Foreign Banking

Foreign banking is a global banking activity that facilitates trade, investments, industrial and commercial activities. The relationship/distinction between regular banking (local) and offshore banking and foreign banking best described as follows: Foreign banks are normally branches or subsidiaries of financial establishments located elsewhere. A foreign bank can be set in an offshore financial center to be able to engage in and provide offshore activity, and a foreign bank, once it meets criterion listed previously, will not be considered a local bank if its head office, or parent company exists elsewhere.

There is not much difference between the services and products offered by local and foreign banks, since their clients tend to be the same “international” audience, however, a foreign bank has an advantage over a local bank, when the individual considering bank is familiar with the foreign banks, has accounts in his home country with that same brand of bank.

Foreign banking is suitable banking solutions for expats, individuals on work or student is as, businesses and companies with offices in non domestic countries, persons who have trade or commercial relations. While foreign bank may be more suitable, in some of the cases above and offshore foreign account may be even better designed as a banking facility. Foreign banks can be found all over the world, in the world most successful financial centers.. Most major banks have foreign banks in major commercial and financial centers.

For information on how to apply for second citizenship please get in touch with us. The St. Kitts and Nevis Citizenship Program recognizes dual citizenship and has benefited the economy of Saint Christopher and Nevis by granting the passports of St. Kitts and Nevis to families and individuals who wish to have dual citizenship. The St. Kitts and Nevis economic citizenship program started as early as 1983, and is also called the Citizenship –by–Investment Program, which is a second citizenship program. Similar second passport program existed in Grenada under the Grenada Citizenship Program but was put on hold. Information on Grenada second passport program is widely available. Offshore company incorporations are performed through registered service providers in the offshore countries. The process of offshore company incorporation is not difficult and company formation can be done in a single day. Non-resident companies can be created as holding companies.

Many of these major parent companies establish foreign banks in offshore centers of free trade zones in an effort to enhance their financial solutions, capturing some of the offshore business.

Once an individual engages an account in foreign banks, all the regular banking solutions are available. But the challenge of setting up an account in a foreign bank may be daunting and in some cases unavailable as an option for; in most countries, non-residents may not open accounts. Offshore accounts are best suited to non-residents, and as mentioned many foreign banks are relocated in the world’s best offshore financial centers.

The requirements to engage in foreign banking in a country are:

  • Proof of identification
  • Proof of local address
  • Proof of residency status ( student, work visa)
  • Bank references

The process may be a catch 22 in that some banks require proof of address, while in order to get rental accommodation landlords want deposits directly deposited into their accounts.

One main advantage of foreign banking is the access to accounts in home country and the speed with which money can be transferred. Rather than having to go through intermediary banks and routing locations, money will very likely be directly transferred to your account.

Foreign banking may not be the bets solution for all, so be sure to examine the product and services offered by the foreign bank before deciding. Foreign bank account do not have anymore benefits over local banks, but can offer an individual familiarity, comfort and security if the individual dealt with the same parent company.