Offshore Financial Center


Also found in: Acronyms.

Offshore Financial Center

1. An institution, especially a bank that exists in a foreign country. Colloquially, the term refers to institutions that exist in known tax havens. Individuals and companies use offshore accounts to avoid or evade taxes.

2. A country known for having a tax and legal system well-suited for offshore financial centers. A prominent example is the Bahamas.
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The services and confidentiality make the Freeport similar to an offshore financial center. With the Law of 24 July 2015, the licensed operators of the Luxembourg Freeport are now subject to the same know-your-customer obligations as apply to all other covered entities under the Law of 12 November 2004.
The Commonwealth of The Bahamas is an important regional and offshore financial center. The country's economy is heavily reliant upon tourism, tourist-driven construction, and the offshore financial sector.
The Cayman Islands, a UK Caribbean overseas territory, is an offshore financial center. Most money laundering that occurs in the Cayman Islands is primarily related to fraud and drug trafficking.
The information splashed across the website about Anguilla as an offshore financial center reads like a tax-dodger's - or a smart businessman's - dream come true, reports CANA (September 10, 1999).
The Commonwealth of the Bahamas is an important regional and offshore financial center. The economy of the country is heavily reliant upon tourism, tourist-driven construction and the offshore financial sector.
While Belize is not a major regional financial center, it is an offshore financial center. In an attempt to diversify Belize's economic activities, the Government of Belize (GOB) encouraged the growth of offshore financial activities that are vulnerable to money laundering, including offshore banks, insurance companies, trust service providers, mutual fund companies, and international business companies.
Singapore is a major international financial and investment center as well as a major offshore financial center. Secrecy protections, a lack of routine large currency reporting requirements, and the size and growth of Singapore's private banking and asset management sectors pose significant risks and make the jurisdiction a potentially attractive money laundering/terrorist financing destination for drug traffickers, transnational criminals, foreign corrupt officials, terrorist organizations and their supporters.
Singapore is a major international financial and investment center as well as a major offshore financial center. Secrecy protections, a lack of routine large currency reporting requirements, and the size and growth of Singapore's private banking and assets management sector pose significant money laundering (ML) risks and make the jurisdiction a potentially attractive money laundering/terrorist financing destination for drug traffickers, transnational criminals, foreign corrupt officials, terrorist organizations and their supporters.
Buying a shelf company is a common practice in many jurisdictions around the world, especially in offshore financial centers like Belize and others.
These jurisdictions are known as offshore tax havens, to use the more technical jargon, offshore financial centers (OFCs).
Tax havens are legal and sometimes secret offshore financial centers that are used by companies to reduce their tax bill by moving their capital out of countries through loopholes in national laws.
The report indicates that offshore financial centers have recently been under attack, but have shown 'remarkable' resilience.

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