Offshore banking is the process of opening an account in another country. Typically, an individual opens an offshore account with a reputable bank that provides various banking services in the country where the individual lives. Some countries have stringent laws on offshore banking, and people with accounts in these countries run the risk of being prosecuted if they try to leave the country for too long. This risk is not present in other countries. Offshore banking has become a popular choice among many wealthy individuals and celebrities who live in distant places but still want to keep their money safe.
An offshore banking unit shall mean any financial institution that operates with branches in one country and has branches elsewhere. An offshore banking unit shall also mean any corporation that does not run through its own country and has its registered office outside the country where its business is operated. These corporations generally have either no connection to their bank’s depositors or do not operate there at all.