Banking anonymity: myth or reality?

October 19, 2017

The fight against tax evasion and money laundering makes banking anonymity increasingly complex and even impossible in some jurisdictions.

The automatic exchange of information put in place by the OECD in 2014 is one of the main reason. This agreement forces the banks of the signatory jurisdictions to disclose the existence of all offshore accounts opening to the client’s country of residence. Few jurisdictions are spared and many countries are going to join the agreement in 2018. Thus, it has become impossible to expect banking anonymity in a signatory country, and many tax havens have adhered to it.

However, some jurisdictions are not affected by this agreement and CALAY Banking™ can guide you and give you more information about this.

Banking anonymity takes into account different variables and the beneficial owner is part of it. The concept of beneficial owners has emerged to reinforce tax compliance and further limit banking anonymity. Objectively, the beneficial owner of a bank account is systematically identified by the offshore banks, and this identity is disclosed to the signatory jurisdictions of the AEOI.

But with specific structures such as the use of a Trust or a Foundation, banking anonymity becomes conceivable. Indeed, these solutions make it possible to detach the beneficial owner from the bank account.

The Trust corresponds to a company that owns other companies. It ensures that the ownership of the account is detached from the person who has created it through the use of a Constituent or Settlor who represents the Trust, holds the money and has access to it when he/she is a Beneficial Owner. The Trustee manages the Trust according to the instructions given by the Constituent, and applies its directives.

The Foundation is a legal entity involved in heritage protection. Whether charitable or private, the Foundation has the option of having a bank account in order to grow and have access to the funds. The Foundation may also hold an offshore company in order to be able to conduct a business legally, while guaranteeing banking anonymity and protection of funds.

Thus, there are three solutions that allow to make banking anonymity a reality: the choice of a privileged jurisdiction, the use of a Trust or the use of a Foundation. CALAY Banking, expert in the offshore banking sector since 1997, supports and helps its clients in the choice of a suitable structure to enable the opening of an offshore bank account in total security.

Do not hesitate to contact our teams should you need a professional and reliable expertise for your projects.

CALAY Banking™, the choice of prosperity in all legality!


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