Q: How can your bank offer interest rates that are two to three times more then what we can get in other banks?

A: Very simply put Sovereign Chartered Bank's focus is on trading and investments. Our specialty is offering safe investment vehicles that pay more then the average. Every investment decision made by our traders is judged by its ability to preserve capital as much as its consistent and proven ability to deliver profits. Also Sovereign Chartered does not have the expense and upkeep associated with building and maintaining "Bricks and Mortar" branches, which means the overhead and expenses is kept to an absolute minimum meaning more profits are available for all. Montenegro also provides a very favourable jurisdiction from a tax standpoint because Sovereign Chartered is taxed at the special 2.5% rate reserved for Banks set up under Montenegro's 1996 offshore banking legislation. This low tax rate inevitably means there are more profits that can be paid out to investors.

A: Montenegro does not offer any government imposed insurance scheme on its banks. In practice most of these government schemes in existence have a very low cap and are of relatively little use for most serious offshore depositors. For instance the U.S. based F.D.I.C. only insures accounts up to $100,000 in the case of failure. Since Sovereign Chartered International Bank does not subscribe to any insurance scheme, it submits itself to a rigorous audits to provide peace of mind to its depositors that affairs are being run responsibly. In addition Sovereign Chartered keeps a minimum of a 1:1 ratio between easy to liquidate tangible assets and liabilities.

Q: When deposits are made with your bank where do they physically reside?

A: Like all banks, Sovereign Chartered Bank maintains a network of correspondent banking accounts as well as investment accounts. Its correspondent banks are based in Europe and are substantial and well rated and all but one are based outside of Montenegro. The majority of funds are held in secure investments in accounts with major banks.

Q: Your bank is based in Montenegro and so how safe our my funds in a potentially unstable country?

A: Montenegro is the junior partner in the Federation of Serbia and Montenegro and over the last decade has been surprisingly stable (surprising to all except Montenegrins that is). (See About Montenegro.) It is all but independent save in name at this time as over the last few years has been inching towards independence. In 1998 Montenegro adopted the Deutsch Mark as its currency which of course has been superceded by the Euro. As a result much of the deposits that come into the largest of Montenegro's banks actually have ended up physically residing in their accounts with the large German Banks, as well as accounts with some of the other Top 25 European Banks. This can be verified by picking up a copy of Banker's Almanac and looking at their correspondent banking relationships. This is no different with other Montenegro based banks such as Sovereign Chartered. Deposits are diversified in banking and investment accounts all over Europe and not just in Montenegro itself and moreover, since Sovereign Chartered does not lend depositor funds, there is no chance of losses as a result of loan defaults. Therefore in the unlikely event of future instability there would be no effect on the safety of funds nor the continued ability of the bank to function. Given that Montenegro has weathered so well the turmoil that has at times surrounded it this past decade, we think the likelihood of any serious upsets to be extremely unlikely. In many, many ways Montenegro has proven itself as a banking and offshore jurisdiction that come what may, can weather any storm.

Q: Why do you recommend that accounts be set up under the name of a non-domestic corporation?

A: The reasons are primarily for asset protection and privacy with a possibility of tax savings depending on the tax regime you live under and the use of a trust as well. Additionally if you are U.S. citizen or resident most offshore funds and other investments are not open to you including any investments that are offered by Sovereign Chartered, because of the fierce determination of U.S. authorities to extend U.S. investment law to anywhere in the world where U.S. persons may have access to offshore investments. Of course not all foreign corporations are equal which is why we make arrangements for Sovereign Chartered clients to set up Nevis based International Business Corporations and Limited Liability Companies, since such companies can be incorporated without the requirements to register either the director(s) or shareholders(s) for maximum privacy. Strong asset protection is available because of Nevis' refusal to recognize any type of foreign civil judgment. In order to get a civil case heard in Nevis the plaintiff is required to post a $25,000 bond. For more information on offshore services click Offshore Services.