor, can provide your assets only to your assigned beneficiaries. Alternatively, you can arrange for the trust to be useful for your children’s education and welfare in case of your demise.

An offshore trust offers more flexibility and confidentiality, too. The trust deeds are confidential and will not be registered publicly. Using an offshore trust can relieve you of the title to your assets, too, in case you are unable to properly hold your property. This way, your appointed trustees can take care of them.

If you have no idea how to start forming an offshore trust, consider working with a reputable service provider that is licensed in the jurisdiction where you want to keep your assets. Some firms offering offshore trust formation services can provide trustee services, too. Just make sure that they are licensed International Trust Service Provider and that they are regulated by the country. In Seychelles, offshore trust formation providers must be licensed and regulated by the local Financial Services Authority. Likewise, they are members of STEP (Society of Trust and Estate Practitioners).