OFFSHORE BANKING

A Day at the Beach

A few years ago, it seemed that only drug cartels, Mafia dons, and the superrich cared about offshore banking. Now that money has become increasingly electronic, every bit you spend creates tracks, and a cadre of privacy experts recommend more anonymous forms of commerce.

Venerable offshore institutions such as Bermuda's Bank of Butterfield serve mostly well-monied corporate clients. Recently, a host of start-ups have begun offering offshore banking to the rest of us online. If you're considering an offshore account, Escape Artist (www.escapeartist.com/) and Offshore (www.offshore-net.com/) are good places to start. Both house numerous links to geographically diverse institutions and other sites that offer advice and legal information. Among those listed is the Paritate Bank (www.paritate.lv/), a Latvian financial institution that offers private ATM, credit, and debit cards; it also allows you to wire money or read your statement online.

Clearly, you should be on the lookout for fraud. It's a good idea to check with the US comptroller of the currency (www.occ.treas.gov/altlst98.htm), Internet ScamBusters (www.scambusters.com/scamcheck.html), or SEC Investor Alerts (www.sec.gov/enforce/inva.htm) before sending money to any tax-free haven.

Keep in mind that just because the bank isn't reporting your earnings to Uncle Sam doesn't mean you're off the hook: Come June 30, US citizens must report accounts more than US$10,000 and include all interest earned anywhere on the planet. If you're feeling like an outlaw, however, you can always gamble that the Feds will have a hard time tracking down your assets.

- Aaron Pressman