Q&A: How to thrive with I&M Bank’s Offshore Banking and everything else you need to know about offshore banking I&M Bank Uganda has in collaboration with Bank One, a Mauritius-based bank, launched a world-class offshore banking solution, that allows its clients access to an array of international banking, investment and financial advisory services. Some of the major benefits of I&M Bank Uganda’s offshore banking offering include seamless digital banking, a dedicated relationship manager, access to an exceptional range of international investment opportunities, a range of tailored lending solutions in multiple foreign currencies for unique international needs and foreign currency credit cards with loyalty benefits. With this new service, I&M Bank Uganda customers will be able to manage financial commitment across multiple countries and regions and also own bank accounts outside their countries of residence.

In this interview, Sam Ntulume, the Ag. Managing Director/CEO, explains everything you need to know about offshore banking and its multiple benefits.  

What is Offshore Banking? 

Offshore Banking, at its basic, is holding an overseas or offshore bank account. An offshore, or overseas, bank account is one that you have in a country you don’t reside in. It allows the client to make and receive payments internationally, hold money and set up savings and investment accounts in multiple currencies.

It is about getting access to banking solutions that are not available locally, such as access to an array of international banking, investment and financial advisory services.

So in this case, our existing clients and other clients will be able to open accounts in Bank One, in Mauritius but go through I&M Bank Uganda, without having to set foot in Mauritius- but enjoy all the benefits of Offshore Banking. 

With offshore banking now available, our clients will enjoy multiple benefits like the ability to receive payment for work done outside Uganda, make international payments, access international funds and, most importantly be able to diversify assets and hedge against the volatile local currency.

Why are you partnering with Bank One Mauritius and why Mauritius, of all destinations?

When we rebranded from Orient Bank to I&M Bank Uganda in November 2021, we promised to leverage the power and unique financial experience, know-how, products and investments in technology for the benefit of our Ugandan customers. Over the last 12 months, we have been consolidating the new brand, integrating our IT systems and cultures and are now ready to align financial solutions⏤ Offshore Banking being one of them and there are many more to come. 

Headquartered in Port Louis, Mauritius, Bank One is a top-tier, award-winning banking institution incorporated in 2008 following a joint venture between I&M Group PLC and Mauritian conglomerate CIEL Ltd. It plays an active role in supporting businesses in sub-Saharan Africa and has deep development finance institution relationships and long-term funding lines with the German Investment Corporation (DEG), the International Finance Corporation (IFC) and the French Development Agency (Proparco). Bank One is rated ‘BB-‘ with a Stable Outlook by Fitch Ratings and in 2021 was voted Best Custodian Bank (Indian Ocean) by CFI.co and Best Mass Affluent Banking Offering by The Digital Banker.

The reputation of Mauritius as a Financial Centre and investment destination is well-known globally. Mauritius is known for its diversified, strong and stable economy; its bilateral and multilateral relationships, its hybrid legal system, its international arbitration centre and its effective good governance system, among others. It is a renowned financial centre, whose reputation is built on the facilitation of cross-border investment, cross-border corporate banking, private banking and wealth management.

So in summary, I would say I&M offshore banking is the best of three worlds⏤ a rich legacy and knowledge of the East and Southern Africa region by the I&M Group Plc; Bank One, a top-tier, award-winning banking institution in the Indian Ocean and Mauritius, a reputable financial centre in the world. 

There is a wrong notion that offshore banking is for the wealthy and super-rich. Who exactly are you targeting? 

Offshore banking of yesteryears used to be for the wealthy but today, with globalisation, I would say offshore banking has become more of a facilitation tool for⏤ yes the wealthy and high net worth, but also for businesses and individuals whose transactions or outlook are international in nature. 

You cannot exhaustively talk about whom offshore banking is for, without talking about the advantages of offshore banking. So, I would say, offshore banking is for individuals and businesses looking for a stable, secure and transparent jurisdiction, where they can seamlessly manage all their international financial needs in a tax-efficient way, but also benefit from the best of global investment solutions.  

Those who will find offshore banking exceedingly beneficial are, people, who: 

• Do international business, and make or receive payments in different foreign currencies
• Reside overseas, for work or retirement
• Are international expatriates and move countries regularly for work or pleasure
• Make frequent trips between countries for business
• Get paid in a foreign currency, e.g. for contract work
• Own assets abroad, e.g. investments or property
• Have family members abroad to support financially, e.g. a child’s school fees
• Invests internationally to manage & grow their wealth

Another misconception is that offshore banking is about tax evasion. Offshore banking is about achieving tax efficiency, especially for businesses that do international business by for example being able to avoid double taxation. Mauritius has a substantial network of treaties and double-taxation agreements, including an extensive network of 23 Double Taxation Avoidance Treaties and 24 Investment Promotion and Protection Agreements with several African States, which makes it the preferred International Financial Centre for investments in Africa. 

What services does one enjoy, by opening an offshore banking account with I&M Bank Uganda?

Being able to open a range of foreign currency transaction accounts⏤ current, savings, or fixed accounts in multiple currencies USD, EUR, GBP, AED, ZAR, CAD, and AUD. This comes with free and widely-acceptable international debit cards and competitive forex services. Clients have full visibility and access to their accounts, via our award-winning digital banking channels on the internet and mobile which facilitates ease of payments through online banking. Clients also have a dedicated Relationship Manager and team to support them. 

Qualifying clients are entitled to foreign currency credit cards, that have some unique features such as a monthly cashback of up to 1% on purchases, no Annual Fee for life as well as cashback rewards and a “Lounge Key” for complimentary access to several airport lounges. Key benefits also include buyer protection and extended warranty, travel Insurance, collision damage waiver and lounge access, as well as no conversion charges if payment is on the same day.

For those who wish to make investments, we offer managed asset portfolios that guide clients on suitable investment solutions and strategies, based on their needs and risk appetite⏤ 15 different strategies across 4 currencies – USD, EUR, GBP & MUR⏤ starting from as low as USD 1,000 per month or a lump sum USD 10,000 onwards.

Clients also have access to custody platforms for clients who know what they need and would just like access to offshore custody and brokerage services with access to about 100 of the largest global fund houses and 65 international markets. Clients also have access to investment advisory services from key partners including tailored portfolios, inheritance, family office and others.  

On the lending front, clients have access to a variety of foreign currency borrowing solutions such as Lombard Loans (lending against investments) with a Loan to Value of up to 60% of the Assets Under Management in USD and EUR under very competitive interest rates, from as low as the ‘USD/EUR benchmark interest rate’ + 3%. There is also lending built on cash-secured facilities that assist clients to gain access to a flexible alternative to mortgage financing while they continue to enjoy income from their existing savings. 

What does one need to open an offshore account with I&M Bank?

The requirement for one to be able to open an offshore bank account with I&M Bank Uganda is a minimum of $5,000 deposit once an account is opened including a balance build-up period of up to 12 months (to reach $50,000 as deposits or in investment).

Documents required, are a certified copy of passport and proof of address. In case you hold permanent residency, then certified related documents are required. A bank reference letter from the current bank, certifying that account is well maintained as well as an updated CV/Profile.