Offshore banking and understanding of them

What is the offshore banking in the "pure"? This is a financial institution, serving only to non-residents and carrying out any banking transactions, but only outside the country. For non-residents include foreign legal entities and individuals, as well as offshore companies registered in the same way as a bank, jurisdiction, and their foreign employees.

Corporate tax, such financial institutions are generally not subject to any charge at low rates. Even once it allows to pay higher dividends to shareholders and interest to non-resident depositors. But such gains at the place of receipt is not taxable, making investments in securities of offshore financial institutions and use their accounts as savings is very attractive.

At the same time, these banks pay an annual registration and other fees, the amount of which is much larger than required for conventional offshore companies 'nonbank' profile. The lower "the bar" for the minimum share capital of the bank is also set at a higher level than an ordinary company.

The banking business requires strict reporting and frequent testing and increased attention to regulatory authorities, which does not have offshore banking.

Large international financial corporations which have a solid track record and impeccable reputation, without any difficulty opening an offshore branch, but if the applicant, except the desire to create a bank, behind there is nothing, then hope for success is hardly worth it. All of the modern offshore jurisdictions are showing extreme scrupulousness in respect of owners, directors and even employees of the bank.

Offshore banking, as well as conventional banks, obtain licenses, which are divided into different categories. It can be as unrestricted general license, and license with a prohibition to engage in some specific activities. Sometimes an offshore bank starts with a license of the lower class, and then after a certain time reorganized into full-blooded lending institution.

Offshore banking in the U.S. are treated with a tough stance, it has led to what is now a registered financial institution in the United States, it became almost impossible. Number of countries that have recently offer this option in its legislation, practically reduced to zero. There are however a couple of "hot" countries in Africa, but it is - a very exotic options and ensure that at least some stability of the securities issued by it nobody can.

Any country that offers a very flexible system now issuing banking licenses, immediately becomes a target for new attacks on the entire international offshore industry. Correspondent banks are afraid to open accounts in any offshore banks, because they are afraid to break the well-known: US Patriot Act.

Any offshore banking that have no real physical state of the jurisdiction where they are licensed, are "phony banks. Not a U.S. bank is not allowed to open accounts in such offshore banks. If European and other banks will offer the opening of accounts in such a "paper" offshore banks, they risked their correspondent accounts in the U.S. that can be frozen.