Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Advantages of Offshore Banking

By James Brown Subscribe to RSS | December 10th 2011 | Views:
loading
 
  



Some experts believe that more than half the world’s capital flows through offshore banking. Since one of the advantages of an offshore bank account is the complete

anonymity and privacy of the depositor’s assets, this has to be an educated guess. Although many countries require that the income from interest from off shore bank accounts be declared, the bank itself is not required to report it so just exactly how much of the world’s money is flowing through Hong Kong companies, Panama companies, and Cypress companies, for example, is rather hard to track. Even though the term “offshore” originally referred to being “off shore” of the UK in the Channel Islands, the term has come to mean any bank located outside of the depositor’s

country of residence. These banking accounts maybe tied into an offshore

corporation or an offshore trust or foundation that has an offshore formation in a particular country for tax advantages. In low or no taxation countries, low or no taxation on interest is paid. In addition, offshore banks are not required to deduct tax on interest as is required for banks in some countries.

Besides being able to take advantage of a country’s lower tax rates, there are other advantages of offshore company formation and off shore banking.

For example, without the burden of heavy banking regulation, a bank offshore may be willing to offer loans that might otherwise be too risky for more regulated banks. In addition, there might also be the possibility of a higher interest rate since competition between a Belize bank account and a Seychelles bank account for example, may be beneficial to the depositor. Some offshore banks offer banking services that may not be available from domestic banks such as anonymous bank accounts, anonymous debit cards and investment opportunities not available elsewhere.

It is also possible to obtain the full spectrum of "Financial services" financial services from offshore banks, including deposit, credit, wire and electronic funds transfers, foreign exchange, letters of credit and trade finance, investment management and investment custody, fund management, trustee services and corporate administration.

For many an asset protection trust offered by banking offshore allows them to transfer funds to a more stable political atmosphere not likely to be seized by the government. In addition, those arguing in favor of international.com" off shore banking points out those offshore accounts are one of the few ways, besides tourism, that small island countries can compete and help develop the economy of their country. For this reason, the motives of those calling for more regulations of banking offshore from the more developed countries are suspected as a means of halting competition. However, recent terrorism developments has put additional pressures on offshore bank accounts organizations like the Financial Action Task Force (FATF), Basel Committee and the Offshore Group of Banking Supervisors (OGBS) that impose strict regulations on the offshore banking sector. Those offshore banks that do not comply with the regulations imposed by these organizations risk being put on a black list. Being on a black list makes it impossible to transfer funds, which reduces illegal transactions and helps eliminate money laundering.

Putting these regulations in place helps dispel some of the myths about off shore banking being used only by criminals and terrorists, particularly since 50% of the world’s wealth is estimated to being passed through these banking centres–most of which are either an offshore IBC or wealthy individual trying to protect their assets.

James Brown - About Author:
Illision Media is a dedicated group of creative, dynamic SEO Consultants based in the UK and USA. The company is well lead by experts who live, breathe and eat Internet, They not just offer SEO services but quality SEO services. The company approach is not restricted to the search engine optimisation, but also gives incredible importance to the website optimisation as well. The company feels proud of being an SEO agency, which has proven records of their past successful SEO campaigns.

Contact Information:
Illision Media Limited
London Office -
27 Old Gloucester Street
London
WC1N 3AX

phone: 020 35517971
Email: info@illisionmedia.co.uk
Website: http://www.seo-services4u.com/

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/advantages-of-offshore-banking.htm

Related Finance Articles Subscribe to RSS

Advertising and marketing Note your emotions Advances towards the Commodity Futures Trading Commission
Published by Dane Jarvis on July 3rd 2012 | Finance
Should investments as securing the option and in addition futures advertise....
 
Marketing for Banks: What it is Distinctive from Store Target marketing
Published by Eric Kaiser on February 21st 2012 | Finance
Customers are unquestionably the back with regards to today’s our society plus it doesn't normally...
 
Marketing Financial Services Via the modern Sexiest Online marketing Hardware
Published by Peter Arnault on February 18th 2012 | Finance
The achievements financial program service providers is actually examined from their valuable market...
 
Why You Should Always Use a Life Insurance consultant
Published by Benchristopher21 on July 5th 2012 | Finance
Life insurance is a type of investment whose objective is not necessarily to accumulate wealth but f...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...