Offshore Banking

Paper Summary:

The term "offshore banking" refers to the provision of financial services by banks and other agents to non-residents, a practice that has gained an increasing amount of notoriety in recent years. This paper provides a review of the scholarly and peer-reviewed literature to develop an overview of offshore banking and to identify regulations that have been implemented by U.S. and international agencies to reduce or eliminate the illegal activities and tax schemes that have been deployed by many Americans through the use of offshore banking. An analysis of how offshore banking has affected taxation in the United States is followed by a discussion of what can be done to monitor the activities of offshore banking. A summary of the research and salient findings are provided in the conclusion.

Outline:
Review and Discussion
Background and Overview.
The Impact of Offshore Banking on Taxation
Controlling Legislation
Monitoring Offshore Banking Activities
Summary and Conclusion

From the Paper:

"Offshore banking centers allow actors in the financial markets that are so inclined to use international capital in ways that are not lawful in the more regulated country of origin. Indeed, the absence of regulation is attractive to the money launderer because they are provided with secrecy, a tax haven and the ability to move capital with ease. The International Monetary Fund has identified more than a dozen major offshore centers, many of them in the Caribbean, Southeast Asia and Europe (see Table 1 below); for instance, the Cayman Islands, with a total population of 30,000, hosts 550 banks (see Table 2 below), only 17 of which maintain a physical presence with the remainder conducting business primarily through telecommunications (Shelley, 1998). "

Sample of Sources Used:

• Carlson, C. (2003, April 22). USA Patriot Act. eWeek, 19(16), 18.
• Connolly, J. (2003, April 29). Patriot Act regulations for insurers are imminent. National Underwriter/Life & Health Financial Services, 106(17), 1.
• Elizur, Y., & Malkin, L. (2001). Dilemma of dirty money. World Policy Journal, 18(1), 18.
• Errico, L., & Musalem, A. (1999). Offshore banking: An analysis of micro-and macro-prudential issues. IMF Working Paper 99/5.
• Frank, T.A. (2005, June). Out to sea: Yes, offshore banking is an outrage. No, it's not a metaphor for capitalism. Washington Monthly, 37(6), 44.

More papers on Offshore Banking:

• Research Paper # 24583 : "Terrorism And Banking Security"
• Research Paper # 68116 : "Offshore Financial Centers"
• Term Paper # 116393 : "Offshore Financial Centers"

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