Since January 1st 2016 and according to a law voted in August 21st 2015 in France, French clients might be liable to rescue French banks from their funds in excess of 100.000 euros.
This came as a shocking news when French deposit holders thought for ages to be in a safe country and place, however the government has allowed the law to be voted, placing the end client as a source of fund capitalization in case the bank where the hold their asset would face a bankrupt or capital loss and would need fresh money to sustain their operations and business.
As far as banking exists, and just as any other business, banks who would face a financial disruption would have call up to their shareholders to “bail-in” French money and eventually as an emergency solution would turn to the central bank or it’s government to be provided with a loan to secure their clients.
However, from Jan 1st 2016 banks will be allowed to use their clients deposits above 100.000 euros to save the bank from a bankruptcy.
An Offshore account to protect your money
It’s not even about saving your money from tax that you should be concerned of opening an offshore account but rather to keep your entire money away from the hands of… your own bank!
As an alternative solution you may keep all your French accounts under 100.000 euros, which means that in case you have one million euros deposit you shall need 10 different banks…
It’s not even a question that it may take you a simpler step to open one single Offshore account and have your funds safe abroad.