The Banking Puzzle Lief Simon

Privacy

Banking Overseas Not as easy as it should be

Private Banking vs. Personal Banking

Jurisdictions

Services

Reporting

PRIVATE BANKS

•  Private bank generally means an investment bank.

•  - Access to non-U.S. mutual funds

•  - Investment Management •  - Personal Banker •  - High fees

•  Personal banks are operating banks

•  - Checking Accounts

•  - Savings Accounts •  - CDs •  - Debit cards •  - Credit cards

PERSONAL BANKS

What kind of bank do you need

•  Europe •  Andorra •  Austria •  Cyprus •  Denmark •  Gibraltar •  Jersey and

Guernsey •  Isle of Man •  Luxembourg •  Liechtenstein •  Switzerland

•  Caribbean •  Anguilla •  Antigua

and Barbuda

•  Bahamas •  Barbados •  Belize •  Bermuda •  BVI •  Cayman

Islands •  Panama.

•  Asia/Africa •  Bahrain •  Cook Islands

•  Hong Kong •  Labuan •  Macao •  Seychelles •  Singapore •  Vanuatu

Jurisdiction Options Plenty to go around

ADMINISTRATIVE

•  Hold paper statements at the bank

•  Internet •  Account access •  Trading

•  Debit or credit card •  Wire Transfers

•  Online •  Fax •  Telephone

•  Mutual Funds •  Stocks •  Commodities •  Currencies

•  Cash accounts •  CDs •  Futures

•  Metals •  Storage services?

INVESTMENT

Available Services

GENERALLY WHAT YOU NEED

•  An introduction helps •  Two bank reference letters •  Copy of your ID (Passport)

•  Articles of Incorporation •  Certificate of Good Standing •  Financial Statements

FOR CORPORATIONS

Opening an Account

•  Banca Privada d’Andorra – www.bpa.ad ($100,000) •  Jyske Bank – www.jgam.com ($100,000) •  Unibank – www.unibank.com.pa ($250,000) •  Andbanc – www.andbanc.com ($1 million) •  Balboa Bank and Trust - www.balboabanktrust.com •  ($100,000)

•  First Caribbean International Bank - www.cibcfcib.com

Private Banking Options

§ Back up accounts – you need at least two offshore accounts – personally and per entity

§ Open an account when you can

§ Don’t close an account unless you really have to

§  Fees will keep going up

Banking In Today’s Climate

•  Many jurisdictions have banking secrecy laws on the books, but that generally means bank employees can’t divulge whether you have an account at the bank.

•  Most people break bank secrecy themselves.

What about banking privacy? Also known as banking secrecy

•  For U.S. persons, FATCA will require you to waive banking secrecy laws specifically to allow banks to submit the information required by the IRS.

What about banking privacy?

•  Basic Requirement – aggregate value of financial accounts greater than $10,000 at any point during the calendar year.

•  File Form TD F 90-22.1

•  Each account must be detailed with account number and maximum account value during the year

Account Reporting U.S. Citizens Only