Offshore Banking

Not every bank that is located in a foreign country is offshore bank, to be an offshore, it should be specifically licenced as such under appropriate offshore banking legislation.

Regular onshore banking is subject to the tax rules, foreign exchange rules and charges of whatever country the account is located in. These rules are also subject to foreign exchange regulations, and are not covered by the offshore banking confidentiality and asset protection legislation. On the contrary, offshore banking is tax free, all account information is confidential, and there are no foreign exchange regulations.

Also, offshore international banking is a good business, as a result, some companies are diversifying by creating their own offshore bank. In some offshore jurisdictions, to receive a bank license it is required to have equities in the amount of just $100,000 or less. The company having its own offshore bank may use bank services for its own operations, such as loans, mortgages and debentures.