US Citizen seeking offshore bank for short-term deposit of 1.1M USD

[tahoeskier]

Hi Everyone,
I'm new here and first send my deep appreciation to all the great‌ experts on here sharing such valuable advice. Thank you for all you do helping so‍ many people like me.

I'm seek your advice where to open offshore bank account for⁠ this situation.

• I'm US citizen live in USA
  
• Within a week, my sale of mainland⁤ China real estate asset will yield RMB equivalent 1M USD (925K EUR)
  
• China bank confirmed⁣ I can wire that money to bank account outside of China. We wish to move⁢ it immediately out of China.
  
• I need safe offshore bank account fairly quickly (7 days)︀ that can hold that money for several months while I set up offshore company from︁ which to later purchase USA real estate
  
• At this moment, only asking your advice on︂ best offshore bank for this immediate need. Thank you. (I will create separate post later︃ to ask your advice how set up offshore company that will ultimately receive these funds)︄
  
• I need this offshore bank account only for one-time movement of this amount. I'm not︅ someone who will be doing repeat transactions similar to this on a regular basis.
  

Thank you so much for any advice you can offer me on this!

-TahoeSkier

 

[daxbr]

What did your China bank say when you asked them for recommendations?︆

 

[tahoeskier]

Hi All,
I should have noted in original post, I will declare and‌ pay US taxes on the year 2021 original sale of the China based real estate.‍ I have liquid assets in USA that I will use to pay US taxes on⁠ that transaction.
-TahoeSkier

 

[equityone]

Can use an escrow or paymaster account if your intention is to︆ just store the cash somewhere for the time being till you create your offshore structure︇

 

[tahoeskier]

Have you done lots of business on the ground in China? You don't‌ ask such recommendations from a China mainland bank staffer, alerting them you plan to offshore‍ 7M in RMB money sitting in their bank, and your dual citizenship status ..etc, because⁠ they might for kickbacks ($$) immediately share that info with corrupt banking officer and/or communist⁤ party official who will fabricate some grounds to seize all your money, and you won't⁣ be able do anything about that (except cry).

 

[tahoeskier]

To All,

What about my applying for personal account at either Singapore bank DBS or‌ OCBC? I can show doc's establishing steady income flow 400K/yr

I live within 7 hours‍ drive from both their LA representative offices. For OCBC it looks like new personal accounts⁠ are handled by in-person visit to NY office (which I could fly to). I live⁤ 45 min from Singapore embassy if that helps. I do not have SG citizenship.

 

[Silvio]

Maybe open an account in HK? Plenty of Hong Kong banks will open an account‌ right on the spot (DBS HK, BoC, Citibank HK) and it will be easier to‍ explain the source of funds to them.
But you will need to get on a⁠ plane and fly there (not sure if even possible right now). Not sure if they⁤ will deal with US citizen either.

DBS and OCBC are both great banks but I⁣ am not sure they will open within such a short time frame. You could speed⁢ it up by flying to them but I think SG is still closed to visitors︀ right now.

Not an easy problem to solve.

 

[Davis123]

HK banks︁ are not that easy these days especially to US citizens. I was in HK almost︂ a decade ago and I was denied by every bank there even though my funds︃ were from legitimate tax paid sources and I had all the required documents. I think︄ Andrew Henderson also put a video sometime ago about HK banks. Hope situation has improved︅ by now but I really doubt it. Singapore and HK both are not easy anymore︆ for any foreigners especially for Americans.

 

[Silvio]

HK banks won't open an account if your story is unconvincing ("I want an account‌ to spread risk\hide money\etc"). If you have a good enough explanation for WHY you want‍ the account (some ties with HK suppliers\providers\clients), or if you're willing to buy a life⁠ insurance package, banks there will be happy to have you. I don't know about the⁤ US part though, you may be right on that.
And of course if you're willing⁣ to open a private banking account (Premier etc) your odds improve a lot. Citibank HK⁢ will take you if you have $200K+ to deposit.

 

[tahoeskier]

Hi maxmmm and Davis123,
Thank you for helpful suggestion about HK banks. For us (wife‌ and I), that can be practical option as we are Mandarin speaking, have traveled a‍ lot to HK. (In retrospect, one of those prior HK business trips I should have⁠ applied for account at HK bank.).

If Singapore banks require face-face visit to Singapore office⁤ to apply for personal account, that gets challenging, particularly if Singapore has (?) a lengthy⁣ quarantine period for arriving foreigners. I'm hoping Singapore banks allow face-face application to their USA⁢ representative offices.

 

[Davis123]

Well US part was really the one that was against me at the time. Basically they︀ had all told me come to HK with another non passport and we shall look︁ at your case again. Over the years it has become problematic for non US passports︂ too due to CRS. No in my case I had the tax returns too to︃ prove my case and a legitimate case but they were only flagging me due to︄ US passport. Andrew Henderson gave up his US passport but still had to close his︅ HK account for reasons shown on his video already. You have to have some mainland︆ commection or a justifiable HK presence to open up an account these days. Maybe this︇ person's Mandarin knowledge might help him to get an account there. 😉

 

[Davis123]

Rest assure I had more than 200k usd︀ to deposit but Citi also refused me at the time 😉

 

[jjrapy]

so what if that “history” is the main reason to want to open an account with︀ them? they just won’t accept you? even if the money is clean with all the︁ documents?

 

[tahoeskier]

My idea open account a Singapore bank maybe not so wise, on other websites I'm‌ reading "Singapore banks have to declare all assets held by Americans clients to the IRS‍ which is very expensive for the bank"

 

[KOTF]

You can Try First Caribbean Bank British Virgin Island.

Offshore Company formation︆ takes an average of 2 days and I can introduce you to the bankers and︇ the account opening takes 2 days max.

I can put you on to direct contacts︈ (Lawyer for company formation and Banker in First Caribbean to open account) there

Or I︉ can direct you to other options in BVI if it's a onetime transaction.

 

[CaptK]

Escrow is your best option since you want to pay taxes on it.
Then you‌ can decide what to do at your own leisure.

 

[Silvio]

Wow, that's amazing. I stand corrected, I guess that being a US person︂ is really a hindrance in this regard..

 

[Mark Rucken]

Why dont you move funds directly to the US?

If you are willing to pax︆ tax, I do not see a reason why bother with foreign banks and non-resident accounts.︇

 

[Davis123]

Yes exactly the⁠ banks are hesistant on keeping Americans as clients due to the mere cost of hiring⁤ extra help to document everything with IRS. This is number one problem to US expats⁣ living overseas. Congress can't understand this problem created by their own laws as expats have⁢ tried many times in the past but their pleas were all rejected. 😉

 

[Davis123]

Why dont you move funds directly to the US?
Well in my case I was living overseas. It⁠ created a problem with my local banks too.