It’s becoming popular for Malaysians and emigrants to keep their money in an offshore account. Offshore banking is simple and cheap. For entrepreneurs who are not prepared to go through the complications of onshore banking, opening an offshore bank account may be ideal.
Labuan offshore banking gives you a wide selection of bankers. Actually, there are about 55 reputable bankers that handle large-scale financial transactions. A majority of the transactions are done via the phone and email.
Normally, a Labuan offshore bank account is not a subject to scrutiny by the Malaysian Central Bank. Nonetheless, it can be inspected by the Regulatory Compliance Authority and the Ministry of Finance. The other benefit is that the account is highly safe. It’s protected from political uncertainties in your local state and thus cannot be frozen by your local government. Besides, there are no restrictions for the cash flow, so large sums of money can go through your account. What’s more, with common reporting system (or CRS) implemented by the OECD, you will not need to worry about more privacy in terms of size of funds that you can keep in a bank.
The Basic Requirements for Setting up the Account
It may take up to three weeks to open a Labuan offshore account. However, it’s important to know that the bank has the right to accept or reject you. For example, if you are politically exposed, they may see you as a risk to their reputation and therefore reject you. Also, the bank can reject you if they have doubts about the source of your funds. The law obliges the banks to dissociate themselves from investors with criminal links.
Often, opening a Labuan offshore bank account requires the screening of your company to ensure that you meet the minimum cash deposit threshold of $5,000. This is followed by providing the following basic requirements:
• An official document that identifies you—maybe an ID or a valid passport.
• A valid business document that shows you are the owner of the company, for example, a sales receipt, a foreign bank receipt, or a copy of the contract of sale.
• A notarized document. This refers to a certification document from your attorney, the notary public, or your bank that shows the legitimacy of your business.
Provided that your money is legit and you want a bank account that is flexible for your business transactions, you should try Labuan offshore banking. The level of privacy and security is high and you are allowed online banking and multi-currency transaction advantages.