What is offshore banking?
Offshore banking can be defined as using the services of a bank located in a different jurisdiction or country than the depositor resides in. Offshore banks are usually located in places considered as tax havens and also provide additional confidentiality and security for the depositor.
The term offshore was originated from the British Channel Islands, tax havens located literally offshore from the United Kingdom. These were the original tax havens and they started the usage of the term offshore for describing the industry. Those islands became major international banking centers because of those tax benefits and regulations. They were optimal places to hold assets abroad or save and invest. Continue reading “Offshore Banking”