Bowman Offshore Bank Transfers on Expat Guide to Offshore Banking and Money Transfers

Expats do not have to be wealthy to switch their money to an offshore bank or building society.

The stigma of offshore comes from individuals trying to evade taxes by not reporting their earnings from offshore accounts.

But hundreds of thousands of people send money around the world through offshore intermediaries every day without a problem.

Although some offshore banks have a poor reputation, the service provided by the majority is important to the financial well-being of expats.

You know you are banking offshore when you have an account that is based in a country where you do not live.

Offshore branches going under

A tax crackdown led by the USA and Europe coupled with poor rates of interest paid by offshore banks has led to demand for the service shrinking.

Thousands of British expats need offshore banking but are finding money laundering regulations a problem.

The rules mean UK banks and credit card providers do not want expat customers, so are closing their accounts. The expats still need a bank, but many have closed leaving them high and dry.

A few well known British banks still have offshore branches, including Santander, NatWest, Lloyds and Barclays. Ireland’s Permanent, along with Standard Life and Kleinwort Benson also offer some expat services.

Most are based in Gibraltar, the Isle of Man or Channel Islands.

Opening offshore bank accounts

Offshore bank accounts are opened direct with the branches or through their UK high street networks.

The rules are the same as in the UK. The bank will want to identify you, confirm an address and seek a financial history to make sure you are not bankrupt or steeped in bad credit.

They will ask about:

·         Why you want to open an account

·         The source of the money paid in, particularly if the sums are £10,000 or more

·         Your future financial plans

Paying tax on offshore money

Too many investors and savers failed to report wealth they held offshore in a bid to minimize their tax – often by telling lies about their fortunes.

Everyone should report their holdings on an annual tax filing.

Two new international laws make hiding money and investments offshore almost impossible.

·         The Foreign Account tax Compliance Act (FATCA) covers more than 100 countries and thousands of overseas financial institutions.

The financial institution must pass a report of any accounts controlled by American customers to the Internal Revenue Service each year.

The rules apply to any offshore accounts worth $50,000 or more held by US residents. The bar is raised to $200,000 for US expats.

·         The Common Reporting Standard (CRS) works in the same way as FATCA, but rather than lots of countries reporting to the US, around 50 nations send financial information between each other. Unlike FATCA, the CRS has no reporting threshold.

The information collected by the tax authorities is cross-checked against tax filings to make sure the correct details of overseas accounts have been reported.

Deposit safeguards for expat cash

Protecting your money should a bank go to the wall is vital due to the sometimes huge sums concerned.

Onshore, the Financial Services Compensation Scheme (FSCS) offers protection on across all accounts held by one bank for the same consumer up to £85,000.

Offshore banks have different compensation schemes depending where they are – outside Europe safeguards are rare, while centres such as Gibraltar and the Isle of Man have developed their own.

However, the rules are different for each, so make sure money on deposit is not over-exposed.

Foreign currency accounts

Expats can open foreign currency accounts with UK offshore banks – generally in Sterling, US dollars or euros.

A good rule of thumb is to have an account denominated in your local currency to avoid losing money if exchange rates move too much.

Expats transferring money overseas

Moving money overseas with a bank can cost a fortune, but specialist money transfer firms are willing to do the job for much less.

Disruptive technology firms, such as TransferWise or the new expat app deVere e-Money Vault have made the process quicker, cheaper and easier.

Services like these can handle one-off or regular transfers direct from the bank through a smartphone.

Another difference is the exchange rate and transfer cost.

Many banks and bureau de change advertise fee-free transfers, but adjust the currency exchange rate to collect a margin on the deal. That’s why the rate on a receipt is different from the advertised rates posted by the financial media.

Logically, if the transfer was really free, the provider could not keep trading.

The key is study any written estimate carefully and look for lots of small, unexplained charges that look innocuous but bump up the cost.

Tracking down the best exchange rate

Searching for the best exchange rate is a waste of effort. Most firms claim they cannot publish them anyway as they change so quickly.

It’s better to look at the bottom of the quote or receipt for the amount of foreign currency you are getting from the transaction.

A professional money transfer firm should give information in writing covering:

·         The exchange rate

·         Any fees or other charges

·         A reference number

·         Details of how to collect the money transfer and if the operator receiving the cash makes any charge

·         How long the transfer will take and the final cost

It’s a good idea to ask if the operator has enough foreign currency on hand to complete the transaction right away.

Is your cash safe during a money transfer?

The UK financial compensation scheme does not cover money exchange services, but companies transferring more than £2.5 million a month into foreign currencies must be authorized by the Financial Conduct Authority (FCA).

They must have a client money protection scheme to separate your cash from that in the business.

The protection scheme will safeguard some money transfers.

Check if the compensation paid is restricted and if sending smaller amounts would give improved protection.

Smaller operators will say they are registered with the FCA, but this offers no formal consumer protection.

The FCA lists registered firms online

Cheapest money transfer options

Try sending regular payments overseas through an offshore account with an international branch of your bank or building society.

As a customer, the bank may preferential rates.

Sending emergency cash overseas

In an emergency, the money transfer services provided by MoneyGram and Western Union are expensive but fast.

If you can hang on for 24-hours, other services will certainly work out cheaper.

Both services have thousands of outlets in newsagents, post offices and small stores.

The cost can be eye-watering – transferring £1,000 from the UK to Sweden may be as much as £85.

Bowman Offshore Bank Transfers: Is it Dangerous to Transfer Your Offshore Money into the U.S.?

This is a question we receive often. With the implementation and enforcement of FATCA (Foreign Account Tax Compliance Act), the United States is increasing enforcement priority of noncompliant US account holders.

More than 100 countries and tens of thousands of foreign financial institutions have agreed to report US account holder information to the United States.

But I am not a U.S. Citizen?

This is a common misconception. The requirement for FATCA reporting is for the individual to be a US account holder – not a US citizen. In other words, whether you are a US citizen, Legal Permanent Resident, Visa Holder who meets the substantial presence test, or a former green card holder who was considered a long-term resident – you are generally considered a US person.

As a US person, you are required to report your foreign accounts and global foreign income to the United States (the United States taxes individuals on their worldwide income). With that said, the question generally arises as to whether a person can transfer their money from an offshore account into the United States, without issue?

Transferring Your Money to the United States

The fact of the matter is, the money overseas is your money. The IRS is not seeking to penalize you for the mere fact that you are transferring your foreign money into the United States (presuming the money was received legally). Rather, the United States is penalizing you for failing to report the existence of this money to the US government while it was overseas in a foreign account.

There are many individuals who have a reporting requirement because the value of their foreign accounts/specified assets exceeds $10,000 in annual aggregate total on any given day — but do not have any taxable income. In this situation, there is a reporting requirement, but no taxation (since there was no foreign income earned). Nevertheless, they still must report the accounts properly. If the money was “earned” income and U.S. Taxes weren’t filed and/or paid to report the money, it can complicate the situation — but through voluntary disclosure a person can usually get into compliance relatively simply.

Depending on the facts and circumstances of your case, you may be able to avoid penalties altogether. The following is a summary of the basic requirements of individuals who were considered “US persons” and therefore may have a foreign account reporting and/or foreign income reporting requirement:

FATCA & Reporting Foreign Income – The Basics

Golding & Golding is a flat-fee, full-service firm; we are lawyers who assist international clients in reporting their offshore accounts to the IRS. Most recently, many of our clients learned about Foreign Bank Account reporting requirements when they received a FATCA Letter from their Bank, asking them to certify their U.S. Status by submitting either a W-9 or W-8 BEN.

Who Has to Report?

We have represented numerous clients worldwide with issues similar to yours:

– Expats who relocated overseas and did not know they had to report their foreign accounts.

– U.S. Citizens who live overseas and may or may not earn significant income, but have accounts in a foreign country.

– Legal Permanent Residents of the United States who relocate back to a foreign country but are unaware that they are still required to report the foreign accounts.

– Non-Residents who meet the substantial presence test and therefore are required to report foreign bank and other accounts to the US government.

The Basics

These are the most basic rules when it comes to foreign accounts and foreign income:

Foreign Income

If you are either a US Citizen, Legal Permanent Resident (aka Green Card holder or recently gave up your Green Card) or foreign resident who meets the substantial presence test, then you are required to report your worldwide income to the IRS. This means that even if you do not have any US-based income, you are still required to report your worldwide income (even if it is the type of income which is not taxed in your home country such as interest and dividend income in most Asian countries). And, if you have enough foreign income to meet the minimum threshold for having to file a US tax return, then you are required to do so even if it is based on your foreign income alone.

Foreign Accounts

If you meet the requirement for being a U.S. “Taxpayer” (even if you do not meet the threshold for having to file a US tax return), you are still required to file an annual FBAR (Report of Foreign Bank and Financial Accounts). The threshold is as follows: if at any time during the year, you have more than $10,000 in foreign accounts (whether the money is in one account or spread over numerous accounts), you are required to file an FBAR.

In addition, if you have significant amounts of money overseas, then you may also have to file additional forms such as an 8938 (FATCA Form) or 8621 (Passive Foreign Investment Company, which includes Foreign Mutual Funds along with as many other passive investments). There are many other forms you may have to file, but we determine those on a case-by-case basis.

Fines & Penalties

Unless you are criminal, chances are the IRS or Department of Justice will not be banging down your door to come drag you to jail. With that said, the fines and penalties can be very steep and depending on your particular circumstances, may include penalties upwards of 100% of the value of your foreign account. If the IRS believes you were willful (aka intentional), then they may launch a criminal investigation against you and the penalties and fines can get much worse from here, including Liens, Levies, Seizures…and worse.

Customs Holds and Passport Revocation

With the implementation of FATCA (Foreign Account Tax Compliance Act), the United States is heavily cracking down on offshore tax evasion and unreported foreign accounts in general. The IRS and US government have the power to both revoke your passport as well as possibly hold you at the airport “customs hold” to question you on the spot (usually outside the presence of your attorney).

Getting Into Compliance

Getting into compliance should be mandatory on your “to-do” list. Even though our firm, Golding & Golding, is based in Newport Beach, we represent clients worldwide. A majority of our clients live overseas in over 40 countries. We have helped numerous clients get into compliance and are regarded as one of the top Offshore Disclosure Law Firms worldwide.

To that end, there are three main methods of compliance:

(1) Streamlined Compliance

This program is for individuals who were unaware of any requirement to file an FBAR and/or report their income on a US tax return. The penalties under the streamlined program are significantly reduced and may possibly be waived depending on whether a person qualifies under the strict definition of foreign resident for offshore disclosure purposes.

(2) OVDP

This program is mainly for individuals and businesses who were willful, aka were aware they were supposed to report their foreign accounts but intentionally hid or kept the account/income information secret.

(3) Reasonable Cause Statement

This is not a particular program; instead, it is a method for getting to compliance while attempting to avoid any penalty. There are many pros and cons to this method depending on your specific situation, which must be evaluated carefully with your attorney before making a decision.

Compliance Operations Specialist

More information about this job:

Overview:

Reporting directly to the Vice President of PBO Business Strategy and Operations. The Compliance and Operations Specialist will play a key role on the Business Strategy and Operations team.

The Compliance and Operations Specialist (COS) will work independently to ensure their designated offices are in compliance with proscribed policies, procedures and regulatory requirements. COS will act as a liaison between the QA unit and the Preferred Banking Offices and management teams. Compliance and Operations Specialist (COS) works with multiple businesses units in a changing environment where the complexity of the job changes from day to day.

The position requires travel to existing footprints of the bank on a regular basis to ensure adherence to regulatory, compliance and policy requirements. The position also requires an ability to work alone and set an appropriate schedule to make certain all assigned Preferred Banking Offices are reviewed on a regular basis for specific tasks (not limited to but including, wire review, daily work) with an additional role of training and developing other team members such as FlightPath QC Associates.

This dynamic position goes beyond strictly operations review and includes performing periodic Assessments, monthly reviews of the entire Preferred Banking Office’s operations with an added emphasis on training and development of assigned offices and bankers.

The Compliance and Operations Specialist will consult with various business units across the enterprise (i.e. Legal/Compliance; BSA/AML; Risk, Fraud and Security; Internal Audit; Deposit Services; etc.) to ensure all offices within their assigned regions are prepared for internal or external regulatory examinations.

Responsibilities:

DUTIES AND RESPONSIBILITIES:

·        Works on multiple Quality Assurance / Quality Control tasks across the PBO’s with bankers. Proactively uses independent judgment to identify opportunities to improve the quality and usability of internal processes to enable our bankers to be in compliance with regulatory requirements and the bank’s Policies and Procedures of the Bank (e.g. Big Green Book and Eaglesnet).

·        Has a strong working knowledge of Regulatory and Compliance requirements and Bank Policies and Procedures to participate in the creation, preparation, and conduct of Office Assessments along with leading professional development seminars as necessary to guide our bankers and all bank stakeholders.

·        Cross-trains as FlightPath QC Associates for entry and audit of new accounts and account documentation including changes to signers on accounts to enforce and comply with the bank’s KYC process. Performs this function as needed. Mentors and trains the FlightPath QC Associates.

·        Upon request, provides the Vice President with accurate QA status reports which identifies operational deficiencies of the PBO’s. Documents, presents findings, and relays evaluative feedback to the Vice President and leadership team.

·        Works closely with the Vice President to ensure all operational issues are effectively communicated, including actively participating in ad-hoc projects and team meetings, while exhibiting ownership, follow-thru, initiative and independent judgment at all times.

·        Responsible to work on projects, including, but notwithstanding, monitoring, consolidating, and archiving active and pending reports, and performing other duties & responsibilities as required by the VP of Business Strategy and Operations and their assignee.

·        Responsibilities include the following: 1) adhering to and complying with the applicable, federal and state laws, regulations and guidance, including those related to Anti-money laundering (i.e. Bank Secrecy Act, US PATRIOT Act, etc.) 2) adhering to Bank policies and procedures, 3) completing required training, 4) identifying and reporting suspicious activity to the AML Officer, and 5) knowing and verifying the identity of any customer(s) that enters into a relationship with the Bank.

Qualifications:

SKILLS, KNOWLEDGE, AND ABILITIES:

Minimum 3-5 years of supervisory, retail branch operations and customer service experience. Strong communication skills, manage multiple projects under rapidly changing conditions, ability to multi-task, strong attention to detail, excellent problem solving and follow-up skills, computer skills with an emphasis on Word, Excel and PowerPoint. Position is required to travel 80% of the time. Must have excellent organizational and oral presentation skills. A candidate is expected to be a self-starter with a high ability to quickly comprehend technical concepts, and willingness to take charge and seek out answers, use independent judgment, even when given minimal instruction and guidance.

PHYSICAL REQUIREMENTS:

·        Vision must be sufficient to read data reports, manuals and computer screens.

·        Hearing must be sufficient to understand a conversation at a normal volume, including telephone calls and in person.

·        Speech must be coherent to clearly convey or exchange information, including the giving and receiving of assignments and/or directions.

·        Position involves sitting most of the time, but may involve walking or standing for brief periods of time.

·        Must be able to travel in a limited capacity.

MOSSACK FONSECA: PANAMA NAMED BEST PLACE TO RETIRE IN 2016

Mossack Fonseca – International Living (IL) has named Panama the best place to retire in 2016. Their correspondents, editors, and contributors across the globe analysed, rated, and ranked the most popular retirement destinations.

Panama has long been a favorite of retirees. You’ll find them along both Caribbean and Pacific coasts, on white-sand islands, living contentedly nestled in mountain valleys, and along the glittering promenade of Panama City. Panama has hands down the best package of retirement benefits in the world. Pick your climate-tropical or temperate. On top of that, Panama is just a three-hour flight from Miami.

Both the cost of living and crime rate are low, the weather is warm and pleasant throughout the entire year, health care services are excellent highlighted by the Johns Hopkins affiliated hospital, the food is delicious, the airport offers worldwide flights, it’s only 2 ½ hours to Miami, the roads and highways are excellent, cell phone services are top notch, and high speed Internet service and cable TV are great. These are just some of the reasons that make Panama a great place to live and/or retire.

All that is required to qualify as a pensionado (pensioner) is that you must be in good health, AIDS-free, have an up-to-date passport from your country of citizenship, and you must draw a minimum pension of $750 and invest at least $100,000 in property in Panama or you must have a pension of at least $1,000 per month (no real estate requirement). However, there is a plus: you may now pool your pension with your spouse’s to meet the minimum pension requirement.

Foreigners who become pensionados can buy and own Panama property and enjoy exactly the same rights and protections as Panamanians, not always the case in many nations and an important point people often forget to consider. As for income taxes, you will be pleased to know that in Panama you pay no taxes on income earned outside of Panama.

Panama has created the most attractive special benefits programs for foreigners and retirees. As a pensionado [retiree] in Panama, you will receive:

– 50% discount at most recreational, movie, and sporting events

– 30% discount off public transportation (including buses and ships)

– 25% discount off Copa airline flights

– 50% discount off hotel stays on weekdays (30% on weekends)

– 25% discount at selected restaurants

– 15% discount at fast food restaurants

– 10% discount off prescription drugs

– 20% discount on doctor’s visits

– 15% discount on dental work

– 25% discount on your electric bill (if less than $50)

– 25% discount on your telephone and water bills.

In addition, a pensionado is entitled to a one-time exemption of duties on the importation of household goods (up to $10,000) and an exemption every two years of duties for the importation or local purchase of a car.

Business Journal names "Healthiest Employers" winners

Attendees at the Healthiest Employers 2011 awards luncheon walk around the exhibitors area before the awards.

Five Sacramento-area companies won top honors at a luncheon Friday for theie employee health and wellness efforts. Rood & Dax Advanced Insurance Services Inc. of Sacramento won in the micro category (10 – 50 employees).

Dr. Richards Isaacs accepts a Healtiest Employers award on behalf of Kaiser Permanente Northern California. Kaiser won in the mega category (10, 000-plus employees). The health care nonprofit, which has made healthy living a central message in its advertising years, has had a wellness program since 2002.

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Over 40 Years of Excellence

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