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Offshore Banking
A guide to the products and services available
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Contents
4 7 9 10 12

Investment INTERNATIONAL

The real picture You dont have to be rich to take advantage of offshore banking so should you consider it? Choosing your offshore jurisdiction A look at regulation and how to choose your offshore jurisdiction Changing legislation A look at how legislation has affected offshore investors Offshore banking services A look at the products and services on offer Security is key Ray Clancy talks to Pete Horrell, MD of Barclays Wealth International and Wealth Intermediaries

Not just for the Jet Set

Martin Fagan, editor
nce seen as the province of the wealthy Jet Set, in this era of globalisation, discount air travel and the benefits of the digital world that enables us to monitor anything 24/7, offshore banking can benefit UK citizens who decide to retire abroad, or whose job requires quite a lot of international travel. And foreign nationals working in the UK will only be taxed by the Revenue on the money they earn or bring into the country, so any overseas earnings or savings are better off in an offshore account. However, many people perceive an offshore bank account as a mythical thing, best characterised by the movie The Bourne Identity, where Matt Damon as Jason Bourne armed with only the number of a Swiss bank account and his palm print, gets access to a safe deposit box containing bundles of cash, passports and a handgun. Romantic as this notion is, its also completely wrong: safe deposit boxes are one thing; an offshore bank account is something else entirely. In this guide well look at the brief history of offshore banking, what precisely offshore means, the legislation surrounding it, the regulation to protect offshore customers, the tax consequences of banking offshore and the advantages. Well also look at what kind of services are on offer multicurrency card services, tax management, private banking, Internet services, investment funds, pension assets - with a brief review of each. Offshore banking has many uses and many people can embrace its benefits and the good news is you dont have to be a millionaire or a member of the Jet Set to bank offshore. We hope this guide proves useful to you.

Offshore Banking Guide 03

Offshore banking has many uses and many people can embrace its benefits

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Editor Martin Fagan, 0207 490 0588 martin@thepublishinggroup.co.uk Editorial Director Nia Williams, 0207 490 0588 Nia@thepublishinggroup.co.uk Head of Production Melanie Jones, 020 8290 4999 melanie@em-jays.co.uk Publisher Marco Callegari, 0207 490 0588 Marco@thepublishinggroup.co.uk

Managing Director Ramesh Sharma, 0207 490 0588 Ramesh@thepublishinggroup.co.uk Subscriptions Andrew Goldsmith, 020 7490 1382 Andrew@thepublishinggroup.co.uk

Information carried in Investment International is checked for accuracy, but we recommend that you make enquiries and, if necessary, take legal advice before entering into any transactions. Any views or opinions expressed in this magazine are solely those of the author and do not necessarily represent those of The Publishing Group Ltd.

All rights reserved in respect of all articles, drawings, photographs etc published in Investment International anywhere in the world. Reproduction or imitations of these are expressly forbidden without permission of the publishers. Editorial contributions requiring an answer should be accompanied by a stamped self-addressed envelope. No responsibility can be taken for contributions lost or damaged in the post. Conditions of sale and supply: this periodical is sold subject to the following conditions, namely that it shall not without the prior written consent of the publishers be lent, resold, hired out or otherwise disposed of in a mutilated condition or in any unauthorised cover by way of trade or affixed to any advertising, literary or pictorial matter whatsoever. All advertising is subject to the terms of our current rate card.

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Offshore Banking Guide

4 | Offshore Banking

The real picture

I
You dont have to be rich to take advantage of offshore banking so should you consider it?
So what is offshore? Safe haven
the EU introduced the European Savings Directive (ESD to be discussed in greater detail later in this guide) in July 2005, an offshore bank was simply a bank located outside your country of residence, usually in a low tax jurisdiction. The appeal of offshore banking is that it offers the potential for tax efficiency, the convenience of easy international access and a safe haven for your money.

f you think that offshore banking is exclusively for the rich and famous then you are very much mistaken. In fact offshore banking is much more relevant now than it has ever been and the fact that many, if not most, of the UK banks offer offshore banking services alongside their onshore banking services reflects this. With more and more people working overseas, it becomes crucial that your money is put into a bank that you know and trust. Stability is key and, rather than trust local banks / governments / economies with your hard-earned cash, consider all your options.

Is it for you?

higher rates of interest or reduced or no charges on certain accounts or products.

WG Hill, the author of the underground classic PT (for Perpetual Traveller or Permanent Tourist), is quoted as saying: Get your money out of your country, before your country gets the money out of you. And this, for some, is the central tenet of what offshore banking is all about. Offshore banking is really just the practice of banking in a country other than the one youre a citizen of. You may reside in the country in which youre a citizen or the country where the bank account is registered or neither. Before
Offshore Banking Guide

Asset protection, trust, good service and accessibility are key elements of todays offshore banking industry. Just as onshore banking has developed with more providers adding extras to their products, such as free travel insurance, AA cover and so on, the same can be said of the offshore sector. Fortunately the internet helps makes sure each providers service, products and fees are completely transparent you can easily check out the huge range of products and services available, online. In addition to that peace of mind regarding the safety of your finances, there are other advantages. There are many tax breaks as well, with potential tax holidays. Plus providers tend to have lower operational costs and can therefore pass these savings on to their customers through

So, if youre thinking of upping sticks and heading abroad, or if you already own an overseas home or you perhaps regularly work abroad for your company, you may benefit substantially from an offshore bank account. Expatriates, those who own a property abroad or people termed as having an international lifestyle, can all potentially profit from an offshore bank account. By its very nature such an account is flexible and when youre living abroad or sending money back and forth between more than one country or transacting in more than one currency, then the very thing you need is flexibility from an offshore account. Common misconceptions of offshore banking include theories on hiding money, a service reserved for the rich and famous or a plan to evade or even avoid taxation! Many of the leading high street banks offer offshore banking services to clients so accessible is offshore banking to all. Basically offshore banking is the management of

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Offshore Banking | 5

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The History of Offshore Banking

financial assets from a jurisdiction other than the one in which you live. For some people it does have very real and legitimate taxation advantages, but for the vast majority of us, it is all about simplicity of money management. Offshore banking in its simplest form suits those who make the very most of the fact that we can travel, live and work anywhere, invest in properties overseas or different money markets and who think outside the small box that is the UK. If you want to know more about the fundamental basics and benefits of offshore banking speak to any of the main banks such as HSBC, NatWest, Barclays or Lloyds and learn about the services they offer. This will give you a good grounding and help you see whether an offshore bank account could actually be of value to you. For those of you who can remember the 1970s, youll probably remember the UK and Europe levied the highest, most punitive taxes in the developed world, with high earners in the UK having their earnings taxed at a rate of 85 per cent, giving rise to the phrase tax exile, where the likes of the Rolling Stones, Michael Caine, Pink Floyd, Sean Connery moved abroad for

years at a time to avoid paying high rates of income tax. And then the government and financial institutions in the Channel Islands predominantly Jersey and Guernsey realised that, rather than a person leave the UK to save tax, their assets could be moved offshore to Channel Island banks and tax could be saved that way. The Channel Islands fall into two separate self-governing bailiwicks Jersey and Guernsey, both of whom are British Crown Dependencies, but neither is part of the United Kingdom. The Channel Islands assisted dejected investors with two key offerings: confidentiality and lower taxation. The offshore banking industry was born. The Channel Islands bankers persuaded their clients that any deposits placed into offshore banks would be anonymous, free from the scrutiny plaguing the mainland and the UK, and would be liable for minimal taxation. As word spread across Europe and indeed throughout the world, other small island nations and jurisdictions seized upon the opportunity and began strengthening regulations regarding banking practices and client confidentiality in the hopes of attracting foreign depositors; thus

becoming offshore banking jurisdictions and offshore financial centres. This became particularly popular in the small island nations of the Caribbean, which many tend to associate with offshore banking jurisdictions. Investors and depositors seeking politically and economically stable jurisdictions found their way to these offshore financial centres and this practice continues today. Rightly or wrongly, offshore banking has become synonymous with "tax haven", jurisdictions characterised by low - or zero taxation on interest, dividends, royalties and foreign derived income, as well as having some degree of banking confidentiality. Over time this term has evolved to include other popular banking jurisdictions such as Switzerland, Austria, Lichtenstein, Luxembourg and more recently the United Arab Emirates (UAE), Singapore and Hong Kong. These gained popularity for the same reasons the small island offshore financial centers did: they implemented sound banking practices codified in law and regulations guaranteeing confidentiality, low taxation and security. Although an abridged and streamlined version of history, these are, fundamentally, the roots of the modern offshore banking industry.
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6 | Offshore Banking

Put your offshore banking in the hands of the expat experts

13N Rizal, Philippines

When youre looking for someone to look after your savings and investments, you want to know that your money is in safe and experienced hands. And if you live and work abroad, you also need someone who can help you maximise the potential tax opportunities that expat life presents. Put your trust in the hands of HSBC Bank International and you will be dealing with people who really understand what its like to be an expat. Because were experts in expats, we can help you take advantage of the opportunities your circumstances offer, with specialist offshore products and services to help you make the most of your savings and investments while youre living overseas. Take advantage of our expat expertise: Visit www.offshore.hsbc.com/ii Call +44 (0) 1534 616111

Offshore bank accounts are frequently available in more than one currency. This makes them extremely valuable to those who work in a different country or travel frequently. It is also very useful to your average investor as a hedge against dramatic currency movements. Some investors for example may like to buy into a currency recognised for its stability like the Swiss franc, to prevent keeping all their money in one currency such as the dollar. An offshore bank account can also act as a hedge against financial instability at home. Depending on where and exactly how you bank offshore, offshore bank accounts can be much more confidential than an onshore account. The reasons for wanting this privacy are numerous and, while Swiss bank accounts and Cayman bank accounts are traditionally viewed as the most secretive, international developments have rendered them less private than they used to be. When people decide to move part of their wealth offshore, it is often not just a bank account they are looking for. The offshore bank account is often a portal to other investments such as foreign equity, offshore funds and financial instruments that give high rates of interest. Some of these investments may be available completely tax free depending on your personal situation. Sending and receiving large wire transfers abroad can be a nightmare when using a domestic bank. There are mountains of questions and paperwork to be dealt with. That's understandable. Domestic bank accounts are really for in-country transactions and not equipped to deal with large volumes of foreign transfers. On the other hand, offshore bank accounts are specifically equipped to send and receive money from outsider countries, and make the process as fast and efficient as possible.

Issued by HSBC Bank International, a trading name of HSBC Bank International Limited, HSBC House, Esplanade, St Helier, Jersey JE1 1HS. HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation, Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for Banking, Collective Investment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. Copies of the latest audited accounts are available on request. Approved for issue in the UK by HSBC Bank plc, 8 Canada Square, London E14 5HQ. Deposits and investments made with non UK members Financial Services and Markets Act 2000, including the Financial Services Compensation Scheme. To help us to continually improve our service, and in the interest of security, we may monitor and/or record your communications with us. HSBC Bank International Limited 2010. All Rights Reserved. AC18141/LV/2206311

Is it too good to be true?

Many of the leading high street banks offer offshore banking services to clients so accessible is offshore banking to all

Who is it aimed at?

Why should I have an offshore bank account?

In the real world inhabited by you and I, whether youre a professional expatriate, globetrotter, international investor, or consultant, an offshore bank account could prove invaluable. Relocation, whether on a regular or one-off basis can have serious taxation implications for your assets. But if they are safely anchored in an offshore jurisdiction, barring unforeseen events, they can remain there for the duration of your expatriation (and beyond), usually attracting favourable taxation and higher returns.

In the run up to the 2010 General Election, much was made by the Labour government of the Conservative peer Lord Michael Ashcrofts offshore status as if there was something wrong with his decision to maintain his (not inconsiderable) finances offshore in Belize. But there is nothing wrong with this. Offshore banking is legal; nobody will come and arrest you for having offshore bank account, or for being a shareholder of an offshore company, or for making an offshore investment. It is absolutely legal service provided by a licensed financial institution.

Offshore Banking Guide

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Choosing your offshore jurisdiction

he very nature of being offshore means your account is subject to the laws and regulations of the jurisdiction in which the account is based and not the laws and regulations of the country you reside in or are a citizen of. This is why you have to pick the jurisdiction the country you choose to base your account with care. Where you currently live in the world impacts on where you can bank offshore. Not all jurisdictions (countries) are equal. Any bank is governed by the laws of the country it is licensed to operate in. It is also governed by a plethora of internationally generated financial oversight regulations. For example, if you live in the eurozone, then it would generally be unwise to open a bank account in the Isle of Man, simply because banks in that jurisdiction are obliged to comply with increasingly intrusive regulations which demand disclosure of the bank's client information. It can even involve your offshore bank deducting a non-declared rate of tax from your interest bearing accounts called a withholding tax - which may be just the thing youre trying to avoid.

A look at how regulation protects you and how to choose your offshore jurisdiction
Criteria

Choosing a jurisdiction | 7

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There are several key criteria which any offshore jurisdiction should fulfil before you consider banking there. These include political and economic stability, strong infrastructure, (a modern and reliable business infrastructure is usually a fairly good indicator of the stability of a jurisdiction), convenient location (although this differs as you move from country to country, it is still important to consider the geographical location of the country in which you intend to bank), and investor/customer protection (standards can vary tremendously from jurisdiction to jurisdiction, and sometimes between institutions).The only way you can discover if a jurisdiction is right for you is by due diligence - the process of evaluating a prospective financial decision by getting information about the financial, legal, and other aspects in order to evaluate the soundness of the decision youre about to make. Initially, this means doing a little research for yourself, and there are several things you can do. First of all, look at the established institutions in your jurisdiction of choice. In this way, you can gauge the standards of the

Research

industry there and, in so doing, give yourself a frame of reference.

Although longevity is an important point for an offshore bank, it is not the only factor to be considered. You need to make sure that the bank you intend to entrust with your cash is the real deal (i.e. has an office, staff, a banking licence, assets, etc). If you come across the institution via its website, make sure it is possible to make contact by other means than e-mail. Although the presence of a physical mailing address, and telephone and fax details do not in themselves indicate that a bank is legitimate, their absence should trigger alarm bells. Also be wary of banks or providers offering interest rates that seem unusually high. Although there is certainly scope for good returns in the offshore arena, things that seem too good to be true usually are. But due diligence requires you do an enormous amount of spadework and analysis of the jurisdiction and its financial institutions which, for the inexperienced, is exhausting, fraught with anxiety and time consuming. It is for this very reason that
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8 | Choosing a jurisdiction

Whats the difference between domicile and resident?

many people who require an offshore bank account use the offshore divisions of the UKs major high street banks, all of which offer offshore services to existing and new customers. Many have decades some even centuries of experience in offshore banking and so, if offshore banking is something youre seriously considering, it may be worth your while contacting one of the high street providers and talk through their offshore services with one of their advisers. Remember this doesnt oblige you to open an account with that particular bank.

How much money do I need to invest offshore?

Domicile or residence may sound like two words to describe the same thing but, used in the context of offshore banking, they are used to express two very different states. Domicile normally relates to the country or state that an individual regards as their permanent/ultimate home location. A person's domicile is established at birth and this remains until an individual resettles with the firm intention of remaining in that new location and/or takes out citizenship of that country. Residence is normally determined by an individual's status at a particular time. The rules vary from country to country, but in many cases presence in a country for more than 183 days in any one tax year is enough to constitute residence for tax purposes.
Offshore Banking Guide

How do I open an offshore bank account?

There is no absolute low limit, but the extra costs of taking advice, opening new bank accounts, phone communication at a distance, transaction costs mean offshore investment is unlikely to be worthwhile for those earning less than 25,000 a year. However, because of the internet, costs are being reduced. Offshore banks will take deposits down to 1,000, but for a personalised 'private banking' service, you may need to deposit 100,000 or more. Each offshore bank will have its own requirements, so these are meant as a rough guide. With the advent of 'Know your Customer' legislation in the last few years, the number of checks banks are required to conduct on potential customers have increased greatly. The nature of these checks and the proof the bank will need to establish you are who you say you are - will depend on the bank, but you should be prepared to submit: l The original or a notarised copy (signed by a solicitor, your doctor, etc) of your passport, and/or a notarised copy of your birth certificate and/or driving licence. l A recent utility bill (or equivalent

document) with details of your permanent address. The electoral roll may also be checked. l A bank reference letter drawn on your domestic banks letterhead (or on the form sometimes provided by the offshore bank), and signed by the bank manager, stating that you are a reliable and suitable customer. The recommendation is that the reference letter is completed by a bank with which you have had a two-year banking relationship (six months is really the bare minimum). l A professional letter of reference from a doctor, lawyer, and accountant in your country of residence. l A letter of intent on source of funds. This is where you must lay out the projected account activity, and also the expected source of any funds deposited. Know your Customer legislation means that if there is any suspicious or unusual account activity (i.e. if the actual amounts deposited or frequency of deposits differ from your projections), the banks must investigate this, and if necessary pass the information on to the relevant authorities. l The required minimum deposit. This will vary from institution to institution.

If it is something youre seriously considering, it may be worth your while contacting one of the high street providers and talking through their offshore services
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Changing legislation
A look at how legislation has affected offshore investors
ust as you would undertake due diligence on the prospective offshore bank with which youre considering opening an account, the bank is checking you out to make sure you are who you say you are. In effect, the bank will want to know a lot more about you than it would have a few years back, mainly because of money laundering and its association with terrorism. The legislation governing offshore banking was forever changed as a consequence of what happened on the morning of September 11th 2001. The US sought to crack down on potential terrorists who were using the offshore banking network to move money around by initiating far-reaching banking regulations - applicable to all accounts (worldwide) that were transacted in US dollars. Following 9/11 the US introduced the USA PATRIOT Act, which authorises the US authorities to seize the assets of a bank where it is believed that the bank holds assets for a suspected criminal. Similar measures have been introduced in some other countries. This doesnt impact the normal offshore client directly (we assume your desire to open an offshore bank account is a legitimate one), but part of it is the clause entitled: Know Your Customer which is the due diligence and bank regulations that financial institutions must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. The international response to money laundering has been coordinated by the Financial Action Task Force (FATF), also known by its French name, Groupe d'action financire (GAFI), whose original 40 principles form the basis of most international responses to money laundering. As well as the opportunity to curtail terrorist financing activities, the governments of Europe saw an opportunity to use terrorism as an excuse to clamp down on what really annoyed them about offshore banking - tax avoidance. The European Union Savings Directive (EUSD), which came into effect in July 2005, contains the so-called European Union withholding tax, a tax deducted from interest earned by European Union residents on their investments made in another member state, by the state in which the investment is held. This directive makes EU residents with offshore bank accounts choose between one of two options: 1) Allowing their offshore bank(s) to report savings income directly to local tax authorities. 2) Pay tax immediately at such time income is provided to the account holder by their offshore bank. Over time, it is expected an increasing number of offshore banks will be affected by this decision. In addition, if the account holder chooses the second option mentioned above, then the tax rate used to collect monies due is scheduled to rise in 2011. This increase in the tax rate is viewed as a way of eventually forcing all account holders in offshore banks to choose the first option mentioned above - namely allowing those banks to report directly to their countrys tax collecting agencies. Any interest you receive on your accounts can either have tax withheld at source, or alternatively, you may continue to receive gross interest, but the bank will have to report details about you and the interest you have received to the tax authority in the EU member state where you are resident. This

What taxes will I be liable for?

raft of legislation has certainly complicated the next question:

Legislation | 9

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Your tax situation and potential benefits of placing your money offshore will depend on your personal circumstances, the institution you open the account with and the jurisdiction in which it operates. As a rule of thumb, theres generally no tax deducted on interest earned. Also, any offshore income may not be subject to tax. Depending where you live, income on an offshore bank account or investments may not be subject to tax in your country of residence, if that money is not remitted into your country of residence. Moreover, in jurisdictions such as the Isle of Man and the Channel Islands, theres no inheritance tax, capital gains tax or death duties. Perhaps the most prevalent tax on offshore banking is a withholding tax. When a dividend (or royalties or interest) is paid internationally, the country from which the payment is made usually taxes the payment as it leaves, by 'withholding' a proportion of it, usually between 10 per cent and 30 per cent. If there is a double tax treaty between the two countries concerned, its often possible to reduce the tax, or to reclaim some or all of the money. Some receiving countries allow the withheld tax to be set off against domestic tax liabilities. There's no point in setting up an offshore account if you do not really need one. If you could easily do what is required with a simple domestic account, that's the best course to follow. On the other hand, if some of the ideas above struck a chord with you, maybe it is a good time to move offshore.
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10 | Products and services

Offshore Banking Services

Banking and investing offshore means a consistent, long-term financial relationship wherever you are in the world - and the ability to manage your money in a range of currencies
International Bank Account Relationship Manager Service International Portfolio Management Services
ffshore banking offers a multitude of services far more than you might actually need but its a good idea to be aware of the scope of what products and services an offshore bank account has the potential to give you access to. Below, we look at the most common ones with a brief explanation of each. The list merely scratches the surface and so, if theres a particular product or service you require from an offshore bank account, its best to enquire of the bank youre seeking to open an account with. free, simply because you have to be approaching the high net worth bracket to qualify. As a general rule, youll need to hold a balance of 50,000 or more (or currency equivalent in cash or investments) and/or an annual individual gross income of 100,000 or more (or currency equivalent) paid into your international account. Anything lower and fees may apply.

Tax Management Offshore Trusts

A good offshore banking service will be able to offer advice on a comprehensive range of fund types, including hedge funds, property, private equity and fund of funds and then work with you to reach your ideal investment approach.

Usually available in sterling, US dollars or euros, this is the basis of all your offshore banking services. It gives you instant access to your money along with control over your day-to-day spending, no matter which country you're in. And with 24 hour internet banking and some banks offering 24-hour telephone banking access is not problem, wherever you are in the world.

Designed to help affluent clients manage and maximise their wealth, this is a dynamic and tailored service, taking into consideration your individual circumstances and financial goals. A personal Relationship Manager and their back-up team will be your first point of contact to the extensive range of products and services available at your financial level. These could include: managing your cash in a range of currencies, specialised borrowing, investment and mortgage services, sophisticated savings, credit card and international finance options. This service is generally (although not always)
Offshore Banking Guide

In a nutshell offshore investment funds. Offshore funds work on the same principle as onshore investment funds or mutual funds, pooling investors' money to provide the benefits of a well diversified and professionally managed portfolio of investments. A fund qualifies as an offshore investment if it is incorporated in an offshore centre and intended for use by non-residents of that jurisdiction. Such funds generally pay little or nothing in the way of local taxes, although they may receive dividends or interest net of withholding tax, depending on where and in which assets they invest. If tax is not the deciding factor in using offshore funds or an offshore trust, the scales may be tipped in their favour by other considerations. The type of investment may simply not be on offer onshore, due to regulatory prohibition or a lack of demand. Hedge funds are an example of the former and currency funds the latter. As with onshore funds, some offshore funds give you an income by paying dividends every month, quarter or year. Others help your money grow over the long term by investing in shares, which the fund manager believes will appreciate in value.

Offshore tax legislation is constantly evolving. New and wide-reaching measures continue to be introduced and the courts continually add to an already massive body of rulings and interpretations. Not only are tax regulations changing, but peoples tax circumstances also change. But an offshore banking service will, probably in tandem with an accountancy group (for example, Barclays Wealth International uses Ernst & Young), help you with tax returns, no matter how complex, and have comprehensive knowledge of all major jurisdictions as well as local and offshore tax issues. It should offer bespoke domestic and international strategies designed to legally reduce or eliminate taxes, minimise taxable gain from the sale of a business, property or investment portfolio, reduce corporate or personal income taxes and maximise tax advantaged retirement programs.

A trust works by taking assets (cash, investments, property) out of the ownership of the person establishing ('settling') the trust and putting them into the hands of a trustee. An offshore trust is simply one based in an offshore jurisdiction and its profits are usually not taxable there. The trustee normally follows the wishes of the settlor.

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Products and services | 11

Asset Protection Trust

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Multicurrency Offshore Card Services

Trusts, which are based in 600-year old English common law, have been in common use for offshore asset protection for nearly 100 years. The protection that a Trust can offer is unique and far reaching but not always relevant, compliant or legal in certain jurisdictions or for certain nationalities.

A trust designed to accomplish a number of estate planning goals of its settlor, before and after death, including planning for the preservation of the settlors estate from a variety of risks which would threaten to dissipate the estate if one or more of the risks materialised. An APT is typically established in a jurisdiction other than the settlors home country. Asset protection trusts are frequently seen as amongst the more esoteric of trust types, particularly in the UK and, in the past, asset protection has been considered the preserve of the super rich. An asset protection trust may, in some circumstances, help to safeguard portions of an individual's assets in the event that bankruptcy (or divorce) proceedings were instituted against them. Like any form of trusts, those wishing to establish them should do so only after taking qualified financial advice

Pension Funds vs. Pension Assets

provide a security deposit with your application, and you do not have to undergo a credit check. The deposit required depends upon the desired credit line, but as a general rule, usually ranges from between 125 per cent to 200 per cent of the credit line requested. Although most onshore cards deal with buying goods and services in many currencies and the card holder settles the bill in the currency of the country the card is issued in, for many offshore customers, the currency aspect is dealt with in their offshore account. This means an offshore bank customer could hold several cards in various currency denominations (US dollars, euros, sterling) to be used in countries using those currencies so only pay one layer of currency conversion charges.

Internet Services

Offshore, pensions investment means simply building up a secure, tax-efficient fund, which can be distributed when and where you want it in future unbounded by the legislative whims of governments. People who already live offshore and have no intention of moving onshore, are not really concerned with the distinction between 'pensions' investment and 'non-pensions' investment, since there are probably no taxes to consider either way. Whichever route you chose to go down, you should take advice from an adviser at your offshore bank.

Offshore credit cards work pretty much the same as their onshore brethren: they can be used both to pay merchants and to withdraw money from ATM machines worldwide. Where onshore and offshore cards differ, however, is that the latter are, for the most part secured', which means that you are required to

Unlike most other forms of investment, pension investment is normally tax-privileged in high-tax countries, meaning that the contrast between onshore and offshore returns may not be as marked as it is for many types of investment activity. For residents of high-tax countries, therefore, especially if they are intending to stay put in retirement, it may well be the case that they should build their pension provision inside the tax-net of their home jurisdiction. But taking retirement income from an onshore pension is bound up with miles of legislative red tape, as governments prescribe tight laws on how pension funds have to be converted in an annuity income before a certain age and how income from an annuity is taxed.

First there was papyrus and charcoal; then, a long time later, the telegraph wire, the telephone, the fax machine and now the internet. For many people wishing to access banking services, the ability to transact online has become a must. Online access to your offshore bank is pretty much the same as accessing your onshore account: access your account 24/7, the ability to check your balances and transactions, pay bills like credit cards and utility bills, transfer money between accounts or into someone else's bank account, set up, change or cancel standing orders and direct debits. Like any bank, offshore banks are committed to keeping your money and your personal data secure and use the highest levels of industrystandard security so you can access your accounts online with confidence. Provided you take reasonable steps to keep your security information secret at all times, most banks will protect you from fraud and, if you lose money to fraud, will refund it completely.
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12 | Barclays Wealth International

Security is key
W
Barclays puts safety and service first as Pete Horrell,managing director of Barclays Wealth International and Wealth Intermediaries, tells Ray Clancy
Tax issues
Although tax issues can dictate the need for an offshore bank account, he points out that people should not confuse having an international account with tax issues. We are not providing tax advice. An offshore account provides banking services, products and investments to the best possible standards in the location where you live and work, he explains. He admits that the recent furore in the UK over the tax status of non doms has clouded the waters. The UK tax rules allows people, under certain circumstances, to not pay tax on their non-UK earnings and an offshore account gives them access to these funds, he says. Indeed increasing globalisation means that offshore accounts are needed by more and more people. They could be those that move overseas for work, retire abroad, or whose career means frequent changes of location. They all need to manage their money and investments often in a country where the banking standards are below those of the UK. Security and safety are major priorities. Theres an increasing demand to ensure that your finances are looked after in a safe and secure environment, that demand is going to continue to grow, says Pete.

ith over 300 years of expertise in banking, Barclays is one of the largest and most respected financial institutions in the world and is taking a leading role in ensuring that its offshore customers are putting their wealth into a secure and safe environment. The need to keep standards high and offer safe and secure banking is one reason that offshore accounts are currently a growth area, according to Pete Horrell, managing director of Barclays Wealth International and Wealth Intermediaries. Many clients work in overseas locations and he needs to make sure his team delivers and understands the stress and complexity of moving abroad and back again to the UK, which customers may experience. We pride ourselves on having high standards, often higher than is required by the regulations, he says. We need to be providing the right solutions and the right services to people wherever they might be. Extras such as relationship managers and investment advice are often required. He appreciates that people need flexibility. Offshore banking is about ensuring that you dont have the additional burden of changing your account when you move or have an additional layer of tax that you shouldnt be paying, he explains.
Offshore Banking Guide

New regulation
In the post recession world new regulation is inevitable and he believes that Barclays is poised to ensure its offshore customers are protected not least because it already operates to such high standards. We are well positioned in this respect. More and more people are working or moving abroad so they need an account that can operate wherever they are. They want the same access to products and services and dont want to have to keep moving their account with all the complexity that can be involved in overseas jurisdictions, especially in riskier locations, he says. So being able to offer a safe and secure banking environment will push demand forward. Innovation is also important as international banking grows and Barclays has been at the forefront including introducing a number of information guides in the form of podcasts. Clients always welcome new ideas in how they access information. With clients all over the world we need to be innovative from the offshore perspective so that they can access products and services and utilise the very latest applications, says Pete.

To find out more about Barclays Wealth International visit www.offshore.barclays.com/2010 or call +44 (0)141 352 3899

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The UKs number one wealth manager1 offers you a range of offshore and international accounts in sterling, US dollars and euros, discounted international payments and access to international telephone and online banking. Barclays Wealth International has an extensive range of actively and passively managed investment strategies and a variety of offshore, onshore and overseas mortgages. To discover what investment opportunities there are for you, contact Barclays Wealth International today on +44 (0)141 352 3899 or visit us at www.offshore.barclays.com/2010

Barclays Wealth is the wealth management division of Barclays and operates through Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is registered in England and is authorised and regulated by the Financial Services Authority. Registered No: 1026167. Registered Office: 1 Churchill Place, London E14 5HP. Rules and regulations for the protection of investors and/or depositors under the UK Financial Services and Markets Act 2000 [may] not apply to business conducted from offices located outside the UK and investors and/or depositors conducting business through our non-UK offices [may] not be able to benefit from the provisions of the UK Financial Services Compensation Scheme. For further Information on these companies and Barclays Wealth please read the Important Information. 1 As ranked by Private Asset Managers (PAM).