
An offshore financial centre is a relatively new term loosely defined as “a
low-tax, lightly regulated jurisdiction [that] specializes in providing the
corporate and commercial infrastructure to facilitate the use of that
jurisdiction for the formation of offshore companies and for the investment of
offshore funds.” The word “offshore” comes from the fact that most of these
types of financial centres are former British colonies, and at one time were
geographically “off” of England’s “shores.”
Offshore finance centres, also known as offshore jurisdictions, are typically
characterized by low or no taxes for corporations; extreme attention to privacy
in financial dealings; the number of companies owned by foreigners outnumbers
those owned by its citizens; and a disproportionate amount of assets from
outside its jurisdiction.
Offshore financial centres include: