Offshore banks are sometimes perceived as places for storing funds obtained illegally: drug trafficking, terrorist financing and other criminal activities. At least, they are often presented like this by the media.Unfortunately for many, this picture has distorted the correct understanding of offshore banking, forcing entrepreneurs to question the "cleanliness" of offshore banks.
In fact, the real state of affairs is very far from the negative image of the offshore you see in the press. Until recently, there were many businessmen who, instead of objectively assessing the benefits of asset protection when using an offshore account, eschewed tax havens.
Fortunately, business thinking is becoming more modern and objective every year, and the negative perception of offshore accounts is going away. The simple truth is that tax havens, or offshore financial centers, were created with the aim of protecting foreign assets, providing optimal conditions for their growth, and optimizing taxation.
In addition, offshore banking institutions offer excellent service, a wide range of banking products for both companies and individuals around the world. Offshore financial centers provide effective practical solutions in various situations:
- Asset protection;
- Easing the tax burden;
- Protection from political turmoil;
- Protection against economic instability.
An offshore bank account can also protect assets in such unpleasant situations as divorces, negative market conditions, the risk of raider seizures and other dangers. In short, the task of offshore centers is to provide the most comfortable conditions for doing business.
Offshore bank accounts = money laundering?
It would be unfair to say that illicit funds do not pass through offshore bank accounts: the inquisitive minds of criminals can sometimes find good loopholes through which dirty money will slide. Although offshore financial centers do their best to get rid of the stigma of money laundering and concealment of illegal profits, there are times when this still happens.
Criminals use the same legal structures to protect assets as ordinary, law-abiding citizens. In such situations, it is offshore financial centers that become the victims of criminals who launder illegally obtained funds.
However, it is indisputable that money laundering was encountered not only by offshore centers, but also by large “offshore” states, in particular: the USA, Great Britain, Germany and others.
Thus, while tax havens are perceived as typical places for money laundering, the reality is that, in fact, the vast majority of money is laundered in high tax jurisdictions. Naturally, large influential states are very interested in “pointing out” to offshore centers, since their own volumes of illegal money transit are confusing even for themselves.
