What is a Private Bank? Foreign-Licesed Banks: Class “A”, Class “B”, Class “C”
If you have $1million and you have a sphere of influence of $100 million or more, a foreign licensed private bank is practically a license to have your own printing press.
A foreign private bank, is nothing more than a corporation, licensed to do banking.
The 3 Classes of Private Banks:
- Class “A” private banks are similar to Bank of America, City Bank, Fleet, BankBoston, etc. Class “A” foreign banks are allowed to take deposits from the public, at large, similar to any large bank.
- Class “B” are licensed to do banking within their industries, i.e. GE Capital. They Cannot do business with the public, at large.
- Class “C” banks are name-plate banks doing business as individuals for their own personal accounts.
When properly capitalized, approved, and implemented, a foreign bank has no accountability as to the types of financial transactions it may enter for When properly capitalized and professionally managed the bank has NO limits to it’s profitability profit. A foreign class “A” bank, when properly capitalized and professionally managed has no limits to it’s profitability.
“It’s practically a license to print money.”
Not available to IRS definition of “US Persons.”
Please read our disclosure/disclaimer, it’s there for your protection.
Helpful resources: Readers often continue with Offshore Asset Protection Trust, Domestic Asset Protection Trust, and official IRS estate and gift tax guidance for broader context on the planning choices involved.
Where the next decision becomes clearer
Once What is a Private Bank: Foreign-License Class A, B, C is on the table, the next questions usually center on risk, flexibility, and which planning step deserves attention first.
Points readers weigh before moving forward
- Jurisdiction matters because offshore planning depends on the law, trustee design, and enforcement rules.
- Timing matters because stronger offshore structures are usually built before a claim is close at hand.
- Control matters because the structure has to balance practical access with real protection.
Practical reading path
To keep the next step practical rather than abstract, readers often move to Offshore Asset Protection Trust, Domestic Asset Protection Trust, and Asset Protection Trust. When the question turns from reading to implementation, many readers move from these guides to a direct planning conversation.
