LTX Focus: Offshore Banking | Issue I | February 2007 


Dear Colleague,

For this month's LTX Focus we delve into the world of Offshore Banking.

There is a staggering amount of money in the world, and more and more of it is in offshore jurisdictions.

According to a study by consulting firm McKinsey and Company published in January, 2007, the value of total global financial assets, including equities, government and corporate debt securities, and bank deposits, expanded to $140 trillion in the 12 months to the end of 2005, an increase of $7 trillion from a year earlier. That is a growth rate of 5.3%.

There are no consolidated figures for the growth in offshore assets - many jurisdictions simply don't release figures. But for those that do, it is clear that the rate of increase in banking, trust and fund assets dramatically outpaces McKinsey's global figure. In Jersey, for instance, banking assets were GBP159bn in December, 2004; by September, 2006, they stood at GBP188bn. That is an annual growth rate of 10.2%, roughly double the global rate; and Jersey banking is by no means untypical of offshore performance. Indeed some other jurisdictions have shown higher growth rates; and fund assets have grown faster even than banking ones.

With 'onshore' high-taxing countries chopping finer and finer in order to remove tax loopholes, and imposing ever more stringent anti-money-laundering rules, it is no surprise that more and more people move their assets offshore, if they are able to.

The purpose of our special feature is to describe the history of offshore banking, and to contrast the offshore banking sector with its onshore rival.

You can read the rest of the feature here:

http://www.investorsoffshore.com/html/specials/february07_banking.html.

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If you find this month's LTX Focus useful you might also be interested in our comprehensive Intelligence Service on Offshore Banking, available here from the Lowtax Library. The service is also available as a single download here.

Confidential, private banking was one of the key offshore products from the beginning, and such major banking centres as the Cayman Islands, Switzerland, Hong Kong and the Bahamas warehouse staggering quantities of money for individuals and organisations who prefer to keep it out of the immediate oversight of their home governments. Very importantly, of course, money held offshore cannot readily be taxed by rapacious high-tax economies.

There is great variety among the main offshore banking jurisdictions, both in regulatory terms and in respect of the services offered. The aim of this report is to analyse the situation on the ground in each of the main offshore banking centres, including their reponses to the EU's Savings Tax Directive and the attacks of the 'multilaterals' during the early years of the new millennium.

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Kind regards,

Kate James
Topical Special Offer
OFFSHORE BANKING REPORT
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Offshore Banking Related News
Derbyshire Offshore Conducts Poll On Saving Habits, by Philip Morton, Investors Offshore.com 06/02/2007
A recent poll conducted on the Derbyshire Offshore website has shown that Derbyshire Offshore customers prefer to save rather than spend their hard earned money. [ FULL STORY ]
Four More Banks To Be Forced To Disclose Taxpayer Details, by Jason Gorringe, Tax-News.com, London 05/02/2007
It emerged last week that four of the UK's high street banks will be compelled to hand over details of their customers' offshore accounts to HM Revenue and Customs. [ FULL STORY ]
Investec Welcomes Swiss Parliament's Trust Decision, by Ulrika Lomas, for LawAndTax-News.com, Brussels 30/01/2007
Investec Trust said last week that the Swiss parliament’s approval of the ratification of the Hague Convention on the Law applicable to Trusts and their Recognition in December last year should be seen as the first step on the road to a more certain trust environment in Switzerland. [ FULL STORY ]
Zurich Bank Breaks 6% Interest Rate Barrier, by Carla Johnson, Investors Offshore, London 15/01/2007
Zurich Bank International has launched a new 1 year fixed rate bond; following this week's surprise Bank of England interest rate hike, the bond will pay a market leading 6.05%. This limited issue product has a minimum balance of GBP10,000 and is aimed at those savers who wish to receive a guaranteed rate of interest over 12 months. [ FULL STORY ]

Offshore Banking Resources