An offshore bank is a bank located outside the country of residence of the depositor. Typically, an individual or company will use an offshore bank in a low-tax jurisdiction (or tax haven) that provides financial and legal advantages. These advantages typically include:
easy access to deposits (at least in terms of regulation)
protection against local, political, or financial instability
While the term originates from the Channel Islands being "offshore" from the United Kingdom, and while most offshore banks are located in island nations to this day, the term is used figuratively to refer to any bank used for these advantages, regardless of location. Thus, an "offshore banks" include Swiss banks and those of other landlocked nations such as Luxembourg and Andorra.
taxpayers dodge tax responsibilities through offshore accounts after Swiss banks stopped providing tax-dodging help to U.S ... Prosecutors said the insurance company, the leading provider of life insurance and pension products in the domestic Swiss market, wrote tax-dodging policies since 2008 after Swiss banks terminated business with U.S.
prosecutors began cracking down more than a decade ago on the use of Swiss banks to avoid federal taxes. Swiss Life and its affiliates viewed this "stepped-up offshore tax enforcement as an opportunity to pitch themselves to tax-evading U.S ... charges it helped taxpayers who fled UBS and other Swiss banks hide money in offshore accounts.
The taxman has blown the lid off the offshore interests of millions of Britons - exposing secret Swiss bank accounts and investments buried in the Caribbean... 'We now have unprecedented amounts of information about offshore bank accounts and overseas income.
The bank said it has cooperated with Swiss authorities, closed its offices in Panama and Venezuela and has tried to claw back the bonuses of employees in its Latin American group whose actions triggered the regulatory probe ...That’s especially true for Julius Baer, he said, because it was one of a few Swiss banks criminally charged in a U.S.