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What is Offshore Banking?

Important banking qna for banking aspirants, which is helpful in banking exam.

Mar 17, 2015 16:53 IST
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An offshore Bank Account will allow you to safely and privately explore, with few restrictions, the far reaches of the vast and diverse financial universe.

An offshore bank is 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. These advantages typically y include some or all of

  • Strong Privacy (see also bank secrecy, a principle born with the 1934 Swiss Banking Act)
  • Less Restrictive Legal Regulation
  • Low or No Taxation (i.e. tax havens)
  • Easy access to deposits (at least in terms of regulation)
  • Protection against Local Political or Financial Instability

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