| It's important to keep in mind that
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| | fund transfer mechanisms which occurred
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| offshore financial centers were
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| | early on in the 1970s. That single
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| originally established by onshore banks
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| | technological development made it
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| and corporations. Why? Because felt
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| | suddenly possible and affordable to
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| hemmed-in by archaic laws, regulations
| |
| | establish banks, corporations and holding
|
| and statutes. For example, Citicorp (the
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| | companies in relatively remote locations.
|
| largest American-owned bank in the United
| |
| | It also made inter and intra time-zone
|
| States) was one of the first to set-up
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| | business a viable alternative to
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| offshore operations. It wasn't too long
| |
| | home-based operations. In turn, this gave
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| before 64 percent of its net income was
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| | rise to the creation of international
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| being generated by offshore sources.
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| | wholesale banking - where large deposits
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| Some of the pioneering centers have
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| | could be maintained in a variety of
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| evolved into world-class financial and
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| | currencies, transferred via a worldwide
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| economic headquarters. Since the early
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| | network of corporations, banks,
|
| 1970s, these centers have initiated
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| | governments and individuals, and lent to
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| policies deliberately designed to attract
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| | interested borrowers. This, in turn, led
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| international trade by minimizing tax
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| | to new transnational business practices
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| obligations and reducing (or entirely
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| | and the development of the international
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| eliminating) other restrictions on
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| | subcontracting of loans and other
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| business operations. The result is that
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| | financial transactions.
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| economic activity within these centers is
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| | Basically, international havens have
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| specifically geared to the special global
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| | become an established part of the
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| needs of outside businesses and
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| | international intermediate economy. They
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| investors.
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| | stand as "brokers" of a sort for global
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| Typically, these centers are small states
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| | business and finance. It's important to
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| with tiny populations. To date more than
| |
| | keep in mind that all of this was
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| 75 of these tax havens exist throughout
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| | initiated by large banks, corporations
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| the world. Each one of them is a unique
| |
| | and even government agencies from around
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| offshore haven of sorts deliberately
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| | the world. Keep in mind that every
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| intended to attract very particular
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| | government from the Soviet Union to
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| investors with very specific needs.
| |
| | Japan, China and the United States needs
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| For example, a center like Aruba was set
| |
| | to obtain money on the international
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| up primarily for economic development.
| |
| | market. They, too, use money havens as
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| Formerly dependent on oil refineries for
| |
| | convenient transaction points. The
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| its revenue, it has now implemented an
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| | Bahamas became one of the biggest
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| investment policy that gives it entree to
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| | offshore havens because it serves the
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| the global economic system. Becoming an
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| | purposes of various government entities
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| offshore money haven was the answer. By
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| | from finance ministries to intelligence
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| "renting" its laws regarding taxation,
| |
| | agencies.
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| incorporation and other related legal
| |
| | Offshore havens are, today, an accepted
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| matters, Aruba has begun a much needed
| |
| | financial fact. Even more important, they
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| process of economic development and
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| | are seen as legitimate vehicles through
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| diversification.
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| | which individual investors can take
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| Singapore, on the other hand, was
| |
| | advantage of the offshore option. If is
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| designed to serve the Asian dollar
| |
| | simply a matter of applying the basic
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| market. Today it's one of the most
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| | financial principles of profit, tax
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| prosperous money havens in the world on a
| |
| | protection and privacy. They were
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| per capita basis. And Bahrain was
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| | developed over the centuries by
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| developed to process the Middle East's
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| | Florentine merchants, royal treasurers
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| offshore financial needs, especially
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| | and brilliant bankers. The mechanisms and
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| Saudi Arabia's.
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| | strategies change continuously, but the
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| All these offshore havens were made
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| | goals always remain the same.
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| possible by the electronic revolution in
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| |
|
