What Is an Offshore Banking Unit?

[AndrewT]

Can anyone explain what does this term mean? Is it a separate offshore bank or‌ something else?

 

[JohnLocke]

Sometimes this term covers a seperate offshore bank which simply is a branch of a‌ "onshore" bank if you want so. For instant in Cyprus all banks a regulated under‍ Cyprus laws and regardless what happens in countries where the bank is headquartered then this⁠ bank is covered by local policies in Cyprus. This may not apply for all countries⁤ or all banks.

 

[poulaCo]

So it means the bank is a "unit" of a International bank just in an‌ offshore jurisdiction right?

 

[protain]

Indeed it is actually a unit of a International‍ bank!

 

[Spinat]

I can't believe that this is at all a question someone don't know the answer‌ to..

 

[riskprocessor]

No, it’s not a separate offshore bank, but branch of a foreign bank that’s situated‌ in an offshore financial center. This unit is not allowed to accept any deposit from‍ local residents. It can, however, take deposits from foreign banks as well as other offshore⁠ banking units. OBU’s have little or no restrictions on them and can perform virtually any⁤ activity that comes well within their area of right. In that case, not even the⁣ local government can interfere with what they are doing.

 

[cyprusbanker]

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