It’s almost a year since I wrote the original article How to Open an Offshore Bank Account in Singapore, and it has consistently been the most popular article on the blog archives almost since day one. I have been thinking for a while, therefore, that it was time to revisit the subject of Singapore offshore bank accounts. Then finally I was stirred into action by my friend Simon Black, who is in Singapore at the moment. Simon wrote an article this week on Why Singapore is the ‘Easiest Place to be an Entrepreneur.’

Do you want to open a bank account in Singapore? How can you do so as a non-resident? Do you need to go there or can you open your multi-currency account by mail? These are some of the questions I’ll be answering in this article.

The city-state of Singapore has developed in recent years into one of the best private banking jurisdictions. But besides targeting their traditional but fast growing market of wealthy Asian business people, the best offshore banks in Singapore today are also developing products and services tailored specifically for North Americans, Europeans and Aussies. Despite the big time zone differences, Singapore’s business culture and use of the English language makes this easier.

While in most of the world opening a bank account seems to be getting harder and harder, in Singapore it is actually getting easier!

Ask anyone in Singapore what the easiest way is to open a bank account as a non-resident, and they will almost certainly point you in the direction of one of the foreign banks. Citibank, for example, is a major player in Singapore and you can contact them via their site. They will return calls to wherever you are in the world.

I’ve always liked Citibank. Citibank is culturally very different from most American banks, having a much more international outlook. Back in 1897 they were the first US bank to establish international banking operations. Whereas most US banks don’t even allow you to send an international wire transfer online, today nearly half of Citibank’s branches and offices are outside the USA. Wherever they go they settle into local banking culture and generally offer excellent internet banking, credit cards, 24 hour call centers and the like. They are completely comfortable doing business in multiple currencies – something essential in Singapore’s business and banking environment.

Citibank, like other international banks that are big in Singapore – HSBC, ANZ or the British emerging markets bank Standard Chartered for example -  would be ideal for those who cannot travel to open an account. The process would be first to contact the Singapore offices, then ask about procedures for certifying documents in an overseas branch or affiliate that is located near to wherever you are. Big international banks can generally arrange this – even more so if your investment is substantial enough to qualify for a premium service like Citigold ($1 million minimum in Singapore) or HSBC Premier.

However, if you are looking at banking offshore for privacy reasons, you’ll probably want to avoid American banks. Citibank will, for example, require a social security number from US citizens or a National Insurance number from British citizens, and will likely make you sign a waiver of Singapore banking secrecy law, allowing them to make reports to your home country authorities, as a condition of opening the bank account.

Whilst I hope none of you would be unsophisticated enough, given all the how-to info on this site, to rely on banking secrecy to hide or fail to report a personal account… I still think it’s undesirable that you should have to waive legal rights that are there for your protection, if it’s not absolutely necessary.

One international player that might be less subject to pressure from foreign governments in Standard Bank, a South African bank that has established a significant presence in emerging markets from China to South America. Standard Bank should not be confused with Standard Chartered Bank by the way – they are different institutions.

Ultimately, however, the best confidentiality is to be found with local or Asian market banks. OCBC Bank for example (Overseas China Banking Corp) would be a good place to start. They also have an excellent online trading portal, iOCBC. Last time I asked, they did still accept offshore brokerage accounts for US citizens, though given the provisions of the HIRE Act, who knows how long this will last.

During the coming year I’ll be focusing more on Singapore banking. I’m looking forward first to Simon Black’s Sovereign Man workshop in Panama in February, which is a chance for those from the American continent to meet Singapore bankers in person without flying right around the world. Then, I’ll likely be attending the Shorex Singapore event for offshore professionals in April. If you are going to be in the area, let’s meet up.

If you are not yet a subscriber to our free weekly Q Bytes newsletter, be sure to sign up here right now, and I’ll inform you via the newsletter as soon as our updated Singapore report is available. In the meantime, paid up Q Wealth members are welcome to contact our offices for referrals to more discreet private offshore banks that wouldn’t want their names publicized here. We also now have a great provider for opening accounts in Hong Kong and we can make referrals on request.

by Peter Macfarlane, Offshore Banking Consultant

Our recent article on How to Open an Offshore Bank Account in Singapore has attracted a great deal of interest and feedback from readers, so I wanted to revisit this theme and talk a little about the differences between Singapore and Panama, two international financial centres we talk about a lot here at Q Wealth. I will also briefly touch on Switzerland. And I will tell you below about three factors you should look for in choosing the best offshore bank for you - in today’s financial environment.

A frequent question is “which is the best jurisdiction for offshore banking?” However, there’s no cookie-cutter answer to this question. What works for one person might not work for another. I tell people that these days, that the bank you choose to work with is actually more important than the jurisdiction. So bearing that in mind, here as promised are three factors you should look for in choosing the best offshore bank for you:

• The bank must have experience with and value international clients. The bank’s management must show a commitment to the international or offshore banking market – for example by opening branches and representative offices overseas, and by knowing how to use jurisdictional arbitrage to the advantage of their clients.  Banks that have mainly local business simply won’t have the expertise that is required in today’s highly complex regulatory environment for international banking. Lack of knowledge is dangerous, because banks need to know how to protect themselves in order to protect their clients. If a bank does not depend on international clients, they might simply wake up one morning and decide that your account is more hassle to them than it’s worth. That would be bad news for you

Note: every rule has an exception. In Swiss banking, I always recommend Cantonal Banks. These are strong, locally owned banks that have no presence outside Switzerland. Switzerland must be about the only country in the world where banks that live mainly off the local market generally have sufficient expertise to provide good service to non-residents. Want to know how to open accounts in Swiss Cantonal Banks? Check out this post: Alternatives to Swiss Banks for Wealth Management.

• The bank should offer precious metals dealing services. With the decline in fiat currencies in full swing, every astute investor should have part of his or her portfolio in precious metals. A bank that does not offer gold or silver does not understand the type of clients like you who read this blog – period. More and more banks are offering precious metals bank accounts. I’m grateful to Simon Black of Sovereign Man for this very informative post with a good tip on how to open precious metals accounts in Singapore. Sovereign Man suggests trying United Overseas Bank in Singapore. (The very name suggests that this bank fits our first criteria, adaptability for international clients, doesn’t it?)  You can also open precious metals accounts at banks in other jurisdictions: some I know of are Andorra, Austria and Switzerland. My preference is still for banks where you can walk in off the street and buy gold coins such as Krugerrands, the Canadian Maple Leaf coins or the Austrian Philharmonikers. One of the European banks I sometimes refer clients to is actually involved directly in the gold mining business – now that is the kind of bank I like! I won’t embarrass them by naming them in public, but I will say it is one of the banks listed in my Practical Offshore Banking Guide.

Note that this advice kind of rules out Panamanian banks. I like Panama as an offshore business centre. It beats the typical IBC jurisdictions hands down in my opinion. I’ve never recommended it for banking. I always say, ‘take your Panama Corporation and open a bank account in Europe.’ If you don’t know why, find out by reading my Panama Hidden Truths Report that you can download absolutely free right now.

• Choose a Low Profile Bank. Another thing I’ve been telling people for years is not to rely on bank secrecy laws. The recent string of data theft cases has finally rammed this point home to people. Liechtenstein might have the best banking laws and best privacy in the world, but that doesn’t help if a corrupt employee steals the data. In my view the culture of the bank is a lot more important than the legal protections. Let’s compare an international banking behemoth like UBS or Credit Suisse, with a small Swiss Cantonal Bank. First of all, which is more likely to be the target? Of course, UBS or Credit Suisse with all the glossy ads, is more likely to be a target than some small Cantonal Bank that nobody outside that area of Switzerland has ever even heard of. And outsourcing is not a concept known to small European banks, who still have a true privacy culture out of respect for client confidentiality. In banks with privacy cultures, you can still open numbered accounts. These are not anonymous, but your name will not be in the computer system. It will be in a paper file in the bank’s vault. Yes, there are still banks that offer numbered accounts. Again, details in my Practical Offshore Banking Guide.

Of course, there’s a lot more to choosing the best offshore bank than simply the above three factors. But I do believe they are an important part of the decision making process. The bottom line is that these days, you should choose the bank not the jurisdiction. The right bank will be ready to move to another country at the drop of a hat to protect clients’ interests.

Finally please allow me my customary reminder, that if you like the above information and haven’t yet read our free ‘Secrets of the Super Rich’ course you should sign up immediately by using the sign-up box at the top of this page. There is no obligation and of course you can unsubscribe at any time.

A lot of readers have been asking me lately about offshore banking and wealth management opportunities in Singapore. Unquestionably, Singapore has some very sophisticated banks and bankers, and it has developed a well-earned reputation for discretion and confidentiality.

However I found the following observation on an internet discussion group, that I found interesting:

“Switzerland said it would seize UBS AG data to prevent the U.S. Justice Department from pursuing a U.S. court order seeking the identities of 52,000 American account holders in a crackdown on tax evaders.”

“The Swiss government “will use its legal authority to ensure that the bank cannot be pressured to transmit the information illegally, including if necessary by issuing an order taking effective control of the data at UBS that is the subject of the summons,” according to the filing.”

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“The Singapore government is proposing changes to its tax laws to meet demands from the U.S. and Europe to clamp down on bank secrecy.

“Singapore will seek to amend its domestic laws to allow it to extend further cooperation on information exchange” via double-taxation agreements with other countries, the Finance Ministry said in a statement.  It is seeking public comments through July 28 on the amendments.”

So, how can we interpret these two news items?

First of all, they both have to be taken in context. While it’s good to see Switzerland sticking up for its sovereignty, we have always recommended clients against doing business with big, international banks like UBS or Credit Suisse. Iwas hardly surprising that UBS were targeted, given their large US presence that makes them something of a sitting duck. We have numerous articles about the Right Way to do Swiss bank accounts (Cantonal Banks, for example), and our Practical Offshore Banking Guide includes contact details of other recommended sources for private banking in Europe (not necessarily Switzerland).

Singapore is a place we’ve never done a lot of banking business with, and the quotation above goes some way toward explaining our reticence. But we full admit that our geographic bias when it comes to banking is more towards Europe and Latin America. Singapore is certainly convenient for Asians and Australasians, due to time zones, languages and culture. On the other hand, it would have to be up there with Hong Kong at the top of the hit list for say the Aussie tax authorities, who are getting more and more agressive these days.

But is banking in Singapore and Hong Kong such a good idea for Europeans and North Americans? In my view, probably not. Both the EU (particularly the UK) and the USA have quite strong influences there, and neither of these entities are friends of offshore banking. Canadians might be OK in Singapore. If you are interested in banking in Asia, then World Offshore Banks has some intriguing services worth exploring.

Generally, the rule is that convenience is a threat to privacy. If you are looking for the most private, best offshore bank for you, you want to be as far away as possible – both geographically and culturally – from your home country and the places where your fellow countrymen do their offshore banking. Europeans might do well in Latin American havens like Panama and Uruguay. North Americans might do well still in obscure corners of Europe.

Whatever you decide, remember that nothing is for ever. You need to monitor the situation and changes taking place in the world of offshore finance. It pays to work with banks that are nimble enough to help you with this. We can recommend a few. And The Q Wealth Report is here to help you with offshore banking advice and recommendations. If you haven’t yet signed up for our Free Offshore Banking and Asset Protection course, I would recommend you do so!

by Peter Macfarlane for The Q Wealth Report

“When the facts change, I change my mind. What do you do, sir?”  Keynes’ comments are very relevant to the fast changing world of banking where we do business today. Investors more than ever have to keep on their toes, keep themselves informed, and not be complacent.

Which are the world’s safest or best offshore banks? Where is the best country to open a bank account? Which is the best offshore tax haven? Is it still a good idea to open a bank account in Switzerland?

These are the type of questions I get on a daily basis as an offshore wealth management editor and consultant. For example, in recent months I have seen a lot of the fallout of the UBS scandal in the United States. Swiss banking giant UBS has closed thousands of  bank accounts based in their Swiss branches where American residents or citizens were involved as signatories – even accounts that had been open for decades. Many investors believe that Credit Suisse could be next on the hitlist and are beginning to think that ‘small is beautiful’ when it comes to private banking.

The answer, as I always have to explain, is that there is no ‘best offshore bank’ nor even ‘best offshore banking country.’ A whole range of individual circumstances come in to play. Investors have many different motivations when looking for a new bank. Often these days, the level of service, privacy, and asset protection are far more important than the tax implications of a secret offshore bank account.

For example, your citizenship is very important. If you are a US citizen your options are more limited, as many offshore banks no longer accept US citizens as clients. Canadians or Australians for example will have fewer problems in this regard. But the traditional wisdom is that for the best level of privacy, choose a bank that does not have offices or branches in your home country.

If you are a citizen of a European Union country (including the United Kingdom of course) then the European Union Savings Tax Directive comes into play, and you might prefer to hold your offshore bank account in one of the tax-haven type banking countries that is not a signatory to this treaty. That rules out Switzerland, Andorra and the Cayman Islands for example – and brings into play other prominent financial capitals a little further afield, like Panama or Singapore.

But there are also other nuances to look out for besides citizenship and residency. What kind of services are you looking for? Do you want one with the best online trading technology or the one with the highest level of personal service? Generally, those two are polar opposites.  Traditional private banking is expensive. Whereas for online trading in the financial markets, maybe you don’t even need a bank account these days.

Most offshore banks offer debit and/or credit cards, and internet banking – two essentials for the modern expat bank account. But again from here, services vary widely. Will it be a Maestro ATM card or a an American Express Platinum? If you are mainly interested in cash withdrawals using an offshore card, then Maestro might be better. But other clients want the prestige and service level afforded to those Gold and Platinum level clients – not to mention perks like airline miles offered on HSBC’s Panama Platinum Mastercards (that can be very valuable if you are conducting serious business through your offshore company.)

Ultimately, then, there is no correct answer – the best offshore bank account for one person is completely different from the best account for somebody down the road. If you would like to read more about this, you will find 40 or so pages of easy to read advice in my Practical Offshore Banking Guide 2009. This report is available instantly for download in pdf format, and also includes contact details of ten offshore banks we can particularly recommend that are suitable for most of our readers.

The guide is FREE OF CHARGE if you are already a member of The Q Wealth Report. If you are not yet a member, you can sign up online right now for the price of a good lunch ($87 to be precise) and get instant access to this information, together with our no-quibble money back guarantee of satisfaction. Or, if you are not ready just yet but would like to stay in touch, sign up for our Q Bytes online newsletter and get a free five part course on offshore banking and asset protection.

by Peter Macfarlane for The Q Wealth Report