What's another option for offshore bank account?

An Offshore Account May Not Be Your Best Option

Written by Tini Abadicio on .

            An offshore account seems like a great idea for online merchants and business owners. They can avoid many of the restrictions imposed by traditional banks in their home country. However, an offshore account is no longer the haven it used to be, thanks to stricter regulations due to some account holders using offshore accounts to launder money or other illegal activities. A money platform may be the better option today.

Facts about an offshore account

            It’s still perfectly legal to have an offshore account, but it will cost you. You need to submit documents including proof of identity, and you may even need to consult a lawyer to set it up for you to make sure you get the tax advantages and asset protection you want. The structures required can get quite complicated.
            You also have to pay a fee to open one. The amount will depend on where you plan to open an account. If you open one in Puerto Rico, for example, a business account will set you back EUR €550. This does not include other costs such as monthly maintenance fees, withdrawal fees, and currency conversion fees. You also have to choose a currency for your account.
Facts about money platforms
            Digital payment platforms or money platforms are primarily a way for individuals and businesses to pay for products and services electronically. They are not banks in the traditional sense, although it can accept and keep deposits and payments for you. In case you didn’t know, traditional banks often use their account holders’ money for investments, which is why they can afford to pay interest on some deposit accounts.
            If you want to make sure your funds are safe, choose a money platform that fully deposits the funds with partner banks.
            You still have to provide proper documentation to open an account, especially if you are a business, but the process is much easier than dealing with an offshore bank.
            The main advantages of money platforms are convenience and speed. All transactions happen online, and you can transact using a mobile phone or computer. A reputable platform can process a payment in seconds and comes with an optimal service fee for each transaction. Some of the best platforms accept multiple currencies, including cryptocurrencies, and partner with other payment platforms for smooth transactions across networks.
            An offshore account will not work for many online merchants and business owners because of increased regulation and costs. Opening an account with a reputable money platform may be your best bet for smooth, hassle-free transactions.