The term “offshore bank” is used for two different things. The first is a bank licensed by the regulator of an offshore financial center, for example in the Cayman Islands or the BVI. The second is any foreign bank where an offshore company holds an account. For a business, the second meaning matters more: where to keep the business’s money so that payments go through without delays and the funds are protected. When people talk about “banking offshore jurisdictions”, they usually mean the first sense: financial centers with their own banking regulation. Below is the practical framework we use to choose an account for clients.
Three options for where to hold the account
- A bank in the company’s country of registration. A Hong Kong bank for a Hong Kong company, a UK bank for a UK Ltd. A local bank finds it easier to understand a local business, though many of them expect a link with the country: an office, clients, staff or a resident director.
- A bank in a third country. A BVI or Seychelles company holds its account in Switzerland, Singapore, the UAE or elsewhere in Europe. This setup is familiar for holding companies and traders. The bank treats the company’s jurisdiction as a separate risk factor and asks more questions about the structure and the money.
- A payment institution (EMI). Fast onboarding, multi-currency account details, convenient online access. Balances are protected by safeguarding; deposit guarantee schemes do not cover them. More in the comparison EMI or bank.
In practice, a business with international payments holds two accounts: a main one with a bank and a backup one with an EMI. If one of them suspends service during a review, payments continue through the other.
Seven criteria for choosing a bank
- Payment route. Which currencies are available, which correspondents handle dollars, whether there is SEPA access for euros, how long an outgoing transfer takes.
- Risk appetite. Whether the institution accepts companies from your jurisdiction, owners of your citizenship and residency, and your industry. Ask directly, before submitting documents.
- Regulator and deposit protection. In the EU, company deposits are protected by guarantee schemes up to €100,000 per depositor per bank (Directive 2014/49/EU). In the United Kingdom, the FSCS limit has been £120,000 since 1 December 2025. Offshore centers have their own rules: the license and protection terms are checked in the local regulator’s register, which in the BVI is the Financial Services Commission (FSC) and in the Cayman Islands is CIMA.
- Personal visit. Many banks verify the director and the beneficial owner by video, and some require an in-person meeting. This affects timing and travel costs.
- Fees. Account maintenance, minimum balance, outgoing transfers, conversion, account closure. Ask for the fee schedule in writing and calculate it against your real turnover.
- Online access. User roles, dual signature, accountant access, statement exports for reporting and audit.
- KYC refresh. How often the institution updates the client file, how quickly it expects answers to requests, and what happens to the account if you are late.
How a jurisdiction’s status affects the choice of bank in 2026
Financial institutions take international lists into account when assessing client risk. In the FATF list of 19 June 2026, the jurisdictions under increased monitoring (the “grey list”) include the British Virgin Islands, Monaco and Bulgaria. Since 29 January 2026, the BVI has also been on the EU list of countries with a high risk of money laundering (EU Delegated Regulation 2026/83). EU financial institutions apply enhanced due diligence to business relationships involving such countries. BVI structures still get accounts opened, but they need a fuller package of documents on the structure and the source of funds, and the review should be expected to take longer.
The EU tax list of non-cooperative jurisdictions is a separate document. In the EU Council version of 9 October 2026, it contains eight jurisdictions: American Samoa, Anguilla, Guam, Palau, Russia, the Turks and Caicos Islands, the US Virgin Islands and Vanuatu. For business with European clients, we advise against registering a company in these jurisdictions. Panama and Vietnam were removed from the list on 9 October 2026.
Steps to take
- Describe your payment profile: currencies, countries of clients and suppliers, turnover, average and largest payment.
- Draw up a shortlist of three or four banks and payment institutions that fit this profile.
- Get a preliminary answer from the selected institutions on your structure and industry before registering the company.
- Register the company in a jurisdiction they accept.
- Submit the full document package and keep a backup option in case of refusal.
Step-by-step instructions are in the guide how to pass the review when opening an account. If you need a structure quickly, compare the options in the shelf offshore companies section; for payments with Asia, see Singapore company formation and the comparison Hong Kong or Singapore. Provider selection, application preparation and support until the account is open are handled by Offshora’s banking support.
Frequently asked questions
What is an offshore bank?
It is a bank licensed by the regulator of an offshore financial center, for example in the Cayman Islands or the BVI. In everyday use, the term also covers any foreign bank where an offshore company holds an account.
Does the account have to be in the company’s country of registration?
As a rule, the law does not require it: a BVI or Seychelles company can hold an account in any country where it is accepted as a client. The choice is driven by the payments, the financial institution’s requirements and the owner’s tax position.
Is money in an EMI account protected?
An EMI keeps client funds separate from its own (safeguarding). Deposit guarantee schemes, such as the £120,000 FSCS limit in the United Kingdom, apply to bank deposits and do not cover EMI balances.
Does the FATF grey list prevent a BVI company from opening an account?
The FATF itself does not require enhanced due diligence for grey-list countries. Since 29 January 2026, however, the BVI has been on the EU list of high-risk countries, and EU banks apply enhanced due diligence to it. An account can still be opened, with more documents required.
How many accounts does a business need?
For a business with international payments, a practical setup is a main bank account and a backup account with an EMI. That way, payments keep flowing if one of the providers suspends service during a review.
Describe your business, the owners’ country of residence and your main payments in the form below. We will select a jurisdiction and a bank for your profile and send an estimate that separates government fees from our services.
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