Offshore financial centers, offshore financial centers [hyphenated] and offshore financial centers (OFCs)

Territories (jurisdictions: authorities of a sovereign power to govern or legislate) in which the financial sector accounts for a significant and disproportionate share of economic activities. – According to another definition, territories in which the
Financial industry locally the majority of transactions with persons outside the
The financial center is a financial center that settles transactions in its own territory and provides financial instruments, such as asset securitization, that are not possible in other countries. – In legal terms, internationally oriented financial centers that are not supervised and regulated by supervisory authorities at all, or at best very laxly, are then also called loopholes. The enforceability of legal claims may also not be guaranteed. At present (end of 2010), these include above all the Bahamas, British Virgin Islands, Cayman Islands, Barbados, Bermuda, Channell Islands, the Netherlands Antilles and Panama. – The demand for securities issued there is fed to a large extent by – black money, i.e. income not reported to the tax authorities, – inflows of money from criminal business, including drug money, and – the money of such investors, who are deterred by the high interest withholding tax in their home countries. – Many national regulators require their banks to have very high capital adequacy requirements when lending to offshore financial centers. This makes such transactions unprofitable. This approach by regulators is often called indirect supervision of offshore financial centers. – See agiotage, committee mania, bad bank, supervision, indirect, blind pool, daimonion, domicile concealment, financial fugitive, corporate haven, corporate mortician, secret tip, hawala, hedge fund company, collection agency, international business company, capital market, gray, market manipulation, cross-border, reporting procedure, nominee, pump and dump, avenging angel, shadow banking, bogus bank, straitjacking, fiduciary account, secondary statement. – See BaFin Annual Report 2003, p. 32; BaFin Annual Report 2006, p. 64 (discussions with offshore center authorities under IOSCO); BaFin Annual Report 2007, p. 69 f. (memorandum of understanding could be concluded); BaFin Annual Report 2008, p. 67 (further successes in cooperation).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/