
Offshore Banking Primer. Generally speaking, depositing funds in a financial institution in another country is not usually illegal. Likewise, it is typically legal to put. An offshore bank is a bank regulated under international banking license (often called offshore license), which usually prohibits the bank from establishing any business activities in the jurisdiction of establishment. Due to less regulation and transparency, accounts with offshore banks were Some $3 trillion is in deposits in tax haven banks and the rest is in securities. There are many tax havens in the world. So, the Caymans have done a lot to earn their high reputation as an ideal destination for banking offshore. They are.