Originally Posted by wsorbust
Sorry JD, but used professor google to see why an offshore account is possibly a very bad idea. From askmen.com:
If you’re a U.S. citizen, it’s not illegal per se to open an offshore account. If the underlying reason, however, for setting up the account is an illegal act, you might be keeping your money safe, but you could still be in hot water. For example, if you’re accused of tax evasion and you’ve sent the funds abroad, you could still face criminal charges here. The offshore bank account, however, may remain free from the long arm of the law.
When you bank in the U.S., you can be secure in the knowledge that your money is insured by the government. No such guarantees exist with offshore banks. In other words, a country could have a coup or a natural disaster or an accounting scandal one day and all the money could be gone the next. Furthermore, you could find yourself scammed; it does happen. Remember, this is a business built on skirting the law, so you won’t always deal with the most honest people (but that varies by country)."
These are valid concerns, yes. But they are still just concerns
. I seem to recall a small Savings and Loan scandal that happened right here in the good ole US of A a few years back. But surprisingly we still keep much of our money in banks.
And of course, for the record, I would never condone doing anything illegal. This is a hypothetical discussion.
All the concerns really mean is that you need to do your homework and know what you are getting into (just like buying a house, a car, or stocks). Offshore banking can be rigged, just like poker. But just because it can be, doesn't mean it is. Like we always tout with pokersites, the off shore banks make a lot of money by keeping the funds safe and maintaining client privacy. And realistically, depending on how much (or really how little) money you're talking about, it likely wouldn't make financial sense to go offshore like that. But it is still an option.