Despite the broad adoption of CRS, several nations offer banking privacy without participating in the automatic exchange of financial information. Here are seven countries where banking remains more private:
1. Armenia
Why Armenia? Armenia has positioned itself as an emerging banking destination with quality services. Banks like Ameriabank and Evoca Bank provide diverse currency options, including USD, euros, and rubles.
Future CRS Status: Armenia plans to join CRS in 2025, so opportunities for privacy may change in the near future.
2. Cambodia
Why Cambodia? Cambodia is developing rapidly, attracting a significant flow of capital. With strong local and international banks, Cambodia offers one of the highest interest rates on USD deposits.
Banking Process: While opening an account is relatively simple, having a business visa may be required for some banking activities.
3. Dominican Republic
Why Dominican Republic? Popular among Canadian and U.S. expats, the Dominican Republic offers solid banking institutions. Banks like Scotiabank have an established presence, providing a familiar environment for foreigners.
Requirements: Some expats use residency permits that require deposits in local banks, making it an appealing option for securing financial privacy.
4. Guatemala
Why Guatemala? Though often overlooked, Guatemala has a developing banking sector with strong local banks such as Agromercantil and Azteca Bank. It also offers territorial taxation, which can complement global tax strategies.
Limitations: Be cautious about holding large amounts in Guatemalan banks due to the local economy's dependency on government bonds.
5. North Macedonia
Why North Macedonia? Known for its pro-business environment, North Macedonia has low flat tax rates and a growing banking sector. European banks like Societe Generale and ProCredit Bank operate in the country, offering diverse services.
Non-CRS Status: This Balkan country remains outside the CRS system, providing an option for more discreet banking.
6. Philippines
Why the Philippines? A popular expat destination, the Philippines offers an easy account opening process. It hosts numerous international banks and strong local ones like Metrobank, making it a viable option for financial privacy.
Compliance: While not part of CRS, the Philippines maintains FATCA compliance due to its friendly relations with the United States.
7. United States
Why the USA? Despite spearheading global tax compliance initiatives like FATCA, the United States has not signed up for CRS. It only shares financial information on its terms, allowing it to retain some privacy for non-U.S. citizens banking within its borders.
Banking Haven: States like Delaware are well-known for offering financial privacy, albeit with certain disclosure requirements.
A Note on De Facto Non-CRS Countries
Some countries may officially participate in CRS but fail to enforce compliance strictly. This can create "de facto" non-CRS environments where banks struggle with the complexity of the system. However, relying on such countries is risky, as they may tighten their compliance in the future.
Final Thoughts
With increasing global financial scrutiny, banking privacy has become harder to maintain. While there are still non-CRS countries that offer banking privacy, it’s crucial to pursue financial strategies that are fully legal and compliant with all relevant laws. At Creimerman, we help clients develop tailored strategies to secure banking privacy while adhering to international regulations. Contact us today to explore how you can diversify and protect your wealth.
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