Offshore banking is the use of banking facilities outside of a customer’s home country. This can be used by individuals or businesses for various reasons. While it is legal in most jurisdictions, there may be laws that limit and regulate this activity.
Many argue that this is more convenient for international transactions. It may also improve the flow of capital. Some do it to protect assets from local issues such as seizures of property.
There is also the concept of offshoring business which is often referred to as outsourcing. This is common in the call center and the manufacturing industries where part of a company’s operations are relocated to a different country. There is also offshore investing, usually practiced by high-worth investors.
Before attempting this form of banking, a consultation with knowledgeable experts in this field should be arranged to understand the risks and the regulations.
