Why do people want to open an anonymous bank account? Well, typical reasons include avoiding taxes, protecting their money from fraud and scam, and concealing the owner’s personal data. Sounds good? The only bad news is that it is illegal, so you cannot open an anonymous bank account today – at least in the absolute sense of this word. How can you possibly remain anonymous if all banks have AML and KYC procedures in place to verify the identity of the ultimate beneficial owner? And still, you can have a certain degree of anonymity which we are going to look at in this post. You can read a more detailed article to discover the countries that permit the opening of anonymous bank accounts to see whether you need this service.
Anonymous Bank Accounts: What Are They?
An anonymous bank account does not give access to the owner’s personal details as you have a customer’s code or a multi-digit number instead. Anonymous accounts used to be absolutely lawful, and the owner’s name was entered in special archives kept in a bank safe. It made the account holder’s personal data available to just a few senior officials.
The past 20 years have brought substantial changes and the account described above is no longer available. However, you can still ensure the confidentiality of your personal details. You can open an offshore bank account in a carefully selected jurisdiction and comply with some other conditions depending on your situation (some US citizens renounce their citizenship to get tax relief and hide their assets, for instance).
There are destinations where banking institutions focus on providing services to customers who are looking for more confidentiality. You can become a “secret” bank customer in one of the jurisdictions listed below:
- Nevis
- Hong Kong
- Liechtenstein
- Singapore
- Switzerland
- Canada
These are the countries that offer the highest degree of confidentiality and protect their customers’ deposits as much as they can. The banking systems here are stable, so your interests will be reliably protected. The only thing you should remember is that no one is allowed to violate the laws, so confidentiality will not help you in any way if you deal with money laundering or evade taxes.
FATCA and OECD vs. Bank Account Anonymity
You probably remember the 2007-2008 crisis which brought about major changes as the governments decided to get more tax revenues. In 2077, the USA proved that a large Swiss bank, UBS, helped US citizens avoid taxes. Following that, the US increased its pressure on this respectable banking jurisdiction, which had to abandon the practice of opening numbered (anonymous) bank accounts.
2010 was the year when FATCA was established. In 2014, CRS (an international FATCA analog) was implemented by many national governments. It was stimulated by the Panama Papers leak that accelerated the global information exchange introduction.
CRS was introduced to ensure tax compliance. It means that more than one hundred states can automatically exchange information on taxes, including the deposits opened by foreigners in foreign banks. All this made anonymous accounts an illegitimate practice. However, it is still possible to keep your assets safe to avoid theft, freezing, or forfeiture. Here are some European jurisdictions where you can do so:
- Luxembourg
- Switzerland
- Cyprus
- Andorra
- Liechtenstein
If you are interested in Asian destinations, you can opt for Hong Kong, Singapore, or Dubai (UAE). And if you want to open an account in a Caribbean country, look no further than Nevis or Dominica.
Opening an Anonymous Bank Account in Switzerland
Swiss bank account holders take advantage of top-notch protection and confidentiality – even though 100% anonymity can no longer be guaranteed. Use private banking in Switzerland to get the highest degree of confidentiality possible.
Before you can open a Swiss bank account, you will have to successfully complete the bank’s KYC procedures, identify your personality, and provide proof of the legal origin of funds.
Opening an Anonymous Offshore Account
Offshore jurisdictions put client privacy first, and many of them have adopted laws that protect customers’ interests under any circumstances. Opening an account abroad will give you a number of advantages:
- Lower currency risk
- Reliable asset protection
- Asset diversification
- Lower financial risks
Creating an Anonymous Bank Account: Options
Payment System
Payment systems are an ideal choice for those who want more confidentiality as you will get all the services available at the best banks except for loans. The main advantage is the absence of data exchange on transactions. Accounts with payment systems can be opened by individuals and legal entities, and compliance requirements are much more relaxed than in regular banks. The whole procedure takes from 1 to 10 days. Lithuania, Hong Kong, Great Britain, and other reliable jurisdictions offer excellent payment systems you can rely on.
Cryptocurrency
Cryptocurrencies cannot ensure absolute anonymity as all Bitcoin transactions can be traced – so if you are persistent enough, you will finally find out the wallet owner. However, Bitcoin is not the only existing cryptocurrency, and you can draw considerable profits as a crypto holder by using lower fees and quick crypto transfers. There are some risks, of course (such as sudden price swings, volatility, and conversion to fiat currencies), but they are not too serious. Keep in mind, though, that conversion to a regular currency will require banking services, which automatically entails identity verification.
There are more and more banks that start working with cryptocurrencies by accepting them directly or via crypto exchanges, but many banks are not crypto-friendly yet. If you are interested in a crypto account opened remotely, look at the banks in Dominica or Georgia.
Citizenship By Investment As An Alternative
An interesting way to ensure anonymity is to become a tax resident of a low-tax country and keep your assets there. It means that you will no longer have to report to the country of your current residence and you will surely diversify risks.
You can use one of the following two ways to cut your taxes:
- Set up a company in a jurisdiction that has territorial taxation
- Become a permanent tax resident or a citizen of a low-tax jurisdiction (such as Nevis)
Interested in getting as much anonymity as possible? Click on the above link to read more details and find the best way out for yourself!