New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following centers primarily offer tax and

    regulatory advantages to businesses and individuals?
    A Traditional financial centers Correct Answer Incorrect Answer
    B Regional financial centers Correct Answer Incorrect Answer
    C Non-global and non-regional international FCs Correct Answer Incorrect Answer
    D Offshore financial centers Correct Answer Incorrect Answer
    E Niche financial centers Correct Answer Incorrect Answer

    Solution

    Offshore financial centers: Offshore financial centers (OFCs) are jurisdictions that provide tax and regulatory advantages to businesses and individuals. These are centres that are primarily tax havens for wealth management and global tax management rather than providing the fully array of international financial services. Examples include the Cayman Islands, Bermuda, and the British Virgin Islands. These centers offer low taxes, minimal regulation, and strict secrecy laws that make them attractive to those seeking to reduce their tax burden or conceal their financial activities. However, OFCs have faced criticism for facilitating tax evasion and money laundering.

    Practice Next