Confidential Banking

Selecting an offshore bank is often far more complicated and sensitive than selecting a UK based bank for a UK limited company: In many cases, issues such as the bank’s original nationality, its legal constitution and physical location all play a vital role perhaps not immediately understood by the uninitiated. In addition, where management and nominee services are also selected, issues relating to ultimate beneficial ownership must be addressed and the need for the expert input of a licensed trust and management firm such as our ‘sister’ company SCF Legal & Corporate Management Services Limited becomes essential. Banking & Confidentiality In simple terms, it is always better to select a bank which has been established as an independent subsidiary rather than as a branch of a 'mother' company since the latter could result in legal exposure in two jurisdictions rather than one. For more information on the Banking Systems in the following countries & jurisdictions, click a link below:

Banking jurisdictions - compared and contrased Cyprus Gibraltar Isle Of Man Jersey   Luxembourg Liechtenstein Switzerland

Banking in Cyprus

When establishing an offshore company or a Branch of a foreign company in Cyprus details of beneficial ownership must be provided to both the registration agent and the Central Bank of Cyprus.
However, if nominee directors and shareholders are used no information need be on public record save that relating to the said nominees. At the time of registration, personal bank references and passport photocopies will be required together with details on the type of business activities. Under local law information appertaining to beneficial owners cannot be released under threat of penal consequences.
In addition, the accounts submitted to the Central Bank at the end of the financial year are also strictly confidential. Nevertheless, the Cypriot authorities will release information. Mere illicit transactions are involved once the proper procedures have been followed, however, Cypriot courts will not enforce another country's civil tax claims.
Bank & Jurisdiction Confidentiality Rating: 4 Stars
Bank System Rating: 3-4 Stars

Banking in Gibraltar

Gibraltar has introduced very similar money laundering legislation to both the Isle of Man and Jersey. However, unlike these two jurisdictions it is part of the European Union. It has no double taxation treaty network and gained a very bad reputation in the 1980's due to a number of high profile scandals.
Non-resident companies are not subject to the same level of due diligence or monitoring as exempt companies. As with all other respectable European offshore jurisdictions information will be released if illicit transactions are claimed.
Most of the recent UK Criminal Justice Act provisions tightening up money laundering and anti-drug enforcement regulations are currently being redrafted for local implementation.
Bank & Jurisdiction Confidentiality Rating: 3 Stars
Bank System Rating: 5 Stars

Banking on The Isle of Man

The Isle of Man has one tax treaty partner, the United Kingdom. As with Guernsey, this treaty allows for an exchange of information relating not only to fraud but also in respect to the avoidance of taxes covered by the treaty.
Local company registration agents do not have to keep specific details on beneficial owners but the likely introduction of a Manx version of the British Criminal Justice Act will result in a significantly higher legal 'duty of care' to be placed on bankers and other professionals.
Nevertheless, the fact that banks or company registration agents do not have to automatically provide beneficial ownership details to the regulatory bodies means that relatively good confidentiality can be maintained for most legitimate transactions.
Bank & Jurisdiction Confidentiality Rating: 3 Stars
Bank System Rating: 5 Stars

Banking in Jersey

The regulatory position of Jersey is very similar to Guernsey save that the information that must be supplied to local company registration agents will not directly ask for information on a clients UK tax position.
Nevertheless, the exchange of information provisions are almost identical to those for Guernsey (Art. 1 0, Jersey/UK Double Taxation Treaty, 1952) and banks are closely monitored.
Synopsis; A highly sophisticated banking and financial service jurisdiction with a high duty of care on banks to 'know their clients'.
Bank & Jurisdiction Confidentiality Rating: 4 Stars
Bank System Rating: 5 Stars

Banking in Luxembourg

Luxembourg has a highly developed international banking system; with relatively relax regulations, and gaining confidence and reputation from hosting the offices of CEDEL (financial institution specialized in clearing and settlement of Eurobonds) part of the Deutsche Borse which owns the Frankfurt Stock Exchange. Private banking services are also very strong, banking secrecy  is highly graded, articles on their Penal Code prevents the disclosure of information to the tax authorities. Recent independent reports and analysis from reputable international financial sources, praised Luxemburg banking systems as an attractive centre for all personal investment business, its cost efficiency, long stability and its tight bank confidentiality.
Bank & Jurisdiction Confidentiality Rating: 5 Stars
Bank System Rating: 5 Stars

Banking in Liechtenstein

For those seeking confidentiality over their business and financial affairs Liechtenstein probably offers the best 'haven' in Europe. It is not a member, or associated member, of the European Union and only has one double taxation treaty with Austria. Under their most recent banking legislation, passed on the 21ST of October 1992, both present and former bank staff together with government officials cannot disclose any banking information to third parties.
If one of the numerous local legal entities, including anstalts, aktiengesellschafts and foundations, are needed it is highly recommended that local lawyers are employed since any non-authorized disclosures would result in penal consequences. For the same reasons, their employment is also recommended even when personal or foreign company accounts are being opened.
Obviously, Liechtenstein like all other respectable jurisdictions does not wish, notwithstanding the aforementioned, to be seen as a center for illicit/criminal activities and, provided sufficient evidence is adduced, will release information. Further, any cash deposits over 500,000.00 Swiss Francs will be subject to strict source verification.
Nevertheless, it should be noted that the Liechtenstein authorities will not assist third party inquiries relating to foreign tax obligations.
If a foreign company is opening an account full banking confidentiality will still apply, however, it is then necessary to consider that jurisdictions disclosure rules.
Bank & Jurisdiction Confidentiality Rating: 5 Stars
Bank System Rating: 5 Stars

Banking in Switzerland

This is perhaps the most famous banking center in the world and still continues to attract large numbers of high net worth clients; principally because of ability and reputation of the banking community.
As in Liechtenstein, cash deposits over 500,000.00 Swiss Francs must be verified and non-authorized disclosure of confidential information by bankers and associated officers will result in penal consequences. Where there is evidence of activities that would be considered criminal under Swiss law, third parties can seek redress and set-aside the normal confidentiality.
However, it should be noted that tax avoidance and exchange control violations are not criminal activities in Switzerland and hence, cannot compromise standard confidentiality. Further, as a result of pressure from the United States, it is no longer possible for Swiss lawyers to open 'Numbered Accounts' under their name for the benefit of undisclosed clients.
On incorporation, a Swiss company can maintain anonymity by employing nominees; normally supplied by a local fiduciary company.
In synopsis, Switzerland can provide many benefits to the businessman and a high level of confidentiality but this must be tempered by relatively high costs.
Bank & Jurisdiction Confidentiality Rating: 5 Stars
Bank System Rating: 5 Stars