OFF-SHORE BANKING

An offshore bank is by definition a bank located outside the country of residence of the depositor, which provides financial and legal advantages including bank secrecy and easy access to deposits.

While the term originates from the Channel Islands being "offshore" from the United Kingdom, and most offshore banks are located in island nations to this day, the term is used figuratively to refer to such banks regardless of location, including Swiss banks and those of other landlocked nations such as Luxembourg.