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

DIFFERENCE B/W ONSHORE &OFFSHORE BANKING

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.

BENEFITS OF THE OFFSHORE BANKING

Enhances economic growth Potential tax efficiency Convenience: easy, international access A safe haven for your money Since 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 countrys legislation) Also offer anonymous bank accounts

THE END