Offshore bank

offshore bankingoffshore accountoffshoreoffshore accountsoffshore bank accountsEU savings tax directiveoffshore bank accountasset hidingbankbank deposits abroad
An offshore bank is a bank regulated under international banking license (often called offshore license), which usually prohibits the bank from establishing any business activities in the jurisdiction of establishment.wikipedia
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Tax haven

tax havenstax haven listscountry
Since the 1980s, jurisdictions that provide financial services to nonresidents on a big scale, can be referred to as offshore financial centres. Since OFCs often also levy little or no tax corporate and/or personal income and offer, they are often referred to as tax havens.
While incomplete, and with the limitations discussed below, the available statistics nonetheless indicate that offshore banking is a very sizable activity.

Organized crime

organised crimecriminal organizationunderworld
Offshore banking has often been associated with the underground economy and organized crime, tax evasion and money laundering; however, legally, offshore banking does not prevent assets from being subject to personal income tax on interest.
The ability for organized criminals to operate fraudulent financial accounts, utilize illicit offshore bank accounts, access tax havens or tax shelters, and operating goods smuggling syndicates to evade importation taxes help ensure financial sustainability, security from law enforcement, general anonymity and the continuation of their operations.

Bank

bankerbankingbanking system
An offshore bank is a bank regulated under international banking license (often called offshore license), which usually prohibits the bank from establishing any business activities in the jurisdiction of establishment.
Offshore banks: banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks.

1998–2002 Argentine great depression

economic crisisArgentine economic crisis2001 economic crisis
Offshore banks can sometimes provide access to politically and economically stable jurisdictions. This will be an advantage for residents of areas where there is a risk of political turmoil, who fear their assets may be frozen, seized or disappear (see the corralito for example, during the 2001 Argentine economic crisis). However, it is often argued that developed countries with regulated banking systems offer the same advantages in terms of stability.
Massive tax evasion and money laundering contributed to the movement of funds toward offshore banks.

Private banking

private bankGlobal Wealth Managementprivate banker
Banks tend to polarise between retail services and private banking services.
Swiss and certain offshore banks have been criticized for such cooperation with individuals practicing tax evasion.

Offshore financial centre

offshoreoffshore financial centresoffshore financial centers
Since the 1980s, jurisdictions that provide financial services to nonresidents on a big scale, can be referred to as offshore financial centres. Since OFCs often also levy little or no tax corporate and/or personal income and offer, they are often referred to as tax havens.
International initiatives have largely stopped this practice, and very few offshore financial centres will now issue licences to offshore banks that do not already hold a banking licence in a major onshore jurisdiction.

International business company

International Business CompaniesIBCinternational business corporation
Some $3 trillion is in deposits in tax haven banks and the rest is in securities held by international business companies (IBCs) and trusts.
IBCs are offshore companies that are most commonly used for offshore banking to conduct international trade, investment activities, as a special purpose entity, by professionals and for asset protection.

Money laundering

money-launderinglaunderinglaunder
Offshore banking has often been associated with the underground economy and organized crime, tax evasion and money laundering; however, legally, offshore banking does not prevent assets from being subject to personal income tax on interest. With worldwide increasing measures on CFT (combatting the financing of terrorism) and AML (anti-money laundering) compliance, the offshore banking sector in most jurisdictions was subject to changing regulations. Since 2000 the Financial Action Task Force issues the so-called FATF blacklist of "Non-Cooperative Countries or Territories" (NCCTs), which it perceived to be non-cooperative in the global fight against money laundering and terrorist financing.
Bulk cash smuggling: This involves physically smuggling cash to another jurisdiction and depositing it in a financial institution, such as an offshore bank, with greater bank secrecy or less rigorous money laundering enforcement.

Meyer Lansky

LanskyMeyer 'The Brain' Lansky
In the 1970s through the 1990s, it was possible to own your own personal offshore bank; mobster Meyer Lansky had done this to launder his casino money.
Lansky eventually even bought an offshore bank in Switzerland, which he used to launder money through a network of shell and holding companies.

Offshore company

offshore companiesoffshoreoffshore societies
Offshore banking is often linked to other structures, such as offshore companies, trusts or foundations, which may have specific tax advantages and first security bank solutions incorporated in particular jurisdictions.
Offshore bank

European Union withholding tax

EU savings tax
In their efforts to stamp down on cross border interest payments EU governments agreed to the introduction of the Savings Tax Directive in the form of the European Union withholding tax in July 2005.
Offshore bank

Bank secrecy

banking secrecyfinancial privacybank–client confidentiality
Greater privacy (see also bank secrecy, a principle born with the 1934 Swiss Banking Act)
Most often associated with banking in Switzerland, banking secrecy is prevalent in Luxembourg, Monaco, Hong Kong, Singapore, Ireland, and the Cayman Islands, among other off-shore banking institutions.

Dominica

🇩🇲Commonwealth of DominicaDominican
Dominica
The largest sectors are "offshore banking, payment processing companies, and general corporate activities".

Outline of finance

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List of finance topics
Offshore bank

Private bank

privateprivate banksprivate banking house
Private bank
Offshore bank

Regulatory competition

charter competitionless regulation
Due to less regulation and transparency, accounts with offshore banks were often used to hide undeclared income.

Terrorism financing

terrorist financingfinancing of terrorismterror financing
With worldwide increasing measures on CFT (combatting the financing of terrorism) and AML (anti-money laundering) compliance, the offshore banking sector in most jurisdictions was subject to changing regulations. Since 2000 the Financial Action Task Force issues the so-called FATF blacklist of "Non-Cooperative Countries or Territories" (NCCTs), which it perceived to be non-cooperative in the global fight against money laundering and terrorist financing.

Financial Action Task Force on Money Laundering

FATFFinancial Action Task ForceFATF-style regional body
Since 2000 the Financial Action Task Force issues the so-called FATF blacklist of "Non-Cooperative Countries or Territories" (NCCTs), which it perceived to be non-cooperative in the global fight against money laundering and terrorist financing.

Finance

financialfinancesfiscal
An account held in a foreign offshore bank, is often described as an offshore account. Typically, an individual or company will maintain an offshore account for the financial and legal advantages it provides, including:

Channel Islands

Channel Islandthe Channel IslandsChannel Islander
While the term originates from the Channel Islands being "offshore" from the United Kingdom, and while most offshore banks are located in island nations to this day, the term is used figuratively to refer to any bank used for these advantages, regardless of location.

United Kingdom

British🇬🇧UK
While the term originates from the Channel Islands being "offshore" from the United Kingdom, and while most offshore banks are located in island nations to this day, the term is used figuratively to refer to any bank used for these advantages, regardless of location.

Island country

island nationisland countriesisland state
While the term originates from the Channel Islands being "offshore" from the United Kingdom, and while most offshore banks are located in island nations to this day, the term is used figuratively to refer to any bank used for these advantages, regardless of location.

Andorra

🇦🇩Principality of AndorraAND
Thus, some banks in landlocked Andorra, Luxembourg, and Switzerland may be described as "offshore banks".

Luxembourg

🇱🇺LUXGrand Duchy of Luxembourg
Thus, some banks in landlocked Andorra, Luxembourg, and Switzerland may be described as "offshore banks".

Switzerland

Swiss🇨🇭SWI
Thus, some banks in landlocked Andorra, Luxembourg, and Switzerland may be described as "offshore banks".