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OFFSHORE BANKING

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.

OFFSHORE BANKING IN INDIA


Offshore banking has taken shape in India since 2002 These banks would be treated as foreign branches of the Indian banks but located in India. SBI and ICICI Bank have opened the first offshore banking unit (OBU) in Mumbai.

THREE MAJOR REASONS TO BANK OFFSHORE Profit


Privacy Protection

FINANCIAL SERVICES
Deposit account Credit Electronic Funds Transfer Foreign Exchange Letter of credit Investment management Trustee Services

OFFSHORE BANKING CENTERS


An offshore banking center is a country whose banking system is organized to permit external accounts beyond the normal scope of local economic activity.
The host country usually grants complete freedom from host-country governmental banking regulations.

OFFSHORE BANKING CENTERS


Antigua and Barbuda Bahamas Barbados Belize Bermuda British Virgin Islands Cayman Islands Channel Islands (Jersey Guernsey) Cook Islands Cyprus Dominica Gibraltar Ghana Hong Kong Isle of Man Labuan, Malaysia Liechtenstein Luxembourg Malta Macau Mauritius Monaco Montserrat Nauru Panama Saint Kitts and Nevis Seychelles Singapore Switzerland Turks and Caicos Island

SWISS OFFSHORE BANKING


Banking in Switzerland
Switzerland is preferred offshore choice for wealthy individuals who want guaranteed assurances about safe keeping and prosperity of their assets.

Wealth Protection and Management


Swiss Offshore Banking creates an individual package for each client.

SWISS OFFSHORE BANKING SERVICES


It is the relationship between clients and financial advisors and the process, during which each advisor creates and profiles a customized offshore strategy for each client based on his or her individual and personal needs and goals.

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.