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CHAPTER 4 : OFFSHORE FINANCIAL CENTRES :!: (INTRODUCTION TO OFFSHORE…
CHAPTER 4 : OFFSHORE FINANCIAL CENTRES :!:
INTRODUCTION TO OFFSHORE FINANCIAL CENTRE :fire:
OFCs as defined by Zorome (2007) are jurisdictions that provide financial services to non-residents on a scale that is excessive compared to the size and the financing of their domestic economies
How offshore is differ from "onshore" banking?
Offshore offered services such as fund management, brokering, insurance, holding company registration, fiduciary services, and Internet gaming. :star:
Few reasons why someone associates with OFCs ;
Legitimate Purposes which are privacy for personal/family business or political reasons & keep funds in a secure bank in a secure country
Illegitimate purposes which are launder money from criminal activities and evade taxes
some common reasons why countries seek to develop themselves as OFCs including :star:
the particular country may have little land base and few opportunities to develop other types of economic activities
the country may possess natural characteristics that make it an ideal OFC
Major destinations that were selected as Offshore Centre are Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Singapore, Hong Kong and Mauritius
the popular question is based on Bahamas & Singapore : :star:
FUNCTIONS OF OFFSHORE FINANCIAL CENTRES :star:
AN OFC PLAYS A KEY ROLE IN THE INTERNATIONAL BANKING & FINANCIAL SYSTEM
IMPROVES THE AVAILABILITY OF CREDIT & ENCOURAGING COMPETITION IN DOMESTIC BANKING & FINANCIAL SYSTEMS
ITS NATURE OF ACTIVITIES HELP TO BOOST THE INVESTMENT IN THE MAJOR ECONOMIES, WHICH IN TURN SUPPORTS JOB CREATION
TYPES OF INSTITUTIONS UNDER OFFSHORE FINANCIAL CENTRES :warning:
INTERNATIONAL INVESTMENT BANK
OFFSHORE CORPORATIONS/INTERNATIONAL BUSINESS CORPORATIONS (IBCs)
INSURANCE COMPANIES
OFFSHORE BANKS
FACILITIES OFFERED BY OFFSHORE CENTRES :pencil2:
OFFSHORE SAVINGS ACCOUNT
OFFSHORE CURRENT ACCOUNT
FOREX SERVICES
OFFSHORE INVESTMENTS