Myth #1:  Offshore banking is difficult to setup.

Myth #2:  One offshore jurisdiction is as good as another.

Myth #3:  It doesn't matter what currency my offshore bank account is in.

Myth #4:  Offshore banking is illegal for US citizens.

Myth #5:  Offshore banking is primarily used for tax evasion.

Myth #6:  Offshore banking is only effective for rich people.

f you read the first article on offshore banking myths, you would have gotten an introduction to some of the most common misconceptions made about offshore banking. If you are still wondering about other mistakes people have made in these regards, however, this article will provide you with five more popular misconceptions. You will be able to see how these misconceptions play into faulty decision making and how Panama excels as an offshore banking jurisdiction.

Myth #1:  Offshore banking is difficult to setup.
One common mistake that is made is that people assume that when they get an offshore bank account they will get a number, like the old Swiss accounts had. Truth be told, this was not a very good system as the Swiss would only give out money to a person who had this exact number and losing it could mean a huge loss in assets and money. How could you possibly ensure that your mind or a piece of paper will survive the test of time? Panama, instead of using these unreliable numbered accounts, has changed to allowing people to put their assets under a bearer share corporation. This means that you can hold the shares at all times without anyone knowing and trade and sell them as you please. Much easier than numbers, right?

Myth #2:  One offshore jurisdiction is as good as another.
Another common misconception is that location (jurisdiction) does not matter for an offshore bank. This is very false and can be very dangerous to one who isn’t very careful. Many offshore banks are on small islands that are surrounded by nothing but water, volcanoes and danger. Think about it. Monsoons, flash floods, hurricanes and lava. All coming toward your bank. Is your money going to be safe when the bank you put it in no longer exists? Panama is in a geographically safe location and is the best bet against small islands which present these dangers.

Myth #3:  It doesn't matter what currency my offshore bank account is in.
How about currency? Almost every country has their own, but it doesn’t matter right? You can always convert that money into dollars or euros easily. Wrong, it costs money to convert currency. And while that money may seem insignificant now, it has its ways of adding up as you start to convert more and more. Panama uses the US dollar and requires no conversion. Why add more complications to offshore banking?

Speaking of the United States dollar, is it really the currency you should choose to use in this day and age? After the attacks and economy struggles, wouldn’t the euro be a safer bet. This is a very popular misconception that affects decisions on more than just offshore banking. While the euro may have more value than the dollar does now, it is important to note how long the United States currency has been in issuance as opposed to the euro. In addition, the dollar is at about its low peak right now, that means it probably will not drop any lower. In fact, you would be a fool to bet that it would drop lower. Investing in euros doesn’t make sense when the United States economy has nowhere to go but up. Stick with dollars, which you can easily use in Panama, and you will be fine for the future.

Myth #4:  Offshore banking is illegal for US citizens.
Another misconception is that offshore banking is illegal. Why would you think that? It is not illegal to own an offshore bank account and you can check with your lawyers if you do not believe us.  Did you know that offshore bank accounts are used by many large, well known, fortune 500 companies in the United States.  

Myth #5:  Offshore banking is primarily used for tax evasion.
Offshore banking can be used for tax planning to reduce your taxes legally.  One of the most popular reasons for using offshore banking is asset protection.  Foreign governments do not comply with requests from US, European, or Canadian judges demands.  Money stored in an offshore bank account is safe from all kinds of domestic threats.

Myth #6:  Offshore banking is only effective for rich people.
This is true in some jurisdictions.  For example Lichtenstein banks require a minimum of $750,000 to start up.  Fortunately countries like Panama are accessible to the average person.  The truth be told, countries like Switzerland with these difficult to meet requirements are outdated and not of much value anyway.  Many consider Panama to be the new Switzerland.

Myth #7:  Offshore banking is for criminals.
It is true that criminals can use offshore jurisdictions to hide their illegal money.  This is a sad side effect of banking privacy.  What you have to remember is that most people who engage in offshore banking are just trying to protect their assets.  Many fortune 500 companies have offshore bank accounts.