Become an offshore banker in all but name

Become an offshore banker in all but name

If you think the idea of ​​being a banker appeals to you, consider an interesting option offered by the country of New Zealand. If you’d rather be a banker than an offshore banking customer, consider forming an NZOFC. It is a New Zealand offshore finance company. What makes NZOFC a bank is that it can provide what are essentially banking services to customers anywhere on earth except New Zealand.

There are two very basic aspects of NZOFC that distinguish it from a bank. Firstly, NZOFC cannot be called a bank and cannot be called a bank in any way. Second, forming an NZOFC is significantly easier and cheaper than setting up a bank in New Zealand or almost anywhere. Anyone from any nation on earth can set up an offshore finance company in New Zealand.

A distinguishing feature of NZOFC from a bank is that it is an offshore entity. It can be legally linked to other offshore entities in a number of useful ways. It can provide its principals with asset protection and privacy options not available from traditional bank ownership.

What does NZOFC do as a bank?

NZOFC can take deposits from its customer. May offer loans. An offshore finance company in New Zealand can provide credit or debit cards to its customers and transfer money internationally. Such a company may provide trust services as well as cash management services and may offer investments. NZOFC can provide payment services to customers spread across the globe.

NZOFC will not be called a bank

The New Zealand Offshore Finance Company is a hybrid institution that is not governed by New Zealand banking law. Does not work with New Zealand residents as customers. Although NZOFC offers what are essentially banking services to its customers, New Zealand law prohibits calling NZOFC a bank or implying that it is a New Zealand bank.

Setting up an NZOFC is easier and cheaper than a bank

NZOFC has no capital requirements. Unlike the Bank of New Zealand, the NZOFC is not under the management of the Federal Reserve Bank of New Zealand. NZOFC will establish a relationship with a correspondent bank in New Zealand, which will allow it to provide services not expressly provided for in the law that outlines how the New Zealand offshore finance company itself will operate. The paperwork to set up an NZOFC is relatively straightforward, although it will be wise to obtain the services of a competent adviser to obtain a licence.

Possible advantages of setting up an NZOFC over starting a bank

Apart from the fact that it can be significantly cheaper to set up an NZOFC than a New Zealand bank, there can be other advantages. These stem from the use of offshore asset protection solutions and privacy concerns. NZOFC may be an asset of other offshore entities. These include but are not limited to a New Zealand Trust, a Private Interest Foundation in Panama or an International Business Corporation from any of several jurisdictions. Such a comprehensive solution can have tax advantages and can be used to protect the principals’ legitimate business practices from the prying eyes of competitors. In a world where meddling in people’s private and business lives is commonplace, an offshore solution, including becoming a banker in all but name, can be very attractive.

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