How to Profit From an Offshore Financial Company – Online Banking Operation

An offshore financial company (OFC) such as a New Zealand Offshore Financial Company (NZOFC) is commonly set up by those doing business offshore. An OFC is typically set up in order to reduce banking costs by those requiring international banking services. Because of the low capital requirements and low cost of setting up an OFC in a location such as New Zealand it is possible for a New Zealand Offshore Financial Company to gain substantial profits from its banking services.

Banking services of a NZOFC can include the following:

  • Taking Deposits
  • Certificates of deposit
  • Checking and savings accounts
  • International credit and debit card services
  • Loan services
  • Wire transfer services
  • Trust account services
  • Cash management services
  • The issuance of financial instruments and guarantees
  • Payment processing services
  • Marketing of investments
  • Fund management

There is no limit to how many customers the company can have, how much can be received in deposits, or the number of type of currencies in which accounts can be held. Customers can be from anywhere in the world. The one strict limitation is that the word “bank” cannot be used in the company name.

Deposits

A NZOFC can take money for deposit so long as the company is independent of the depositors. The monies deposited can be used to buy securities such as bonds currently paying up to 4.5% with a lower rate being paid to account holders. So long as deposits are invested in securities registered with the New Zealand Revenue Service, the interest earned by account holders will only be subject to a 2% withholding tax when interest is paid. This requires that the NZOFC register under the Approved Issuer Levy.

Checking Accounts

Depending upon the limitations placed upon withdrawals a NZOFC can offer varying rates of interest, always set so that the company profits from the accounts.

Savings Accounts

With deposit monies locked in for longer periods of time a NZOFC will typically pay a higher rate of interest to savings accounts.

Certificate of Deposit

A NZOFC can set up CD’s much like any bank, paying better interest on longer terms and pairing these monies with investments in better paying instruments. As with other banks the NZOFC can levy penalties for early withdrawal sufficient to cover expenses.

Credit and Debit Card Services

A NZOFC and issue both debit and credit cards, charge for the cards, and charge interest on the outstanding for a credit card. A NZOFC can offer a range of debit card programs including the following:

  • Dividend, Incentive, Forex payouts, Employers, Contract Agencies
  • Membership based affiliation applications i.e. Credit Unions, Banks with an existing account holder base
  • Loan, Benefit Payout Applications i.e. payday, micro loans operations
  • Insurance payout program, Pension payout program
  • Commission payout applications Network Marketing Organizations, Affiliate payout
  • Travel, Remittance Card Programs
  • Gas stations, Telecommunications, cellular phones companies, cable TV companies, department stores, supermarkets
  • Gaming and gambling industry: casino sites, online poker rooms, sports betting websites, waging websites, etc.

Loan Services

Loan services are explicitly allowed in a New Zealand Offshore Financial Company. Interest rates are set by the company giving the company the potential for a substantial profit on well chosen and managed loans.

Wire Transfer Services

These are allowed in an NZOFC and are often a major reason that customers come to a New Zealand Offshore Financial Company.

Trust Account Services

A New Zealand Offshore Financial Company can offer trust services just as a non offshore New Zealand bank can.

Payment Processing

With far flung operations many international companies find it difficult to pay their employees working in the four corners of the globe. Likewise the same companies often can use help collecting from and doing the accounting for multiphase business transactions. A payment processing service can be a lucrative business for a NZOFC.

How to Run an Offshore Bank in New Zealand

Banking Software

If you start an offshore financial corporation in New Zealand you do not need to re-invent the wheel in a banking sense. The company can pick and choose the services it wishes to offer and can take advantage of computer systems specifically designed of offshore banking.

There are online banking systems available for offshore financial institutions. There are scalable for small operations up to the size of large private international banks. These systems support the work done by savings and loan associations, investment funds, payment processing, and more. There are several of these software systems available and many companies that use them. Asking for references may be useful in deciding which software to use and just how much of the package to purchase at the beginning.

Manpower Requirements

The bulk of the operation of a NZOFC will be online. The “back office” work need be done in New Zealand. Just as companies in North America outsource so can your New Zealand Offshore Financial Company. By limiting services and the offer of securities to individuals and corporations outside of New Zealand many of the more time consuming tasks of running a NZOFC will be done away with.

The fact that the operation can be run without a person ever needing to come to a bricks and mortar office will greatly reduce building, equipment, and employee overhead. The fact that a NZOFC is not subject to reserve requirements makes the capital investment less that with a regulated bank in New Zealand. Directors and shareholders can be of any nationality and residency.

As with all business endeavors there are capital costs including the paperwork of setting up the offshore financial company and buying and training staff in use of the software required. Although the country of New Zealand will not require a capital requirement it will be wise to have a capital reserve for starting up and the various costs of an ongoing business. Much of the work, if well designed and planned, can be outsourced. It setting things up it will be well to seek out competent business, tax, and legal counsel.

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Advantages and Disadvantages of Playing Online Bingo

There are a number of free sites as well as paid sites that offer online bingo. At the free sites all you need to do is just sign up and start playing. While at the paid sites, you would also need to fill in your membership fee before you can get started. The popularity of the game on the Internet has made it into a $10 billion industry.

Some of the advantages of the game are

The online bingo games are available 24 hours a day, 7 days a week, all through the year. This means that you can easily play the games at your convenience. Now you don’t need to go to the casino in order to play the games.

The bingo games are available for all type of players. Whether you are a beginner or advanced players, there are several sites where you can play the game. Almost all websites have tutorials or a help section that teach the rules of the games. Players can always use these tips in order to play the game. As the player becomes proficient, they can move on to more complex games. Each player can play according to his or her own skill set.

Players can always play on the free bingo sites, before they start playing on the paid sites. In this way, they can be sure that they don’t lose any money. Most paid sites also offer the players some real cash bonus on signup that they can use for playing the games. A player can play with a single card or a multiple card according to their choice.

There are several facilities such as auto-daub and auto bingo, where the online poker site can match the winning combination as displayed on the screen. In case the player has a winning combination, the auto bingo facility will even call out ‘bingo’.

Some disadvantages of online bingo

Till the time online bingo is played for fun, the players have nothing to lose. However if the games start getting addictive for the players then it can spell trouble. People can start betting heavily and if they lose, they can run up enormous debts. This can impact their financial future also.

Children and elderly are especially vulnerable. Don’t leave them unattended for too long with the computer. Many child molesters are known to frequent these sites. They can easily entice the children though the use of chat rooms. It’s important that parents should known that their children are interacting with.

There are also a number of Internet sites that aren’t genuine bingo sites. Once they get hold of your credit card and other financial details, they can use it to fund their own activities. For this reason, players should only go to trusted sites that have been operational for a long time. Playing online bingo is fun, but players shouldn’t become addictive, else it can have serious financial and other consequences.

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