Protect Your Assets with Offshore Banks (A US Citizen’s Guide)

For US citizens, choosing the best offshore bank can be a complex but equally important financial task.

And if you’re a successful investor or entrepreneur, you may be cautious about where you diversify your assets (and you should be!).

But what if you’re also a US person? 

The most important thing for Americans is complying with tax reporting requirements. This means finding a reputable offshore bank in a stable jurisdiction that’s compliant with the Foreign Account Tax Compliance Act (FATCA).

While some banks avoid US regulations, others have adapted to keep their US clients’ accounts in good standing.

Here, we discuss what Americans should know about offshore banking, what criteria to look for,  and even the best US bank for non-US citizens.

What US Persons Need to Know About Offshore Bank Accounts

US tax laws are incredibly strict, especially when it comes to offshore banking for Americans.

US citizens and anyone considered a US person for tax reasons are expected to meet many tax and reporting obligations – often more than citizens of other countries.

And although there are rumours that US persons can’t open offshore accounts, this is not true in most jurisdictions. 

Instead, US persons will usually just have to jump through more hoops to do so. 

Therefore, let’s look at two common tax processes that apply to any US person considering an offshore account.

Foreign Bank and Financial Accounts

If you qualify as a US person, you’re required to report any foreign bank accounts to the US Government. 

To do so, you use the  Foreign Bank and Financial Accounts report – otherwise known as the FBAR.

While the FBAR is generally administered by the Internal Revenue Service (IRS) with annual taxes, it’s actually filed with the Financial Crime Enforcement Network (FinCEN).

FinCEN aims to prevent any illicit money laundering schemes, such as drug trafficking operations or terrorist activities.

Under the FBAR, you must report any foreign financial accounts that aggregate to US$10,000 or more at any point during a given year. 

This can be done by using FinCEN’s online filing system. Failure to do so can result in serious penalties. 

While the FBAR doesn’t require additional forms, many people with foreign assets also need to file Form 8938, Statement of Specified Foreign Assets.

This form allows you to account for other foreign assets and has disclosure values ranging from US$50,000 – US$600,000, depending on whether you live in the US or abroad.

Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act (FATCA), was signed into law in 2010 under the Obama administration. While the intention was to increase transparency in offshore banking, it has essentially destroyed banking privacy.

FATCA requires banks to report any information on their US customers to the RS. 

That means that even though US persons were already reporting their foreign accounts through the FBAR, the US went a step further and required banks around the world to report on these accounts as well. 

Just imagine how offshore banks must have jumped for joy to implement this new process. But the alternative was to either get slapped with a huge withholding tax for non-compliance or forgo using the US financial system.

Unfortunately, this led many banks to let go of their US customers. Even some non-US-persons then had to clarify their citizenship or tax residence to convince banks they were not a US person.

Banks that continued to serve US clients implemented more stringent documentation requirements for account opening and maintenance.

While these procedures can be a burden, they are essential for complying with US law and avoiding potential penalties.

What Not to Look for in an Offshore Bank

Here at Nomad Capitalist, we’re always talking about going where you’re treated best. Part of this involves setting up a bank account where you’re treated best. So, you need to know what to look for.

We believe there are certain criteria that you should look for in an offshore bank. 

Not only do these criteria meet our standards for the best offshore banks the world over, but we also consider them when assessing the best offshore banks for Americans.

While there are other factors that one could consider, here are our top four.

Jurisdiction Quality: Often, the traditional offshore locations are scrutinised by governments so much that it makes it a hassle to even deal with banks there. And if your offshore bank is located in an unstable jurisdiction, there’s a good chance your money will be confiscated by the government at some point. When looking for a location to grow your portfolio, you want to make sure it’s a stable one.

Institutional Quality: Of course, you will want to bank with an institution that has a good reputation. However, you will also want to ensure the financials of the bank that you’re dealing with, as not all banks keep a high number of deposits on hand.

Ease of Opening a Bank Account: This factor doesn’t necessarily mean that you’ll be able to open an account with a snap of your fingers, but the process itself should be easy overall. You’ll want to find banks that have good customer service and make the experience as smooth as possible.

Nomad Friendliness: Nomads have unique needs to fit their lifestyles and that is no different when it comes to offshore banking. You’ll want to find a bank that has a robust online banking system, offers the option to use overseas ATMs, conducts transactions in multiple countries and provides 24-hour customer service.

Things to be wary of should also include: 

• Certain Neo-banks (particularly unproven ones)
• Fintech
• Big brands
• Mega-banks
• Banks in classic offshore jurisdictions.

This is because they often come with higher risks, regulatory uncertainties and potential instability. Neo-banks and fintech companies may lack the long-term stability and full banking licenses of traditional institutions. 

Big brands and mega-banks tend to have strict compliance measures, making them more likely to freeze accounts or share information with tax authorities. 

Banks in classic offshore jurisdictions may face reputational risks, increased scrutiny from international regulators or limited access to global financial networks. 

Beyond the general criteria, FATCA compliance is paramount – the bank must be willing to report to the IRS, regardless of your residency status.

Another factor to consider is the amount of your deposit. 

We often talk about banking in Hong Kong. This is the perfect example to illustrate that when you have a big enough sum, some banks are willing to open an account for anyone – a US person or not.

The Best Countries to Open An Offshore Banking Account In

While many offshore banks accept US clients, certain jurisdictions are particularly well-suited for US citizens due to their regulatory environments and banking practices.

Exploring non-traditional offshore jurisdictions can be advantageous. They’ll be under less scrutiny from governments and should have less cumbersome processes for opening an account. 

You can expect to experience this in the following countries:

Georgia: This fast-emerging country is one of the easiest jurisdictions for an American to open an offshore account. Not only does it have one of the freest economies, but it’s easy to do business there – including opening an offshore bank account. The Bank of Georgia, where you can open an account in one day, is recommended.

Singapore: This is one of the most highly recommended banking locations in the world. Not only are Singapore’s banks among the safest around the globe, but they also rank first in the best ASEAN banks for their reputation and performance. One such bank is DBS Treasures, which offers premier banking services and is easy to deal with. However, they only offer savings accounts for US persons.

Vanuatu: This little-known option offers both privacy and is FATCA-compliant. Sounds perfect for a US person, right? It is. Banks such as Pacific Private Bank offer flexibility and privacy while keeping all legal matters above board. 

If you’re looking for a remote offshore account, that option is available, too – though it’s not generally worth it. 

However, the two recommended remote options are Capital Security Bank in the Cook Islands and N26 in Germany. Both allow US persons to open accounts and you don’t even have to travel there, though you might wish to.

While it could seem more difficult for an American to open an offshore bank account, it’s generally becoming more difficult for everyone. This is due to more competition and regulation rather than citizenship.

But if you take into account the important criteria when selecting an offshore account, you should have no problem finding a jurisdiction that you can trust with your money.

And if you happen to be a non-US person, read on for a suggestion or two.

Best US Bank for Non-US Citizens

While this article is focused on the best offshore banks for Americans, banking in the US is surprisingly desirable for those who are non-US persons.

Although the US doesn’t have the safest banks in the world, it’s well-connected to the global financial system and opening an account is quite easy.

As an added benefit, the US has Federal Deposit Insurance Corporation (FDIC) deposit insurance, which insures up to US$250,000 per account. This is, by far, the highest amount of deposit insurance in the world.

The best bank for opening a bank account in the US as a non-resident is Wells Fargo. This bank does have some challenges, but it’s one of the few that’ll allow you to open an account without a Social Security number (SSN).

If you decide to travel to the US to open an account at Wells Fargo, the Miami or Las Vegas branches are highly recommended. Both are accustomed to dealing with non-US residents and have relatively light requirements.

While opening an account at Wells Fargo may seem like the antithesis of offshore to a US person, it can actually be an excellent diversification strategy for people outside of the US.

With exceptional deposit insurance and deep ties to the global financial system, it might just be a wise choice for people who want a US bank account.

Plus, if you’re not a US taxpayer, you won’t have to pay tax to the IRS on interest earned through your US bank account.

Best Offshore Bank Accounts for US Citizens: FAQs

The Best Offshore Bank Accounts in 2025

Despite the rumours, US persons can definitely open offshore bank accounts. 

While there is a lot of misinformation, and some people still baulk at the word ‘offshore’, it really isn’t taboo anymore. There are plenty of good offshore options for US citizens and strategies for them to stay compliant and get all the benefits.

Just remember to find an offshore bank that is stable, high-quality, easy to work with and has services to fit your lifestyle.

After all,  with a bit of planning and know-how, it gets easier to ensure your portfolio is protected, growing and well-diversified.

At Nomad Capitalist, we’ve helped 2,000+ investors and entrepreneurs to ‘go where they’re treated best’, whether that’s by launching an offshore bank account, moving their business overseas or relocating to a tax-friendly country.