In banking terminology, the term Offshore Bank refers to banking done by banks outside of the country of residence of the depositor. Offshore Banking offers a number of advantages to people who make use of these banks, although risks can be associated with doing business with banks located outside of your home country.
For example, the advantages of Offshore Banking include the bank being located in a low tax or no tax jurisdiction, also known as a tax haven. A greater amount of privacy in bank dealings and sums of money deposited is also easily accessible at Offshore Banks. Although offshore banking has long been associated with organized crime and money laundering, the fact remains that Banking Offshore does not prevent your assets from being subject to personal income tax on any interest earned. Offshore Banking usually offers the following services: foreign exchange, letters of credit and trade finance, fund management, trustee services, electronic and wire transfers, investment management and corporate administration.