OFFSHORE BANKING

In addition to this, many countries that would otherwise charge high taxes

offer great incentives for people who are non-resident.

9) WHAT ARE THE BENEFITS OF OFFSHORE BANKING FOR EXPATS?

Anyone who is living overseas should seriously consider opening an offshore bank

account and should research the options available to them as much as possible.

Here are just some of the benefits of offshore bank accounts:

No tax is payable on any interest that is generated in an offshore bank account

so this means that, at the very least, you can use this account as a place to hold

your money without facing interest charges.

It is usually possible to hold cash in offshore accounts in a range of different

currencies. If used properly, this mechanism can help you to manage currency

risks between the currency of your home country and that of your host country.
Offshore accounts can help you to protect your assets. Any assets that you hold in

your home country may be subject to political and social factors that are

beyond your control. For example, the government of your home country

may decide to raise inheritance tax or may suddenly raise taxes. Relocating

your assets can give you much more control over what happens to them.

Offshore banking can give you access to banking products and services that may

not be available in your home country.

In many cases (although in some countries this is becoming a thing of the past)

offshore banking can offer you a level of privacy and secrecy and can protect

your funds from the eyes of the government of your home country.

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10) WHAT ARE THE DISADVANTAGES OF OFFSHORE BANK ACCOUNTS?

Offshore banks do not always offer security for your money. Many countries insure

the money held by their residents in the home banks but such a guarantee will not be

on offer in an overseas account. If you place significant amounts of money in an

overseas jurisdiction that then faces a coup or a major national disaster you could

find your entire savings wiped out and you will not be able to do anything about

11) WHAT ARE THE FEATURES DO YOU LIKE THE MOST ABOUT
OFFSHORE BANKING?

This bar graph is nothing but a pictorial representation of data wherein every
independent variable attains only discrete value. The above bar diagram states the
features of the offshore banking respectively. According to the response of the
people most of the people like greater privacy and anonymity accordingly.
This feature has the highest percentage which is 40.6%
The second main feature is of better asset protection which is been liked by the
people with the percentage 31.3%
The two other features has the same percentage which is 18.8%.

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 OFFSHORE BANKING

Less number of people use this feature of offshore banking which is more

diversification and tax incentives respectively .

12) SOMETHING YOU DISLIKE ABOUT OFFSHORE BANKING?

This diagrammatic representation states about the dislikes of the offshore banking
with the
percentage of 43.8%.
Some of the people has location problem which is of 31.3%.
Fraudulent practice is another problem which is been not liked by less number
of the people which is 21.9%.
The last bar represents of outdated public perception
which is 15.6%

13) WOULD YOU EVER SUGGEST ANYONE TO INVEST IN OFFSHORE

BANKING ?

The Diagramatic Representation states about the people who invest in offshore banking.

In this pie chart it shows that most of the people are not sure to do investing in this
offshore banking. Whereas there are less number of people who are interested in
investing and 25% of

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 OFFSHORE BANKING

14)DO YOU FIND OFFSHORE BANKING A BOON OR BANE FOR DEVELOPMENT?

According to the diagrammatic representation 20% of people says offshore

banking. The red part shows about the bane part which means people says there is no need
for the development of offshore banking respectively.

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 OFFSHORE BANKING

15)ACCORDING TO YOU DO YOU THINK MUMBAI SHOULD HAVE

OFFSHORE BANKS?

According to the survey 31% of people are agreed to have offshore banks in mumbai
whereas

12% of people are not interested. According to the survey 56% of people are not sure
respectively.

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 OFFSHORE BANKING

CHAPTER 5

5.1 CASE STUDY OF SWISS BANK

5.2.1 BANKING IN SWITZERLAND

Banking in Switzerland began in the early 18th century through Switzerland's merchant trade
and has, over the centuries, grown into a complex, regulated, and international industry. Along
with the Swiss Alps, Swiss chocolate, watchmaking and mountaineering, banking is seen
as emblematic of Switzerland. Switzerland has a long, kindred history of banking secrecy and
client confidentiality reaching back to the early 1700s. Started as a way to protect wealthy
European banking interests, Swiss banking secrecy was codified in 1934 with the passage of
the landmark federal law, the Federal Act on Banks and Savings Banks
Controversial protection of foreign accounts and assets during World War II sparked a series
of proposed financial regulations seeking to temper bank secrecy to little success. Switzerland,
considered the "grandfather of bank secrecy", has been one of the largest offshore financial
centres and tax havens in the world since the mid-20th century. Despite an international push to
meaningfully roll back banking secrecy laws in the country, Swiss social and political forces
have minimized and reverted much of proposed roll backs. Disclosing client information has
been considered a serious social and criminal offence since the early 1900s. Employees working
in Switzerland and abroad at Swiss banks "have long adhered to an unwritten code similar to
that observed by doctors or priests banking secrecy laws have been violated by
four people: Christoph Meili (1997), Bradley Birkenfeld (2007), Rudolf Elmer (2011),
and Hervé Falciani (2014). After insurmountable professional setbacks, all the men were either
fired or resigned from their banks, served with federal arrest warrants and fined.
The Swiss Bankers Association (SBA) estimated in 2018 that Swiss banks held US$6.5 trillion
in assets or 25% of all global cross-border assets. Switzerland's main lingual hubs, Geneva (for
French), Lugano (for Italian), and Zürich (for German) service the different geographical
markets. It consistently ranks in the top three states on the Financial Secrecy Index and was
named first many times, most recently in 2018. The three largest banks UBS, Credit
Suisse, Julius Bar are all regulated by the Swiss Financial Market Supervisory
Authority (FINMA), and the Swiss National Bank (NSB) which derives its authority from a
series of federal statutes. Banking in Switzerland has historically played, and still continues to
play, a dominant role in the Swiss economy and society. According to the Organization for
Economic Cooperation and Development (OECD), total banking assets amount to 467% of

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