Off-Shore Banking and Obus
Off-shore Banking /OBUs
Off-shore Banking: Offshore banking refers to the deposit of funds by a company or individual in a bank that is located outside their national residence. Although the term implies that these banks are located on islands, many offshore banks are, in fact, found in onshore locations, such as Panama, Luxembourg and Switzerland. The advantage of offshore banking is that, in many cases, funds are tax exempt where the banks are located. Offshore banks also offer the same services as domestic banks, and frequently they offer more anonymity than would otherwise be available in "onshore" banks.
Off-shore Banking Unit (OBU): A shell branch located in an international financial center. Offshore banking units (OBUs) make loans in the Eurocurrency market when they accept deposits from foreign banks and other OBUs. OBUs' activities are not restricted by local monetary authorities or governments, but they are prohibited from accepting domestic deposits.
Region of OBUs: OBUs have proliferated across the globe since the 1970s. They are found throughout Europe, as well as in the Middle East, Asia and the Caribbean. U.S. OBUs are concentrated in the Bahamas, the Cayman Islands, Hong Kong, Panama and Singapore.
Origins of Offshore Banking
The term "offshore bank" originated with banks that were established on the British Channel Islands, off the coast of northwest France. These institutions were set up as tax havens to attract more investment. Currently, many jurisdictions where offshore banks are located do not tax deposits. Offshore banking is also known as "private banking."
Functions of an Offshore Bank
An offshore bank provides the same services as an onshore bank does. It is an institution in which to deposit savings, and it also provides investment services for its clients. Depositors do not need to go in person to open an account. Because offshore banks are found in places that would entail long travel times, they frequently open accounts based
Off-shore Banking: Offshore banking refers to the deposit of funds by a company or individual in a bank that is located outside their national residence. Although the term implies that these banks are located on islands, many offshore banks are, in fact, found in onshore locations, such as Panama, Luxembourg and Switzerland. The advantage of offshore banking is that, in many cases, funds are tax exempt where the banks are located. Offshore banks also offer the same services as domestic banks, and frequently they offer more anonymity than would otherwise be available in "onshore" banks.
Off-shore Banking Unit (OBU): A shell branch located in an international financial center. Offshore banking units (OBUs) make loans in the Eurocurrency market when they accept deposits from foreign banks and other OBUs. OBUs' activities are not restricted by local monetary authorities or governments, but they are prohibited from accepting domestic deposits.
Region of OBUs: OBUs have proliferated across the globe since the 1970s. They are found throughout Europe, as well as in the Middle East, Asia and the Caribbean. U.S. OBUs are concentrated in the Bahamas, the Cayman Islands, Hong Kong, Panama and Singapore.
Origins of Offshore Banking
The term "offshore bank" originated with banks that were established on the British Channel Islands, off the coast of northwest France. These institutions were set up as tax havens to attract more investment. Currently, many jurisdictions where offshore banks are located do not tax deposits. Offshore banking is also known as "private banking."
Functions of an Offshore Bank
An offshore bank provides the same services as an onshore bank does. It is an institution in which to deposit savings, and it also provides investment services for its clients. Depositors do not need to go in person to open an account. Because offshore banks are found in places that would entail long travel times, they frequently open accounts based