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Personal offshore account for a few transactions, what info is shared across jurisdictions?

Discussion in 'Business Discussion' started by Educate, Nov 13, 2017.

  1. Educate

    Educate New Member

    I sold some of my crypto and want to send gains to a brokerage in order to invest in stocks.

    If I register a personal bank account in an offshore jurisdiction like Gibraltar or Hong Kong, transfer the funds there and then wire them to my overseas brokerage stock account, what information will this private offshore account share with my jurisdiction?

    Recent OECD rules on Automatic Exchange on Information (AEoI) which pretty much all countries have joined conclude that the banks share information with beneficiaries of accounts jurisdictions and governing bodies.

    But do they share information on balance of accounts or all transfers?

    It is a huge difference, because if you just use the account a few times to do transactions and keep it empty, it will show 0$ when shared with government. But if it shows all outgoing/ingoing transfers and history, then obviously it is not good.

    So any idea how this works in terms of personal accounts in offshore banks?

    Maybe you know which banks or jurisdictions are not keen on sharing this information?
     
  2. Dubsize

    Dubsize New Member

    hi,

    The standard obliges financial institutions (banks, depositories, life insurance companies, etc.) established in signatory countries to:

    Collect: identify the holders and beneficiaries of bank accounts of tax residents of countries with which an exchange agreement has been concluded:
    - name, surname, passport number and contact details of the holder,
    - account number,
    - account balances,
    - dividends earned,
    - gross proceeds of transfer of securities,

    Report: Financial institutions must report this information annually to their tax authorities

    Exchange: the tax administration must exchange this information with the other signatory jurisdiction

    European countries that did not sign this agreement :

    Armenia
    Azerbaïdjan
    Bielorussia
    Bosnia
    Georgia
    Kazakhstan
    Macedonia
    Moldavia
    Monténégro
    Serbia
    Ukraine
    Vatican
     
  3. Educate

    Educate New Member

    Do you know any specific banks that you would recommend for this purpose?

    I don't fully understand this - so they don't share the wire transfers (ingoing / outgoing) and sums transferred?

    So if you keep the account at 0$ balance at all times and use it as a mediatior account (in and out), then you should be good to go?

    Seems too easy.
     
  4. countryfree

    countryfree Member

    I don't have the legal text nearby, but I'm nearly sure it includes a total of all incoming transfers.
    Solution is to use a company account, not a personal one, or to bank in an non AEOI country.
     
  5. Educate

    Educate New Member

    Are there even any non AEoI countries except Somalia left?

    Seriously, it seems that pretty much every country has joined AEoI.

    And won't they share data on corporate accounts as well? Don't these laws apply to both personal and corporate accounts?

    Even if you use a nominee director, you still have to indicate a beneficiary, no?
     
  6. Internationaloff

    Internationaloff Corporate Services Business Angel

    Hello.
    Where are you resident?
     
  7. Educate

    Educate New Member

    Hey, resident in Europe.