If you find that the idea of being a banker appeals to you, consider an interesting option offered by the country of New Zealand. If you would rather be the banker than a bank client offshore consider forming an NZOFC. This is a New Zealand Offshore Financial Company. What makes an NZOFC like a bank is that it can provide what are essentially banking services for clients from anywhere on earth, except in New Zealand.
There are two very basic aspects of an NZOFC that distinguish it from a bank. First, an NZOFC cannot be called a bank and cannot be referred to in any way as a bank. Second, forming an NZOFC is substantially easier and less expensive than setting up a bank in New Zealand, or almost anywhere. Anyone from any nation on earth can form a New Zealand offshore financial company.
A distinguishing feature of an NZOFC from a bank is that it is an offshore entity. It can be related legally with other offshore entities in a number of beneficial ways. It may well provide its principals with asset protection and privacy options not available from ownership of a traditional bank.
What Makes an NZOFC Like a Bank?
An NZOFC can take deposits from its customers. It can offer loans. A New Zealand Offshore Financial Company can provide credit or debit cards to its clients and can wire transfer money internationally. Such a company can provide trust services as well as cash management services and can market investments. An NZOFC can provide payment services for customers scattered across the globe.
An NZOFC Shall Not Be Called a Bank
A New Zealand Offshore Financial Company is a hybrid institution that is not governed by New Zealand banking law. It does not deal with residents of New Zealand as clients. Although an NZOFC offers what are essentially banking services to its clients, New Zealand law prohibits calling an NZOFC a bank or implying that it is a New Zealand bank.
An NZOFC Is Easier and Less Costly to Set Up Than a Bank
An NZOFC has no capital requirements. Unlike a bank in New Zealand, an NZOFC is not under the governance of the New Zealand Federal Reserve Bank. An NZOFC will set up a relationship with a correspondent bank in New Zealand allowing it to provide services not specifically provided for in law outlining how a New Zealand Offshore Financial Company itself will operate. The paperwork for setting up an NZOFC is relatively straightforward although it will be wise to obtain the services of competent counsel to obtain licensing.
Possible Advantages of Forming an NZOFC versus Starting a Bank
Aside from the fact that it can be decidedly less expensive to form an NZOFC than a bank in New Zealand there can be other advantages too. These derive from the use of offshore solutions to asset protection and privacy issues. An NZOFC can be an asset of other offshore entities. These include but are not limited to a New Zealand Trust, a Panama Private Interest Foundation, or an International Business Corporation from any of several jurisdictions. Such an overall solution can have tax advantages and can be used to shelter the legitimate business practices of the principals from the prying eyes of competitors. In a world where intrusion into the privacy of people’s private and business lives is common an offshore solution including becoming a banker in everything but name can be very attractive.