How you can open a foreign bank account during the lockdown times
While the world is fighting the COVID-19 pandemic and the national economies are suffering great losses, people are looking for ways to protect their personal assets and lower their financial risks. Opening an account with a foreign bank is one of the most effective instruments of asset protection and diversification. Over the recent two months, an increasing number of our clients have been asking the following question: Can I open a bank account via the Internet?
Yes, it is possible but you cannot trust your money to just any bank. You have to make certain that the financial institution where you are going to apply for services is reliable enough to become your business partner. Below please find the list of factors that you have to take into consideration when choosing the bank to set up an account with. We will discuss both the necessary qualities of the jurisdiction where the bank is located and the characteristics that the bank must possess.
General economic factors
Before opening a bank account abroad, you have to make sure that the country that you are considering has a strong and stable economy. Check how the total amount of bank deposits in this country relates to its GDP. If the former exceeds the latter, it is quite risky to open a bank account in this jurisdiction. In case several banks fail at a time, the state Government will not be able to rescue them.
Of course, such figures as the amount of the national GDP, the foreign debt, the inflation rates, the local currency exchange rates in relation to the major currencies, the rate of unemployment in the country, and the bank interest rates need to be considered without fail. The national Central Bank liquidity and payment ability are also important to know. Failure to carry out this sort of analysis may well lead you to making the wrong choice.
Understanding the political risks that the jurisdiction under consideration may have is also crucially important for international banking. Please bear in mind that political risks can be internal and external. For example, if the European Union financial authorities introduce some new regulations, the banking practices in the EU member states may change (internal risk) but these new regulations may also affect non-EU member countries, which means there is an external risk for them.
The possibility of the occurrence of a regional conflict in the country under consideration also needs to be taken into account. Yes, it is the end of the second decade of the 21st century but there are still quite a few military conflicts on the planet. What may look unthinkable at the first glance may well become the reality one day so the potential risks of a military conflict in the region must be considered too.
The global fight against the threat of terrorist attacks has changed the world banking sector tremendously. Much tougher requirements are now in place if compared to those that were applied before. Most people will complain about the difficulty of setting up a foreign bank account today.
Even though it is difficult to open a bank account in a foreign country indeed, you may want to look at this matter at a different angle. Suppose you apply for services to the bank that conducts stringent KYC (Know Your Client) checks. It also strictly follows the AML (Anti-Money Laundering) requirements. In addition to that, it implements Due Diligence procedures that are extremely tough.
What should you think of this bank? Should you conclude that the bank is too demanding to deal with? In fact, you should make the opposite conclusion. You should come to realize that it is a highly secure and trustworthy bank! If you also find that the bank under consideration ranks high enough with such agencies as Standard and Poor’s, Fitch, and Moody’s and it has a sufficient amount of Tier 1 capital, you can trust your money to it without hesitation.
What is the best country where you can open a foreign bank account?
It is hard to give a precise answer to this question. The choice of the jurisdiction will depend on your primary goals in using the foreign bank account. The country that will suit one person will not be the best choice for another one.
If you are looking to put your money into a strong currency and use the most secure banking system in the world, you should probably consider Switzerland in the first place. If you would like to earn a small but sure interest on your deposit, we recommend considering Lichtenstein. If you would like to make use of the most effective international insurance programs, look at Portugal. A bank account in this country can also be the first step on the way to acquiring a ‘golden visa’ and then EU citizenship.
Is it possible to set up a foreign bank account remotely?
Yes, it is quite possible. It would be interesting to note that the current restrictions of mobility that most people experience have made more banks offer remote account opening opportunities. With our assistance, you can open a bank account in Switzerland, Lichtenstein, Portugal, Luxemburg, Georgia, and Macedonia without paying a personal visit to the country.
Besides, if you are pressed on time, there is a possibility to set up an account with a British payment system within two days only! A payment system is not exactly a bank but it provides most banking services and it is as secure to have an account with a PSP (Payment Service Provider) as one with a traditional bank.
How can a private individual open a foreign bank account?
In order to set up a personal account with a foreign bank you have to supply the following documents:
- Copies of your domestic and foreign passports or ID cards;
- A document that will serve as a proof of your residential address (most banks will be happy with seeing a recent utility bill);
- A document certifying the legality of the sources of capital;
- A description of the purposes that the account is going to be used for as well as the indication of the expected account turnover and the nature of the intended transfers;
- Your personal contacts (a telephone number and/ or an e-mail address where you can be reached quickly).
Offshore Pro Group offers complex solutions that allow opening foreign bank accounts while ascertaining that all the application documents are completed in a proper way and that the bank that you have chosen is going to meet all your requirements to the full.
When the national borders are closed, you can extend your financial boundaries and open a foreign bank account without leaving the comfort of your home. Please contact us at [email protected] and sign up for a free consultation on choosing a bank account abroad. You can also use Whatsapp or the live chat to reach us. We always reply to the queries as fast as possible.
Why should I open a foreign bank account?
There are multiple reasons to set up a bank account abroad. Apart from asset protection and diversification, you can use it to make international investments, to purchase foreign property, to pay the tuition if your children study in the country where you have a bank account, to save on commissions when making international payments, to apply for a second passport, and so on and so forth. All experts agree that it is too unsafe these days to have only one account in only one country.
How can I open a foreign bank account in a fast and secure manner?
Theoretically, you can log on to the bank’s website and try to open an account on your own. Practically, your chances to succeed in this endeavor are rather low due to the strict requirements that the banks put forward to prospective clients today. In order to save time, money, and nervous cells you had better hire a professional consultant who will help you set up an account with a foreign bank.
What difficulties should I expect when opening a bank account abroad?
There are many choices that you will have to make when opening a foreign bank account. You have to choose the most suitable jurisdiction, a highly reliable bank, and the best service package from the ones that the bank offers. Banks will mostly deny service to the applicants who are unwilling to disclose the required information to the bank officers, those who do not answer the bank manager’s questions in a timely manner, and those who fail to fill out the application forms correctly. We recommend that you apply for a preapproval to the bank with our assistance before you file the actual application for services. The preapproval procedure will help you economize both on time and on money in case the bank that you apply to denies services to you at an early stage. Then you can proceed with applying to another bank without wasting resources on a hopeless attempt.