Offshore banking is a banking process happens outside the country of residence of the depositor, typically in a low tax jurisdiction that provide financial and legal advantages. These advantages typically include: * Greater privacy.
* low or no taxation (i.e. tax havens)
* easy access to deposits (at least in terms of regulation) * protection against local, political, or financial instability Simply a bank is located in some place other than your home country or country of residence, this does not necessarily make it an "offshore" bank. An offshore bank must be specifically licenced as such under appropriate offshore banking legislation. HISTORY
The origins of the offshore banking industry are found in a group of islands off the northwest coast of France: the Channel Islands. Several years ago a group of like minded bankers and government officials decided to offer an offshore remedy of lower taxation and promises of anonymity and confidentiality. The intent was to seize upon the frustration of UK and European residents fed up with oppressively high rates of taxation and insufficient safeguards to privacy and confidentiality in their home countries. These offshore banking institutions and new offshore financial centers gained instant notoriety and popularity. The offshore banking industry was born. BANKING PRACTICESS
It is possible to obtain the full spectrum of financial servicess from offshore banks, including: * Deposit taking
* Corporate administration
* Foreign exchange
* Investment management and custody