The term offshore banking or offshore bank is often used. But what is the definition of an offshore bank and offshore banking?
The terms originates from the the Channels Islands outside the United Kingdom offering banking services “offshore” from the United Kingdom. Even today most offshore banks are located on islands even though there are a couple of land-side nations like Switzerland, Panama and Lichtenstein being regarded as offshore banking centers.
In order to establish a definition an offshore bank normally can be said to have the following main characteristics:
1. The offshore bank is located outside of the country of residence of the person, company or other association depositing money.
2. The offshore bank is situated in a country with strong secrecy and privacy laws.
3. The offshore bank is situated in a country with low or no taxes.
4. The offshore bank provides a modern technology structure with an easy access to deposits.
5. The offshore bank provides collaborates with legal professionals specialised in tax law.
Related posts: