International-Business-Dr-R-Chandran-E-book

76
International Business- Dr. R. Chandran
• Minimum formalities for incorporation.
• Adequate legal framework that safeguards the integrity of principal agent
relations.
• Conducive regulatory framework – a separate banking act to provide a
regulatory framework covering the operations of banks and financial
institutions in the SEZs. For instance, the Offshore banking licence for
the setting up of a branch or subsidiary.
Offshore Banks:
Regulatory Framework in Selected Offshore Financial Centres.
Offshore
Financial
Centre
Anguilla
Antigua &
Barbados
Activities
and
Restrictions
Both private
and public
companies
may operate
onshore and
offshore. All
four
domestic
banks offer
offshore
banking
services.
Offshore
banks may be
legally
established
under the
Prudential
Regulations
N/a
Minimum
paid in
capital is US
$ 1 milion.
Licensing
Tax
Privileges
No taxes are
levied
Offshore
banks have a
50 year
reprieve from
taxes on
Role of
Regulators
Offshore
banks are
under the
oversight of
the offshore
Finance
Committee
chaired by the
Governor with
representatives
of both the
Government
and private
sector. The
Eastern
Carribean
Central Bank
does not
supervise the
offshore
sector.
Offshore
banks are
regulated by
the Supervisor
of Banking
Only for Private Circulation