Abstract This paper begins by describing the location of Cayman National Bank, which is in the Cayman Islands near Jamaica. It explains the unique features of this bank and how the banking process works. It goes through an in-depth examination of the transaction processes. The writer compares Cayman banking to banking in the United States.
From the Paper "To understand the differences between the banking practices in the US and the Cayman Islands, we shall look at the banking regulations in both these countries along with their objectives as this will give us a clear understanding of the practices and the reasons thereof. For personal operations, in USA, there are two types of banking services. One set is called banks and the other set is called credit unions. Anyone trying to open an account should compare the advantages and disadvantages of both before opening an account. Banks in USA may be local, statewide or regional. Unlike many other countries, the US does not have large, national banks. These organizations are all supposed to make profits and will charge services for checking accounts, debit purchases and other services that may be provided. It is advisable to get a list of these service charges before an account is opened."
Abstract This paper studies offshore financial centers, or OFCs, which are any financial institutions that conduct offshore transactions. The paper provides a technical definition of OFCs, and then discusses their historical use and relevance. Next the paper discusses the location of OFCs -- and answers why places such as Switzerland and the Cayman Islands host these institutions. The paper then examines the role of OFCs, focusing on their legal protection from investors' local tax burdens. The paper concludes with an assessment of the future of OFCs, citing the effects of international tax reform and other financial guidelines that may impact the perceived utility of OFCs.
Outline:
Definition
History
Where are they?
The Role
Future:
From the Paper "Offshore Financial Centers or OFCs are areas that choose reduced taxes or lenient financial controlling administration as a shield in case of overseas investors. (The future for offshore financial centers (OFCs)) IMF defines OFC as an area that fulfills the norms as stated below: it is a location marked by a large number of financial institutions, a majority of the business dealings are started in foreign shores, nearly all institutions are managed by non-residents, possesses assets and liabilities disproportionate to the internal economy; and has low or zero taxation, restrained or lax financial guidelines and privacy of banking business. The last norm is related to what is usually known as "tax haven". Nevertheless, whereas the description contains "tax havens" as well, it is not restricted to this category of country. (Canadian Direct Investment in 'Offshore Financial Centers) Offshore finance is, in its general meaning, the provision of financial services by banks and other representatives to non-residents. These services comprise of borrowing and lending of funds to non-residents. This can be in the shape of lending to companies and other financial institutions, financed by liabilities to the offices of the bank who is lending elsewhere, or to market participants. It can even take the shape of accepting deposits from individuals, and investing the profits in other financial markets. (Offshore Financial Centers: IMF Background Paper)"
Abstract The paper shows that, in recent months, the rules regarding special purpose entitles have come under great scrutiny. Special purpose entities allow firms to raise debt while at the same time making it almost impossible for investors to determine the actual amount of debt exposure. The paper shows that this was the case with Enron, which collapsed in 2001 when their fraudulent accounting practice were exposed. This paper investigates which accounting practices were violated as it relates to the SEC rules on Special Purpose Entities and full disclosure. It also discusses the ethical issues that the company made regarding the firms? accounting practices.
From the Paper "Not only did Enron behave unethically but the entire market failed to inform consumers. This market failure was made by the very institutions that were designed to protect investors. In this case the implications for the accounting firm that was involved proved to be insurmountable. The Andersen Accounting firm was disbanded as a result of its actions in the Enron case. Accountants must be very cognizant of the fact that there decision to be honest or dishonest about a firms? financial dealings may have a profound effect on stakeholders and the accountants themselves. ?Accountants and many Wall Street Analysts ratified and legitimized the company's scenarios and statements regarding prospects.?(Berenbeim)"
