Peter Macfarlane, offshore asset protection consultant and joint editor of The Q Wealth Report, has recently been visiting bankers in Singapore. Want to know how to open an offshore private bank account in Singapore? Or how to set up a brokerage account in Singapore with online trading, even if you are a US citizen? Here is a brief trip report. More information will be available in forthcoming issues of The Q Wealth Report, and at our Q Wealth Symposium in Hong Kong this October.

Singapore’s investor-friendly climate has consistently earned high scores in global and regional rankings. And it’s getting better.

I was not disappointed on my latest trip this April, as our local partner gave me a detailed explanation of the latest tax incentives over a cup of Chai tea, from his home office with a fantastic panorama of the city. The tax system in Singapore has been designed not so much to collect revenue as to encourage responsible investment. Investment in things like training and IT. Tax deductions of up to 400% are possible on such expenditures, meaning that a company can easily earn millions and legally pay no tax… but it equally means that a company that’s incapable of earning profits doesn’t get any handouts. Our local partner, for example, is just buying iPads for all his staff to claim the deductions.

After a successful trip, including a visit to the Shorex conference at which I had the chance to meet and network with a number of offshore professionals from around the world, I boarded my flight to Frankfurt. On boarding, I was handed a copy of that day’s FT Asia, with the headline: “America Lacks Credibility on Debt, Says IMF.”

We see news like this every day now. And that’s even somebody like me, who doesn’t watch much TV. Another example: US Treasury Secretary Timothy Geithner says borrowing more from China to finance tax cuts for the most affluent Americans would be irresponsible. But even mainstream Bloomberg says Geithner has got it the wrong way around: “The real question is whether Beijing is willing to double down on a nation whose balance sheet makes Italy look good. Holding $1.2 trillion of U.S. debt is a fast-growing risk to China.” This Bloomberg article was widely reported in media across Asia, though it seems less so in the US!

Richard and I have been writing for years about the rise of the east, but now the east truly has risen. Singapore is the financial hub at the heart of this. It’s a well managed place where people are happy and business can flourish. Of course, you need to be a certain type of person to live in a place, and Singapore would probably not be my first choice for a residence flag… but as a business base it’s just great and getting better!

I guess most people reading this blog already know why they want to get their money out of places like the USA and the west, and they are looking for practical information on how to achieve this. In other words, how to go about opening a foreign bank account, or a bank account in non-US currency… Here at Q Wealth we specialize in practical ‘how-to’ information, of the kind you can only obtain through on-the-ground reporting of this type.If this is your first visit here, feel free to browse our site for information on lots of different jurisdictions.

The good news is that if you just want to get part of your assets into Singapore and Asia, you don’t have to understand the complexities of the Singapore tax system, or worry about making deductions or the annual filing requirements. Here’s a hot tip: The easiest thing to do is just take a pure tax-free offshore company and open a bank account with it in Singapore. This is very easy to do. Singapore does not tax non-residents bank accounts. As long as you have no local Singapore income, you are tax free and can gain the full benefits of participation in the Singapore banking system, including excellent multi-currency banking facilities and access to precious metals like gold and silver.

A Nevis LLC, for example, is ideal for this purpose. I talked to banks in Singapore about this structure and the answer was universally “no problem, sir!” You might say as a company formation agent I am biased, but I personally do all my business and banking through corporations. I never hold any serious assets in my personal name. Some people have particular reasons for opening a personal offshore bank account, but I just wouldn’t feel comfortable thinking of my name being passed from bank to bank around the world every time I send or receive money. Much better to do it in a corporate name.

The great thing about LLCs is that they keep things simple – tax transparency* means that an LLC need not have any impact on your tax situation. By using an LLC you won’t be paying more or less tax, but for the few thousand dollars it will cost you, you will receive a substantial degree of privacy and asset protection. (Of course I am only talking generally here… different countries have different tax systems, so check with your advisors) If you are interested in learning more about Nevis LLCs, check out my free report Untouchable Wealth that covers them in detail.

For Americans, there is a special additional benefit to using an offshore LLC for banking in Singapore: and that is access to ‘forbidden’ investment markets. Very few international brokerages these days will accept US clients. The ones we work with in Switzerland, for example, won’t accept US citizens or residents, even if they are operating through offshore companies. We have one brokerage in Panama that accepts American beneficial owners, but they are – frankly – expensive, and they can no longer guarantee client confidentiality since Panama signed its tax information exchange agreement with the USA. Good news: in Singapore, it is possible for US citizens to control brokerage accounts. You cannot open a brokerage account in Singapore directly in your name as a US citizen, but an offshore LLC solves this problem rapidly and simply. We won’t name specific banks here because we don’t want to draw undue attention to the banks and brokerages that offer this, but if you are a Q Wealth member please feel free to contact the office for referrals to our recommended service providers who can help you out, or contact the office of Peter Macfarlane and Associates. Remember, provided you are a Q Wealth member we do not charge a penny for referrals.

So what about the practicalities of opening a bank or online brokerage account in Singapore? I wrote more than a year ago an article on How to Open an Offshore Bank Account in Singapore. Since then, things have moved on a bit, but read it for background info if you haven’t already. The constant is that you do still have to visit Singapore to get your account set up. Thereafter, of course, you can control it via highly sophisticated internet banking. I did hear that some banks are making moves towards opening accounts via video-conferencing, as the small Swiss private bank we work with now does, but this has not been fully implemented yet. HSBC seem the most advanced on this, perhaps unsurprisingly: they already have plenty of branches around the world equipped with video-confercing facilities.

The best offshore banks in Singapore for westerners are probably the ones with more of an Asian focus. In particular we like DBS Bank, formerly the development Bank of Singapore, set up in 1968 by the Singapore government but now present all over Asia. There are Chinese banks like OCBC if you are bullish on China. If you are more European in your investment outlook, you could choose the Singapore office of one of the Swiss banks. And then there are always the global banks with an international outlook such as HSBC and Standard Chartered. South Africa’s Standard Bank would also fit into this category.

I’ll be publishing more information on Singapore banking, including direct contacts, in the newsletter over the next few months. Remember you can either sign up for our free weekly Q Bytes newsletter, or go straight for the premium paid subscription that costs only $87: check out the list of benefits and order form here.

* What is a tax transparent entity? It’s an entity which is not taxed either in representative capacity or in its own capacity as a tax paying entity, but the tax is levied on the participants in the entity based on their share of income in the entity.

The $64,000 question now, is whether the powers that be can continue to play out the hard ball scenario to protect the dollar that we recently wrote about here: What they Don’t Want You to Know about the Euro Crisis. Whilst a reasonable analyst would conclude that they cannot – meaning that the US dollar is doomed long term – it’s looking like they can support it for a while yet. Germany, France, the UK and Switzerland are playing along.

Expect to see attacks on other currencies, particularly the yen. And, for the many readers whom I know like the Aussie dollar (AUD), I am none too confident in its future. I can tell you I wouldn’t put my money on a currency controlled by a government that just decided to kill the goose that lays the golden egg, by proposing a stiff extra tax on its mining industry.

• So you might want to keep short term funds in US dollars, always being aware that there will be ever more restrictions on what you can do with them. (In the wake of the HIRE Act, several countries, most notably Mexico, have introduced further restrictions on the use of US dollars in their banking systems)

• You definitely need a multi currency bank account, in a neutral private bank in a neutral country which is not likely to introduce exchange controls. A multi-currency account gives you flexibility to switch currencies quickly when the need arises, as it definitely will. You’ll find plenty more of information on some of the best offshore private banks within our Members Area. US citizens in particular should be aware that there are numerous signs of further restrictions on export of capital from the USA. So act now rather than later.

• You should keep substantial wealth in gold… physical gold bullion that is. Again, if you need independent advice on how to invest from people who know what they are talking about, Q Wealth is your source of information. Gold bullion is a non-reportable asset.

• And if your right to privacy is a concern to you – as it should be – hold all your assets through corporate entities like LLCs, corporations (IBCs), offshore trusts or foundations. There are good, inexpensive options out there that can keep your assets one step removed from you and anyone who wants to take them away from you, whilst allowing you to retain control, completely legally of course. Reporting requirements depend on your country of residence and citizenship.

• Finally, we live in turbulent times, and if you like what you read in Q Wealth, there is no substitute for coming to one of our live events. This will give you a chance to meet experts like Peter Macfarlane, Frank Suess, Richard Cawte and Thomas Bolther. For further details on upcoming events, visit our Offshore Events page.

Our next event will be in Ireland in late September. There is just time to get in on the early bird bonuses, enabling you to attend for well under $1000. For this event we are offering several different modules, depending on your level of existing knowledge, and the amount of wealth you manage. VIP Mastermind members receive a 50% discount on the event fees, so there’s another thing to consider.

What if you are not yet a member of Q Wealth? At just $87 for a year’s membership that gives you all these benefits, we think it is well worth your while join today. We will help you sort the wheat from the chaff by introducing you to the best offshore banks and international private bankers who can help you achieve your asset protection goals.

However, if you don’t have $87 to invest in a membership, there’s also a free option: try our five part Secrets of the Super Rich course absolutely free and without obligation.

Whatever you do, as the title of this article suggests, RIGHT NOW is the time to start protecting your assets internationally if you haven’t already done so. Don’t put it off!

Peter Macfarlane reports on Offshore Banking, Offshore Investing and Asset Protection for Q Wealth Report.

The FDIC yesterday shut down seven more banks in five US states, bringing to 37 the number of bank failures in the U.S. so far this year, on top of the 140 that collapsed in 2009. The news was particularly bad for depositors of Advanta Bank in Utah, as regulators were unable to find another bank to take it over. Therefore anyone with deposits exceeding the FDIC insurance level of $250,000 loses the excess.

These Friday afternoon bank raids have become commonplace by now. What’s interesting, however, is that regulators, quoted by AP, are now saying that “The pace of bank seizures this year is likely to accelerate in coming months, as losses mount on loans made for commercial property and development.”

It was not many months ago here in Q Bytes that we warned you about the coming US commercial property bust, which will make the residential/sub-prime crisis look tiny in comparison.

The FDIC is planning to spend about $100 billion bailing out banks over the next four years. But  get this: they will only deal in future with smaller bank failures. Legislation now in the senate proposes to set up a completely different system to cover failures of big, complex financial institutions. Besides, for reasons we’ve written about frequently including in the latest Q Wealth Report, we believe $100 billion will be nowhere near enough. The government printing presses will soon be rolling again, leading to further devaluations.

Our intention here at Q Wealth is not to scare you. In fact, we have always said that with careful planning and a little thought, there are numerous ways you can profit from the crisis… turn the crisis to your advantage.

First of all, our advice is to reduce dollar exposure. If you have savings, the first thing you need is a simple multi-currency bank account that allows you to switch currencies online. That way you maintain flexibility and privacy. Very few if any US banks offer multi currency accounts, so you’ll probably need to go to an offshore bank. While we do believe FDIC insurance will protect the dollar amounts in US bank accounts, what is the value of having the same amount of dollars in five years, if you can only buy half as much with those dollars?

Fortunately, the best offshore banks are a much safer place to stash your money. If your know how to choose an offshore bank carefully, you can avoid exposure to risky business practices which are bringing down so many US banks. And whilst a million will get you better service in a different class of bank, offshore banking is not just for millionaires. There are good offshore banks out there where you can test the waters by opening foreign currency accounts with $500 or less. Another myth, also untrue, is that US citizens cannot open offshore accounts. Full details of some of these recommended banks, including  our list of offshore banks and contact information, can be found in our free Practical Offshore Banking Guide 2010 available to members.

The last laugh, however, is with the real estate speculators – whom many blame for causing the crisis. No matter what happens to financial markets, people will always need a place to live. When there is ‘blood in the streets’ there are bargains around. Our Q Wealth Expert and Real Estate Guru Thomas Bolther has recently said he believes it’s time to BUY US real estate. Real estate investors who have followed Thomas’s advice from past Q Wealth events and stayed liquid are now set to make a killing. Thomas will be writing more about this on his own blog over coming weeks, at bolther.com He’s also confirmed as a scheduled speaker at our event in Ireland in September (see below)

The ‘underwear bomber’ incident on Christmas Day on the NWA flight landing in Detroit should serve as a wake-up call for us all.  All the security measures put in place by governments supposedly to protect us against terrorists are not working. The government’s knee-jerk response is to increase security checks. Both these facts are of serious concern to our security, privacy and freedom. Allow us to explain…

Here at Q Wealth our intention is to bring you the common sense analysis behind the headlines. We base this analysis on our extensive experience and our good friends in both the ‘civil liberties’ and ‘intelligence’ communities. Bearing in mind that few facts of the case are known as yet and we are relying on TV reports for our information, here is our initial analysis – first of the actual event, then of the consequences. Warning: It is scary stuff.

First the good news: no-one was badly hurt. The underwear bomber burned his butt. Initial reports suggest he did not have a bomb, but rather some powder sewn into his underwear that he tried to inject with a liquid to cause a fire. Fortunately aircraft interiors are designed to be flame resistant, cabin crew are suitably trained and equipped with fire extinguishers, and one brave passenger physically restrained the terrorist. These three basic, sensible precautions saved the passengers and crew on that flight and the people on the ground below.

Whatever one may think of multi-billion dollar global spying operations and intrusive airport security measures, if they worked it would at least be a strong argument in favor of them. But this incident shows they do not work. The suspect’s father, a prominent banker, had taken the extraordinary step of reporting his suspicions about his son to the US embassy. The UK had refused to renew the suspect’s student visa because of his apparent terrorist connections. Yet here he was in possession of a valid US visa, travelling in his own name, allowed on board a flight to the US.

Airport security in Amsterdam, where the suspect boarded, is as ‘good’ as anywhere else. This writer passed through one of the new full body scanners there nearly a year ago. These are the super-duper new machines that are due to be rolled out over the USA next year. On my particular flight, the business class passengers were being checked by the new machine, while economy class passengers were being checked using the older method.

Nobody informed us what the machine was so I guess the majority of business class passengers had no idea they were having these photos taken. But a properly trained terrorist, especially one with a mechanic engineering degree like this one, who had something sewn into his underwear would surely have recognized the machine and snuck into the other line.

We are civil libertarians but we certainly recognize the need for airport security. The normal airport security that was in place in Europe (but not the US) in 2001 did not particularly bother passengers. It involved a quick scan of the hand-luggage and passing through a metal detector, as well as routine scanning of all checked baggage – measures which would very likely have prevented the 9/11 hijackers. I can also see the logic behind separating laptops at the scanner.

But none of the rules introduced since (restrictions on liquid, taking shoes off etc) make any sense. Does anyone think for a moment that a terrorist is incapable of forging a prescription from a Nigerian doctor that would allow him to take a syringe and more liquid that normal on board a plane? Depriving us of blankets and pillows or restricting hand luggage is just about inconveniencing passengers for absolutely zero security benefit.

Frankly, there is nothing more we can do in terms of physical airport security. It is impossible to introduce a fool-proof system. If a person is smart and determined enough they will be able to carry dangerous items past poorly-paid security guards – people who are taught to function like robots by reacting to whatever the latest threat is and, especially in the USA, to using scare tactics to bully passengers. And while the west wages war in other parts of the world, there will always be those smart and determined people.

Then another personal gripe of mine. More pressure on the use of cash payments for airline tickets. Last night US media were making a big deal of the fact that this guy paid cash for his ticket in Nigeria. All the ‘experts’ claim this is a warning sign of potential terrorist activity. I hope the people who are really in charge, rather than the so-called experts on TV, aren’t so stupid. I took the liberty of checking out the State Department’s website and here is what they say about use of credit cards in Nigeria:

The Nigerian currency, the naira, is non-convertible.  U.S. dollars are widely accepted.  Nigeria is a cash economy, and it is usually necessary to carry sufficient currency to cover the expenses of a planned visit, which makes travelers an attractive target for criminals.  Credit cards are rarely accepted beyond a few upscale hotels.  Due to credit card fraud in Nigeria and by cohorts in the United States, credit card use should be considered carefully.  While Citibank cashes some traveler’s checks, most other banks do not.  American Express does not have offices in Nigeria; however, Thomas Cook does.  Inter-bank transfers are often difficult to accomplish, though money transfer services such as Western Union are available.

So any airline flying from Nigeria had better accept cash payments……

But this is not an article about airport security. Travelling is a hassle these days but lack of pillows is a minor annoyance in the greater scheme of things.

Think for a moment about what would have happened if this attack had succeeded. The indirect consequences could be much worse than the direct ones. Think back to September 11th, 2001. Only this time imagine it worse. A lockdown of the USA. Borders could be sealed. Banks could be closed (Google the ‘bank holiday’ conspiracy theories…) and ATMs switched off. Assets could be appropriated by the government, as is common in times of war. Telecommunications and the internet could stop working. Martial law could be imposed. Events could easily get out of hand – causing blood in the streets, figuratively if not literally.

Similar things could easily happen elsewhere too. In the UK, for example, it is well known that the military have an emergency plan to seal off the whole of Greater London.

As smart individuals we need to make sure we are properly prepared for such catastrophes. Unfortunately, I think the probability of a successful major terrorist attack within the next few years is high, and it is more than likely to target the financial system. This would in many ways be awfully convenient for the powers that be, too – since then they would have somebody else to blame for a total collapse of the financial system that is happening already (see the related post links below to read about the decline in the value of the US dollar or ‘dollar devaluation‘)

I certainly hope I am wrong, and I am by no means saying that all the above things are going to happen. But I consider it would be smart to be prepared. It’s clearly better to have contingency plans in place and never have to use them, than the other way around.

So let’s treat this incident as a wake up call. We all get lazy. We all get stuck in our routines as soon as we feel a little bit comfortable and secure. But it should be a serious New Year’s resolution to put into place strong strategies to protect not just your assets but yourself. Don’t put it off. Do it now before it’s too late!

What do I mean? Different people have different necessities. But here are some of the basics:

• Physical gold and silver: The majority should be stored outside your home country, but you need some at home. Silver coins are better to barter for things like food. Both silver and gold are great investments. But if trading on the markets is suspended then all your ETFs, mining stocks, Perth Mint Certificates and the like will be worthless, at least in the short term. You need a proportion of your portfolio in physical metals. More on Buying Physical Gold Bullion Offshore here.

• Second residencies and passports: Again, it’s all about diversifying risk. Identifying yourself and your family as citizens of a neutral country may just come in very handy one day. Mobility is essential for your security. In the meantime, having legal residence (the papers) and/or a bolt hole (physical property) in a secure jurisdiction like a tax haven, well away from potential problems, is also reassuring. Rather than being forced to flee to an unknown place, you can just step comfortably in to a new life you have waiting for you. And the legal residence can lead to a second passport by naturalization after a few short years. More on Second Passports and Residencies here.

• Offshore Banking: Something as simple as opening a multi currency bank account outside your home jurisdiction can reduce and spread risk. Hold funds in various currencies and financial instruments. Any prudent investor should have international and foreign currency holdings and a multi currency account is a good starting point. For greater security and personal privacy consider the use of a Panama Foundation or Corporation. More on Offshore Banking matters here.

• Alternative Incomes: What would you do if you had to abandon your business tomorrow and leave the country? You should have not just assets in place overseas, but also a secure income stream from some sort of business you can run internationally. More on Offshore Wealth Creation here.

• Understand and Use Privacy Technology: Secure your internet communications. And, though this is certainly more difficult, think about what you would do if you didn’t have access to the internet. I don’t believe the whole internet will collapse, but parts of it certainly could. More on Privacy Technology in our new Secure Computing report, available in the members area.

There are lots more contingency plans you might need to put in place, depending on your family, your business, and your personal situation. For this reason we offer a free e-mail consultation to all paid-up Q Wealth members (obviously in our own time, it can take a few weeks for your reply) and we encourage you to attend our events where such contingency plans are discussed.

The first and most important step, if you like this article and haven’t already done so, is to sign up for our free Q Bytes newsletter to benefit from free weekly tips on major themes like offshore banking, asset protection, personal security, precious metals, and offshore wealth creation.

As I’ve frequently stated, the problem with conventional asset protection is that it frequently focuses on preserving the numbers in your offshore bank account. What I mean by this, is that if you have a million dollars, your traditional asset protection lawyer will seek to protect it against unjust lawsuits, greedy ex-spouses, and government seizure – maybe even taxation!

That’s fine as far as it goes… but it completely ignores what is perhaps the most important risk – currency devaluation, specifically devaluation of the dollar. No matter what complicated and convoluted theories economists might come up with, it doesn’t take a genius to figure out that if you print a lot more dollars, each one will be worth less. Every time Bernanke fires up the printing presses, he is devaluing the dollar. If you want to see statistics to back this up, see my earlier post: USA Bankrupt? Here’s the Evidence.

So if you have a million dollars in any of the best offshore banks at the beginning of 2010, and a million dollars plus today’s measly interest in your account at the end of 2010, you will really have made a big loss. So much for asset protection!

The solution, of course, is diversification. You’ve heard the story about the eggs and the basket. Physical gold bullion is one excellent hedge, and has the advantage of being non-reportable on the FBAR form (for US taxpayers) since it’s a physical thing, not a financial account. If you are interested in finding out more about How to Buy and Store Physical Gold Bullion Offshore, click here.

Another good solution is holding a multi-currency bank account. This is a financial service that is simple to use and understand, yet essential for protection against the devaluing dollar. A multi currency account, as its name suggests, is simply one bank account in which you can hold a variety of foreign currencies.

For example, you will log in to your internet banking and see you have X amount of US dollars, Y amount of Swiss Francs, Z amount of Aussie Dollars, etc.If you wire in an amount in a certain currency, the bank will simply hold it in that currency. Of course if you want to switch part or all of your balance to another currency within the account, you can do so with a few clicks of the mouse or a simple phone call.

Multi currency accounts are standard in some of the best offshore banking countries where I typically assist clients in opening their accounts. Despite the government’s propoganda, it is completely legal for most nationalities to hold offshore bank accounts – for the moment!

A question I am often asked is “is it possible to open a multi currency account in the USA?” Unfortunately, the answer is no. There are a few US banks that open foreign currency accounts, the pioneer being EverBank. Even EverBank, however, does not open multi-currency accounts – they simply open separate accounts for each currency you want to hold. This is not bad, but is less convenient.

Another problem with Everbank is this statement on their application form: Please note: Date of Birth, employment information and Social Security Number will be required from all account holders, including trustees and signers on the account. So no accounts for non-US residents, either.

To me, opening a multi-currency bank account in the USA seems like an oxymoron anyway. The whole idea is to diversify out of not just the US dollar, but the US banking system in general. According to bankimplode.com, 208 banks have ‘imploded’ since the beginning of the financial crisis – most of them in the USA.

That is why I have always recommended clients seeking multi-currency accounts to go offshore. For added security and privacy, it’s also wise to use an offshore entity like a Panama Foundation or Corporation to serve as the owner of your bank account. (If you haven’t read our free report yet on the advantages and disadvantages of Panama as an offshore centre, visit our Panama Foundations, Corporations and Offshore Banking page)

So how best do you go about opening a multi currency bank account? Which are the best offshore banks and the best offshore banking countries? Switzerland, Austria, or elsewhere? Where were the best places to open such accounts in 2009, and what will be the best offshore accounts in 2010?

For that information I suggest you download our Practical Offshore Banking Guide which is free for our paid-up members. If you are not a paid-up member yet, you can either subscribe online right now (it only costs $87 and takes a few minutes), or you can test our services with no obligation with our Free Five Part introductory course on Offshore Banking, Asset Protection and Wealth Creation that we would be delighted to send you starting today. Simply enter your e-mail address in the box above to receive yours.

Prefer a personal meeting? Then why not come along and meet me and the team in Cancun, Mexico in March 2010? Details from events@qwealthreport.com

by Peter Macfarlane for The Q Wealth Report

Anyone looking for currency diversification strategies should consider a multi-currency bank account. Unfortunately this banking product is virtually unknown in North America and the UK, although it is commonplace in some European countries. I say ‘unfortunately’, because this is one of the most simple and convenient tools for anybody looking to diversify out of the dollar. In this article, I’ll explain more about multi-currency accounts and how you can open one.

A multi-currency account is simply a bank account, with a single account number, in which you can hold balances in various different currencies. For example, you log in through internet banking and immediately you see a summary screen showing you have so many US dollars, so many Euros, so many Canadian dollars, so many British pounds etc. Many banks allow you to hold a wide range of currencies, including more exotic currencies. Some European banks now even allow you to hold ounces or grams of gold in your account alongside national currencies.

Advantages to this are numerous:

• For a start, it is clearly a very convenient tool for anyone who is serious about diversifying currency risk. Instead of having lots of different account numbers and logins, you keep everything on one convenient screen. At any time you can easily exchange your balance in one currency (or part of it) for another currency.
• You can wire money in and out in different currencies, to and from anywhere in the world, without the need for currency conversions.  This type of account is therefore ideal if you frequently send and receive money internationally, perhaps dividend payments, or transfers related to an overseas property or family living abroad.
• Banks normally permit you to go overdrawn in one particular currency, provided your overall ‘global’ balance is in the black.
• You can have credit cards and checks linked to your main multi-currency account. Checks can be drawn in any currency. For credit cards, you normally have to choose one particular currency balance that will be debited.

Multi-currency accounts are a good, conservative way to hedge against currency risks or make profits with fluctuations. Unlike ‘forex trading’ your account is not leveraged, so there is not so much potential profit but there is also less potential for loss. This is an easy version of forex trading – for people who don’t want to have their eye on currency rates every minute or even every day.

A multi-currency bank account also beats currency ETFs hands down. With currency ETFs you buy and sell back to your base currency, paying a brokerage fee each time. With multi-currency accounts you hold the actual currency on bank deposit, rather than stock in an ETF.

Anyone who is serious about diversifying outside the dollar needs a foreign bank account –and for many people a multi-currency bank account is the logical choice. But what about the IRS’ Foreign Bank Account Reporting requirements? Simply by opening a personal account like this, you will not affect your tax situation in any way, neither positive nor negative. US persons will be liable to declare foreign bank accounts to the IRS.

However, as outlined above, there are many extra benefits besides tax benefits. One of the greatest advantages, besides the currency diversification out of the dollar, is privacy. Privacy is a basic human right, which is unfortunately disappearing fast when it comes to financial services, where domestic investments are basically an open book these days. Although you might be obliged to report your offshore multi-currency account to the IRS, private parties like credit rating agencies or lawyers who might want to sue you certainly won’t know anything about a private foreign bank account of this nature.

The multi-currency account was not designed as a sophisticated financial instrument. Rather it’s an accident of history, something that developed in smaller European countries like Switzerland, Luxembourg and Andorra where individuals commonly needed bank checking accounts in various currencies. This was especially true in the old days before the euro when Europeans did business in many different national currencies. Not coincidentally, these countries now offer the best international financial services as well as good banking privacy.

However, in modern private banking terms, such an account can provide a basic transactional banking relationship with a foreign bank, onto which you can tag many much more sophisticated wealth management services: for example, foreign currency loans for investing in bond holdings or stock portfolios. Most banks offer such services.

Needless to say, corporations, trusts, foundations and the like can also open multi-currency accounts and in such cases there is an even greater privacy benefit, and in some cases, depending on individual circumstances, tax reporting requirements may also be legally sidestepped.

How, then, can you open a multi-currency account?

Quite a number of banks in some European countries offer multi-currency services by default, as soon as you open account. Unfortunately, especially for US citizens, it has become very difficult to find a foreign bank that will open an account.

It is undoubtedly best if you can travel to meet the bank and open the account. Personal meetings and referrals from known and trusted parties still open a lot of doors that initial research might suggest are closed! It is, however, possible even today to open a multi-currency bank account through the mail.

If you would like further information, including links to specific banks that offer this service, you might like to check out my Practical Offshore Banking Guide, available free to Q Wealth members (just one of many asset protection, offshore banking and wealth creation related benefits). Another major advantage of Q Wealth membership is a free e-mail consultation on your personal situation, in which we can also make referrals to banks where we have working relationships as trusted business introducers.

You can either go sign up now, or if you prefer, sign up first absolutely free and without obligation to receive our five part online course, Secrets of the Super Rich.