Frozen Account

Finance Allah Shmoop What is an offshore account And how

do you open one Or rather why would you even

want Teo Here's onshore That's us the US of A

We have laws and rules which well most people follow

anyway and we have taxes to pay for our military

defense and our football stadiums and our congressional mistress Tag

along travel We're not perfect but show us a better

place and we'll salute them while we're standing So when

you hear someone musing about opening an offshore account odds

are good that they're trying to find a way to

hide taxes that they probably legally owe to the U

S Government No this is not always the case Someone

might be running a small business importing coffee from Guatemala

and they need a bank account offshore like in Guatemala

Pay for the beans because you know the Guatemalan being

selling company does not accept us dollars like really are

Currency isn't good enough for them Yeah alright skepticism alert

But it does happen And people do open offshore accounts

often under very snazzy sounding marketing slogan names by large

global banks that take extremely high privileges like commissions for

doing so Offshore accounts aren't illegal and the clever marketing

that runs behind them include things like uh diversify your

political risk because the U S Government might go under

and you should really have an account in the Caymans

in the Bahamas and Bailey's because well those countries are

solid Their banking systems are better protected than those in

the US Oh and there's the lawsuit protections Logan That's

a good one Like you might do something very bad

in the US and gets sued for it and lose

And then the way to make it harder for your

sewers to collect the money you owe them is to

squirrel away your money in a foreign bank That makes

sense And yes it's OK to mumble a muse what

kind of customer these offshore accounts are attracting And then

there's the Diversify your currency slogan That's a good one

Like you need an offshore account to do so Or

like normal people should even begin toe worry about diversity

defying their currency exposure A meaning like the presumption is

that the average Joe will somehow do better than the

thirty million dollars a year Wall Street talent who has

actually trained on howto invest in currencies around the world

by diversifying well buying New Zealand and Aussie dollars to

do better than American dollars in some meaningful way You're

really kind of bet the ranch on that Uh yeah

Not bloody likely So don't forget the access to medical

care argument That's always a good one The hi fi

banks will plant all kinds of worry warts on your

brain that somehow you can't get the medical care you

need in the US And yes it's a slog here

but that somehow having an off shore account you know

I don't know that Philippines will give you better medical

care access Really Yeah They market that in people who

can read actually buy in Well the implication here is

that you broadly get peace of mind or the ability

to transact globally by having one of these very expensive

accounts housed in the Isle of Man or Jersey or

some other foreign shadow country Yeah you know the saying

if it quacks like a duck and walks like a

duck Yeah probably a goose Offshore accounts If you do

get one you'll want your club card so you can 00:03:12.78 --> [endTime] always get into here