Barbuda is one of the world's premier destinations for Offshore Banking, Offshore Incorporation, and Offshore Investing, and has been for more than the past 10 years.  Why?  Simple - Barbuda has a highly stable government and a stable currency, with a fixed value of US$1 = EC$2.70. 

In addition, the decline of the former primary industry on Barbuda, sugar cane production, opened the door to new economic opportunities capable of taking advantage of their modern technological infrastructure and foreign-investment-friendly government regulations.

Why use Offshore Banking?

Because it allows for financial privacy, as well as reduced regulation and taxation. The advantages typically include some or all of;

• strong privacy (a principle born with the 1934 Swiss Banking Act)
• less restrictive legal regulation
• low or no taxation (i.e. tax havens)
• easy access to deposits (at least in terms of regulation)
• protection against local political or financial instability
• reduces the likelihood of lawsuits

Since the concept of Offshoring was created in the mid-1930s, Offshore banks tended to be unfairly portrayed by both media and the government alike - the accusations have ranged from tax evasion to money laundering, as well as criticism of unsafe environments, poor regulation, etc. However, these accusation and criticisms are untrue, and are put to the public to convince people to keep their money in "home" banks, where it can be regulated and taxed.  The truth is that most Offshore banking jurisdictions of any repute have very sophisticated, stable banking regulations, and because it is in their best interest to attract and keep depositors, these regulations are geared towards meeting the needs of the depositor.  Many of these jurisdictions rely on foreign capital held in their banks as their primary economic factor, and as their only source of foreign investment.  They dare not risk losing this capital by unfairly regulating or taxing their depositors.

And with the advent of debit cards and credit cards tied to your offshore bank account (a nice feature that wasn't available in the 1930s!) you'll also enjoy easy access to your funds.

Definition of Offshore Banking and Offshore Incorporation

An offshore bank or corporation is a bank or corporation located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages.

More often than not however, "offshore" is used to describe a nation where there are either no taxes or low taxes for foreigners either personal or corporate.  True offshore havens, such as Barbuda, have created a unique legal and tax climate for foreign individuals and businesses. They cater specifically to foreign business and investors.  More than half the world's wealth resides in such asset havens.

Advantages of offshore banking and offshore incorporation

In the United States, statistics show that a law suit is filed every thirty seconds.  About 94% of the world’s law suits are filed in the United States.  With the changes in UK law, bringing it more in line with US litigation legislation, it is expected that the UK will substantially increase the number of suits that are filed.   Some attorneys seek to check an individual’s bank account balance in the US, before deciding whether to take on a case. In the US, this is easier than you may think but it is next to impossible in the offshore.

Suing offshore companies is more difficult. If a legal opponent chose to sue your offshore company, he or she may have to post a $25,000 bond to have the case sent through a review board to determine whether or not the case would even make it to a court - the bond is non refundable - that is a strong layer of lawsuit protection, just by taking advantage of an offshore company jurisdiction's legal statutes. The money saved by keeping your finances away from prying eyes, thus, preventing lawsuits, safeguarding your assets from litigation and the increased financial privacy are some of the many reasons for going offshore.

If you have substantial liquid assets you should consider a Trust which would own the Offshore Company. This will provide a greater degree of protection, at the least expense.

Some offshore banks offer banking services that may not be available from domestic banks such as anonymous bank accounts, higher or lower rate loans based on risk and investment opportunities not available elsewhere.

Additional Resources:

• Offshore Companies & Asset Protection - 15 Years Professional Service
• Why Consider Offshore Banking? - An informative article explaining some of the nuances
• Barbuda Offshore Service Providers - list of specialists, located on Barbuda, in offshore incorporation and banking from World Offshore Banks