Offshore Private Banks

Broadly defined, Private International Banks (PIB’s), Offshore Banks or Captive Banks are simply banking entities established outside of the United States or the country in which the owner resides. These entities are only responsible for meeting the standards established by the jurisdiction which licensed and regulates the bank. They are not subject to state, federal or other regulations from other countries. The advantage of avoiding costly reserve and insurance requirements can result in a path of profits contributing directly to the bottom line. There are two distinct types of international banks.

  • Class A Banks

A Class A bank is typically a storefront business operation, often accompanied by a marquee. It is a combination banking entity, accepting public deposits for both private and business accounts. In the United Sates, we are most familiar with the Class A bank. This type of banking license is held by all the “majors” and frequently has the customary vault, tellers and ATM machines. Examples of international Class A banks would include Credite Suisse, Barclays & Royal Bank of Canada.

  • Class B Banks

The second type of international bank is a “Class B” bank or a “Private International Bank.” This bank is usually restricted from doing business with the citizens of the host country and does not maintain a presence on “the street”. A representative, usually an attorney, will post a brass plate on their office building exterior and all business is conducted via fax, telephone and mail. Class B banks are able to issue virtually all of the same financial instruments as that of a Class A bank; however, they cannot provide services to citizens of the host country. All solicitations need to be carefully monitored. Advertisements are restricted to the appropriate international periodicals. Private International Banks tend to have higher profit margins and lower capital outlays.

Offshore Banking in the U.S.

Are you aware that the U.S. licenses two banking entities that are virtually identical to the classic definition of an offshore bank? Edge Corporations and International Banking Facilities are shell banking units that present ownership with the benefits of being a bank with reduced regulation and lower reserve requirements. To those who would own an offshore banking entity, these facilities provide entrée into the U.S. and the prestige that comes with it.

  • Edge Act Corporation

A federally-chartered U.S. corporation that is only allowed to engage in international banking or other financial transactions related to international business. Authority established by the Edge Act in 1919. International Banking Act of 1978 allows foreign banks to own Edge Act corporations.

  • International Banking Facilities (IBFs)

Institutions in the United States that allow depository (banks) to offer services to foreign residents and institutions free of some Federal Reserve requirements and some state and local income taxes.

Therefore let’s keep in mind that banking is the business of moving money for profit and the world economy is a very competitive marketplace where governments compete for the influx of capital. A knowledgeable entrepreneur can use this information to their competitive advantage.


Posted in: Miscellaneous, Uncategorized on November 15, 2010

Related Posts

Cross-Border Business Planning

Posted On November 20, 2016
U.S. Shelf Corporations for Privacy Benefits of a Pre-Established Corporation: For Non-U.S. citizens, owning a shelf corporation in the United States may enhance privacy and open new markets.  It should also be noted, however, that to open a bank account they will likely need to travel to the United States and meet with potential banks. Instant availability […]... Read more

Cross-Border Business Planning

Posted On June 12, 2016
The United States is the Largest “Tax Haven” In the World! The United States as a Haven for Privacy: Since 2014, 97 jurisdictions have agreed to impose new disclosure requirements for bank accounts, trusts, and other investments held by international investors. Of the nations the OECD asked to sign on, only a few have declined. […]... Read more

1975 Swiss Trust Company for Sale!

Posted On June 5, 2016
New Offering, Lowest Price, Great Deal! Manage money and gain asset protection without the need to relocate: An unparalleled opportunity and the fastest & least expensive avenue available to business owners. 1975 Swiss Trust Company for Sale! (Turnkey, Admin Included, No Hidden Fees) 1975 Swiss Trust Company: * Swiss Trust Company (41 Years Old) * […]... Read more

 
 
Corb7 International
468 North Camden Drive, Suite 200 Beverly Hills. Ca. 90210 – USA Phone: +1-310-601-3115
© 2017 Corb7 International, Inc. Site By: Ex-Dimension, Inc | Sitemap

Corb7 International, Inc. is headquartered in Beverly Hills, California. Corb7 International, Inc. is a highly specialized firm that structures private international banks and insurance organizations, in order to diversify their clients' business interests and offer innovative solutions. The advice of this and all our publications has been developed from sources believed to be reliable but it cannot be guaranteed. Such information and advice is always subject to new interpretation, court decisions and legislation. Corb7 International, Inc. does not give legal or tax advice. Any loss, risk or liability taken by an individual who acts on information in this and all our publications is disclaimed by Corb7 International, Inc. DISCLOSURE: We are grateful to be of service and bring you content free of charge. In order to do this, please note, we may be an affiliate for products which our firm recommends. If you purchase those items through our links we will earn a commission. You will not pay more when buying a product through our link. In fact, oftentimes we are able to negotiate a lower rate (or bonuses) not elsewhere available. Plus, when you order through our links, it helps us to continue to offer you ideas free of charge. Thank you, in advance for your support.

Inquire Now

Click To Contact