Wednesday, August 26, 2009

Offshore Banking Centers are not all Equals

I was chatting with a colleague the other day & asking how exactly it is that banks offering offshore credit cards can begin to keep their client's information secret (or 'anonymous' in some cases).

After all, aren't the know your customers rules that credit card issuers are handing down basically Visa's & Mastercard's rules?

What he told me was that in a nutshell, yes....the rules for kyc come from the card issuers themselves. HOWEVER, there is a big difference in what the different banks do with the information once they've gathered it.

In many cases, jurisdictions are free to (and often compelled to) disclose the information of account holders using one of the well known credit card brands to either purchase goods or for retrieving cash from automatic teller machines (ATMs).

Among those offshore banking centers which do the best job of protecting your privacy are those few who have little or no, information sharing agreements or tax information sharing agreements.

No comments:

Post a Comment