Offshore banking remains an effective way to build personal wealth. While you don’t want to neglect your domestic accounts, adding international accounts to your overall financial planning broadens and diversifies your interest.
The key is to determine where those offshore accounts should be based. Belize is definitely a location that you should consider. Here are some of the reasons why this nation is worth investigating in more detail.
A Few Examples of Banking Laws in Belize Relevant to Offshore Banking
The banking laws in Belize are designed to protect the interests of citizens while also structuring and regulating the range of banking services offered to non-residents. Thanks to the provisions found in these and other key laws related to finance, Belize has emerged as one of the better options for offshore accounts, including those designed for people who want to create nest eggs for retirement.
Taking the time to learn about these laws will help you understand how offshore accounts in Belize are structured and provide some context in seeing how they could benefit you.
Pay special attention to these three laws:
- The International Banking Act: As the successor to the Offshore Banking Act of 1996, the International Banking Act lays the foundation for the establishment of international banks within the country.
The Act provides regulatory and supervisory authority to monitor the activity of those licensed banks. Much of that work focuses on making sure any international bank offering accounts to non-residents is operating within the legal requirements found within the country.
- The Central Bank of Belize Act: Passed in 1982, the Central Bank of Belize Act established a central bank that is charged with protecting the financial stability of the country. It provides broad powers for the Central Bank to regulate interest rates, exchange rates, and the credit policies that apply within the country.
These provisions impact both residential and international accounts. Amendments to the Act ensure the Central Bank remains capable of dealing with the most current financial conditions within the country.
- Money Laundering & Terrorism Act: Unfortunately, offshore banking is often looked upon with suspicion. Specifically, it’s seen as a way to hide or launder assets.
The provisions of the Money Laundering and Terrorism Act, including amendments passed as recently as 2016, provide the framework and authorization to investigate and prosecute any crimes involving laundering or transactions associated with terrorist actions or known groups. Amendments help to keep those provisions in compliance with measures that are taken in the international community.
The Variety of Financial Accounts is Plentiful
Offshore banks with a presence in Belize offer a variety of account options. What do you want to accomplish with your accounts? If building reserves for retirement is your primary goal, a term deposit account is worth considering. If you want to create a depository for funds that you will use when traveling internationally, a demand deposit account is worth looking into. Even a basic savings account might be ideal if the plan is to tuck away funds that you don’t expect to use for anything but emergencies.
It’s true that you can find similar accounts domestically, but what about interest rates? Compare the current interest rate on a domestic account versus the rate with an international account based in Belize. You’re likely to find that your deposits will generate more interest income in an offshore account.
Offshore Account Balances Remain Unaffected by Domestic Legal Issues
The banking laws in Belize ensure that any funds housed in your international accounts are safe from any legal action that takes place in your country of residence. While you may never face a lawsuit and find yourself owing a tidy amount after losing a case, knowing your funds in Belize are safe does provide plenty of peace of mind.
Even if it takes every penny you have in those domestic banking accounts to settle the judgment against you, the balances in your offshore accounts are still there. You can draw on them as needed for essentials as well as to help recover from your recent financial loss.
Belize Requires Banks to Maintain Higher Liquidity Ratios
Bank liquidity ratios refer to the assets that the institution can use to pay off all outstanding debt without needing to seek outside funding. Each country sets some sort of standard for this ratio. This is important since countries that require bank liquidity ratios are in a better position to deal with shifts in the world economy due to factors like natural disasters, political shifts in other nations, and a host of other events.
Here’s what you should know about the banks offering international accounts based in Belize; they are required by law to maintain one of the best liquidity ratios in the world. Compare the current ratio with the one maintained by your domestic banks. You’re likely to find that Belize comes out on top.
You Can Start with Relatively Low Deposits
It’s sometimes assumed that opening offshore accounts requires large sums of money. In some nations, that’s true. That can freeze out individuals who would like to establish offshore accounts but have incomes that would be classed as middle rather than upper.
With many offshore banks in Belize, you don’t need what seems to be an impossible amount to open one or more accounts. The minimum required will vary based on the account type as well as which institution that you approach. Even so, you may find that the minimum amount needed to open an account is significantly lower. That allows you to start with a somewhat modest initial deposit, add more money when and as you can, and eventually reach a balance that allows you to earn a greater amount of interest.
The Lack of Language Barriers
It’s true that banking professionals in many countries use English as at least a secondary language. Even so, communication can be more complicated with some offshore locations. One of the things that makes Belize a great option for many people is the fact that English is readily spoken.
This comes as no surprise when you learn that Belize was once known as British Honduras. While there are other languages in use in the country, you can rest assured that your US, UK, or Canadian forms of English will be readily understood. That’s helpful whether you’re communicating from abroad or want to conduct some banking transactions while you’re vacationing in Belize.
The Ability to Open and Manage Your Accounts Online
In some countries, people who want to open offshore accounts must travel to those nations, work through an agent, and go through a lengthy series of steps in order to complete the task. Belize certainly does have qualifications that each prospective client must meet. There are documents to supply, minimum balances to provide, and wait times until the accounts are established.
Here’s how opening accounts in Belize differs from many other places. You do not have to be in Belize to open those accounts. Much of the work can be done online. You can submit an application for an account, provide electronic copies of the documents required, and then send hard copies of those documents by a courier service. The review of your documents begins before the hard copies arrive, something that helps to reduce the wait time. If you like, there are still financial experts in Belize that can represent your interests as those personal accounts are under consideration.
Once your accounts are established, managing them is simple. You can transfer funds, check balances, make payments on credit cards associated with the account, and access other banking essentials from your home. With access around the clock, you get to bank on your schedule.
Open an Offshore Bank Account Today
In short, choosing Belize as the setting for your international or offshore banking services makes a lot of sense. Spend some time comparing what Belize has to offer with what you find elsewhere. There’s a good chance you will find that of all the options, Belize comes out on top.
Contact the professionals at Caye International Bank today and find out what it would take to establish your first international account.