Non-accountability of offshore banks

Banks which set up their head offices in tax havens or in countries where regulation is inadequate are coming increasingly under scrutiny. Whilst they operate legally and currently without suffering adverse consequences, the global banking sector is concerned that they should provide minimum adequate information to ensure they meet adequate regulatory standards.

The collapse of the Bank of Credit and Commerce International (BCCI) in 1991 following charges of widespread fraud, froze some $20 billion in deposits in 69 countries.

Swiss banks handle one-third of global offshore private banking, which is estimated to contribute to half of their profits.

1. Unethical financial practices
2. Unaccountability of international financial institutions
3. Legal havens
4. Evasion of the law
5. Abuse of economic power

1. Unethical banking practices
2. Speculative flight of capital
3. Protectionism in free-zone international financial services
4. Money laundering
5. Banking law violations
6. Bank fraud
7. Bank failure
8. Abuse of tax havens
9. Abuse of banking secrecy

1. Creative accounting
2. Antiquated regulations in the banking industry

1. Misuse of free production zones and export enclaves
2. Ineffectual national regulations for financial institutions

1. Maintaining banking secrecy
2. Establishing specially regulated zones