ibf project viru
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INTRODUCTION
Rupert Murdoch and Offshore: one of the wealthiest US citizens uses
offshore to reduce tax.
George Soros is known as the wealthiest speculator of all time. His trading all
took place in the Netherlands Antilles, where his earnings compounded tax
free. If you think he has this advantage only because of his wealth read on.
Here is a list of Trend Followers with operations offshore:
John W. Henry Global Strategies Ltd.
Sjo Global Fund Ltd.
Eckhardt Futures
Mark J. Walsh Global
Chesapeake Fund Ltd.
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OFFSHORE BANK
An offshore bank is abanklocated outside the country of residence of the
depositor, typically in a low tax jurisdiction (ortax haven) that providesfinancial
and legal advantages. These advantages typically include:
Greaterprivacy Low or notaxation(i.e.Tax havens) Easy access todeposits(at least in terms of regulation) Protection against local political or financial instability
While the term originates from the Channel Islandsbeing "offshore" from
theUnited Kingdom, and most offshore banks are located in island nations to this
day, the term is used figuratively to refer to such banks regardless of location,
including Swiss banks and those of other landlocked nations such asLuxembourgandAndorra.
Offshore banking has often been associated with the underground economy
andorganized crime, via tax evasion andmoney laundering.
http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Deposit_(bank)http://en.wikipedia.org/wiki/Deposit_(bank)http://en.wikipedia.org/wiki/Deposit_(bank)http://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Swiss_bankshttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Tax_evasionhttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Tax_evasionhttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Andorrahttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Swiss_bankshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Deposit_(bank)http://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Tax_havenhttp://en.wikipedia.org/wiki/Bank -
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In other words, offshore banking is just the practice of banking in
another country with tax haven jurisdictions characterized by low or zero
taxation on interest, dividends, royalties and foreign derived income as well as
strict banking secrecy laws.
Offshore banking denotes carrying on banking activity which is
insulated from the monetary regulations of the host country. Very often, such
banking centers are set up deliberately to attract international banking
business of dealing in non-resident foreign currency denominated assets and
liabilities by exempting, reducing or eliminating restrictions upon banking
operations as well a lowering tax and/or other levies.
TAX HAVENS
The term "tax haven" means a location where particular taxes are
levied at a low rate, or not at all.
At times, Individuals and organizations can move themselves to areas with
lower tax rates. This creates a situation of tax competition between
governments. Different tax jurisdictions tend to be havens for different kinds
of taxes, and for different kinds of people and organizations.
The former economic adviser to Jersey defines a tax haven as such:
"What ... identifies an area as a tax haven is the existence of a
composite tax structure established deliberately to take advantage of, and
exploit, a worldwide demand for opportunities to engage in tax avoidance."
This is a pretty good definition, however, some other have gone
further to say that any country that modifies its tax laws to attract foreign
capital could be considered as tax haven.
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Switzerland created what is perhaps the first popular modern tax
haven in the early part of the twentieth century. Swiss banks quickly became
a banking haven for citizens of Russia, Germany and parts of South America
avoiding social, political, or economic problems in their home countries.
OFFSHORE BANK ACCOUNT
Any bank account opened outside of one's native country can be
considered an offshore bank account. Offshore bank account can be used for
savings, or as the main means of banking. It may be opened by any individual
or business in most countries, to have major benefits in terms of asset
protection and tax relief.
Service and benefits offered by local banks and offshore banks are quite
similar: offshore banking may be used as savings account, or as the main
means of banking, making investments, purchasing insurance and loans.
Difference lies very much in the taxation area. Some offshore banks
require a substantial initial deposit or other restrictions but the benefits of a
lower tax obligation or higher interest rate usually overweigh this.
Now, many people consider opening offshore bank account for
absolutely legitimate financial reasons, - For Example: to move finances in a
jurisdiction more stable economically or politically.
Regular onshore banking is subject to the tax rules, foreign exchange
rules and charges of the 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 other hand,
offshore banking is tax free, all account information is confidential and there
are no foreign exchange regulations.
http://www.quantusbank.com/Offshore.Banking/Offshore.Banks/http://www.quantusbank.com/Offshore.Banking/Offshore.Banking.Benefits/http://www.quantusbank.com/Offshore.Banking.FAQ/Offshore.Bank.Account/http://www.quantusbank.com/Offshore.Banking.FAQ/Offshore.Bank.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Banking.Benefits/http://www.quantusbank.com/Offshore.Banking/Offshore.Banks/ -
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OFFSHORE BANKING IN THE INDIAN CONTEXT
India has made a cautious beginning in offshore banking by permitting
for the first time Offshore Banking Units (OBUs) to be set up in Special
Economic Zones (SEZs). The SEZs have been set up with a view to providing
an internationally competitive and hassle free environment for export
production.
SEZs will be specially delineated duty free enclave and deemed to be a
foreign territory for the purpose of trade operations and duties / tariffs so as
to usher in export-led growth of the economy. The OBUs virtually would be
foreign branches of Indian banks located in India. These OBUs, inter alia,
would be exempt from reserve requirements and provide access to SEZ units
and SEZ developers to international finances at international rates.
The Reserve Bank of India (RBI) has permitted banks operating in
India, whether Indian, public/private sector or foreign, to set up OBUs in the
SEZs. The OBUs would carry out essentially wholesale banking operations.
The OBUs will be set up as branches of the banks and therefore no separate
assigned capital will be required. All prudential norms applicable to overseas
branches of Indian Banks would apply to OBUs. Thus, the necessary risk
management practices that are in vogue internationally would have to be
adopted by the OBUs. The OBUs will be regulated and supervised by RBI.
They will be required to scrupulously follow Know Your Customer and
other anti- Money laundering directives of RBI from time to time.
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FEATURES OF OFFSHORE BANKING IN INDIA:
They will be permitted to be set up in Special Economic Zones.
These banks will be virtually (almost) foreign branches of the banks but
located in India.
The Overseas Banking Units (OBUs) would be exempted from CRR, SLR
etc.
The OBUs would operate and maintain balance sheet only in foreign
currency and would not be allowed to deal in Indian Rupees except for having
a special Rupee account to meet their day to day expenses. These branches
will not be allowed to participate in domestic call and money market etc.
These accounts can be opened by Non-Resident Individuals, Corporates,
Trusts or Offshore companies.
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FINANCIAL SERVICES BY OFFSHORE BANKING IN INDIA
Offshore banks in India offer lot of financial services:
Acceptance of Multi-Currency Deposits
Multi-Currency borrowing option
Loans against deposits in foreign currency
Derivatives products
Issuance of L/C, Bank Guarantee, Bill Discounting
and collection & negotiation of trade bills
Long term finance and short term finance (working
capital) in all countries
External Commercial Borrowings (ECB) etc.
STATISTICS CONCERNING OFFSHORE BANKING
Offshore banking is an important part of the international financial
system. Experts believe that as much as half the world's capital flows through
offshore centers.
Tax havens have 1.2% of the world's population and hold 26% of the
world's wealth, including 31% of the net profits ofUnited Statesmultinationals.
http://en.wikipedia.org/wiki/Tax_havenshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Tax_havens -
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According toMerrill LynchandGemini Consulting's World Wealth Report
for 2000, one third of the wealth of the world's HIGH NET-WORTH
INDIVIDUALSnearly $6 trillion out of $17.5 trillionmay now be held
offshore. Some $3 trillion is in deposits in tax haven banks and the rest is in
securities held byinternational business companies(IBCs) and trusts.
The IMF has said that between $600 billion and $1.5 trillion of illicit
money is laundered annually, equal to 2% to 5% of global economic output.
Today, offshore is where most of the world's drug money is allegedly
laundered, estimated at up to $500 billion a year, more than the total income
of the world's poorest 20%. Add the proceeds of tax evasion and the figure
skyrockets to $1 trillion. Another few hundred billion come from fraud and
corruption.
"These offshore centers awash in money are the hub of a colossal,
underground network of crime, fraud, and corruption" commented Lucy
Komisarquoting these statistics.
Among offshore banks, Swiss banks hold an estimated 35% of the
world's private and institutional funds (or 3 trillion Swiss francs), and the
Cayman Islands(1.9 trillion US dollars in deposits) are the fifth largest banking
centre globally in terms of deposits.
http://en.wikipedia.org/wiki/Merrill_Lynchhttp://en.wikipedia.org/wiki/Merrill_Lynchhttp://en.wikipedia.org/wiki/Merrill_Lynchhttp://en.wikipedia.org/wiki/Capgeminihttp://en.wikipedia.org/wiki/Capgeminihttp://en.wikipedia.org/wiki/Capgeminihttp://en.wikipedia.org/wiki/International_business_companyhttp://en.wikipedia.org/wiki/International_business_companyhttp://en.wikipedia.org/wiki/International_business_companyhttp://en.wikipedia.org/wiki/Trustshttp://en.wikipedia.org/wiki/Illegal_drug_tradehttp://en.wikipedia.org/wiki/Illegal_drug_tradehttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Swiss_bankhttp://en.wikipedia.org/wiki/Swiss_francshttp://en.wikipedia.org/wiki/Cayman_Islandshttp://en.wikipedia.org/wiki/Cayman_Islandshttp://en.wikipedia.org/wiki/Cayman_Islandshttp://en.wikipedia.org/wiki/Swiss_francshttp://en.wikipedia.org/wiki/Swiss_bankhttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Lucy_Komisarhttp://en.wikipedia.org/wiki/Illegal_drug_tradehttp://en.wikipedia.org/wiki/Trustshttp://en.wikipedia.org/wiki/International_business_companyhttp://en.wikipedia.org/wiki/Capgeminihttp://en.wikipedia.org/wiki/Merrill_Lynch -
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REGULATION OF OFFSHORE BANKS
TERRORIST FINANCE TRACKING PROGRAM
A series of articles published on June 23,2006, by The New York Times,The
Wall Street Journal and The Los Angeles Times revealed that the United States
government, specifically the Treasury Department and the CIA, had a
program to access the SWIFT transaction database after the September 11th
attacks rendering offshore banking for privacy was severely compromised.
They argue that offshore banking offers a competitive threat to the
banking and taxation systems in developed countries.
International banks may also choose to set up branches or offices at centers
http://en.wikipedia.org/wiki/June_23http://en.wikipedia.org/wiki/June_23http://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/The_Wall_Street_Journalhttp://en.wikipedia.org/wiki/The_Wall_Street_Journalhttp://en.wikipedia.org/wiki/The_Wall_Street_Journalhttp://en.wikipedia.org/wiki/The_Los_Angeles_Timeshttp://en.wikipedia.org/wiki/The_Los_Angeles_Timeshttp://en.wikipedia.org/wiki/United_States_governmenthttp://en.wikipedia.org/wiki/United_States_governmenthttp://en.wikipedia.org/wiki/Treasury_Departmenthttp://en.wikipedia.org/wiki/CIAhttp://en.wikipedia.org/wiki/SWIFThttp://en.wikipedia.org/wiki/September_11th_attackshttp://en.wikipedia.org/wiki/September_11th_attackshttp://en.wikipedia.org/wiki/September_11th_attackshttp://en.wikipedia.org/wiki/September_11th_attackshttp://en.wikipedia.org/wiki/SWIFThttp://en.wikipedia.org/wiki/CIAhttp://en.wikipedia.org/wiki/Treasury_Departmenthttp://en.wikipedia.org/wiki/United_States_governmenthttp://en.wikipedia.org/wiki/United_States_governmenthttp://en.wikipedia.org/wiki/The_Los_Angeles_Timeshttp://en.wikipedia.org/wiki/The_Wall_Street_Journalhttp://en.wikipedia.org/wiki/The_Wall_Street_Journalhttp://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/June_23 -
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abroad including offshore centers with a view to avoid conformity to stringent
domestic monetary policy regulations. The basic characteristic of offshore
banking is its segregation from the banking system of the host country. In
sense, the banking centers remain offshore and uncontrolled. Several of the
US international banks set up branches at an offshore center such as Bahamas
to get away from the restriction of the US federal government on domestic
banking in USA
In the 21st century, regulation of offshore banking is allegedly
improving, although critics maintain it remains largely insufficient. The
quality of the regulation is monitored by supra-national bodies such as the
International Monetary Fund (IMF). Banks are generally required to maintain
capital adequacy in accordance with international standards. They must
report at least quarterly to the regulator on the current state of the business.
Since the late 1990s, especially following September 11, 2001, there have
been a number of initiatives to increase the transparency of offshore banking,
although critics such as the Association for the Taxation of Financial
Transactions for the Aid of Citizens (ATTAC) non-governmental organization
(NGO) maintain that they have been insufficient.
A few examples of these are:
The tightening of anti-money laundering regulations in many countries
including most popular offshore banking locations means that bankers
are required, by good faith, to report suspicion of money laundering to
the localpoliceauthority, regardless ofbanking secrecyrules. There is more
international co-operation between police authorities.
http://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/September_11http://en.wikipedia.org/wiki/September_11http://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/Transparency_(humanities)http://en.wikipedia.org/wiki/ATTAChttp://en.wikipedia.org/wiki/ATTAChttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Anti-money_launderinghttp://en.wikipedia.org/wiki/Anti-money_launderinghttp://en.wikipedia.org/wiki/Policehttp://en.wikipedia.org/wiki/Policehttp://en.wikipedia.org/wiki/Policehttp://en.wikipedia.org/wiki/Banking_secrecyhttp://en.wikipedia.org/wiki/Banking_secrecyhttp://en.wikipedia.org/wiki/Banking_secrecyhttp://en.wikipedia.org/wiki/Banking_secrecyhttp://en.wikipedia.org/wiki/Policehttp://en.wikipedia.org/wiki/Anti-money_launderinghttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/ATTAChttp://en.wikipedia.org/wiki/ATTAChttp://en.wikipedia.org/wiki/Transparency_(humanities)http://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/September_11http://en.wikipedia.org/wiki/International_Monetary_Fund -
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In the US the Internal Revenue Service (IRS) introduced QualifyingIntermediary requirements, which mean that the names of the
recipients of US-source investment income are passed to the IRS.
Following9/11the US introduced theUSA PATRIOT Act, which authorises
the US authorities to seize the assets of a bank, where it is believed that
the bank holds assets for a suspected criminal. Similar measures have
been introduced in some other countries.
The European Union has introduced sharing of information between
certain jurisdictions, and enforced this in respect of certain controlled
centres, such as the UK Offshore Islands, so that tax information is able
to be shared in respect of interest.
Banks are generally required to maintain capital adequacy in
accordance with international standards. They must report at least
quarterly to the regulator on the current state of the business.
http://en.wikipedia.org/wiki/Internal_Revenue_Servicehttp://en.wikipedia.org/wiki/Internal_Revenue_Servicehttp://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/USA_PATRIOT_Acthttp://en.wikipedia.org/wiki/USA_PATRIOT_Acthttp://en.wikipedia.org/wiki/USA_PATRIOT_Acthttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/USA_PATRIOT_Acthttp://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/Internal_Revenue_Service -
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BANKING SERVICES
It is possible to obtain the full spectrum of financial servicesfrom offshore
banks, including:
Deposit taking Credit Wire-andelectronic funds transfers Foreign exchange Letters of credit and trade finance Investment management and investment custody Fund management
Trustee services Corporate administration
USES OF OFFSHORE COMPANIES
Investment Holding Trading Property Investment Financing Patent, Royalty and Copyright Holding Entertainment, Consultancy and Professional Services Ship Management and Yacht Owning International Trade - Letters of credit, documentary collections, Cross-
border guarantees and global banking services at locations around the
world.
Risk Management: Foreign exchange, Interest rate, Equity and EnergyPrice Risk Management Tools.
Financing. Payment, receivables and payroll solutions.
http://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Credit_(finance)http://en.wikipedia.org/wiki/Credit_(finance)http://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Electronic_moneyhttp://en.wikipedia.org/wiki/Electronic_moneyhttp://en.wikipedia.org/wiki/Electronic_moneyhttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Letter_of_credithttp://en.wikipedia.org/wiki/Letter_of_credithttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Fund_managementhttp://en.wikipedia.org/wiki/Fund_managementhttp://en.wikipedia.org/wiki/Trusteehttp://en.wikipedia.org/wiki/Trusteehttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Trusteehttp://en.wikipedia.org/wiki/Fund_managementhttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Letter_of_credithttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Electronic_moneyhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Credit_(finance)http://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Financial_services -
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Selling Solutions: Point of sale, E-commerce and MerchantProgrammes.
Speciality solutions, such as dealer, shareowner and fund services. Expertise in matters such as energy, aviation, shipping or real estate.
CREDIT CARD AND DEBIT CARD SERVICES
Most banks offer a comprehensive range of credit and debit card
services for either personal or corporate accounts. In many cases, the
currency of the card is dependent upon the country in which the bank
operates. Many banks have introduced US Dollar cards to cater for the
international market.
CLIENTS
1. INDIVIDUAL CLIENTSThe majority of people who open an offshore bank account fall into one
of the three following general categories: -
1) HIGH NET WORTH INDIVIDUALS - These are people with a disposable
income in excess of one million US dollars.
2) EXPATRIATES - These are people who are located overseas away from
their home country either on an employment assignment or in retirement.
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3) BUSINESS OWNERS - Generally these are individuals who own
companies whose shares are owned by family members or a close working
partnership.
According to statistics the majority of individual offshore banking
clients come from Europe, Australia and North America, but more recently
larger numbers of Eastern European, African, Indian and Asian individuals
have found that offshore banking structures suit their own personal
requirements.
The type of person who falls into the above three categories range
from those with inherited wealth to those who have earned it by themselves
and they all utilize offshore banking for the following benefits: taxation
planning, estate planning, pre-immigration or repatriation planning, privacy
and asset protection.
2. CORPORATE CLIENTSThere are far more corporate clients with offshore banking needs than
individual clients. They fall into one of the following categories:
1) Multi-national corporations.
2) Large industrial and trading companies.
3) Shipping companies.
4) Financial services and banking institutions.
The benefits of offshore banking for such companies are diverse and
range from the fact that a large number of companies actually outsource parts
of their operations overseas and require accounts in these countries to the fact
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that many offshore jurisdictions have tax free zones through which companies
can operate all or part of their operations tax effectively.
CRITERIAS TO OPEN OFFSHORE ACCOUNT FOR A CLIENT
Aspects considered are:
The nationality, residence and domicile of the client. Banks often have
policies that deny, restrict or place conditions upon certain classes of clients
from having access to their services, and these policies change from time-to-
time.
OFFSHORE
BANKING CONSIDERATIONS
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The best offshore bank account will depend very much on personal
circumstances and account requirements
For example whether you are looking for a bank account, tax solution
or an asset protection plan. If you need advice make sure you get independent
assistance and always do full due diligence before moving your assets to an
offshore bank's account.
* Any banks you considered should be located in a secure offshore jurisdiction
where they are subject to the regulation, supervision and licensing of an
independent statutory body. This is necessary to ensure the security of funds
placed in an account;
* You should be sure that the particular offshore bankyou are interested in
has a reputable parent company, good reputation and history.
* There is much difference in account costs and transaction fees, but many
people do not look at fee structures when opening bank account. This
information always remains available to the customers.
* Offshore bank accounts usually come with extra account options and
features such as the ability to conduct transactions in more than one currency,
etc., and they are often more expensive than current accounts in local banks.
If you do not need so many extra features, you can obtain the cheaper variant
of the offshore bank account excluding extra features you do not require.
IS IT LEGAL FOR ME TO HAVE AN OFFSHORE BANK ACCOUNT?
Yes, absolutely legal. Offshore banking has been routinely and legally
used for many years by individuals and organizations worldwide. Because
many countries encourage international trade and enterprise, there are
usually only limited restrictions on residents doing business or having bank
accounts in other countries. However, reporting requirements on these
accounts differ from country to country.
http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Jurisdictions/http://www.quantusbank.com/Offshore.Account.Opening/Choosing.Offshore.Bank/http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Fees/http://www.quantusbank.com/Offshore.Account.Opening/Range.of.Services/http://www.quantusbank.com/Offshore.Account.Opening/Range.of.Services/http://www.quantusbank.com/Offshore.Account.Opening/Range.of.Services/http://www.quantusbank.com/Offshore.Account.Opening/Range.of.Services/http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Fees/http://www.quantusbank.com/Offshore.Account.Opening/Choosing.Offshore.Bank/http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Jurisdictions/ -
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OPENING OF OFFSHORE BANK ACCOUNT
PROCEDURES & MAINTENANCE
OPENING AN OFFSHORE ACCOUNT
Opening a foreign bank account is not that easy as numerous people
think. You can't just walk into a place and start signing a form that will open
your account after you're done filling in. Unluckily, the banking facilities you
might be dealing with are placed in that foreign country. They might have
unique identification laws that you'll have to agree with in order to open an
account.
Luckily, you do not have to travel all the way to every corner of the world just
to open an account. Internet is one of the most prestigious inventions these
days. By accessing a site, you can easily open your account behind your desk
and within no time you can shift money at anytime from anywhere in world.
First off, it is best to get some more info about obligations and your
requirements with a specialist in this area if you are ready to open a bank
account. After you are done with this and you fully understand everything, it's
time to take a look at which country offers the lowest taxes.
Setting up offshore bank accounts at an offshore bank is a great idea,
but you have to know on the dot what you are dealing with and what the risks
are. Take a look at Offshore Banking for more information.
http://www.zimbio.com/go/Tua5O-01kRF/http:/offshore-banking.blinkweb.com/http://www.zimbio.com/go/5oGg-pw6cG8/http:/sites.google.com/site/offshorebankgroup/http://www.zimbio.com/go/1zrcRg7osPW/http:/www.myoffshorebanking.info/http://www.zimbio.com/go/1zrcRg7osPW/http:/www.myoffshorebanking.info/http://www.zimbio.com/go/5oGg-pw6cG8/http:/sites.google.com/site/offshorebankgroup/http://www.zimbio.com/go/Tua5O-01kRF/http:/offshore-banking.blinkweb.com/ -
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ADVANTAGES OF OFFSHORE BANKING
WHO COULD BENEFIT ?
You could benefit if you're planning to move or retire abroad, or are
already living in another country. You may also benefit if you have homes or
commitments in more than one country. If you live in a country which is
politically or economically unstable, you may choose to place your money
offshore in order to protect your assets more effectively.
The purposes to open offshore bank account may include tax liability
minimization, asset protection, estate planning, confidentiality, better returns,
and the chance to exploit active business interests offshore from a zero tax
jurisdiction.
Large part of the companies establish accounts with international and
offshore banks rather than domestic banks because of the following
characteristics:
* TAX EFFICIENCY:
In most offshore jurisdictions tax benefits, including interest on offshore
accounts and investments, are paid without the deduction of tax. Offshore
banks and private companies are not liable to income tax, also considering
capital gains tax and stamp duties on property as exempt. There is no need to
visit the bank to open an offshore account.
* CONFIDENTIALITY:
Most offshore banks provide high level of confidentiality, security and
convenience. All personal data and the details of your banking, including the
http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Jurisdictions/http://www.quantusbank.com/Offshore.Account.Opening/Choosing.Offshore.Bank/http://www.quantusbank.com/Offshore.Account.Opening/Choosing.Offshore.Bank/http://www.quantusbank.com/Offshore.Account.Opening/Offshore.Banking.Jurisdictions/ -
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account balance, are protected by modern legislation. The amount on an
offshore bank account is not liable to inheritance tax.
*ACCESS TO SPECIAL INVESTMENT OPPORTUNITIES: One of offshore
banking benefits is easy global access to deposits, at least in terms of
regulation. Most jurisdictions offer less restrictive legal regulation for
offshore accounts, compared to the accounts opened in local banks. Some
offshore banks offer bankingservicesthat may not be available from domestic
banks such as anonymous bank accounts, higher or lower rate loans based on
risk and investment opportunities not available elsewhere.
* NO FOREIGN EXCHANGE CONTROL: it is possible to conduct business
in the country in which you have your bank account with the local currency.
* Offshore banking also provides protection against local political or financial
instability because offshore bank accounts do not become subject to local
litigation.
* Global investment and business prospective, familiarity with offshore and
international business. Banking operations can be made from any place of the
world, via Internet, e-mail, post or telephone.
Because of the costs of establishing and maintaining offshore accounts,
offshore private banking is usually more accessible to wealthy persons.
* Offshore banking is often linked to other structures, such as offshore
companies,trustsorfoundations, which may have specific tax advantages for some
individuals.
http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Offshore_trusthttp://en.wikipedia.org/wiki/Offshore_trusthttp://en.wikipedia.org/wiki/Offshore_trusthttp://en.wikipedia.org/wiki/Private_foundationhttp://en.wikipedia.org/wiki/Private_foundationhttp://en.wikipedia.org/wiki/Private_foundationhttp://en.wikipedia.org/wiki/Private_foundationhttp://en.wikipedia.org/wiki/Offshore_trusthttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Offshore_companyhttp://en.wikipedia.org/wiki/Customer_service -
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* Offshore finance is one of the few industries, along with tourism, in which
geographically remote island nations can competitively engage. It can help
developing countries source investment and create growth in their economies,
and can help redistribute world finance from the developed to the developing
world.
* If you set up an offshore bank account, you will be provided with the
ability to protect your money against local creditors. This is because your
offshore accounts aren't subjugated to the local litigation laws. if you get
financially insecure, the funds you possess in your offshore bank account are
protected. But even though your assets and your funds may be saved against
threat from local creditors, it's still essential to have a look at the dangers in
which accounts you choose to open.
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DISADVANTAGES OF OFFSHORE BANKING
Offshore banking has been associated in the past with the undergroundeconomy and organized crime, through money laundering. Following September
11, 2001, offshore banks and tax havens, along with clearing houses, have
been accused of helping various organized crime gangs, terroristgroups,
and other state or non-state actors.
Offshore jurisdictions are often remote, so physical access and access toinformation can be difficult. Yet in a world with global
telecommunications this is rarely a problem for customers. Accounts
can be set up online, by phone or by mail.
Offshore private banking is usually more accessible to those on higherincomes, because of the costs of establishing and maintaining offshore
accounts. However, simple savings accounts can be opened by anyone
and maintained with scale fees equivalent to their onshore counterparts.
The tax burden in developed countries thus falls disproportionately on
middle-income groups.
Historically, tax cuts have tended to result in a higher proportion of thetax take being paid by high-income groups, as previously sheltered
income is brought back into the mainstream economy.
Offshore bank accounts are sometimes touted as the solution to everylegal, financial and asset protection strategy but this is often much more
exaggerated than the reality. The existence of offshore banking encourages tax evasion, by providing
tax evaders with an attractive place to deposit their hidden income.
http://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/Terrorismhttp://en.wikipedia.org/wiki/Terrorismhttp://en.wikipedia.org/wiki/Terrorismhttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Organized_crimehttp://en.wikipedia.org/wiki/Underground_economyhttp://en.wikipedia.org/wiki/Underground_economy -
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Developing countries can suffer due to the speed at which money can betransferred in and out of their economy and can increase problems in
financial disturbance.
In some jurisdictions it is necessary to deposit large sums of money,therefore you should be aware that your money could be at risk if
anything should happen in the country you choose for offshore banking.
Offshore banking always needs professional advice. It is important toconsult a lawyer or a financial adviser before investing in an offshore
banking account, because you need to catch all the details before
making a deposit.
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OFFSHORE BANK ACCOUNTS:
CLASSIFICATION
Offshore bank accounts, exactly like onshore, may be classified by
different parameters.The first and the most clear classification principle is PERSONAL
BANK ACCOUNT VS CORPORATE BANK ACCOUNT.
The second principle is by the way how they are utilized, For example:
Numbered offshore bank account, offshore merchant account, offshore
investment account, offshore savings account or offshore business account.
1. PERSONAL OFFSHORE BANK ACCOUNTAs the name shows this is bank account opened on a physical person.
Normally the client himself is the account holder and beneficial owner of
http://www.quantusbank.com/Offshore.Banking.FAQ/Numbered.accounts/http://www.quantusbank.com/Offshore.Banking.FAQ/Numbered.accounts/http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Savings.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Savings.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Investment.Account/http://www.quantusbank.com/Offshore.Banking/Offshore.Merchant.Account/http://www.quantusbank.com/Offshore.Banking.FAQ/Numbered.accounts/ -
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money on the account. Notwithstanding it is governed by the same banking
secrecy laws as other types of offshore bank accounts, it is the least protected
asset protection vehicle. To overcome this privacy issue without introducing
more advanced offshore protection schemes, in some offshore jurisdictions it
is available to open the numbered bank account where bank account title
differs from person's name. Normally it is some combination of numbers and
letters, not similar to any persons name.
2. CORPORATE OFFSHORE BANK ACCOUNTNormally is opened on offshore company incorporated in the same or,
more often, in the other offshore jurisdiction. To open corporate bank
account, you need to choose carefully the jurisdiction for opening offshore
bank account, as well as the jurisdiction for offshore company incorporation.
Also, it would be important to consider offshore legislation of both countries
and see how it answers the purposes pursued by the establishing of offshore
bank account. The title of such corporate bank account is the name of the
company. Normally, the company name differs from beneficial owner's name
thus protecting one's privacy when sending in and out the money.
3. NUMBERED OFFSHORE BANK ACCOUNTSimilar to the way how private offshore bank account is opened on
private person's name, but for numbered offshore account a number or some
neutral word is used instead of person's name in the account title. Numbered
accounts are not easy to open, and there are very few banks providing this
kind of service.
Swiss banks are the most known place where to open genuine numbered
account. To open numbered offshore bank account, personal visit to the bank
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is the must. Customer should physically go to the bank in Switzerland to go
through very serious due diligence procedures, and be ready to place
substantial initial deposit. Also the annual or monthly maintenance costs are
very high. And remember, the numbered offshore bank account is not
anonymous since the bank definitely knows who is the owner of the money on
the account.
Other popular types of offshore bank accounts are OFFSHORE
MERCHANT ACCOUNTproviding the ability to accept credit or debit card
payments from customers; OFFSHORE SAVINGS ACCOUNT, similar to
onshore savings accounts; OFFSHORE INVESTMENT ACCOUNT that
provides offshore investors with wide range of offshore investment
opportunities less limited both in terms of risks and earnings than those for
offshore savings account.
4. OFFSHORE MERCHANT ACCOUNTAn offshore merchant account is an account providing the ability to
accept credit or debit card payments from customers for goods and services.
An offshore merchant account establishes a relationship between credit card
processor, the bank and business willing to accept the credit card payments.
Unlike with regular merchant account, funds generated from sales and credit
card payments are deposited with offshore bank.
Offshore merchant bank accounts are very popular in various industries
starting from mega online gambling projects and adult industry sites to small
businessmen selling some software or unique products or ideas to everybody
in the world through the Internet. When opening offshore merchant account,
the offshore bank assigns unique merchant ID to business. Such offshore
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merchant account is associated with offshore business current or checking
account.
Funds debited from customers credit cards are processed through
merchant account and placed on the business account, less commissions as
well as security deposit which is widely used with offshore merchant accounts,
especially at the early stage of customer and bank relations. Security deposit
means that some portion of processed money is "freezed" for some time as
collateral against chargeback.
5. OFFSHORE SAVINGS ACCOUNTOffshore savings account is similar to onshore savings accounts. The
main difference is that interest is generally paid by offshore banks without tax
deducted. From one side, it is an advantage to individuals who do not pay tax
on worldwide income, also to expatriates in particular cases, however every
client of offshore bank should get tax advice before receiving benefits from
such arrangements.
Offshore savings account is a wise way how to reduce tax burden, but it
should be used only if it is allowed by one's country.
Taxation is not the only benefit of offshore savings account, some
offshore banks operate with lower costs and can provide higher interest rates
than the rates of onshore banks, due to reduced expenses and less government
intervention.
6. OFFSHORE CURRENT ACCOUNTA flexible international current account for your-day to-day banking
needs, and a convenient, secure and potentially tax efficient way to manage
your money.
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Available in sterling, US dollars or euro. View debit/credit card options Accounts based in Jersey, Channel Islands or Isle of Man 24 hour internet and phone banking - Info Make international money transfers Interest paid without deduction of tax* Minimum balance 5,000, US$ 10,000, or 10,000. No account openingfee
7. OFFSHORE INVESTMENT ACCOUNTOffshore investment account provides offshore investor with wide range
of offshore investment products to choose from. Unlike offshore savings
account, offshore investment account provides less limited opportunities both
in terms of risks and earnings. There are thousands of offshore investment
funds, offshore bonds and other offshore investment vehicles. These offshore
investment instruments are flexible enough to fit around today's changing
lifestyles. However with offshore investment account the customer should be
prepared for higher initial investments and less liquidity of funds placed to
such account. Offshore bank will not allow this account to be used as offshore
business account. Too frequent inward and outward transactions may be
penalized by additional fees and penalties. The main difference between
offshore and onshore investment accounts is taxation as well as the fact that
offshore banks normally provide wider choice of the investment products.
Investor protection laws are in place in every offshore jurisdiction.
http://www.offshore.hsbc.com/1/2/international/currency-cardshttp://www.offshore.hsbc.com/1/2/international/bank-accounts/offshore-current-account?WT.srch=1&WT.mc_id=HBIB_2008_11_2004&quid=5196933222S918956T&gkid=39--rkcng_onaxvat--Svanapvnyyl_Fniil_Rkcng--Pbagrag--615b704b237#1http://www.offshore.hsbc.com/1/2/international/bank-accounts/offshore-current-account?WT.srch=1&WT.mc_id=HBIB_2008_11_2004&quid=5196933222S918956T&gkid=39--rkcng_onaxvat--Svanapvnyyl_Fniil_Rkcng--Pbagrag--615b704b237#1http://www.offshore.hsbc.com/1/2/international/currency-cards -
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CONCLUSION
An Offshore Banking are an important part of international financial
system as half of the capital of world economy flows through Offshore
Banking.
People generally operate their offshore account during vacations as they
spend their holidays abroad. So they do require foreign currency, which
offshore bank provides. Also a lot of advantage is provided apart from those
of commercial banks like privacy.
However it influence crimes as full confidentiality about the account is
maintained. Any person after fulfilling certain criteria can open an offshore
account.
From the project, I would like to infer that a wide spectrum of offshore
banking centres are known. Offshore banking makes avail of tax exemptions
and higher interest rate in foreign currency. This helps to earn foreign
currency. It becomes mandatory for the businessman and the organizations
who have a global business.
Thus, Study about offshore banking will help to acquire more
knowledge & certainly have a positive effect in future.