Off-Shore Banking Survey

Jim Swetz

No Date

________________________________________________________________

Off-Shore Banking

Dear Heads,

We currently have an off-shore dollar account in the Channel Islands with Standard Chartered Bank. They have informed us that, effective December 1, we will be charged $50 for every check we deposit, including those drawn on the Standard Chartered Bank. We are not incorporated in the U.S. so U.S. banking is not an option.

What banks do schools use for dollar accounts that provide satisfactory service?

Jim Swetz, Banjul American Embassy School

c/o U.S. Embassy-Banjul

Washington, D.C. 20521-2070

OR

P.O. Box 2596

Serrekunda, The Gambia

Telephones:

(220) 495920 (office)

(220) 496434 (home)

(220) 994920 (mobile)

Fax:

(220) 497181

----------------------

From: larry crouch <lcrouch@INDO.NET.ID>

We use a U.S. bank now for most of our banking needs, which doesn't really answer your question. But, I was interested in your comment about not being incorporated in the U.S., therefore you don't have a U.S. account. Are you sure you have to be incorporated? We're not but we have an account with Citi Bank in New York. We do have a foundation, but that's of course different from incorporation. I think if incorporation is a must you can register in Delaware through a simple one page application process. When I was consulting for Muscat we did that through ISS and it was simple and quick. You might want to contact them to see if they could assist you on that but again, I think a bank will open an account for you, especially

since you have a State Dept. relationship.

-----

From: mgarber <mgarber@WEBWIZARD.COM.MX>

Citi Bank also allows for complete Internet banking. Two others that also offer complete on-line services are Wells Fargo and Security First Network Bank in Atlanta. That's the one I use and the convience of being able to check my account anytime and make up to 20 movements a month at no charge keeps me banking there. I'm just not sure if they can handle your situation. BTW this is a good solution for teachers who wish to be paid in dollars in the states. They get a debit card that is good in any ATM machine.

Michael S. Garber

--------

From: "AISB CENTRAL ADMIN." <JOHNKJOHNSON1@COMPUSERVE.COM>

Our school is not incorporated in the states either and our main bank is Citibank, NY. You might want to look into opening an account in the States.

--------

From: "Ellen D. Stern" <estern@GLAS.APC.ORG>

The Anglo-American School of Moscow is not incorporated anywhere, but we bank in NY at Chase. No problem.

----------

From: Tony Horton <thorton@ASW.WAW.PL>

I echo what was said by Larry Crouch, but in opening bank accounts in the US I believe most will want you to use payroll checks you write in house and give to the teachers in person. That may preclude any direct transfer to a US account, which can be a hassle. I have asked in two instances for our US bank to wire transfer payroll to US accounts. They have baulked on the grounds that the teachers were not paying social security.

-------

From: David Tully <dtully@EAGLE.AEGSP.BR>

Organization: Graded School

Try Barclays Bank, also in the CI. I have used them for years.

--------

From: "Mark L. Hansen - Vilnius" <aisv.hansen@POST.OMNITEL.NET>

Our school has no "legal" status and "does not exist" in the Lithuanian eyes, but we have a U.S dollar account with Rigg's Bank in Washington D.C. It was opened as a Non Profit Organization before I came and we are currently checking to see what this means in terms of paying/not

paying/reporting U.S. taxes, etc as we have most of it in a money-market account.

Rigg's is an alright bank, but it seems like the people we deal with on the phone are not the swiftest and would be better suited asking if we want "fries with our burger" rather than transferring money from one account to another.....

---------

From: David Randall <drandall@AMERSOL.EDU.PE>

I was once in a school that was not inc. in the USA and we still had a US based dollar account. You might want to check that out further. You might also look into a foundation type arrangement (ISS could help you).

Here in Lima we maintain a local dollar based account. It works fine except that we have to get a bank draft each tinme we pay a USA based vendor - each draft costs $5.

-------

From: Robert Werner <rwerner@bus.eabdf.br> Organization: American School Of Brasilia

Greetings from Brazil. You can get any bank in the U.S. to establish an account for you. We use one just to make payments for a variety of things. Since the money is coming from outside the U.S. we only need to inform the IRS that the account is only used for payment of expenses

that occur in the U.S. We have not had any problems with the account and have found it very handy at times. If you maintain a large sum of money the bank may want to withold taxes on the interest paid unless the IRS gives its blessing.

--------

From: Michael Levinson <Michael.Levinson@ACST.INTL.TN>

ACST is not incorporated in the US, but maintains a dollar bank account with Riggs Bank in Washington, DC.

Back