Frequently Asked Questions - Offshore Myths and Facts
Offshore Myths and Facts
Fact: In many instances Caribbean nations are flagged as high risk nations by banks with which they hold correspondent relationships. These nations are seen as trans-shipment points for drugs from South America going to Europe and the US and that the drug monies are laundered through their offshore banks.
Fact: Money laundering or the practice of trying to make legitimate illegally derived proceeds, occurs most of the time in the world's major financial centres as opposed to small offshore jurisdictions. This is understandable, as most of the world's financial transactions occur in these centres.
Fact: This opinion is based on offshore legislation that allows for asset protection through fair tax competition. Embedded in the tax code of high tax jurisdictions are numerous tax deferral and tax reduction provisions for income earned offshore or expenses paid offshore. For example: the US gives tax deductions for insurance premiums paid to offshore captive insurance companies.