Gold prices haven’t done much in recent years. It did go up significantly in the 2000s but hasn’t done much in recent years. So, why would anyone invest in gold then?

The main wealth creation from gold comes in the form of capital appreciation.

Gold also plays an important role in wealth preservation. Among all the precious metals, gold seems to have the best safe haven and hedging properties. It is particularly viewed as a good hedge against inflation.

People pour money into gold during a financial crisis when stocks, bonds, and real estate markets are creating havoc.

In fact, people still remember the pains of the global financial crisis of 2008 and invest a portion of their wealth in gold just to feel safe about their money.

Gold by itself may be too volatile and deeply affected by supply and demand factors. Gold prices can either change quickly or remain stagnant for long periods of time. Hence, investing in just gold and gold mutual funds might not be the best idea.

However, if gold can become one of your asset classes in a well-rounded portfolio, then the precious metal has plenty to offer. It tends not to do much when stock markets are rising. However, it can provide positive returns when the rest of your portfolio is not performing well. Thus, gold can be a safe investment if it is viewed in the right way.

The intrinsic value of gold and the demand-supply scenario

Statistically speaking, about 50% of all gold is used for making gold jewelry. Countries like India and China are voracious consumers of gold products. The other 40% of gold is used for investments. Gold coins, bullion, gold bars, medals, etc. are bought by central banks, gold investors, and mutual funds that invest in gold on behalf of their clients. The remaining 10% of gold find use in industrial and commercial applications.

Looking at these numbers, it is clear that almost 90% of gold demand is driven by its intrinsic value. This has been the case for many decades with money also being backed by gold throughout history (gold standard). It is only recently that paper money got stopped being backed by gold. However, that does not affect gold’s intrinsic value or its safe haven status.

There is a limited amount of gold available on earth. The gold that has already been mined is already in use, as described above.

The gold that is still to be mined is increasingly more complex and expensive to extract.

There is a finite quantity of gold in the world and unless there is a technologically enhanced way of extracting gold cheaply, the price can only go up due to rising demand and limited supply.

Gold has more intrinsic value than the US dollar, which is often considered as a safe currency.

The US government can simply print more dollars if it wants to. However, one can create gold.

Medieval alchemists have proven that gold can’t be created and if the gold-peak theory is true, then declining gold production means that the supply of gold will continue to shrink in the future.

Gold’s correlation and standard deviation

Gold has an interesting set of stats in terms of returns when compared with the stock market.

Most people tend to invest their savings and wealth in stocks either by direct investments or by purchasing units of mutual funds and ETFs.

The standard deviation, a measure of volatility, for the stock market over the past five or six years has been around 10%.

The average return of the S&P 500 during that time has been around 13%. So, an investor in most cases would have had returns range between a low of 3% and a high of 23%.

Gold, on the other hand, had an average return of around 4% during the last five or six years and a standard deviation of about 16%.

This high standard deviation means that gold investors could have had returns of -12% to 20%.

That basically means a loss of 12% annualized or a gain of 20%. That kind of return range is far more volatile than the stock market returns. Hence, gold returns tend to be more unstable than stock returns.

Now let us look at the correlation of gold with the stock market. Over the last ten years or so, the coefficient of gold with respect to the stock market has been around 0.04.

That basically means that gold moves in a direction that are not closely linked to the stock market’s direction. Gold does its own thing.

Now compare that correlation with the correlation between the stock market index and the midcap index over the last ten years.

That number is 0.98, which means that mid caps move very much in sync with stock market indices.

Even when you compare gold’s correlation with bonds over the last ten years, the coefficient number comes out to be around 0.25. This means gold has a low correlation with bond prices and is a safe hedge against bonds as well.

So the conclusion from the correlation analysis is that gold can provide refuge during bear markets even though gold is more volatile.

How much gold should be owned?

Because of its volatility, gold should not be the sole investment. If you get the timing wrong, then you could end up with losses as outlined in the analysis above.

An investor should focus on the interplay between gold and other asset classes and use gold as a hedge against downturns in the stock, bond, and real estate markets.

Perhaps a 5 to 10% allocation to gold may be a wise decision. Discuss your desire to invest in gold with your financial advisor and try to come up with a ratio that positions gold as a hedge rather than as a growth component in your portfolio.

What form of gold should be purchased?

Once you have made your decision to invest in gold, the next question that comes to mind is how to invest in gold? Should an investor buy gold coins, gold bars, invest in gold exchange traded funds (ETFs), or buy jewelry?

Buying jewelry is really not recommended. Jewelers not only charge you the gold grammage cost but also making charges and a mark-up.

You would lose a significant percentage of your outlay in these additional charges.

Gold coins and gold mars also have a mark-up slapped on them by sellers. After all, jewelers and sellers also need to make a living and will build-in their cut into the price that they will quote you.

Even if you were to buy the gold coins or bars, you would have to spend some money to rent out a deposit box to keep that gold safe.

It might not be easy to sell a partial portion of your gold holdings in case you need to rebalance your portfolio further down the line. You cannot sell half a gold bar, you would have to liquidate the full bar. The same goes for jewelry.

One attractive option for investing in gold is buying a gold ETF. This exchange traded fund tracks the price of gold closely and counts gold as its primary asset. It also has a low expense ratio of less than half a percent.

So, the investor retains most of the returns that the underlying gold generates.

With an ETF, buying and selling are very easy. You can trade as many units as you like and do not have to sell a full bar of gold if you don’t need to. You also don’t have to drive to the bank or deposit box and then take your gold to the dealer. Gold ETFs are pretty liquid.

Another option is to invest in gold miners. However, gold miners extract not just gold, but also copper and other metals.

Hence, even though the majority of a gold miner’s activity is extracting gold, it is still not a pure play investment in gold.

With gold miners, the investor is also exposed to risks like sub-optimal miner performance, political risks in the country where the mine is, and other health and safety issues on site.

These things can pull down a miner’s stock price even if gold prices are heading up. So, investing in gold mines or miners is not the safest investment option.

The post Gold as an Investment appeared first on Golden Prime Trust.

Though one might think that FBAR is a tax evasion tool managed by the IRS, then that is only part of the scope of FBAR. FBAR is a report that is actually filed with the Financial Crime Enforcement Network (FinCEN) which is a separate division under the US Department of Treasury.

While FBAR was initiated to keep a check on money laundering and illicit deposits of money at offshore locations, the instrument today is used to tackle drug trafficking and terror financing. Due to the sensitive nature of issues that FBAR targets, the penalties for non-compliance or minor mistakes are quite steep.

A point to note, FBAR is independent of IRS Form 8938, which is titled “Statement of Specified Foreign Assets”. These two forms need to be filed separately if you are required to do so. The requirements for both these forms are completely different.

Who has to file FBAR forms?

A US person who has a financial interest in a foreign account/accounts or a US person who is a signatory to such accounts, where the combined value of the foreign accounts exceeds $10,000 in one calendar year, needs to file FBAR. US persons are classified as US citizens, green card holders, resident aliens or non-US persons who pass the Substantial Presence Test. Besides individuals, corporate/legal entities like partnerships, corporations, estates, and trusts with any connection to a foreign account (as outlined above) are also required to file FBAR.

As you can tell, pretty much all US persons and businesses/entities with any sort of significant interest in foreign accounts are covered under FBAR. Also, note that the $10,000 limit is an aggregate limit and it is applicable to the total value of all foreign accounts put together. If you have one foreign account with $9,000 and another at $1,000, then you have to report both the accounts even though the account with $1,000 seems insignificant.

There are some notable exceptions where the FBAR provision does not apply:

• Foreign accounts maintained in a US military banking facility
• Beneficiaries of trust in the case of the person reporting the foreign account via FBAR on behalf of the trust
• Beneficiaries and owners of US IRA accounts
• Qualified individuals like bank officers or company employees who have signature authority over a foreign account but no financial interest in such an account
• Beneficiaries and participants in tax-qualified retirement plans

In terms of the types of accounts that need to be reported via FBAR, we are talking about any kind of financial assets. It could be simple bank accounts, mutual fund accounts, stocks and securities, and any other financial or investment accounts where you have a financial interest or are a signature authority for any such account. If you have precious metals like gold and silver stored in an overseas vault, then those holdings will also need to be reported via FBAR.

If you are ever in doubt as to what should be reported and what shouldn’t, remember that it won’t hurt to report something that did not need to be reported. There is no penalty on over-reporting. However, if you do not report something, then the penalties are steep.

What forms to file?

FBAR is not filed with the IRS. It is filed with FinCEN’s Bank Secrecy Act digital filing system which is online. However, if you are filing FBAR, then you may also have to file Form 8938 with the IRS. Form 8938 is the “Statement of Specified Foreign Assets”.

The threshold for filing Form 8938 is very different from the thresholds for filing FBAR. US persons with foreign assets of aggregate values of $50,000 at the end of the year or $75,000 at any point in a year need to file Form 8938. For joint returns, these thresholds go to $100,000 and $150,000 respectively. For expats, the thresholds are even higher. Individual expats need to report assets when they exceed $200,000 at the end of the year or when they exceed $300,000 at any point in a year. For joint returns, the limits are $400,000 and $600,000 respectively.

One thing is clear, if you own substantial foreign assets, then they need to be disclosed via FBAR and Form 8938. Non-business entities and non-US trusts might need to file additional forms besides FBAR and Form 8938.

When to file FBAR?

FBAR is to be submitted along with your annual tax returns in April. The due date is April 15 every year. However, there are quite a few expats who file the FBAR forms after April. Usually, there is no penalty for them filing the form later in the year. In fact, if you claim Foreign Earned Income Exclusion, then the deadline automatically gets pushed back to June 15th. Most FBAR filers are also known to receive an extension until October 15th to file FBAR. However, quite a few people file FBAR along with their tax returns in April itself.

How to file FBAR?

There are six parts in total on the FBAR form 114. The first part is the type of filer (individual/partnership/consolidate fiduciary/other), personal information like name, address, date-of-birth, and other entries like taxpayer ID or foreign identification number.

The second part is about the value of your accounts. You have to enter the maximum value of all your accounts put together and converted into US dollars at the prevailing exchange rate. The final entry in the FBAR form will be in USD. Along with disclosing the value of all accounts, you also have to disclose the type of account (e.g. bank account, securities account, etc.). Other information like the account number, the name, and the address of the bank/financial institution is also to be entered.

The third part is about joint accounts i.e. accounts which are jointly held either by you and your spouse or by you and someone else. The details asked will be similar to parts one and two. But, this section is only applicable if you jointly hold an account with someone else.

The fourth part is the section about disclosing whether you have no financial interest in a foreign account but are simply a signature authority or a trust beneficiary. This is the place where you declare your non-financial interest.

The fifth section is for a business entity that needs to file FBAR. If a US person has an interest in the business entity of more than 50%, then a consolidated FBAR for the person as well as the business entity may be filed.

The last section is the signature section. Here, you have to check the box labeled 44a, fill your title, and then return to the home tab to digitally sign the FBAR form. You can also save and print the form at this last section.

After all the sections of the form have been completed, the system checks the form for any errors. If no errors are found, then you will see a “Ready to File” button activate itself. This means that you are now ready to submit your FBAR filing.

Conclusion

Please note that this guide is meant to provide you with broad information about FBAR and its filing procedure. Nothing in this article should be treated as professional legal or tax advice.

FBAR filings have to be done correctly or else there are steep penalties for non-compliance. If you are serious about renouncing your US citizenship and will file your final FBAR, then it is best to speak to a tax professional or an attorney to get the right advice which will not land you in any trouble in the future.

The post FBAR Filing appeared first on Golden Prime Trust.

Switzerland as a banking destination

Banking in Switzerland is seen as something very emblematic to the country. Besides Swiss Alps, watches, and chocolates, the only thing that comes to mind when someone talks Switzerland is Swiss banking.

You might be wondering what makes a hilly country in Europe such a hot banking destination. The answer lies in Switzerland’s long history of banking secrecy and client confidentiality. Switzerland is often considered as the “grandfather of banking secrecy”.

Banking secrecy laws in Switzerland

Switzerland has banking laws which prohibit banks in the country from disclosing the identities of the account holders to foreign governmental institutions or anyone else. However, things have changed lately as the banking secrecy has been weakened through sustained pressure by various countries demanding the disclosure of information of account holders who may be suspects for tax evasion.

At the same time, there are initiatives to incorporate the banking secrecy laws into the constitution of Switzerland to protect the laws from weakening.

The laws in Switzerland make it an offense for a banker to disclose the account holder’s information. The laws also shield the bankers from any foreign-led lawsuits, criminal charges, or extradition requests for not disclosing client information.

Situations where secrecy does not apply

The only time the client confidentiality lapses is when the account holder does something which is contrary to Swiss law. Movies often show shady characters wire transferring large sums of money into offshore Swiss accounts. Similarly, wealthy individuals in the past have tried to misuse the baking secrecy laws of Swiss banks to shield assets from enforcers, taxmen, and creditors. All such activities would be considered illegal by the Swiss authorities and account holder information may get disclosed in such cases.

Information sharing of account holders can also happen if there are criminal allegations, divorce proceedings, or tax investigations being conducted against an account holder. The Swiss Banking Association is quite clear about the fact that Swiss accounts cannot be used as safe havens for ill-gotten wealth. Swiss banks have an incentive to co-operate with foreign governments on matters like terrorism and fraud.

Judgments from US courts in matters related to civil and criminal offenses can also compel Swiss authorities to disclose account information. Swiss accounts do not offer creditor protection in that sense to an account holder. Swiss banks tend to co-operate with US authorities on such legal proceedings.

The relatively recent Foreign Account Tax Compliance Act, or FATCA, has pressured Swiss banks to share information about US account holders with the Internal Revenue Service (IRS). FATCA also requires US citizens to declare all their foreign accounts and holdings. If they don’t do it, their foreign banks will end up disclosing the information.

FATCA was envisioned with a goal of eliminating tax evasion. It requires banks all over the world to report account information of all its US citizen-customers to the IRS. There are stiff sanctions for non-compliance. In fact, FATCA is something that has made US citizens less attractive as customers to banks all over the world. Some Swiss banks may not entertain US citizens as a result of FATCA.

Regardless of the situation around banking secrecy, those who are interested in knowing what Swiss bank accounts are and how to open one will find plenty of useful information below.

What are Swiss Bank Accounts?

A Swiss bank account is an account that any person can open at a bank in Switzerland (including cantonal banks). The account is identified by a number rather than the client’s name in order to keep the identity of the account holder anonymous.

Swiss banks will also give their account holders debit cards, credit cards, and checks. However, since most people do not use Swiss accounts for everyday use, they do not really use debit cards and checks very often. In fact, by using the cards and the checks, you would be letting the world know that you hold a Swiss bank account.

Anyone can open a Swiss bank account irrespective of nationality. Swiss citizens or US citizens can open Swiss bank accounts. The most obvious and well-publicized benefit of opening a Swiss bank account used to be secrecy.

However, there are other benefits to opening a Swiss account. Firstly, Switzerland is a very stable country, both politically and economically. It has not had a war with any other country for many years.

Additionally, Swiss law mandates banks to have high capital requirements. There is strong protection for depositors of funds as well. Hence, any risk of a financial crisis of political conflict is very low.

Switzerland is a global powerhouse and a well-known destination for high-quality wealth management. Value-added services like gold storage vaults also make Swiss accounts attractive.

Some banks operate undisclosed or secretive vaults, underground bunkers, and storage facilities for diamonds, precious stones, and other valuable physical assets. In fact, it is believed that the Swiss department sold ten military bunkers out of which six were picked up by Swiss banks.

There are minimum deposit requirements associated with a Swiss bank account. These range from a few thousand dollars to a few million, depending on the type of account being opened.

How to open a Swiss Bank Account?

The process for opening a Swiss bank account used to be quite simple. It was similar to opening a regular bank account. However, with the recent rise in scrutiny and past cases of money laundering, the process has become a relatively long one. There is plenty of paperwork involved, most of it on the bank’s end. There is plenty of due diligence and other procedural work involved in opening a Swiss account.

The first thing you need to do to open a Swiss bank account is research into banks who work with US citizens (or your home country). Shortlist banks that you believe are the best options. Then, you will have to reach out to them and start a conversation. Gradually, you will make an application to open a bank account. The bank may request documentation from you. You will actually have to visit Switzerland and meet the bankers in person at some point. Swiss bankers want to know their clients and where their money comes from.

Swiss banks perform thorough due diligence on any potential client wanting to open an account with them. Valid identification like passport and government ID needs to be provided first. Then, detailed information on the sources of your funds needs to be submitted.

The Swiss bankers will look to understand where your money came from and how you earned that income. If you have large transactions in your source of funds, then the bank may ask you for agreement copies from any asset sales and bank statements verifying such transactions. Documents that verify your source of funds will be examined before you open the account.

Please note that you cannot simply fly to Switzerland and walk into a bank branch to open your Swiss account. The above steps will have to be done, a conversation will have to be initiated, and then things will start falling into place.

Work with a professional

If you are serious about opening a Swiss bank account, then it may be best to speak with a tax attorney to understand the tax implications of owning and operating a Swiss account. You do not want to get into trouble with the IRS later on.

Additionally, since significant paperwork is involved, and since there may be a chance of you getting turned down by a Swiss bank if they do not find your profile to be trustworthy, it is best that you work with an experienced professional.

The process of corresponding with a Swiss bank needs to be smooth and efficient in order to maximize your chances for account approval. Working with someone who has opened Swiss accounts before and who has relationships with banks in Switzerland will go a long way in helping you open a Swiss bank account.

The post Open A Swiss Bank Account appeared first on Golden Prime Trust.

The concept of buying on margin

Purchasing an asset using borrowed money is known as buying on margin. If a stock or asset is priced at a certain amount, then a small percentage of that purchase price (this component is known as down payment) is made by the investor while the rest of the price is borrowed from a bank or a broker.

The creditor lending the money will seek collateral in exchange for agreeing to lend the money to the investor. This collateral happens to be the marketable securities in the investors account. So, if the investor fails to repay the borrowed money to the creditor, then the creditor can sell those marginable securities from the investor’s account to get back the money that was lent.

Before opening a margin account, the investor will be evaluated and approved. Once the account is opened, the total purchasing power of that account will be the money which the investor has (or puts up) in the account and the margin money that is approved for that account.

There are interest rates associated with margin accounts. However, paying interest on margin money is slightly advantageous in the sense that interest rates in this case are not as high as interest rates of credit cards and personal loans. Also there is some flexibility on the repayment schedule. The investor does not have to pay monthly installments. Rather, the interest charges accrue over time and the entire outstanding amount can be paid at a convenient time by the investor. Margin interest is also tax deductible.

Investing on margin money is not riskless by any means. Margin amplifies gains, but it also amplifies the losses. If the securities that an investor purchases using a margin account declines in value, then a significant loss can be made as a result of the leverage that was used to purchase that security.

Opening a margin account

To open a margin account, you have to inform your brokerage that you want a margin account. You can make this indication when you first open a brokerage or investment account. If you already have a running brokerage account, then you might only need to submit a short addendum agreement asking for a margin account to be added to your regular account.

After the form submission, the brokerage will perform a credit check on you. Based on your creditworthiness, the brokerage will set an initial margin limit and a maintenance margin limit on your new margin account. Initial margin is the percentage of an asset’s price which the investor has to pay with his/her own money.

Maintenance margin is the minimum amount of money which needs to be in the margin account before the broker compels the account holder to deposit more money. The maintenance margin is essentially the minimum equity of the investor’s margin account. If the stock price drops below a certain price, then that equity level can go below the maintenance margin limit.

For example, if an investor deposits $100 in a margin account, and if the maintenance margin limit is 50%, then $50 have to be present in the margin account at all times. Once the account falls below $50, the brokerage gives the investor a margin call.

The margin call is basically a notification or warning to deposit more cash into the account. This deposit can come through new money or by selling securities that the account holder already has.

If none of those things happen, then the brokerage will go ahead and sell the investor’s investments to make the maintenance margin limit.

Margin is also sometimes known as a margin loan. It is essentially money that is borrowed to purchase assets or securities. A margin loan is backed with the borrower’s securities as collateral.

An example of buying on margin

Let us assume that an investor deposits $10,000 as initial investment in the margin account. If the maintenance margin is 50%, then that would mean that the investor’s equity should always be above $5,000, which is 50% of the $10,000 initial investment deposit.

The investor wants to purchase shares of a company which is currently priced at $50 a share. The investor wants to buy 100 shares which will cost $5,000. If the initial margin is 50%, then the investor has to put of $2,500 and the brokerage will lend the remaining $2,500 for the total purchase amount of $5,000.

Now, if the stock price goes up to $100, then the total value of the 100 shares held by the investor is $10,000. Out of that amount, $2,500 of margin money plus some interest will have to be returned to the brokerage house. The remaining $7,500 or less will be the investor’s payout. Thus, $2,500 turned to almost 3 times the initial investment. This jump of 3X is disproportionate to the 2X rise in the stock’s price.

On the downside, if the stock price goes from $50 to $25, then the value of the 100 shares held by the investor is now only $2,500. However, the investor already owes $2,500 to the brokerage as margin money. Hence, the investor has to pay the brokerage and take a 100% loss. The initial investment of $2,500 that the investor put up is completely wiped out. A 50% reduction in stock price leads to a 100% loss for the investor.

Thus, the upside and downside are both magnified when using a leverage setup like margin money.

Can anyone buy on margin?

While there are no specific restrictions on any investor wanting to buy on margin, this concept is not for everyone.

Buying on margin is certainly not recommended for a beginner investor or trader. One needs to have significant risk appetite to handle the upsides and downsides of margin trading.

If a security is bought using margin, then it needs to be monitored very closely.

A significant drop in a security’s price (even 50%) can mean a complete wipeout of the investor’s cash or equity. Hence, margin trades can be very stressful.

Certain securities like options contracts cannot be purchased using margin and they have to be paid for using investor cash. Stocks and bonds can be purchased using margins. Commodity futures are often purchased using margin accounts.

The post Buying on Margin appeared first on Golden Prime Trust.

The primary reason why some countries are better choices for the opening of an offshore account is the local tax law. Countries which have no capital gains tax for locals and/or foreign national who hold an offshore account in that country make such jurisdictions attractive. After all, offshore bank accounts are opened not just to protect wealth, but to also be tax efficient.

While a lot of people remain focused on traditionally popular countries for opening their offshore account, you can gain a significant advantage by looking at Georgia. We are not talking about the state of Georgia in the US, but the country which was a former member of the Soviet Union. The Republic of Georgia is an eastern European country that gained its independence from the Soviet Union in 1991. Today, it is believed that one can open an offshore bank account in Georgia in something like 20 minutes. Read more information below to find out why the Republic of Georgia is such a great country to open your offshore bank account.

The initial challenges that Georgia faced

After gaining its independence, the Republic of Georgia went through considerable turbulence. Its GDP decreased every year from 1990 to 1994. Its census records in 2002 showed that the population had declined by a massive 20% since 1989. The two big reasons for this decline were population de-growth and emigration. People literally fled Georgia in the hope of a better future elsewhere.

However, the Republic of Georgia saw a reversal of its fortunes when a dynamic leader by the name of Mikheil Saakashvili became the president of the country. He reversed some classic Soviet inspired policies that had been plaguing the country. Among his most well-noted actions were cutting down red tape, removing import-export tariffs, significantly cutting down an oversized police force, and making major investments in the Republic of Georgia’s infrastructure. Mr. Mikheil also revamped the entire government.

The transformation of Georgia

Such proactive policies led to a fascinating transformation of Georgia’s economy and it is today among the safest countries in the world. Corruption has also come down dramatically. In fact, almost no country has been able to remove so much red tape and stamp out corruption as quickly as Georgia has been able to. The country’s “Ease-of-Doing-Business” rankings are something Georgians are really proud of. A stable business and political climate generally tend to attract foreign capital into the country.

Georgia is not only becoming a strong economy but also a major tourist center. The country is known for some incredible scenery, sumptuous local cuisine, and warm hospitality. The strength of its tourism sector is reflected in the fact that tourist arrivals into the country have doubled in the last four years.

Georgia has been making it easier for foreign nationals to visit the country. Many visa requirements have been done away with and citizens from about 90 countries can actually visit the Republic of Georgia without any visa. Even the duration of stay has increased to a full year. Most countries allow foreign nationals to remain in their country for a maximum of 90 days. But with Georgia, it is 365 days. There are also quite flexible rules regarding what a foreign national can do in that one year in Georgia. He or she can not only visit tourist areas, but also study, work, or invest across the country.

Bank accounts in Georgia

Opening bank accounts can be quite frustrating in a country where red tape levels are high. Sometimes, you might be able to open a bank account right away but the problems begin to mount once your foreigner status starts to get in the way of smooth operations. But in the Republic of Georgia, that is not the case.

You may not find the international brand name banks that you may be used to seeing in your home country. What you will find is a bank by the name of TBC. In our experience, TBC is the best bank in the Republic of Georgia for foreigners. TBC also happens to post the highest revenue among all the Georgian banks. Its financials are also in good shape. So, it is a pretty sizeable and well-established bank, even if you have never heard its name until now.

The most attractive part about TBC bank is its account opening procedure. And we are not talking about locals opening accounts, but foreign nationals opening an offshore account. Apparently, all one needs to do to open a bank account with TBC is show up with a valid passport. No know-your-customer (KYC) forms, no anti-money-laundering info, no proof of address. Simply a valid current passport is good enough to get the process rolling.

There was a time when places like Singapore and Hong Kong used to be this easy for opening offshore bank accounts. But, over the years, those countries have been seeing a lot of capital inflow and now they have become quite cumbersome to deal with. The account opening procedures in those countries have also been slowed down significantly by anti-money-laundering laws. Their approval process is not the best and you may have to put up a significant initial deposit just to get them seriously interested. By significant deposit, we mean tens of thousands of dollars.

At TBC bank, all one needs to do to open an account is deposit 11 lari or roughly $ 5 US. That 11 lari is equal to the annual maintenance fee of the account. What’s more, you can get a debit card quite quickly as well. If you do not want your name on the debit card and simply hold a generic Visa or Mastercard, then TBC will provide you with one during the account opening meeting itself. If you want your name on the card, then you can pick one up a day after your account opening. Just keep in mind that while you will be able to use an anonymous/nameless debit card anywhere in Georgia, doing so for international transactions might be difficult. Such a quick turnaround is a breath of fresh air when compared to countries where the bureaucracy can make you wait for days or even weeks before you can really get started with a bank account.

Conclusion

Thus, opening a foreign bank account in Georgia is surprisingly easy and straightforward. By opening an account at TBC, you will be placing your money in a well-capitalized bank. By opening an offshore bank account in the Republic of Georgia, you will be opening your account in a country that is on an upward trajectory and full of investment opportunities. That seems like a great combination in our opinion.

So, the next time you decide to take a vacation, choose Georgia. You can combine leisure with some business. Simply walk-in to a TBC bank branch in Tbilisi (the capital of Georgia) and open your account in 20 minutes. Your wife and kids won’t even notice how fast those 20 minutes will fly by.

The post Georgia Offshore Bank Account appeared first on Golden Prime Trust.

The Apec Business Travel Card (ABTC) is a travel document designed to make travel for business persons of APEC participating countries easier.

Business owners, managers, and investors who frequently travel for work across APEC countries can enjoy certain immigration/customs privileges by holding an Apec Business Travel Card.

The primary benefits are firstly not having to wait in the regular queue for immigration and customs at the airport and secondly, in some cases, not even having to get a visa to visit an APEC country. It is estimated that currently there are about 500,000 active ABTC cards.

Which countries participate in the Apec Business Travel Card scheme?

The countries that are participating in the Apec Business Travel Card scheme are:

Australia
Brunei
Chile
China
Hong Kong
Indonesia
Japan
South Korea
Malaysia
Mexico
New Zealand
Papua New Guinea
Peru
Philippines
Russia
Singapore
Taiwan
Thailand
Vietnam

There are two transitional members that are participating in this program as well:

United States
Canada

These transitional members share some of the benefits of the Apec Business Travel Card scheme. For instance, the American and Canadian ABTC cardholders can use expedited immigration when visiting APEC participating economies (and returning home as well).

However, they cannot avail the benefit of visa-free travel to those countries. In the same way, cardholders from other APEC economies will also not be able to conduct business travel to the US or Canada without a visa.

In the US, the CBP or the Customs and Border Protection is the government agency that handles the application process for the Apec Business Travel Card.

As you can tell, most of the countries listed above are from the Asia Pacific region.

APEC stands for the Asia Pacific Economic Cooperation, an association founded in 1989 with the goal of promoting trade and economic development of the Asia Pacific region.

Countries like the US, Canada, and Russia are also part of the Apec Business Travel Card scheme because of their significant involvement in the Asia Pacific region.

Details about the Apec Business Travel Card

Frequent business travelers who need to take short-term visits to participating economies, as mentioned above, to fulfill their business commitments can normally get a 5-year ABTC card. The ABTC card is almost the size of a credit card.

The card includes important information such as the cardholder’s name, date of birth, sex, home economy/country, expiry date, signature, and passport number. No country or national symbols are present on the card.

The ABTC card is to be used in conjunction with the passport. One can enjoy expedited border crossing, expedited US visa interview scheduling, and in some cases, visa-free travel as well. The costs of applying for an Apec Business Travel Card vary from country to country.

In certain cases, it is possible for a person of a third party country, who also happens to be a permanent resident of an APEC country, to apply for an ABTC card. For example, an American who is a permanent resident of Hong Kong can apply for an ABTC through Hong Kong’s immigration office.

The application process

In order to apply for an ABTC card, you need to be a citizen of an APEC country and hold a valid passport. You also need to demonstrate that you need to travel (or have been traveling) for business-related matters to the APEC region. A clean criminal record is also a necessity.

While each participating country has its own criteria for the application process, the application has to be submitted by the applicant in his/her home country.

Only a single application is needed and the applicant need not apply separately to all APEC countries of interest. That’s right, the applicant submits his/her application to his/her own country and not to the country that he/she desires to travel to.

Once the home country approves the application, it then forwards the information to the various APEC economies that participate in the program. Each country subsequently gives its pre-clearance once its requirements are deemed to have been met.

Since multiple countries are involved, the entire process can take three or four months. The names of all the countries who have given clearance are printed at the back of the ABTC card.

If time requirements are short, then the applicant can choose to proceed with the issuance of the card with pre-clearances of only a few countries. The applicant can choose to waive off the remaining countries, but the catch is that he/she cannot travel to those countries on the ABTC card.

Things to be careful about

There are some limitations as to how long an ABTC card holder can stay on a business trip.

The limits range from 59 days to 90 days depending on the APEC country that is being visited and the governmental agreement between the cardholder’s home country and the country of visit.

ABTC cardholders also need to be careful about which port of entry they use to enter an APEC country.

Not all airports are authorized to handle ABTC entries and only specific cities will honor the ABTC. However, most major airports of an APEC country will be equipped to honor ABTC immigration and customs procedures.

Renewal of the Apec Business Travel Card

There is no clear way to renew an expired ABTC card. The only way to proceed is to apply for a new one and pay the application fees again.

The fresh application is as good as one that is being made for the very first time.

This might sound tedious but it makes sense because each participating APEC economy has to re-approve an applicant’s application based on prevalent immigration laws and the applicant’s personal information, both of which can change with time.

If a passport of an ABTC cardholder expires, then a new card has to be issued from the cardholder country’s immigration bureau.

The new card has to reflect the passport number of the renewed passport. If the passport gets stolen, then the cardholder must immediately inform his/her country’s immigration bureau and then follow the process as directed.

Trusted Travelers Program

The Trusted Travelers Program is a collection of beneficial immigration programs that allow American, Canadian, and Mexican citizens expedited immigration and customs clearance at airports in the US, Canada, and Mexico.

It is related to the ABTC card in that the citizens of these three countries need to first register for an appropriate Trusted Travelers Program and get Global Entry pre-clearance. Once they obtain this clearance, they can then apply for an ABTC.

Conclusion

The Apec Business Travel Card is a must for people who frequently travel to the Asia-Pacific region and wish to have a mobile lifestyle.

The process of applying for an ABTC card isn’t all that tedious and it gives you excellent benefits in terms of visas and immigration. We recommend that you worked with an experienced professional when making the application for your ABTC card. That way, the entire process runs through smoothly.

The post Apec Business Travel Card appeared first on Golden Prime Trust.

If you want to open an offshore bank account, you obviously would want to know how it will be beneficial to you in the long run.

Is the offshore bank account going to improve your business or boost your personal wealth? There are actually a number of reasons why many investors have opted to go offshore.

Some people open offshore accounts for asset protection, others may want to benefit from the high interest rates on deposits and there are also others who open a bank account in a foreign jurisdiction for confidentiality purposes.

Opening an offshore bank account is also easy and convenient.  No matter what your reasons are, it is important that you do background research on the best offshore bank accounts.

Most people open foreign bank accounts in tax haven locations mainly because they offer a tax-free environment. There are several factors you should consider when choosing foreign jurisdiction.

Some of the factors include political and economic stability, tight bank policy laws and the ease of communication. Most of the factors will be discussed later on in the article.

Finding the best offshore banking jurisdiction

If you decide that opening an offshore bank account is convenient for you but you still are not sure of the best offshore banking country to open the account in, then this is the article for you.

There are different factors that you have to consider before you commit yourself to a specific offshore bank. The first thing to bear in mind is the cost involved.

The account opening and maintenance fees vary from one bank to another. Most banks also require clients to maintain a minimum balance which also varies from one financial institution to another.

It is therefore important to do your research on these costs before you open the account.  To guarantee safety for your money, you should also confirm the political and economic stability of the country.

Last but not least, ensure that the offshore jurisdiction is reputable. Of course, the best offshore bank accounts have achieved a good image through the quality of services they have been offering over the years.

But you also should know that there are some offshore banking countries that are blacklisted for being the world’s worst tax havens and you obviously wouldn’t want to store your finds in such countries.

The best counties to open an offshore banking account

Regarding the best offshore bank accounts, you may at times get opposing advices. This, however, does not mean that some advices you get are wrong.  

As a matter of fact, there are more than sixty options available when it comes to offshore jurisdictions, and what one person thinks is the best may not be the best option for another person.

This article extensively explains the best countries for offshore banking worth considering, and why it is the best idea to open an account in these counties.

Cayman Island

The Cayman Islands are widely known for quite a number of reasons, and among them is offshore banking. The Cayman Islands are known to offer clients a wide range of financial services and besides, they are a tax haven.

A country qualifies to be a tax haven when it’s economic and taxation policies favor foreign business operations.  

The jurisdiction has a stable political and economic environment which makes it convenient to offer a variety of services which includes online banking services, investment bonds, international multi-currency transfers, portfolio management, and term deposits among others.

Another benefit of opening an offshore bank account in the Cayman Islands is that they do not have direct taxes.  With so many tax havens that we currently have, it is through a lot of effort that Cayman islands have been able to maintain their reputation when it comes to offshore banking.

In fact, the islands are among the list of top ten countries for offshore banking in the world.

Singapore

If you want to store huge amounts in an offshore account, Singapore can be a good option for you. It is easy to open the account, and at times, you don’t even have to make travel arrangements.

There are many reasons why most people choose Singapore for offshore banking. Among them is that the country is safe and stable. Singapore also has strict banking regulations to ensure the protection of client’s wealth.

The country has also been able to use modern technology in banking, making it easier for you to access your account, and also to ensure that your money is safe.  

Additionally, Singapore banks have skilled and experienced financial advisers who can always guide you on the best financial strategy.

Switzerland

Switzerland is among the oldest tax havens, and it is also a perfect place to open an offshore bank account.

First, the country has strict privacy laws. These laws prohibit banks and other financial institutions from making information about a person’s bank account public unless they are given permission to.  

Secondly, the country is politically and economically stable. Switzerland banks are regulated by the Swiss Bankers Association.

The country does not impose any taxes on interest, inheritance or dividends. It is also easy to open an offshore bank account in Switzerland.

Nevis

Nevis is among the best jurisdictions for those who want to set up an offshore company. This is because the country has convenient conditions which include a legal system that is easy to understand, stable democracy and a stable economy.  

Forming an offshore company in Nevis is easy and the process is also straightforward. It is also possible for companies to move to other jurisdictions, or migrate from other jurisdictions to Nevis.

Besides, foreign corporations can merge with companies in Nevis and other foreign corporations.

Belize

Belize can be a good option for those who want to open offshore accounts that offer the best interest rates.

The country does not impose any taxes on interest. Another attractive feature about Belize is that it is the only Central American nation which uses English as their official language.

This makes it easier for clients to contact their offshore banks and be sure that all your questions will be well answered.

Also, you don’t have to plan for a trip to Belize if you want to make transactions. Provided you have a steady internet connection, you can easily access your account at any location.

You also have the option to bank through the phone or via email. You can withdraw funds from your account any location by use of an ATM card.

Germany

Germany is globally known to have the safest banks in the world. The country is stability, both politically and economically. And it is also a developed country, which means that their banking services are quick.

Germany banks offer 24/7 online access to your account and you can also withdraw funds at any location by use of an ATM card. In fact, you don’t even have to travel to Germany when you want to open an offshore bank account.

The fees charged for opening and maintaining the account is usually low.

What you need to know when opening an offshore bank account

Generally, it is easy to open an offshore bank account no matter your jurisdiction. But the complexity and expenses vary from one country to another.

Once you decide that an offshore bank account is the best option for you, (It actually comes with a lot of benefits like account confidentiality, asset protection  high interest rates, among others), it is important to be aware of how the account opening process goes also ensure that all the legal requirements are met.

You can seek advice from a financial professional. This is the only way to ensure that you are doing the right thing and that all the tax laws are followed.

The procedure used to open an offshore account, including the requirements, are similar to what is required when opening a bank account in your home country.

Personal information, which includes your name, address, date of birth, occupation and nationality are required.

These basic requirements are usually required even in countries that strongly uphold privacy. You may also be asked to provide additional information, like the sources of funds that will be deposited in the account.

The main reason for this requirement is to avoid illegal activities that are usually associated with offshore bank accounts (like money laundering, tax evasion) from taking place.

As an investor, what you need to know is that offshore banking isn’t illegal, provided you don’t use the account to carry out unlawful activities.

Conclusion on the best offshore bank accounts

When it comes to finding the best offshore bank accounts, you can at times be overwhelmed by a wide range of choices available.

The jurisdictions also have varied characteristics, and what you feel is the best choice for you may not be the same for another individual.

It is therefore important to take your time and find a country that is the best for you depending on what you want to achieve by opening the offshore account.

Getting advice from an experienced financial professional can come in handy. The two main things that you need to consider in an offshore jurisdiction are privacy and the safety of your investment.

The good thing is that most offshore jurisdictions have strict privacy laws and stable banking regulations and it won’t take long for you to come up with the best option.

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