The USA, More Corrupt than Ever: Offshore Banking For-the-Win!

A new report, Transparency International’s Corruption Perceptions Index 2018, shed light on the public perception of nearly 200 countries around the world and startled many with its findings. In fact, many “modern” countries fell to lows in the rankings while some offshore hubs actually went up in trust ratings.

The U.S. fell from the top 20 least corrupt countries, as well as some of the most thought of developed countries such as Australia, while popular offshore jurisdictions rose in rankings. Singapore, the United Kingdom, Cyprus, and others found themselves higher in the Corruption Perceptions Index than last year in a shift that now puts some offshore banking centers ahead of financial meccas like the U.S.

Today, more and more people are eyeing offshore banking as the solution to their financial needs and goals. For those who want proper asset protection, trusting the U.S. and other developed countries is no longer the first option.

What is the Corruption Perceptions Index?

This index ranks 180 countries and territories by their perceived levels of public sector corruption from the perspective of experts and professionals. With a scale of 0 to 100, countries and territories are rated, with 0 being the most corrupt and 100 being the least corrupt.

Nearly two-thirds of the countries assessed were ranked below 50 this year, showing a bleak outlook for many who are particularly concerned with the health of governments, economies, and financial stability.

Many South American, Asian, and African scored poorly, which wasn’t a major surprise to many financial and economic experts. Some of the worst-rated areas include countries such as Syria, North Korea, Afghanistan, Iraq, and Congo, which also wasn’t a terrible shock. Interestingly enough, however, “modernized” and developed countries didn’t score as well as one would presume.

Here’s the highlight of the report: The U.S. dropped from the top 20 least corrupt countries and is now outranked by the United Kingdom, Hong Kong, Japan, Singapore, Denmark, Switzerland, and more. The top three on the list included Denmark, New Zealand, and Finland, a listing that includes offshore hubs.

In fact, there are more and more offshore centers appearing higher up in the Corruption Perceptions Index, such as Hong Kong. Why is the perceived trust of the Corruption Perceptions Index in favor of countries where offshore banking is popular?

Corruption and Democratic Flaws Go Hand in Hand

Research from the Corruption Perceptions Index showed a staggering result: countries with democratic instability would gain less favor and trust from the public sector. The message is seen loud and clear: weaker democratic institutions and threatened political rights have a profound impact on the perception of corruption from the public’s point of view.

The United States is among several democratic countries that have fallen lower in the Corruption Perceptions Index. For instance, Brazil has also lost points in the Corruption Perceptions Index. Significant factors for the United States include political and governmental turmoil, including a lack of ethics.

With the index clearly showing that instability in any democracy can have a significant impact, many countries must work to solve their common problems before they begin to gain trust again. To improve, these countries must work harder to preserve their democracies.

For instance, they can ensure the system of checks and balances, protect freedom of speech, and protect freedom of the press. With the crumbling of essential democratic facets, countries become weaker and also have an overall perception of being less trustworthy and more corrupt. Now, perhaps more than ever in recent history, more Americans are eyeing the premise of offshore banking.

How Can Offshore Banking Be a Solution for Avoiding Corruption?

The longstanding reputation of offshore banking is that it’s only for people who want to evade taxes or conduct money laundering, and many simply believe that offshore banking is synonymous with trouble.

That couldn’t be further from the truth. New rules, compliance, and regulations have made offshore banking better for everyone, and if you are looking for a seamless, smart way to diversify or place assets, then offshore banking is an excellent choice.

But why? One of the biggest reasons is that some offshore banks are run better than US banks. What’s more, with offshore banking, you can often see a reduction — even an elimination — in taxes with a heightened level of asset protection and security.

Thanks to the online banking capabilities, as well as many other services offered by many offshore banks, it’s easier than ever to bank in another jurisdiction.

If you live in a country such as the U.S. and you’ve begun to question corruption in the country and the impact of corruption on your asset management strategy, then now could be the time to turn to offshore banking as a solution.

If you want to learn more about offshore banking, consults with us.