Offshore Banking and your security clearance?

Question

If you have a security clearance for the purposes of enlistment and employment in the Armed Forces of the United States of America, what sort of restrictions do they impose on your use of an offshore banking entity and will having an offshore account negatively affect your clearance?

Answer 1

When your security clearance package is finally ready to be sent off for processing you sign three release forms.  One for medical records to be released, one for any law enforcement records, and a third for banking, lending, and credit institutions.  This off course applies to institutions doing business within the US and those banks don't for whatever reasons and so investigators can come back and ask for clarification and the reasons as to why you have an off-shore account and where those funds came from.  So it could hold your clearance investigation up and depending on the reasons possibly place you in a position where it might not be approved.

Answer 2

Call base legal with that one.  My personal thoughts are they probably would not be thrilled with it, simply because they could not request info from the bank as part of the clearance, but again, you need the official answer on this one and legal is the best place for that.

Answer 3

That would be a good question to ask a legal expert who deals with military law. I don't mean a JAG officer but a civilian. I had a clearence when I served and I had never thought about that. Tell me what he says. This has peaked my interest.