The easiest country to open an Offshore bank account (in 2023)
Summary
TLDRIn this video, the host discusses the ease of opening an offshore bank account in Lithuania in 2020, highlighting its advantages such as a straightforward KYC process, remote account opening, and suitability for various business scenarios including crypto businesses. The rise of Electronic Money Institutions (EMIs) in Lithuania, which act as digital layers on top of traditional banks, is explained. These EMIs offer a regulated environment with a lower cost of entry and a more modern technological experience. However, the host advises caution, suggesting that while these accounts can be useful for specific purposes, they may not be ideal for large sums due to potential compliance issues and the risk of service shutdowns. The video also compares Lithuania to other jurisdictions like Belize and Nevis, noting the stability and quality of service advantages of the former.
Takeaways
- 🏦 The easiest country to open an offshore bank account in 2020 is Lithuania due to its streamlined KYC process and digital banking infrastructure.
- 📈 Lithuania stands out with its Electronic Money Institutions (EMIs), which are virtual banks offering a digital layer on top of traditional banking services.
- 💻 The digital front-end and fee structures in Lithuania are managed by a separate company, allowing for a more modern and cost-effective banking experience.
- 💰 The regulatory environment in Lithuania is favorable for digital financial institutions, with low capital requirements and a competitive landscape.
- 🔒 Lithuania's system is highly regulated, offering a service-based approach to compliance, including AML and KYC checks as services.
- 🚫 Despite the ease of opening an account, the speaker does not recommend keeping large sums of money in these accounts due to potential compliance issues.
- 💵 The accounts are suitable for transactional banking with low fees, but may not be cost-effective for large wire transfers due to sometimes high fees.
- 🚫 There are limitations on the currencies and payment networks that can be accessed, often restricted to euros and possibly SEPA, with limited access to SWIFT, Visa, and Mastercard.
- ⚖️ Compliance can be a double-edged sword; while it can be burdensome, it also protects against bad actors and potential institutional collapse.
- 🌐 Technology used in Lithuanian banks is generally more modern, providing a better user experience compared to some Caribbean banks.
- ☎️ For assistance with setting up bank accounts or related services, the speaker offers to book a call through clarity.fm4rosmer or visit the provided websites.
Q & A
What is the easiest country to open an offshore bank account in 2020 according to the video?
-Lithuania is mentioned as the easiest country to open an offshore bank account in 2020 due to its streamlined KYC processes, digital banking infrastructure, and the presence of Electronic Money Institutions (EMIs).
What are Electronic Money Institutions (EMIs) in Lithuania?
-EMIs in Lithuania are virtual banks that provide a digital layer on top of an actual bank, typically the Bank of Lithuania. They are highly regulated and offer a digital front end with a negotiable fee structure.
Why are EMIs popular in Lithuania?
-EMIs are popular in Lithuania because obtaining an EMI license is relatively cheap and easy. They also offer a regulatory environment that is more accommodating to digital financial services and allow for the outsourcing of regulatory compliance.
How does the regulatory environment in Lithuania benefit those looking to open offshore bank accounts?
-The regulatory environment in Lithuania benefits offshore bank account seekers by offering a more relaxed regulatory stack that is built into services and can be outsourced, reducing the need for individual companies to build their own compliance teams.
What are the typical limitations of EMIs in terms of currency and payment networks?
-EMIs often have limitations regarding the currencies they can accept, typically euros. They may also have restricted access to payment networks, such as not being able to access SWIFT or having limited access to SEPA, and potentially no access to Visa and Mastercard for issuing cards.
What is the speaker's recommendation regarding the amount of money to keep in an offshore bank account in Lithuania?
-The speaker does not recommend keeping a large amount of money in an offshore bank account in Lithuania due to potential risks associated with compliance and AML issues. He suggests that it's better suited for transactional banking with low fees.
Why are fees often high in digital financial institutions?
-Fees can be high in digital financial institutions because sometimes they charge a percentage of a wire transfer, which can become costly with large transactions. However, they might be more cost-effective for small transactions.
What are the advantages of opening an offshore bank account in Lithuania over places like Belize or Nevis?
-Lithuania offers more stability due to its less reliance on correspondent banking relationships, better technology, and a higher degree of compliance. Additionally, the quality of service is generally higher compared to some Caribbean banks.
What is the term used for the practice of white labeling bank software?
-White labeling bank software refers to the process where a company uses another company's software and puts its own brand on it, avoiding the need to develop the software from scratch and go through the compliance and validation process.
Why might the ease of opening an offshore bank account in Lithuania be a cause for concern?
-The ease of opening an account might be a cause for concern because it could indicate a ticking time bomb for potential AML or compliance issues, which could lead to services being shut down and the need for re-evaluation and restructuring.
What are some of the services that the speaker's company offers?
-The speaker's company offers assistance with setting up bank accounts, international tax structuring, asset protection, payment processing, high-risk merchant accounts, and residency and citizenship services.
How can viewers get in touch with the speaker for assistance with setting up bank accounts or other services?
-Viewers can book a call with the speaker at clarity.fm/4rosmer, which is provided in the video description, or they can visit the websites offshorecitizen.net and offshorecapitalist.com for more information and assistance.
Outlines
🌐 Easiest Country for Offshore Banking in 2020
Michael from Offshore Citizen discusses the ease of opening an offshore bank account in 2020, highlighting Lithuania as the standout country. He explains that Lithuania's appeal lies in its electronic money institutions (EMIs), which are virtual banks that provide a digital interface to the traditional banking system. These EMIs are highly regulated and offer a cost-effective way to set up, with services like AML and KYC checks available on a pay-per-use basis. However, Michael advises caution, warning that the ease of setup could be a red flag for future compliance issues. He suggests that while Lithuania is good for quick and easy account opening, it may not be the best place for large deposits due to potential risks.
💡 Recommendations for Offshore Banking Use Cases
The speaker provides recommendations on how to use offshore banking institutions, particularly those in Lithuania. He suggests that these banks are suitable for transactional banking with low fees but warns against keeping large sums of money in them due to the potential for high fees on large transactions. Michael also compares Lithuania favorably to other offshore banking options like Belize and Nevis, noting that the latter may be more stable and offer better technology and customer service. He advises viewers to be selective when choosing an institution and to reach out for assistance if needed, providing a link for booking a call for further guidance.
Mindmap
Keywords
💡Offshore Bank Account
💡Electronic Money Institutions (EMIs)
💡KYC (Know Your Customer)
💡Regulatory Environment
💡Capital Requirements
💡White Label Banking Software
💡Compliance Issues
💡Transaction Fees
💡Correspondent Banking
💡Regulation as a Service
💡Cryptography Businesses
Highlights
Lithuania stands out as the easiest country to open an offshore bank account in 2020 due to its user-friendly and efficient processes.
Electronic Money Institutions (EMIs) in Lithuania act as virtual banks providing a digital layer on top of actual banks, offering a highly regulated environment.
EMIs in Lithuania are attractive due to the low cost of obtaining an electronic money institution license.
The regulatory environment in Lithuania has become easier, fostering competition and the growth of digital financial institutions.
Regulatory compliance in Lithuania is built into services, allowing for outsourcing and easier setup for financial institutions.
Capital requirements for setting up an EMI in Lithuania are typically lower, making it more accessible.
Lithuanian EMIs allow for white-label banking software, reducing the need for individual compliance and validation processes.
There are limitations on currencies and payment networks that can be accessed through Lithuanian EMIs, typically focusing on euros and SEPA.
The presenter does not recommend keeping large sums of money in Lithuanian EMIs due to potential compliance and AML issues.
Lithuania is a good option for transactional banking with low fees, but may not be cost-effective for large wire transfers.
Compared to Belize or Nevis, Lithuania offers more stability due to less reliance on correspondent banking relationships.
The technology used by Lithuanian financial institutions is more modern, providing a better user experience.
The quality of service in Lithuania is generally higher than in some Caribbean countries, which may have a more laid-back work culture.
There are many EMIs in Lithuania, with varying quality, so it's important to choose the best ones for specific needs.
For those looking to set up bank accounts or needing assistance with international financial matters, the presenter offers help through his website.
The presenter's websites, offshorecitizen.net and offshorecapitalist.com, provide resources on international tax structuring, asset protection, and more.
Transcripts
[Music]
welcome back everyone michael here with
offshore citizen today we're going to
talk about the
easiest country to open an offshore bank
account
in 2020 so stay tuned if you have not
already subscribed
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attack the subscribe button and click
the notification bell to be updated of
any future videos we try and share them
several times a week lots of good
information and look forward to hearing
you
as participating in that with us so okay
best places to open
an offshore or easiest rather places to
open an offshore bank account
in 2020 this is a little bit of a tricky
question because
you can get into nuances of okay where
are you from
where is your business from etc but
there's
one country that for a variety of
reasons has come to stand out as the
easiest place
going for opening an offshore bank
account
and what i mean by this is that not only
is it super easy you could just you can
often get an account very quickly you
can
go through kyc easily etc you can do it
remotely
you can do it potentially for crypto
businesses you can do it you know
virtually almost every scenario that
would be hard to do
can be achieved in this and achieved
relatively easily
is lithuania okay so what's happened in
lithuania
uh there's something called emis
electronic money institutions which are
essentially
uh virtual banks that are providing a
digital layer on top of an actual bank
typically the bank
central bank of lithuania in this case
okay what does that mean
what that means is that your funds are
stored
in a normal bank right but that they
are uh sort of custodied managed etc
by a electronic money institution okay
so it's highly regulated and all this
kind of stuff
okay great but the digital front end
the experience that you have the fee
structure etc
is all negotiated through uh some other
company
and this has become very popular in
lithuania why
because getting electronic money
institution licenses in lithuania is
super cheap
okay so it's quite cheap and easy to set
up now the reality is the trend in the
world today
is there are a lot more digital
financial institutions opening up and
there will continue to be
and there's a few different reasons for
that one is the regulatory environment
has become
much easier they've introduced a lot
more competition by bringing in these
electronic money institutions
second of all because the regulatory
stack
is more or less being built into
services
and can kind of be outsourced so if
you're familiar at all with the way that
technology development works you often
have micro services that are built and
then you can pay to have access to those
microservices for your applications
you don't have to build everything
yourself they've kind of done the same
thing here
where they've built regulation as a
service and so
companies will come in and they say oh
aml kyc checks
no problems we can provide you that as a
service we're going to charge you
x dollars per instance and you don't
have to have your own aml team
perfect that was really easy right and
there's this whole stack of regulatory
uh pieces that have all been bundled up
into these little micro services you can
plug in and so it allows you to start
a financial institution like that really
quickly and easily
uh the capital requirements required for
these are typically a lot lower so
that's another thing
and then the last part is the technology
is more or less the same as what i
mentioned before
you can white label bank software
essentially so you don't have to go and
develop it all yourself you don't have
to go through
the difficult process of maybe obtaining
uh compliance and validation because
it's already been done by someone and
you're just taking their software
and putting it as an overlay on top of
theirs there's of course restrictions on
that
and you know flexibility etc but that's
pretty useful
now generally speaking when we're
talking about those types of
institutions
often there's limitations in terms of
what currencies they can accept
typically we're talking about euros
uh often the payment networks you can
access maybe you can't access swift
maybe you can only access sepa
things like that you may not have access
to visa and mastercard
uh certainly not from the perspective of
being able to easily issue cards
uh again that's something that people
are white labeling and offering out so
you know you're building these
institutions that they just bring all
this stuff together and then they put a
marketing layer on the front right so
the bottom line of that is look if
you're in a situation today where
you have a tough to crack case or you
need to open an account quickly etc
you know the easiest place to go is
lithuania now
do i recommend you put a lot of money
there no typically i do not typically i
think it's a bad idea
i don't really trust it there's a bunch
of reasons that i don't trust it
what you're going to notice is that when
things are too easy
this is a ticking time bomb for some
sort of aml
issue some sort of compliance issue
which is going to result in
having things shut down and we've seen
this who was it recently anyway there
have been a couple of them
over the last couple years or whatever
that i've seen
where they haven't necessarily gone
under
but they've kind of had a big issue
where all of a sudden their services are
shut down
and they have to go through kind of a re
tweaking everything to get themselves
properly sorted out
uh sorted out etc and kind of going from
there so my general recommendation with
those institutions is
they can be very useful for certain use
cases
i would not use a lot of money there i
certainly wouldn't want to keep you know
tens of millions of dollars
in those accounts in fact i wouldn't
keep seven figures in there personally
uh generally i think they're good for
you know when you're doing transactional
banking in and out
if you can keep the fees low now this is
the next thing that's a problem is very
often the fees are quite high on these
sometimes you're paying a percentage of
a wire and if you're doing large wires
it's not
really very cost effective but if you're
talking about just
small transactions uh as something that
you're
navigating elsewhere i think it's a
reasonably decent option so anyway
that for what it's worth is kind of the
place that i would look i would
look there over some place like belize
uh the reasons for that
you know so if we look at belize you
look at nevis a bunch of the banks that
i call shitbanks that i tell you just
don't go there
why would i go and look at say lithuania
first well
first of all because those are typically
dependent on correspondent banking
relationships that they're going to
be in grave danger of losing okay and
so you have a little bit more stability
in terms of if you're operating in euros
you're doing a sepa etc that's going to
give you a little bit
more stability in terms of the
likelihood that they can lose that stuff
and also the degree of compliance that
you have to go through now the
compliance is double edged sword right
the compliance on the one hand
can be a pain in the ass on the other
hand it also protects you
from having a bunch of bad actors in
there who it kind of tends to corrupt
the
uh profit incentives of the import or
institution
and then ultimately results in kind of
an implosion or explosion depending on
how you want to look at it
so from that standpoint you have an
advantage there
second of all generally the technology
that they're using is better
it's just kind of a more modern
experience and so that can
also be fairly useful i also find
that the quality of service that you're
going to get is generally
higher there's just kind of this
caribbean
what would i call it like a caribbean
kind of work culture
that tends to result in fairly low
inaccessible customer service as
compared with what you can get with some
of these now
be aware there's like i don't know a
couple hundred of them there's a lot of
these different institutions right so
you know they are not all equal by any
stretch some are better than others some
are far worse
you know and so you want to kind of try
and pick the best ones but
generally speaking you have some good
opportunities to be able to make things
uh work out in that regard so i hope
that helps that gives you some idea
please if you enjoyed the video click
the like button uh subscribe
click the notification bell to get
updated if you would like some
assistance with setting up bank accounts
etc reach out to us
you can uh book a call with me at
clarity.fm4rosmer which is in the link
below
you can also go and reach out and check
out our website offshorecitizen.net
offshorecapitalist.com
anything to do with you know
international tax structuring asset
protection
payment processing high risk merchant
accounts
residency citizenships etc reach out to
us i will see you guys on the next video
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