What Is An Offshore Bank And How Can Risk Management Help You?
Offshore Bank: The term offshore or extraterritorial banking refers to a type of banking entity, normally located in tax havens, which are regulated by special laws that grant them greater freedom in their operations, in addition to more favorable tax treatment. These are institutions aimed one hundred percent at capturing deposits and investments from non-resident individuals and companies and to which citizens of the country themselves do not have access. It should be noted that not all banking entities located in a tax haven are offshore banks . They also coexist with the same normal or onshore banks, which provide services to residents and which are not covered by the specific legislation mentioned above. What are the advantages of offshore bank? Greater freedom: Less government intervention and exemption from complying with regulations on capital such as exchange controls, foreign transactions, or investment policy. This implies greater freedom of movement for your cli...