Where Families Bank Offshore for Privacy

Families don’t move money offshore because they crave secrecy; they do it because they want discretion, stability, and continuity that can outlast politics, headlines, and even their own lifetimes. If you’ve built wealth across jurisdictions, you need banks that won’t overreact to every geopolitical tremor, that won’t splash your name across public registers, and that know how to work with family structures without constant friction. This guide explains where families actually bank offshore for privacy, how “privacy” works in 2025, and how to set things up cleanly so you can sleep at night.

Why Families Look Offshore for Privacy

Privacy isn’t about hiding. It’s about reducing unnecessary exposure. The bigger a family’s footprint, the more likely it is that a local bank clerk, vendor, or litigant can weaponize information. Offshore banking offers:

• Discretion from the local rumor mill and opportunistic adversaries

• Jurisdictional diversification in case your home banking system freezes or capital controls appear

• Professional private banking services—multicurrency platforms, global investment access, credit lines secured by portfolios

• Succession planning tools that keep assets moving smoothly across generations

There’s also a safety angle. In many regions, perceived wealth attracts extortion. Moving investment assets offshore—while leaving daily spending money local—lowers the visibility of the family’s core capital.

The privacy landscape after CRS and FATCA

True bank secrecy—the kind that shielded tax evasion—is gone. The Common Reporting Standard (CRS) enables automatic information exchange on financial accounts between more than 100 participating jurisdictions. OECD reporting shows annual exchanges covering well over 100 million accounts, representing trillions of euros in assets. Meanwhile, US persons are subject to FATCA worldwide, and most well-run banks won’t touch non-compliant clients.

So what’s left? Lawful, high-quality privacy. Your data is still confidential to the public, the press, and casual lookups. Banks and service providers are bound by strict confidentiality laws and data protection rules. Tax authorities receive required data, but that information doesn’t become public. The goal is to be compliant yet discreet.

What “Privacy” Really Means Now

A few realities to anchor expectations:

• Confidentiality vs secrecy: Confidentiality means your data is protected from the public. Secrecy would mean hiding from lawful authorities—which isn’t viable.

• CRS scope: CRS shares account data (balances, interest, dividends) with the jurisdiction where you’re tax resident, not the entire world. It doesn’t publish your details.

• Public registers: Several countries created beneficial ownership registers, but many scaled back public access after court challenges—authorities still have access. In most reputable jurisdictions, the public cannot browse your name and net worth.

• Bank culture matters: A Swiss banker who’s worked with families for decades will handle your information differently than a retail bank call center. Culture and regulation work together.

I’ve sat in meetings where bank teams debated whether a simple client letter disclosed more than it needed to. The best institutions obsess over data minimization: share what’s required, nothing more.

How to Evaluate an Offshore Banking Jurisdiction

Before naming names, here’s the framework I use when advising families:

• Rule of law and predictability: Independent courts, stable property rights, and regulators who don’t govern by press release.

• Data protection and confidentiality culture: Strong legal penalties for unauthorized disclosure; organizations trained to handle sensitive information.

• Bank strength: Capital ratios, liquidity, parent quality, and the jurisdiction’s resolution regime. I prefer conservative, boring balance sheets.

• Regulatory alignment: Mature AML/KYC, clear onboarding paths for international families, and practical guidance on source-of-wealth evidence.

• Access and service: English proficiency, private banking infrastructure, dedicated teams for trusts and family offices, and investment platforms with global reach.

• Reporting environment: How CRS/FATCA is implemented, how beneficial ownership is handled, and whether there’s public access to registers.

• Deposit protection and resolution: Deposit insurance where it exists, and a credible backstop. For larger portfolios, custody safety and the bank’s securities segregation practices matter more than deposit insurance caps.

• Practicalities: Visa and travel convenience, time zone alignment, and whether you need residency to bank.

No single jurisdiction wins on every point. Families typically blend two or three centers to spread risk.

The Leading Jurisdictions Families Actually Use

Switzerland

Switzerland remains the default for families seeking discreet, sophisticated private banking. The old secrecy laws were overhauled to align with CRS, but the confidentiality culture never disappeared. Banks are meticulous about who sees what, and the courts defend client confidentiality against fishing expeditions.

• Who it suits: Entrepreneurs, multi-generational families, and globally mobile executives seeking portfolio management, Lombard credit (loans secured by investment portfolios), and cross-border expertise.

• Strengths: Deep bench of private banks, highly trained relationship managers, and robust data protection. Numbered accounts still exist internally (an account identified by number rather than name in everyday operations), but they no longer block regulatory reporting.

• Considerations: Expect thorough source-of-wealth documentation. Minimums for true private banking often start around CHF 500,000–2 million; flagship service tiers start at several million. Deposit insurance covers CHF 100,000 on cash; investment securities are segregated in custody.

• Insider note: Post-Credit Suisse, there’s concentration risk at the top. Many families diversify by adding a mid-sized private bank alongside a large universal institution.

Liechtenstein

This principality punches far above its weight with family structures and banks tailored to dynastic planning.

• Who it suits: Families prioritizing succession and asset protection via Liechtenstein foundations (Stiftung) or establishments (Anstalt), often paired with Swiss or domestic investment managers.

• Strengths: Exceptional trust/foundation law, conservative banks (e.g., LGT, VP Bank), and EEA access with a Swiss-adjacent culture. Private wealth structures can be built for privacy, governance, and long-term control.

• Considerations: CRS applies. Minimums are usually high; onboarding is exacting. Foundations provide privacy from the public while staying compliant with authorities.

Luxembourg

Luxembourg is Europe’s quiet workhorse for private banking and funds.

• Who it suits: EU families and global clients needing euro-based custody, multi-currency accounts, and access to the world’s second-largest fund center.

• Strengths: Strong data protection (GDPR), multilingual service, high-quality custodianship, and vehicles such as the SPF (family wealth holding company, with restrictions on activities).

• Considerations: CRS applies; public access to ownership data has been curbed, but authorities retain access. Minimums for private banking often range from €500,000 to €2 million.

Monaco

Monaco blends private banking with lifestyle and residency.

• Who it suits: HNW families seeking residence or a Mediterranean base with a robust private banking community.

• Strengths: Extensive private banks, relationship-driven service, and access to euro and multicurrency platforms.

• Considerations: High minimums (often €1–5 million), prudence in onboarding, and CRS reporting.

Channel Islands (Jersey and Guernsey) and the Isle of Man

The crown dependencies are trust powerhouses, with banks accustomed to multi-jurisdictional families and complex structures.

• Who it suits: Families using trusts, private trust companies (PTCs), and investment holding vehicles, with UK-linked assets or managers.

• Strengths: World-class trustees, predictable courts, and discreet corporate services. Private banks here understand fiduciary oversight and governance headaches.

• Considerations: CRS applies; deposit compensation schemes exist but are relatively modest—focus on custodian quality over cash balances.

Singapore

Singapore combines first-rate banking with serious rule of law and a pro-business government.

• Who it suits: Asian families and global clients seeking an Asian booking center with deep investment platforms and family office ecosystems.

• Strengths: MAS-regulated banks (DBS, OCBC, UOB) and global players, excellent service standards, English-speaking professionals, and increasingly popular single-family office regimes (Section 13O/13U tax incentives).

• Considerations: CRS applies. Private banking minimums often start around USD 1–5 million. Deposit insurance on cash is limited; for meaningful balances, focus on custody and bank strength. Onboarding can be document-heavy but efficient.

Hong Kong

Despite geopolitical debates, Hong Kong remains a major banking hub.

• Who it suits: Families with Asian ties, income streams in the region, or a need for RMB access.

• Strengths: Deep capital markets, international bank presence, and familiar Anglo-Asian legal frameworks in finance.

• Considerations: CRS applies; deposit protection on cash has a cap. Some families diversify to Singapore to balance political risk. Quality of service remains high among top private banks.

United Arab Emirates (Dubai and Abu Dhabi)

The UAE’s DIFC and ADGM have matured into credible financial centers.

• Who it suits: Middle Eastern, South Asian, and African families seeking regional proximity, lifestyle, and a pragmatic regulator. Also attractive to families building a base with residency.

• Strengths: Modern infrastructure, family office frameworks, and improving compliance standards. Strong private banking teams from Europe and Asia now book assets here.

• Considerations: CRS applies. Many banks prefer local residency for standard accounts; private banks can onboard qualified non-residents. There isn’t a universal, explicit federal deposit insurance scheme comparable to the US/EU; families typically limit cash and emphasize high-grade custody.

Cayman Islands and The Bahamas

These Caribbean centers host private banks and trust companies with a focus on custody over retail banking.

• Who it suits: Families needing Anglo-style trust law, investment custody, and links to US and Latin American managers.

• Strengths: Experienced fiduciary providers, asset-protection trust frameworks, and international bank branches.

• Considerations: CRS applies. Cash deposit protection is limited; pick well-capitalized institutions and keep operational cash modest. Onboarding is doable for well-documented clients; minimums vary widely.

Panama

Panama offers USD banking and a regional hub for Latin American families.

• Who it suits: LATAM clients wanting dollar accounts and Spanish-language service.

• Strengths: Established banking sector, no currency risk on USD, and familiarity with regional wealth structures.

• Considerations: CRS applies. Bank quality varies; reputational risk exists. Focus on top-tier banks and keep global custody in stronger jurisdictions.

The United States (for non‑US families)

The US never joined CRS. For non-US persons, that means there’s no automatic reporting to your home country under CRS. Banks still comply with FATCA, but that targets US persons. This makes the US, somewhat paradoxically, a privacy-enhancing destination for many foreign families.

• Who it suits: Non-US families who are tax-compliant at home but want to avoid CRS exchanges; families using US trusts (South Dakota, Nevada, Wyoming) and custody at US banks/brokers.

• Strengths: Rule of law, FDIC insurance on cash (up to $250,000 per depositor per bank; structures can increase coverage), and deep capital markets. State trust regimes offer robust privacy.

• Considerations: Onboarding as a nonresident alien can be challenging without US ties. Expect W-8BEN documentation and tax withholding on US-source income. Policy risk exists—laws change. US persons should not view US banking as private; FATCA ensures reporting.

Privacy-Enhancing Structures That Still Work

The structure around the account often matters more than the zip code of the bank.

• Discretionary trusts: Jersey, Guernsey, Cayman, and Bahamas trusts remain pillars for succession and asset protection. A well-drafted trust provides privacy from public registers while giving tax transparency where required.

• Liechtenstein foundations: Useful for civil-law families who prefer a foundation over a common-law trust. Offers continuity and a board-based governance model.

• Private Trust Companies (PTCs): The family controls the trustee via a PTC while separating legal ownership from beneficiaries. This allows governance without day-to-day self-management.

• Investment holding companies: Luxembourg SPFs (with restrictions) or standard holding companies in Jersey/Guernsey can hold bankable assets. They can streamline CRS reporting and keep personal names off operating account headers.

• Numbered accounts: In Switzerland, numbered accounts still exist but do not block regulatory reporting. They reduce internal eyes on your name and create operational discretion.

• Custody vs deposit: Large holdings should sit in segregated custody with a reputable custodian; keep operating cash in smaller amounts. Custody mitigates bank failure risk on securities.

The key: your name appears where necessary for regulators, but daily operations show an entity or structure, not “John Smith.” Keep governance clean, maintain minutes and resolutions, and you’ll preserve privacy without raising red flags.

Step-by-Step: Opening an Offshore Account With Privacy in Mind

• Define your objective

• Investment custody vs active trading vs transactional needs

• Which currency exposures you want to hold

• Who needs access: you, spouse, family office, trustee

• Shortlist jurisdictions and banks

• Match your tax residence and travel pattern

• Balance time zones and language

• Pre-check minimums and onboarding of your profile (citizenship, industry, PEP status)

• Prepare documentation

• Passports and proof of address for all controllers and beneficial owners

• Detailed CV for key individuals

• Bank and professional references (some banks still request these)

• Source-of-wealth (SoW) narrative: a concise, evidenced story of how the wealth was built

• Source-of-funds (SoF) for the initial deposit: sale agreements, dividend statements, contracts

• Corporate docs if using entities or trusts: registers, deeds, resolutions; apostilled if required

• Tax residency self-certifications (CRS) and W-8BEN/W-9 as applicable

Tip: A strong two-page SoW narrative with exhibits (numbered annexes) accelerates onboarding more than any other single document.

• Seek pre-approval

• Good private banks will review your profile before you fly in

• Share KYC pack securely; ask for a document checklist

• Meet the bank

• In-person or high-quality video meeting

• Discuss investment policy, leverage appetite, reporting preferences, and authorized users

• Clarify how privacy is handled internally: named vs numbered account, document distribution, and what appears on statements

• Open and fund

• Start with a modest initial deposit; avoid large same-day cross-border wires without context

• Provide a cover letter referencing SoF documents so compliance doesn’t have to guess

• Set governance and controls

• Dual authorization if appropriate

• Read-only access for advisors

• Clear board resolutions for entities; trustee directions for trusts

• Ongoing compliance

• Keep SoW files current: updated financial statements, new liquidity events

• Annual CRS self-certifications or tax forms

• Pre-brief your banker before unusual transactions

• Review annually

• Reassess jurisdiction risk, service quality, and fee competitiveness

• Test second-bank redundancy and wire capabilities

Costs to Expect (and How to Keep Them Sensible)

• Account platform fees: $500–$2,000 per year per relationship

• Custody fees: 0.15%–0.35% annually on assets held in custody

• Advisory/mandate fees: 0.5%–1.5% annually, depending on strategy and ticket size

• Trading commissions: 0.05%–0.20% for liquid securities; more for bonds/OTC

• FX margin: 0.20%–0.80% over interbank for standard private banking; negotiate for size

• Credit lines: Lombard loans often run at reference rate plus 1.0%–2.5% depending on collateral

Savings levers:

• Use custody-only with external managers if your bank’s advisory is pricier than the market.

• Consolidate flows to a lead bank to negotiate better FX.

• Avoid complex structured products you don’t understand; they often bake in hidden spreads.

Common Mistakes (and How to Avoid Them)

• Chasing “secrecy” instead of privacy and quality: If a bank promises to hide you, run. Mature centers talk compliance first, then discretion.

• Under-documenting source of wealth: A hazy backstory slows everything or ends it. Document the journey: company formation, revenues, exit, tax returns where relevant.

• Picking jurisdictions solely for low tax: Banks feel the reputational heat from questionable planning. Choose stability and governance.

• Overconcentrating bank risk: Two banks in two jurisdictions with two technology stacks beats one mega-bank every time.

• Using marginal banks for low minimums: If the bank can’t attract institutional clients, ask why. Cheap can become expensive when a bank is de-risked by correspondents.

• Ignoring home-country reporting: CRS exists. File your returns correctly and strip anxiety from the process.

• Commingling personal and operating company funds: Separation preserves privacy and reduces audit pain.

• Overreliance on a single relationship manager: People move. Ensure you have team coverage and that the bank’s service model is institutional, not individual.

Jurisdiction Snapshots: Practical Pros and Cons

Switzerland

• Pros: Discretion refined over a century; broad product shelf; strong custody.

• Cons: Higher minimums and fees; meticulous compliance.

• Good fit: Families over CHF 2–5 million looking for a global hub.

Singapore

• Pros: Rule of law, English fluency, strong digital infrastructure; family office incentives.

• Cons: High minimums; document-heavy onboarding.

• Good fit: Asian assets and managers; families building an SFO.

Luxembourg

• Pros: Euro custody; top-tier fund access; multilingual teams.

• Cons: EU reporting layers; corporate setups add complexity.

• Good fit: Euro-centric portfolios; families needing EU proximity.

UAE (DIFC/ADGM)

• Pros: Time zone sweet spot for EMEA; dynamic ecosystem.

• Cons: Preference for resident clients at many banks; evolving legal backstops.

• Good fit: Regional families; those seeking lifestyle plus banking.

US (for non‑US families)

• Pros: Non-CRS; deep markets; strong trust states.

• Cons: Onboarding friction; policy risk; withholding tax on US income.

• Good fit: CRS-averse but compliant families; USD-heavy portfolios.

Cayman/Bahamas

• Pros: Anglo trust law; reputable custodians.

• Cons: Limited retail services; focus on custody over cash banking.

• Good fit: Trust-centric planning; US/LatAm advisors.

Case Studies (Composite, Based on Real Patterns)

1) European entrepreneur exits a business

• Profile: Italian resident, €25m liquidity event.

• Approach: Luxembourg holding company opens custody in Luxembourg and Switzerland; Swiss private bank provides a modest Lombard facility for opportunistic investments; Jersey trust holds a portion for heirs.

• Privacy result: Public company registers show the entity, not personal name; CRS reporting handled at entity level; no public footprint of family wealth.

• Mistake avoided: Trying to bank large sale proceeds directly in a personal account in a single jurisdiction.

2) Latin American family seeking stability

• Profile: Colombia-based family, concerns over security and currency.

• Approach: US brokerage account for core USD custody (non-CRS), Bahamas trust for succession, Singapore account for Asia diversification.

• Privacy result: Home-country risk reduced; lawful reporting completed locally; no public data leaks.

• Mistake avoided: Parking all assets in one Caribbean bank with limited correspondent relationships.

3) Middle Eastern family professionalizing governance

• Profile: Family with property and operating companies across GCC.

• Approach: UAE-resident family office; Liechtenstein foundation for long-term holdings; Swiss private bank for global portfolio; Dubai bank for operations.

• Privacy result: Operational privacy via entity accounts; internal governance formalized; CRS reporting cleanly routed through the foundation’s filings.

• Mistake avoided: Using personal accounts for corporate flows, which would have created visibility and compliance risks.

Practical Security: Don’t Let Tech Undermine Privacy

• Communication channels: Use secure bank portals for statements and instructions. Minimize sensitive details over email.

• Device hygiene: Separate travel devices with minimal data. Enable strong MFA (app-based, not SMS) for all banking.

• User rights: Implement view-only access for non-signatories; keep signing authority with a small, trusted group.

• Statement handling: Avoid physical mail. Configure consolidated quarterly reporting with minimal detail for nonessential recipients.

FAQs Families Often Ask

• Will my name be public? In reputable centers, no. Your details are confidential and shared only with authorities under law, not posted on public registers.

• Does CRS mean zero privacy? No. CRS means your tax authority receives relevant financial data. The public doesn’t.

• Are numbered accounts still a thing? Yes in Switzerland, but they don’t block required disclosures. They reduce internal visibility and can be useful for discretion.

• Can I use fintech apps for privacy? Consumer fintechs are great for convenience, poor for privacy. They rely on third parties and data-rich ecosystems. Use them for payments, not as your core private banking solution.

• Should I open an account where I buy a “residency” package? Residency can help, but don’t let the visa tail wag the banking dog. Choose banks first, then align residency if it improves access.

• How big should my first transfer be? Enough to establish seriousness—often low six figures for testing rails—then scale once the compliance team is comfortable.

Building a Resilient Multi-Bank Setup

A simple, effective architecture for many families:

• Core custody: Switzerland or Singapore for the main investment portfolio, minimal cash, high-grade custody.

• Secondary custody: US (for non-US families) or Channel Islands/Luxembourg for redundancy. Keep strategy similar so a forced transfer is low-friction.

• Operating account: In your home country or the jurisdiction where expenses occur. Only keep a few months of costs.

• Trust or foundation: Holds the portfolios with clear letters of wishes, governance, and professional oversight.

• Emergency liquidity: A short-term US Treasury ETF or term deposit ladder to bridge crises without fire-selling assets.

Rehearse a contingency: If Bank A goes offline for a week, which account pays payroll, tuition, and medical bills? Which advisor has trading authority? The best privacy is useless if you can’t move money when it matters.

Where I See Families Going Next

• More Singapore and Switzerland, not less: The flight to quality continues whenever there’s a scandal or regulatory hiccup elsewhere.

• Smarter US integrations: Non-US families increasingly use US custody for privacy from CRS—paired with compliant home-country reporting.

• Family office formalization: From the UAE to Singapore, more families are professionalizing governance and documentation. That discipline translates into smoother banking and better privacy.

• Data minimization by design: Banks are trimming data retention and improving access controls. Expect more secure messaging portals and fewer emails.

• Policy flux: Beneficial ownership rules, digital IDs, and CBDCs will evolve. Families that keep structures simple and documented will adapt smoothly.

Putting It All Together

Privacy today is about thoughtful design: choosing jurisdictions that respect confidentiality, pairing them with the right structures, and operating with clean documentation and governance. The main hubs—Switzerland, Singapore, Luxembourg, the Channel Islands, and selected US banking for non-US families—remain the backbone. Add regional complements like the UAE or Bahamas/Cayman if they match your footprint and advisors.

I’ve seen families reclaim peace of mind with a simple, well-run setup, and I’ve seen others burn months chasing exotic promises that crumble at the first compliance review. Focus on credibility, not cleverness. Start with a strong source-of-wealth file, pick one A-tier bank to anchor your plan, add a second for resilience, and keep operational cash separate. That’s how families bank offshore for privacy—quietly, lawfully, and with the confidence that the right people can see what they need to, and no one else does.