Brazil

[Alfrankenstein]

If someone wanted to deposit like $1 billion usd or more in brazilian offshore bank accounts assuming they were diversifying, how stable is brazil's offshore banking industry vs indonesia, singapore, and switzerland combined? How good of an idea would this be? If this same amount was diversified among those three vs all of the money in different brazilian offshore bank accounts, which is safer?

 

[Sols]

Brazil is not a place you want foreign currency to get stuck, same with Indonesia. Harsh capital controls can make it difficult to move the money out. Luckily, banks in Brazil and Indonesia rarely open accounts for non-residents.

Put your billion in Singapore and Switzerland where it's far less likely to vanish, draw too much attention, or get stuck.

People with large wealths don't keep their money in cash usually. But what cash they do keep is generally with wealth management banks in places like those two and Liechtenstein, and with large banks in larger, more stable economies than the likes of Brazil and Indonesia.

 

[troubled soul]

If I would in your position ......I will never put huge amount in Brazil, Indonesia type country ...
I will put $250 Million in each bank account...

1)Charles Schwab (USA)

Reason :safe port in a storm
https://www.businessinsider.in/stoc...safe-port-in-a-storm/articleshow/98834108.cms
2)UBS (Switzerland)
Reason: UBS is now 'the world's safest bank' for depositors because Switzerland has made it too big to fail, analyst
https://www.businessinsider.in/stoc...to-fail-analyst-says/articleshow/98824333.cms
3)DBS Bank (Singapore )
Reason: Asia’s Safest Bank
https://www.dbs.com/newsroom/DBS_named_Asias_Safest_Bank_for_12th_consecutive_year
4)HSBC expat (Isle of man)
Reason: systemically important bank

Hope this helps

 

[Alfrankenstein]

But if someone were to deposit like $1.5 billion usd or more in brazilian offshore bank accounts, why isnt brazil all that reliable/reputable then other than what youre telling me...? Then what kind of people deposit money in brazilian offshore bank accounts then assuming they have this kind of money then?

 

[Mssquirrel]

But if someone were to deposit like $1.5 billion usd or more in brazilian offshore bank accounts, why isnt brazil all that reliable/reputable then other than what youre telling me...? Then what kind of people deposit money in brazilian offshore bank accounts then assuming they have this kind of money then?

Why would someone want to open a bank account there? Just don't, especially with the change of government. Unless you want to open a business there it doesn't make sense.

 

[reallyawesome1111]

But if someone were to deposit like $1.5 billion usd or more in brazilian offshore bank accounts, why isnt brazil all that reliable/reputable then other than what youre telling me...? Then what kind of people deposit money in brazilian offshore bank accounts then assuming they have this kind of money then?

You have a billion dollars and you're wondering why you shouldn't store it in Brazil? The president is a communist, who knows what they will do when capital outflows are too high. It would cost much less than a billion dollars for someone to corrupt the judiciary and steal your billion dollars in Brazil whereas that is almost entirely out of the question in the other countries people recommended here.

 

[Sols]

But if someone were to deposit like $1.5 billion usd or more in brazilian offshore bank accounts, why isnt brazil all that reliable/reputable then other than what youre telling me...? Then what kind of people deposit money in brazilian offshore bank accounts then assuming they have this kind of money then?

No one wants to bank in Brazil, except for most locals who need to and have no option. Rich Brazilians put most of their money abroad. Practically no foreigners deposit money in Brazil.

 

[Soterus]

Get to know: Brazil is a CRS country. There are 2 types of bank accounts, standard = no data exchange, and CDE = "conta para domiciliados no exterior", here you have to submit utility bill etc. on a regular basis. All transaction data are exchanged. If a Brazilian national moves abroad and the bank knows it, the account gets blocked/the card canceled. Only private banks offer such CDE accounts for huge fees. In 2017, I tried to open one with Itaú bank, and they wished to charge a 1,000 R$ monthly maintenance fee.
You also should know that all accounts are in BRL only, so no dollar or other currency in BR for you. Please take a look at the brutal devaluation of the BRL from 2015 until now (TradingView chart).
Finally, Brazil has some sort of "money-exit-tax". When a Brazilian national travels around the world, and pays his expenses with his BR-credit card, the government charges him an additional 5.38% on the transaction value (which was already higher in the past). This is called "IOF = Imposto sobre Operações Financeiras". This means when you have money there and want to spend it outside of BR, you have at least some losses (other than devaluation). So stay away from there and diversify in the Carribbean or similar. (I think in Argentina IOF is 20% or so).

 

[JackAlabama]

Get to know: Brazil is a CRS country. There are 2 types of bank accounts, standard = no data exchange, and CDE = "conta para domiciliados no exterior", here you have to submit utility bill etc. on a regular basis. All transaction data are exchanged. If a Brazilian national moves abroad and the bank knows it, the account gets blocked/the card canceled. Only private banks offer such CDE accounts for huge fees. In 2017, I tried to open one with Itaú bank, and they wished to charge a 1,000 R$ monthly maintenance fee.
You also should know that all accounts are in BRL only, so no dollar or other accounts in BR for you. Please take a look at the brutal devaluation of the BRL from 2015 until now (TradingView chart).
Finally, Brazil has some sort of "money-exit-tax". When Brazilian national travel around the world, and pays his expenses with his BR-credit card, the government charges him an additional 5.38% on the transaction value (which was already higher in the past). This is called "IOF = Imposto sobre Operações Financeiras". This means when you have money there and want to spend it outside of BR, you have at least some losses (other than devaluation). So stay away from there and diversify in the Carribbean or similar. (I think in Argentina IOF is 20% or so).

The brazilan gov is really creative. I hope eu will not learn about the IOF. They must like that sneaky idea.