Whenever the term offshore banking is coined, somehow it can be misconstrued as the bank account for rogue firms and organized crime syndicates. However, the offshore jobs that make the offshore banking happen have got nothing to do with the incorrect concepts that have been built around the term.
Simply put, any account that has not been opened in one’s native country is said to be an offshore account and the transactions for this account are categorized as offshore banking. The benefit that a country has with the offshore banking procedure is mostly out of administration and while the image of offshore banking builds up a picture of big vaults and large doors, the truth is that offshore banking is mostly about accounting and a minimal requirement of storage. In fact the banking procedure is only about 10% storage and 90% accounting.
This means that a bank does not have to invest a lot in the infrastructure and it has to have impeccable administration to make it popular amongst its clients. This is the reason why small countries and especially island nations have successfully been able to compete with the banking giants in European sub continent as the banks offer same level of services.
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