Beruflich Dokumente
Kultur Dokumente
OFFSHORE BANKING
PRESENTED BY:
SNEHAL RUPALI ANUSHRI KIRAN SHWETA SONALI SNEHAL
ROLL NO:
01-A 14-A 31-A 32-A 59-A 37- B 16- B
INTRODUCTION
Offshore Finance The provision of financial services by banks and other agents to nonresidents. Offshore Financial Centers (OFCs) Low -tax, lightly regulated jurisdiction which specialize in providing the corporate & commercial infrastructure to facilitate the use of those jurisdictions for the formation of offshore companies.
OFFSHORE BANKING
Offshore Bank: a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages. Features greater privacy (bank secrecy :a principle born with the 1934 Swiss Banking Act) low or no taxation (i.e. tax havens) protection against local political or financial instability Less restrictive legal regulation Legality of offshore Banking Origin : group of islands off the NW cost of France: The Channel Islands.
FINANCIAL SERVICES
Deposit account Credit Electronic Funds Transfer Foreign Exchange Letter of credit Investment management Trustee Services
ADVANTAGES
Offshore banks can sometimes provide access to politically and economically stable jurisdictions
Some offshore banks may operate with a lower cost base and can provide higher interest rates Offshore finance is one of the few industries, along with tourism, in which geographically remote island nations can competitively engage
CONTI......
Interest is generally paid by offshore banks without tax being deducted Some offshore banks offer banking services that may not be available from domestic banks Offshore banking is often linked to other structures
Many advocates of offshore banking also assert that the creation of tax and banking competition is an advantage of the industry
DISADVANTAGES
Lack of Financial Security Association With the Underground Economy Harm to Government Tax Revenues Tax Competition: A Race to the Bottom Limited Accessibility Not Ideal for Developing Countries
CONCLUSION
Among offshore banks, Swiss Banks hold an 28.1% of the world's private & institutional funds. Between $600 billion and $1.5 trillion of illicit money is laundered
annually.
Today, offshore is where most of the world's drug money is allegedly laundered ($500 billion a year). The proceeds of tax evasion upto $1 trillion. Another few hundred billion come from fraud & corruption.