| An offshore bank is a bank located
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| | account deposit protection insurance
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| outside the country of residence of the
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| | systems. Some offshore banks may even
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| depositor in a low- or no- tax
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| | provide higher interest rates than banks
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| jurisdiction. It provides financial and
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| | in the home country, but the fees and
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| legal advantages like privacy, reduced
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| | minimum deposits required to open and
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| legal restrictions, and protection
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| | operate accounts at some offshore banks
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| against local political or financial
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| | can make them inaccessible to the general
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| instability. Offshore banking has
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| | public.
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| increased rapidly all over the world
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| | The majority of offshore banks operate
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| since mid-1960s because of the growth and
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| | within highly regulated environments
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| liquidity of Eurocurrency markets.
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| | under national monetary bodies such as
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| The full spectrum of financial services
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| | the IMF. These banks are required to
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| from offshore banks include deposit
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| | maintain capital adequacy requirement in
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| taking, credit, money transmissions,
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| | accordance with international standards.
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| provision of foreign exchange, letters of
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| | They must submit financial reports at
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| credit and trade finance, investment
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| | least quarterly to the regulator on the
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| custody, investment management, fund
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| | current state of their business.
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| management, trustee services, and
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| | One common misconception about offshore
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| corporate administration.
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| | banking is that it can legally prevent
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| Offshore banks provide access to
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| | assets from being subject to personal
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| politically and economically stable
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| | income tax or interest. For those persons
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| jurisdictions that may be an advantage
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| | who meet fairly complex requirements,
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| for those resident in areas where there
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| | this conception is not applicable because
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| is a risk of expropriation or where there
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| | the personal income tax of most countries
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| is corruption within the banking system.
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| | makes no distinction between interest
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| Many offshore banks offer services that
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| | earned in local banks and those earned
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| may be unavailable in one's country of
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| | abroad. For instance, people subject to
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| residence, such as paperless bank
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| | pay US income tax are required to declare
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| statements. Offshore banks in several
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| | any offshore bank accounts they may have.
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| nations participate in mandated bank
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