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Tag Archive for Offshore Financial Centers

Due Process And Regulation of Commerce – Offshore Financial Centers Cross Border Taxation


International transactions pose particularly difficult legal risks because the international legal system is basically in its infancy. Foremost on the immediate horizon are the risks associated with electronic commerce and taxation implications when melded with the notion of jurisdiction, specifically the aspect of due process requisite to jurisdiction and the application of the commerce clause.

In order to appreciate cross-border electronic commerce legal risk associated with authority to tax, an underlying foundation of jurisdiction in general in an international context is required. This writing will approach these legal risks with two basic themes Read more

Offshore Financial Centers and Deregulation

Syndications and Participation Concepts

One of the core benefits to be derived by virtue of Offshore Financial Centers relate to issues of regulation. The emergence of global capital markets has fostered cutting edge competitive financial environments. In efforts to avert cumbersome regulatory costs, participants in the global economy have sought Offshore Financial Centers to achieve a less burdensome regulatory regime.

Many Offshore Financial Centers have developed legislation to induce foreign financial market participants to avail themselves of a more cost efficient operation. Similarly, international bankers have sought an escape from reserve requirements, deposit insurance Read more

Managing Eurocurrency Risk and Offshore Financial Centers


The global financial system has inherent risk in financial instruments associated with financial assets. Market risk is a measure of risk that the market value of a financial instrument will decline over time due to a result in changes in exchange or interest rates. (1) It involves understanding the aspect of risk that determines there is a risk that price will fluctuate in one or more components of a financial transaction.

It is the risk of price fluctuation of property purchased, funds borrowed, or currency that is utilized. The fact that changes in exchange or interest rates has such an impact upon market risk necessitates a fundamental understanding of the term exchange rates and Read more

Credit Risk and Currency Control and Offshore Financial Centers


It is essential in dealing with Offshore Financial Centers to develop a method identifying the various relationships created and the underlying risk associated with each part of a financial transaction. Analysts in the process of evaluating risks often divide them into three basic categories: legal risk, market risk, and credit risk. Political and sovereign risks can contribute to such unexpected results by virtue of Sovereign Immunity concepts, the Act of State Doctrine, and exchange controls.

Credit Risk

Credit risk includes the risk that a counter-party will not perform to contract as a result of Read more

Offshore Financial Centers and Legal Risk of Arbitration Agreements

Introduction –

Offshore Financial Centers are an integral part of our global economy. The international community has often not understood their function. It has had an unfounded apprehension of their participation in the erosion of the developed economies tax base.

The global competitive marketplace has emphasized the craving for cost reduction and Offshore Financial Centers have attempted to accommodate this appetite through deregulated business environment and attractive tax regimes. The world’s Offshore Financial Centers and Tax Havens have tailored their legislation to suit all of these marketplace demands. Read more

Legal Risks of Offshore Financial Centers

TaxConnections Blogger Posts

Offshore Financial Centers and Financial Havens require an appreciation of the transactional risks accompanying their benefits. Even the simplest transactions give rise to complex legal relationships and draw upon a number of legal disciplines.

It is essential in dealing with this aspect of using Offshore Financial Centers to develop a method identifying the various relationships created and the underlying risk associated with each part of the financial transaction. To accomplish this, a technique can be used in evaluating transactions to determine the means that can be employed to reduce or eliminate each risk. The identification of risks can be crucial because it also serves to broaden Read more