logging in or signing up Off shore Banking swapnil_ssp Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 505 Category: Entertainment License: All Rights Reserved Like it (1) Dislike it (0) Added: October 06, 2009 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: karan512 (8 month(s) ago) can u plz mail me this ppt at karan512@gmail.com plzz help me wid this Saving..... Post Reply Close Saving..... Edit Comment Close By: karan512 (8 month(s) ago) nyc Saving..... Post Reply Close Saving..... Edit Comment Close By: perma (20 month(s) ago) this is a very helpful in helping me to make a presentation on the impact of offshore financial centers on the global economy. Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide 1: Offshore Banking Presented by:- : Presented by:- Pradeep Sharma Swapnil Pawar Overview : Overview Introduction Financial services Concerns Duties Of Licensed Offshore Banks Prohibition of certain accounts How does offshore banking affect the international financial system Offshore Bank Security What makes financial privacy possible Why do people prefer to use bank secrecy How did bank security or secrecy evolve Risk Advantages and Disadvantages Offshore banking : Offshore banking An offshore bank as term connotes, is a bank that is outside the country of residence of a depositor, usually in a jurisdiction that offers low tax or tax haven and provides legal and financial benefits. Although the term has originated from the Channel Islands “offshore” from Britain Offshore Accounts : Offshore Accounts Greater confidentiality Reduced restraining legal directives Very low or nearly no taxation Straightforward access to money as a minimum as regards regulation Security against regional political or pecuniary unsteadiness. Financial services : Financial services Credit Deposit taking or withdrawal Foreign exchange Fund management Wire and electronic funds transfers Letters of credit and trade finance Trustee services Corporate administration and investment management Investment custody. Concerns : Concerns Offshore banking has frequently been linked to organized crime and underground economy through money laundering and tax evasion. Personal income tax policies of many nations do not distinguish interest earned from banks abroad and those from local banks. E.g.:- US income tax Minimum Capital funds : Minimum Capital funds No applicant shall be granted a license under section 6(2) and no licensed offshore bank shall carry on offshore banking business without the written consent of the Minister if its capital funds, unimpaired by losses, are less than ten million or its equivalent in any other currency. Duties Of Licensed Offshore Banks : Duties Of Licensed Offshore Banks Offices and subsidiaries A licensed offshore bank shall not carry on offshore banking business in, from or through any place in Malaysia, other than the Federal Territory of Labuan. A licensed offshore bank which is an offshore company shall not open any office, or acquire or establish any subsidiary, in Malaysia, other than in the Federal Territory of Labuan. Contd.. : Contd.. A licensed offshore bank which is an offshore company shall not open any office, or acquire or establish any subsidiary, in the Federal Territory of Labuan or outside Malaysia without the prior written consent of the Bank. A licensed offshore bank which is a foreign offshore company shall not open any office other than its principal place of business in the Federal Territory of Labuan without the prior written consent of the Bank. Prohibition of certain accounts : Prohibition of certain accounts No licensed offshore bank shall accept any money on deposit or loan which is repayable on demand by cheque, draft, order or any other instrument drawn by the depositor on the licensed offshore bank. No licensed offshore bank shall open an account for a customer whose identity is not known to the offshore bank. How does offshore banking affect the international financial system : How does offshore banking affect the international financial system Offshore banking is a significant segment of the international financial system. As it is, some 50% of the global capital flows through offshore centers as experts believe. Based on the “World Wealth Report” Almost one third of the “high net-worth individuals” in the world – almost $6 trillion out of $17.5 trillion – may presently hold offshore. Deposited in tax haven banks are some $3 trillion while international business companies (IBCs) and trusts hold the rest of the securities. Slide 13: According to the IMF, between $600 billion and $1.5 trillion of illegal money if laundered yearly that is equal to 2%-5% of the world’s economic output Moreover, it is believed that the drug money worldwide, approximating to $500 billion, is laundered offshore every year. This is more than the accumulated income of 20% of the world’s poorest nations. In addition, another $1 trillion is added from tax evasion and some more few hundreds from corruption and fraud. Contd.. OFFERINGS : OFFERINGS Saving accounts Cheaper loans Money Transffer Tax Planning Deposit Taking WHO OPTS FOR OFFSHORE BANKING? : WHO OPTS FOR OFFSHORE BANKING? INDIVIDUALS CLIENTS High net worth individuals Expatriates Business Owners CORPORATE CLIENTS Multi national corporations Shipping companies Financial services COST : COST The cost of forming an offshore company varies from jurisdiction to jurisdiction Seychelles , Belize and Dominica have some of the best prices for formation Incorporation fee and annual fee. INTEREST RATES : INTEREST RATES Legal Currency Convertibility Foreign Exchange(Rate\Control) Risk Involved : Risk Involved Legal trouble in case of unknown tax law of land Large deposit norm (devaluation , war) Technology failure. OFFSHORE BANK SECURITY : OFFSHORE BANK SECURITY Bank secrecy or bank security is a legal principle Major tool of thriving organized crime e.g. jurisdiction like Switzerland where voluntary or statutory levels of secrecy is adhered WHAT MAKES FINANCIAL PRIVACY POSSIBLE ? : WHAT MAKES FINANCIAL PRIVACY POSSIBLE ? Advanced financial cryptography like the public – key cryptography Anonymous electronic banking Digital Bearer Certificate WHY DO PEOPLE PREFER TO USE BANK SECRECY ? : WHY DO PEOPLE PREFER TO USE BANK SECRECY ? To keep your bank detail solely for your eyes To store embezzled money To prevent confiscation of money Can be used for tax evasion Protection from press, publicity , criminals Used as protection by charities, venture capitalists , investment salesperson EXCEPTION OF BANK SECRECY : EXCEPTION OF BANK SECRECY In case of serious criminal acts this law permits a bank to share information with other. e.g. information related to account specific required by tax authorities . ADVANTAGES &DISADVANTAGES OF OFFSHORE BANKING : ADVANTAGES &DISADVANTAGES OF OFFSHORE BANKING ADVANTAGES Helps developing countries to create economic growth Can offer specific tax advantage to people, establishment of organizations Provides some service that domestic and national bank can’t offer DISADVANTAGES Low physical contact and access to people Linked to organized crime by means of money laundering. Needs higher cost of establishing and maintenance CONTD. : CONTD. ADVANTAGES Advantageous to those citizens of a country where risk of political unrest & freezing , seizure or disappearance of assets likely happens DISADVANTAGES Competition invites “race to the bottom” THANK YOU ! : THANK YOU ! You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Off shore Banking swapnil_ssp Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 505 Category: Entertainment License: All Rights Reserved Like it (1) Dislike it (0) Added: October 06, 2009 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: karan512 (8 month(s) ago) can u plz mail me this ppt at karan512@gmail.com plzz help me wid this Saving..... Post Reply Close Saving..... Edit Comment Close By: karan512 (8 month(s) ago) nyc Saving..... Post Reply Close Saving..... Edit Comment Close By: perma (20 month(s) ago) this is a very helpful in helping me to make a presentation on the impact of offshore financial centers on the global economy. Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide 1: Offshore Banking Presented by:- : Presented by:- Pradeep Sharma Swapnil Pawar Overview : Overview Introduction Financial services Concerns Duties Of Licensed Offshore Banks Prohibition of certain accounts How does offshore banking affect the international financial system Offshore Bank Security What makes financial privacy possible Why do people prefer to use bank secrecy How did bank security or secrecy evolve Risk Advantages and Disadvantages Offshore banking : Offshore banking An offshore bank as term connotes, is a bank that is outside the country of residence of a depositor, usually in a jurisdiction that offers low tax or tax haven and provides legal and financial benefits. Although the term has originated from the Channel Islands “offshore” from Britain Offshore Accounts : Offshore Accounts Greater confidentiality Reduced restraining legal directives Very low or nearly no taxation Straightforward access to money as a minimum as regards regulation Security against regional political or pecuniary unsteadiness. Financial services : Financial services Credit Deposit taking or withdrawal Foreign exchange Fund management Wire and electronic funds transfers Letters of credit and trade finance Trustee services Corporate administration and investment management Investment custody. Concerns : Concerns Offshore banking has frequently been linked to organized crime and underground economy through money laundering and tax evasion. Personal income tax policies of many nations do not distinguish interest earned from banks abroad and those from local banks. E.g.:- US income tax Minimum Capital funds : Minimum Capital funds No applicant shall be granted a license under section 6(2) and no licensed offshore bank shall carry on offshore banking business without the written consent of the Minister if its capital funds, unimpaired by losses, are less than ten million or its equivalent in any other currency. Duties Of Licensed Offshore Banks : Duties Of Licensed Offshore Banks Offices and subsidiaries A licensed offshore bank shall not carry on offshore banking business in, from or through any place in Malaysia, other than the Federal Territory of Labuan. A licensed offshore bank which is an offshore company shall not open any office, or acquire or establish any subsidiary, in Malaysia, other than in the Federal Territory of Labuan. Contd.. : Contd.. A licensed offshore bank which is an offshore company shall not open any office, or acquire or establish any subsidiary, in the Federal Territory of Labuan or outside Malaysia without the prior written consent of the Bank. A licensed offshore bank which is a foreign offshore company shall not open any office other than its principal place of business in the Federal Territory of Labuan without the prior written consent of the Bank. Prohibition of certain accounts : Prohibition of certain accounts No licensed offshore bank shall accept any money on deposit or loan which is repayable on demand by cheque, draft, order or any other instrument drawn by the depositor on the licensed offshore bank. No licensed offshore bank shall open an account for a customer whose identity is not known to the offshore bank. How does offshore banking affect the international financial system : How does offshore banking affect the international financial system Offshore banking is a significant segment of the international financial system. As it is, some 50% of the global capital flows through offshore centers as experts believe. Based on the “World Wealth Report” Almost one third of the “high net-worth individuals” in the world – almost $6 trillion out of $17.5 trillion – may presently hold offshore. Deposited in tax haven banks are some $3 trillion while international business companies (IBCs) and trusts hold the rest of the securities. Slide 13: According to the IMF, between $600 billion and $1.5 trillion of illegal money if laundered yearly that is equal to 2%-5% of the world’s economic output Moreover, it is believed that the drug money worldwide, approximating to $500 billion, is laundered offshore every year. This is more than the accumulated income of 20% of the world’s poorest nations. In addition, another $1 trillion is added from tax evasion and some more few hundreds from corruption and fraud. Contd.. OFFERINGS : OFFERINGS Saving accounts Cheaper loans Money Transffer Tax Planning Deposit Taking WHO OPTS FOR OFFSHORE BANKING? : WHO OPTS FOR OFFSHORE BANKING? INDIVIDUALS CLIENTS High net worth individuals Expatriates Business Owners CORPORATE CLIENTS Multi national corporations Shipping companies Financial services COST : COST The cost of forming an offshore company varies from jurisdiction to jurisdiction Seychelles , Belize and Dominica have some of the best prices for formation Incorporation fee and annual fee. INTEREST RATES : INTEREST RATES Legal Currency Convertibility Foreign Exchange(Rate\Control) Risk Involved : Risk Involved Legal trouble in case of unknown tax law of land Large deposit norm (devaluation , war) Technology failure. OFFSHORE BANK SECURITY : OFFSHORE BANK SECURITY Bank secrecy or bank security is a legal principle Major tool of thriving organized crime e.g. jurisdiction like Switzerland where voluntary or statutory levels of secrecy is adhered WHAT MAKES FINANCIAL PRIVACY POSSIBLE ? : WHAT MAKES FINANCIAL PRIVACY POSSIBLE ? Advanced financial cryptography like the public – key cryptography Anonymous electronic banking Digital Bearer Certificate WHY DO PEOPLE PREFER TO USE BANK SECRECY ? : WHY DO PEOPLE PREFER TO USE BANK SECRECY ? To keep your bank detail solely for your eyes To store embezzled money To prevent confiscation of money Can be used for tax evasion Protection from press, publicity , criminals Used as protection by charities, venture capitalists , investment salesperson EXCEPTION OF BANK SECRECY : EXCEPTION OF BANK SECRECY In case of serious criminal acts this law permits a bank to share information with other. e.g. information related to account specific required by tax authorities . ADVANTAGES &DISADVANTAGES OF OFFSHORE BANKING : ADVANTAGES &DISADVANTAGES OF OFFSHORE BANKING ADVANTAGES Helps developing countries to create economic growth Can offer specific tax advantage to people, establishment of organizations Provides some service that domestic and national bank can’t offer DISADVANTAGES Low physical contact and access to people Linked to organized crime by means of money laundering. Needs higher cost of establishing and maintenance CONTD. : CONTD. ADVANTAGES Advantageous to those citizens of a country where risk of political unrest & freezing , seizure or disappearance of assets likely happens DISADVANTAGES Competition invites “race to the bottom” THANK YOU ! : THANK YOU !