Offshore banking

PRESENTED BY: FARIHA SHAKEEL(9100)

USMAN IRFAN (10899)

SANDESH KUMAR (10716)

INTRODUCTION

Definition of offshore banking

It provides legal and financial advantages

They are also found in onshore location

Services provided are same as off onshore banks.

Services

Presence all over the world

Origin of offshore banking Globalization

Place for tax havens Definition of “tax havens”

Advantages of offshore banking Provides politically and economically

stable jurisdictions. Provide lower cost and higher

interest rate Engage in helping developing

countries Interest is paid without deduction of

tax. Privacy of account.

Disadvantages of offshore banking Not for small savers

Involved in crime

Distance issue

•Banking practices•Misconceptions•Access to funds

Function of a offshore bank It provides theinvestments service to

its clients. Depositors do not need to go in

personal to open the accounts. For large deposits it can be

established through the off shore intermediaries.

Role of shore bank and investments

Offshore banks play a vital role in facilitating investment worldwide

Offshore banks are exempted from regulatory scrutiny with effect to liquidity.

Offshore banking is an increasingly attractive alternative to heavily regulated financial markets of emerging economies

Operation of an offshore bank

They are integral part of the foreign currency markets.

They contribute to economic development of host country;such as

They raise foreign loans and bonds It speeds up communication and

transport network in host country.

Enhances economic growthPotential tax efficiencyConvenience: easy, international accessA safe haven for your moneySince it provides a broad range of features, offshore banking can provide you absolute safety and security Many of the offshore banking facilities assure privacy and confidentiality Multiple currencies

Benefits of the Offshore Banking Benefit from more attractive account

structures and interest rates Benefit from global access to funds Bank in multiple currencies Have access to global business

opportunities Bank in an economically and politically

stable jurisdiction if we reside in a country that has a corrupt banking system or is presently less than stable

Legality of Offshore Banking It is absolutely legal service provided

by a financial institution What can be illegal is when a person

holds offshore bank account, receives an income and does not report this income in his home country

Tax evasion is illegal

Safety, Confidential Information & Security of Offshore Banking

Located in politically stable countries Financial sector is tightly regulated

to eliminate risk Bank secrecy( varies on country’s

legislation) Also offer anonymous bank accounts