No single person can perfectly predict the future of offshore banking and corporations. However, judging from the political positions of those nations that recognize offshore banking and those that do not, it is a clear indication that the future of offshore banking stands on shaky ground. Major nations highly criticize the practice, flagging it as a means of tax evasion for businessmen. This has led to these nations making additional tax agreements with partner nations. It is evident that many citizens of the nations that do not appreciate offshore banking are hungry for the tax benefit that comes with offshore banking and corporations and are thereby begging to be heard. The nations that do not recognize offshore banking claim that they are robbed of billions of dollars when their citizens go offshore, further destabilizing the future of the practice.
Not to mention the fact that offshore banking has been highly associated with terrorist and criminal acts – specifically the September 11 attack, further complicating the future system. Other than terrorism, the practice is believed to be used by criminals to cover their identity following acts of theft, money laundering, kidnapping and blackmail, which also challenge the stability of the practice.
With many offshore banking centers being located in remote areas, it is evident that the system suffers poor communication technology which complicates the success of the practice.
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