Offshore banking for noobs

[thestaggy]

Hi folks.

I'm unfamiliar with this - offshore banking - and have begun looking in to it.

Basics I would like to grasp are;
- This is something one can do on their own, correct? No need for a broker/adviser to be involved?
- This is something that can be done without using a local financial institution/bank, correct?
- Are there any financial floors/ceilings with regards to taking money out of the country? I am aware of the fact that SARS has to be involved at some point and there is a maximum limit on taking money out of the country (R10 million per year?), but I'm thinking more in the tens-of-thousands at a time here and not millions.
- Any recommendations on which institutions to use or literature you can point me to? Be it an article/blog/personal experience?

Cheers.

 

[backstreetboy]

What's the end goal here?

 

[thestaggy]

What's the end goal here?

Hold a portion of my long-term savings outside the country in a foreign currency in case things get really bad here.

 

[Arthur]

You can do this on your own.

Moving money into and out of SA must be reported to SARB on a BoP application via your local bankers.

SARS not involved other than you doing your regular tax return.

 

[Milano]

Do you want to open a US dollar/Euro/Sterling account? You can do so from SA, it is all legit. You need a minimum deposit of approximately $US40,000. Contact ABSA bank, they will have the people from Barclays UK contact you with specifics. You can choose to have the account based in London or isle of Man. Other banks in SA may well have connections to other large international banks. You can take maximum R1m per year without leaving SA or requiring tax clearance. You can check latest figures with ABSA or via reserve bank website.

 

[Arthur]

Hold a portion of my long-term savings outside the country in a foreign currency in case things get really bad here.

All the main commercial banks have foreign currency accounts. Open one in your fave currency, eg USD, Sterling, Euro.

 

[RustyPrincess]

FNB has a channel islands account you could open. https://www.fnbci.co.uk/
They also have foregin currency accounts that you can deposit money into.
Not sure about options not involving local banks, you will always be required to do a foreign payment from your local account with the necessary references etc, using one of the local banks services may just make it a bit easier

 

[thestaggy]

Do you want to open a US dollar/Euro/Sterling account? You can do so from SA, it is all legit. You need a minimum deposit of approximately $US40,000. Contact ABSA bank, they will have the people from Barclays UK contact you with specifics. You can choose to have the account based in London or isle of Man. Other banks in SA may well have connections to other large international banks. You can take maximum R1m per year without leaving SA or requiring tax clearance. You can check latest figures with ABSA or via reserve bank website.

Correct, I'm looking at US$/Euro/Pound. So there is a minimum amount, gives me a clearer picture.

 

[Milano]

Correct, I'm looking at US$/Euro/Pound. So there is a minimum amount, gives me a clearer picture.

And make sure your account is with the foreign bank e.g. Barclays. Not some silly pseudo-offshore trading account nonsense under an SA institution. You want genuine 100% offshore so when SA goes tits up your offshore is bulletproof.

 

[backstreetboy]

Hold a portion of my long-term savings outside the country in a foreign currency in case things get really bad here.

Then just get a old mutual feeder fund at 22seven under your TFSA.

 

[thestaggy]

And make sure your account is with the foreign bank e.g. Barclays. Not some silly pseudo-offshore trading account nonsense under an SA institution. You want genuine 100% offshore so when SA goes tits up your offshore is bulletproof.

This is exactly what I am looking for.

I see ABSA offers offshore Income Funds in the major currencies. Makes no mention of other banks though, ie Barclays.

 

[Milano]

Correct, I'm looking at US$/Euro/Pound. So there is a minimum amount, gives me a clearer picture.

The minimum is not per currency account. You can place the minimum in one currency or you can open multiple accounts and have the minimum spread across those multiple accounts. Minimum opening deposits will vary between banks. They are availing their services internationally in a market they do not directly operate. To avoid large minimum opening deposits you would most often need to physically travel outside SA to open the account subject to the banks operating requirements in that foreign territory ie. Potential residence/citizenship requirements, job requirements etc.

 

[Milano]

This is exactly what I am looking for.

I see ABSA offers offshore Income Funds in the major currencies. Makes no mention of other banks though, ie Barclays.

You will find nothing about it on their website. You will need to phone your nearest full service ABSA branch ie. With full forex service. Go through to forex and request to open a Barclays UK account. They will arrange a Barclays staff member to meet you at your ABSA branch. Not sure how far along Barclays disinvestment is in SA at this exact moment. They will continue to offer the service after they sell their stake in ABSA however it will likely become a little more difficult then to open the Barclays account thereafter.

 

[Jehosefat]

If you have an Investec SA account you can open an Investec UK account (completely separate legal entities for those worried about SA going tits up). Any you can then manage all your accounts from the same internet banking page although you still have to complete all the BOP forms when you want to transfer cash between the accounts.