Good question. Nowadays you can often face warnings of «well-wishers» about placing your money offshore. Something like if you bank in your home country you can be secure in the knowledge that your money are insured by the government and no such guarantee exists with offshore banks.
Let’s see. If you live for example in the U.S. you might be insured by the government. But if you live in a third world country unstable politically and economically do you have indemnity for expropriation? You might be risking even more leaving all your money at home rather than going offshore.
And what does that mean to be insured by the government? Whatever happens, a natural disaster or an accounting scandal or a bank going bankrupt, will the government repay your losses in full?
Choose your offshore bank properly
Get sure it’s safe enough for your particular needs. You may have different requirements for every case and finally decide to deal with several banks instead of the only one.
Should you have a significant amount to be deposited for a long term, you better go for one of the world class Swiss or Austrian banks. If you are looking for an option to make cost-efficient day-to-day business transactions your requirements are mostly focused on bank charges and how quickly the money go rather than on a deep security of your funds in there. Normally you will not have any substantial amount left on the account longer than for a couple of days. There’s plenty of choices for such instances for example in Baltic countries known as one of the world banking center. And so on and so far.
Generally speaking it’s a matter of common sense. You are only at risk when you don’t know what and how you do, no matter what you are doing, going shopping into the next supermarket or banking offshore.
Don’t go into unknown waters. Take reasonable measures of precaution and have a safe and reliable banking with your offshore banker.