Not everything that is called a BANK is a BANK

The liberty given by certain offshore centres in regard to company names may play a mean trick on offshore services users. Thus, neither the company ABC Bancorp registered in the state of Nevada, nor the ABC Banking House have anything in common with an American bank corporation or an English banking house in the meaning that we assign to the word ‘Bank’. Those companies may have neither a banking licence, nor substantial paid-in share capital or any reserve fund whatsoever. Their only ‘asset’ is usually represented by a set of documents costing a few hundred American dollars.

The incorporation of a bank, even an offshore bank, is a very time-consuming and arduous task, which can only be shouldered by a well-known financial institute or a manufacturing brand of high standing. Furthermore, obtaining a banking licence is but the very first step on the journey faced by a real, professional banker.