Certificate in Offshore banking Practice Syllabus

On completion of this course students will have covered:

Introduction to Offshore Banking

• Explain what is meant by offshore banking.
• Describe how offshore banking developed.
• Identify the factors that have led to the expansion of the offshore banking marketplace.
• Explain the rationale for offshore banking activities.
• Describe the types of institution that are active in the offshore banking market.

Regulation

• Explain the reasons why it is necessary to regulate offshore banking activities.
• Describe the difficulties experienced by national and supranational regulatory bodies in attempting to regulate offshore banking activities.
• Explain why banks have to be properly incorporated and licenced.
• List the principles underpinning capital adequacy and describe the main features of the systems developed by the Bank for International Settlements.
• Explain the role of the Organisation for Economic Cooperation and Development in seeking to regulate offshore banking.
• Define money laundering and terrorist financing, and understand how these crimes are perpetrated.
• Explain the steps typically taken by offshore banks to reduce the risks of money laundering and terrorist financing.
• Explain the purposes and functions of the Financial Action Task Force.
• Explain what is meant by “tax evasion” and “tax avoidance”, and distinguish between the meanings of these terms.

Introduction to Financial Markets

• Define a financial market.
• Describe the features of money markets.
• Describe the features of foreign exchange markets.
• Describe the features of capital markets.
• Explain the relevance of these markets to offshore banking institutions and their customers.

Products and services

• Describe the main features of savings and investment products and services offered by offshore banks.
• Describe the main features of lending products and services offered by offshore banks.
• Describe the main features of insurance products and services offered by offshore banks.
• Explain the purposes and activities of captive companies.

Private banking

• Describe what is meant by private banking.
• Describe the types of customers who utilise the private banking services of offshore banks.
• Explain the products and services offered to the private banking customers of offshore banks.

Taxation

• Define the terms “resident”, “ordinarily resident” and “domicile” in the context of taxation.
• Explain the tax treatment of offshore accounts for individuals and companies.

Trusts

• Define a trust.
• Explain how a trust is created.
• Identify the main parties involved in setting up and administering trusts.
• Explain the role of trustees.
• Explain the benefits of trusts, with particular reference to their role in offshore banking.
• Describe the main generic types of trust.

Offshore Centres

• Describe the business environment in eight offshore centres.
• Identify the key benefits for financial institutions and customers doing business in these offshore centres.

Future Developments

• Summarise the current position regarding offshore centres and their future likely development.
• Provide a reasoned assessment of likely future trends in offshore practice, including the regulation of offshore banks.