Offshore Financial Basics
September 11, 2001 changed the compliance enviroment throughout the global finance industry. Today, financial institutions follow the "Know Your Client" rule, commonly referred to as KYC. Therefore, you can expect to answer a number of questions in the process of setting up an account.
Requirements may vary from one jurisdiction to another, but as a general rule, you might be required to meet with a representative of your chosen institution within a certain time frame. You will also need to present original proof of identity as well as a certified photocopy of the document you present. Other requirements might include a banker's reference, verification of your address, proof of employment and a third party reference, stating the source of the wealth and funds involved in the transaction.
Most institutions will not now commence a relationship, until all the compliance issues have been met.
Money Laundering Legislation
In addition to the above, further measures are also taken against money laundering. Firstly, cash is no longer an acceptable medium to transfer funds or open an account. Secondly, large cash transactions attract many questions and evidence is required as to its source. However, institutions are prepared to take cash, provided its source can be justified.