Offshore banking is becoming more appealing to Americans in 2019 after it was revealed that the United States has dropped out of the top 20 'cleanest' banking countries for the first time.

Annual research done by Transparency International ranks 180 countries based on several key economic indicators and provides a ranked list called the Corruption Perception Index. The index is based on 16 different surveys and assessments from 12 institutions, including the World Bank, World Economic Forum, Freedom House, African Development Bank, and Economist Intelligence Unit. Following the recent drop by the United States to position 22, many popular offshore banking countries in the Caribbean are coming close to beating the US on corruption standards.

Barbados is currently the most attractive island nation in the region, ranked at 25, with the Bahamas close behind at 29 and popular offshore hub Dominica at 45. The majority of top 10 countries featured are in Europe, including Denmark at number one, Finland in tied third position with Sweden and Switzerland, and Norway and the Netherlands taking 7th and 8th position respectively. Coming up at the bottom of the survey with the worst scores are Somalia in last place, followed by South Sudan, Syria, and North Korea.

 

The changing face of offshore banking

Over the past decade, banking has changed in several ways, most notably moving from a more traditional sense to a digital, online format. Nowadays, it is commonplace for the younger generation to conduct the majority - if not all - of their digital banking online. With this surge in readily available online banking services, offshore banking has also seen a rise in popularity.

In the US, online digital banks like EQIBank are breaking the mould and introducing a new form of banking to everyday citizens and corporate clients alike. As the world's first licensed and regulated offshore bank, EQIBank requires no minimum account balance, features 24/7 accessibility, and offers customers a choice of over 100 currencies. Founded by former members of HSBC, Credit Suisse, and UBS, EQIBank recently upgraded its services to offer customers up to $50 billion in custody for alternative assets.

Further afield, digital online services based in popular offshore banking regions like Singapore and Hong Kong and also drawing attention. Neat bank, which is based in Hong Kong, avoids the complex bureaucracy associated with European banks to offer its clients a simple and easy way to register entirely online. It provides access to multiple currencies and the ability to link your account with e-commerce services like Paypal and Stripe.

The advantages offered by these emerging financial services are helping to change perceptions of offshore banking, a term historically associated with money-laundering, tax evasion, and Ponzi schemes. One of the most famous abusers of offshore banking was Allen Stanford, who, in 2012, was sentenced to 110 years in prison for embezzling $7 billion worth of client funds through banks in the Caribbean nation of Antigua. Authorities had previously shut down his other banking operations in the British Overseas Territory of Montserrat, another popular offshore banking hub.

Now, tougher licensing and regulation policies are helping to improve the image of offshore and make it an attractive option to individuals and businesses looking for greater financial opportunities. This, coupled with the advantages offered by emerging financial technologies, puts the benefits of offshore banking into the hands of small-scale investors and businesses. Digital offshore banking now offers much greater features beyond simple tax reduction, including improved asset protection and greater financial security in times of economic instability.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD attracts some sellers below 0.6800 ahead of Chinese data

AUD/USD attracts some sellers below 0.6800 ahead of Chinese data

The AUD/USD pair trades on a weaker note around 0.6770, snapping the four-day winning streak during the early Asian session on Monday. The recovery of the US Dollar provides some support to the pair.

AUD/USD News

EUR/USD: The door appears open to extra gains in the near term

EUR/USD: The door appears open to extra gains in the near term

Another auspicious week saw EUR/USD trade with decent gains and extend its positive streak for the third consecutive week, including a visit to the key 1.0900 region for the first time since early June.

EUR/USD News

Gold edges lower near $2,400 on US Dollar rebounds

Gold edges lower near $2,400 on US Dollar rebounds

Gold price trades in negative territory near $2,405 on Monday during the early Asian session. The hotter-than-expected Wholesale price inflation in the United States for June weighs on the precious metal. 

Gold News

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu traders are anticipating the roll-out of futures contracts, products like Exchange Traded Funds that could boost the asset’s utility. An IBC report shows the contract is expected to be listed post Monday, July 15.

Read more

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation Premium

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation

Fist in the air and on with the fight - that has been the historic picture that former President Donald Trump shortly after he survived an assassination attempt on his life. Trump was injured in his ear but seems to have come out stronger politically from the shocking political violence. 

Read more

Majors

Cryptocurrencies

Signatures