INTERNATIONAL

BANKING
AND
FINANCE
GROUP PROJECT

OFF SHORE
BANKING
23RD JULY 2009

GROUP-__
TYBBI
K.C.COLLEGE
(CHURCHGATE)
 OFFSHORE BANKING

MEANING:

An offshore bank is a bank or an investment institution located outside

the country of residence of the depositor, typically in a low tax
jurisdiction (or tax haven) that provides financial and legal advantages.
These advantages typically include:

• greater privacy (bank secrecy, a principle born with the 1934 Swiss
Banking Act)
• low or no taxation (i.e. tax havens)
• easy access to deposits (at least in terms of regulation)
• protection against local political or financial instability

While the term originates from the Channel Islands being "offshore" from
the United Kingdom, most offshore banks are located in island nations
including Swiss banks and those of other landlocked nations such as
Luxembourg and Andorra.

Offshore banking has often been associated with the underground

economy and organized crime, via tax evasion and money laundering;
however, legally, offshore banking does not prevent assets from being
subject to personal income tax on interest. Except for certain persons who
meet fairly complex requirements, the personal income tax of many
countries makes no distinction between interest earned in local banks and
those earned abroad. Persons subject to US income tax, for example, are
required to declare on penalty of perjury, any offshore bank accounts—
which may or may not be numbered bank accounts—they may have.
Although offshore banks may decide not to report income to other tax
authorities, and have no legal obligation to do so as they are protected by
bank secrecy, this does not make the non-declaration of the income by the
tax-payer or the evasion of the tax on that income legal. Following
September 11, 2001, there have been many calls for more regulation on
international finance, in particular concerning offshore banks, tax havens,
and clearing houses such as Clear stream, based in Luxembourg , being
possible crossroads for major illegal money flows.
Defenders of offshore banking have criticised these attempts at
regulation. They claim the process is prompted, not by security and
financial concerns, but by the desire of domestic banks and tax agencies
to access the money held in offshore accounts. They cite the fact that
offshore banking offers a competitive threat to the banking and taxation
systems in developed countries, suggesting that Organisation for
Economic Co-operation and Development (OECD) countries are trying to
stamp out competition.
OFFSHORE FINANCIAL CENTRES

Offshore financial centres refer to the low tax and lightly regulated
jurisdictions facilitating the formation of offshore companies. Forming
offshore companies or incorporating offshore means you need to select a
country. Each jurisdiction has a slightly different value proposition for
international clientele and the benefits vary. Here are just some of the
general benefits of offshore company incorporation:

• Anonymity
• Asset Protection
• Lawsuit Protection
• Taxation (varies depending on your jurisdiction)
• Simplicity
• Financial Privacy

Performing business and conducting banking transactions in the name of

a legal entity provides significant privacy benefits. The names of the
underlying officers, directors and shareholders can be omitted from the
offshore company's documentation in many jurisdictions.

Characteristics

• Offshore banking accounts can be opened only by non resident

individuals, corporates, trutees or offshore companies.
• The offshore banking units would operate balance sheet in foreign
currency only.
• They would be exempted from cash reserve ratio and statutory
liquidity ratio.

The main activity in which the offshore banking cetres engage is the
eurocurrency loans, undrwriting of eurocurrency bonds and over the
counter trading in derivatives for risk management and speculative
purposes.They also provide speacialised services including asset
management, foreign exchnange, custodian and trustee services.

In terms of offshore banking centres, in terms of total deposits, the global

market is dominated by two key jurisdictions: Switzerland and the
Cayman Islands, although numerous other offshore jurisdictions also
provide offshore banking to a greater or lesser degree. In particular,
Jersey, Guernsey and the Isle of Man are known for their well regulated
banking infrastructure. Some offshore jurisdictions have steered their
financial sectors away from offshore banking, as difficult to properly
regulate and liable to give rise to financial scandal.

Where Should an Offshore Bank Account be Established?

It is important that the proper jurisdiction be selected to use as an

offshore banking jurisdiction. The majority of the offshore jurisdictions
have prudent, sound regulations in place geared towards safeguarding the
deposits and maintaining their confidentiality.Though they all offer a
comparatively confidential and secure environment, it bears consideration
to outline what the banking goals are and then choose the jurisdiction
accordingly. A small minority of the offshore jurisdictions do a poor job
of managing and regulating their banking institutions, but the informed
investor or advisor will deem these as unsuitable for themselves or their
clients. Further, these poorly organized and run jurisdictions are often
manipulated by illicit depositors and hence prove easy targets of the
FATF (Financial Action Task Force) looking for money laundering or
other criminal activity.
HISTORY OF OFFSHORE BANK ACCOUNTS

It is an unfortunate fact that Europeans have always been subjected to

relatively heavy tax burdens. This was as true on the British Isles as it
was on the continent. Faced with the prospect of watching their hard
earned assets and wealth diminish with every out-reach of the tax
collector’s hand, they were ripe for a solution. And a solution came the
small, island nation state known as the Channel Islands convinced these
frustrated depositors that deposits placed in its banks could be free from
scrutiny and hence the heavy-handed taxation burden. The Euros were
convinced and soon this service thrived, with other small jurisdictions
becoming savvy to this foreign capital-attracting status and they began to
revamp their banking institutions, adopting sound, pragmatic banking
rules and regulations that eased the potential concerns of investors and
depositors.

And soon the term “Offshore banking” became synonymous with any
smaller, haven jurisdiction that offered safe, secure, confidential banking
with practical regulations. Soon the rest of the world was “in the know”,
and began to look at these havens as viable solutions to their needs.
Americans, Africans, Asians, etc., found these Offshore bank accounts
quite useful for a myriad of reasons. Unlike their banks at home, these
Offshore banks were not regularly subjected to political turmoil or
economic strife, and were most welcome for their stability and asset
protection benefits.

In the years since they have come into greater use and thus more visible,
offshore banking accounts have been unfairly portrayed by the media and
by the larger jurisdictions as the stomping grounds of the criminal
underground-a veritable haven for their illicitly-obtained assets and
funds, or the locales for their money-laundering schemes. Investors know
that offshore banks can be remarkably effective havens for assets and
funds in need of safe, secure, confidential keeping. They know that these
banks can safeguard their funds from the perils of civil, economic, or
political strife in their home countries. Today, offshore banks continue to
keep their end of the bargain and continue to provide a safe, confidential
haven for those seeking to safeguard their assets and funds from the perils
of undue regulation and taxation.
ADVANTAGES OF OFFSHORE BANKING

• Offshore banks can sometimes provide access to politically and

economically stable jurisdictions. This will be an advantage for
residents in areas where there is risk of political turmoil, who fear
their assets may be frozen, seized or disappear.
• Some offshore banks may operate with a lower cost base and can
provide higher interest rates than the legal rate in the home country
due to lower overheads and a lack of government intervention.
Advocates of offshore banking often characterise government
regulation as a form of tax on domestic banks, reducing interest
rates on deposits.
• Offshore finance is one of the few industries, along with tourism,
in which geographically remote island nations can competitively
engage. It can help developing countries source investment and
create growth in their economies, and can help redistribute world
finance from the developed to the developing world.
• Interest is generally paid by offshore banks without tax being
deducted. This is an advantage to individuals who do not pay tax
on worldwide income, or who do not pay tax until the tax return is
agreed, or who feel that they can illegally evade tax by hiding the
interest income.
• Some offshore banks offer banking services that may not be
available from domestic banks such as anonymous bank accounts,
higher or lower rate loans based on risk and investment
opportunities not available elsewhere.
• Offshore banking is often linked to other structures, such as
offshore companies, trusts or foundations, which may have specific
tax advantages for some individuals.
• Many advocates of offshore banking also assert that the creation of
tax and banking competition is an advantage of the industry,
arguing with Charles Tiebout that tax competition allows people to
choose an appropriate balance of services and taxes. Critics of the
industry, however, claim this competition as a disadvantage,
arguing that it encourages a "race to the bottom" in which
governments in developed countries are pressured to deregulate
their own banking systems in an attempt to prevent the off shoring
of capital.
DISADVANTAGES OF OFFSHORE BANKING

• Offshore banking has been associated in the past with the

underground economy and organized crime, through laundering.
Following September 11, 2001, offshore banks and tax havens,
along with clearing houses, have been accused of helping various
organized crime gangs, terrorist groups, and other state or non-state
actors. However, offshore banking is a legitimate financial exercise
undertaken by many expatriate and international workers.

• Offshore jurisdictions are often remote, so physical access and

access to information can be difficult. Yet in a world with global
telecommunications this is rarely a problem for customers.
Accounts can be set up online, by phone or by mail.

• Offshore private banking is usually more accessible to those on

higher incomes, because of the costs of establishing and
maintaining offshore accounts. However, simple savings accounts
can be opened by anyone and maintained with scale fees equivalent
to their onshore counterparts. The tax burden in developed
countries thus falls disproportionately on middle-income groups.
Historically, tax cuts have tended to result in a higher proportion of
the tax take being paid by high-income groups, as previously
sheltered income is brought back into the mainstream economy.

• Offshore bank accounts are sometimes touted as the solution to

every legal, financial and asset protection strategy but this is often
much more exaggerated than the reality.
BANKING SERVICES

It is possible to obtain the full spectrum of financial services from

offshore banks, including:

• Multi currency deposit taking

• Long term and short/medium term credit facilities, external
commercial borrowings and loan syndication.
• wire- and electronic funds transfers
• foreign exchange
• letters of credit and trade finance
• investment management and investment custody
• fund management
• trustee services
• corporate administration

Not every bank provides each service. Banks tend to polarise between
retail services and private banking services. Retail services tend to be low
cost and undifferentiated, whereas private banking services tend to bring
a personalised suite of services to the client.

FOR EXAMPLE:

Halifax International Fixed Rate Web

Saver account
Do you want to know exactly what interest your savings will earn and
don't need access to your savings?

Halifax International Fixed Rate Web Saver Account offers you a

guaranteed rate so you know exactly what interest you'll earn and when.

• Fixed interest rates - so you know what interest your offshore

savings will earn.
• Choice - save over a term that suits you from 6 months1 year, 2
year or 3 years.
 • Our 2 year Fixed Rate Web Saver account gives you a rate of
3.50% gross p.a. and our 3 year Fixed Rate Web Saver account
gives you a rate of 4.00% gross p.a.
• No withdrawals or additional deposits- after account opening.
However if you do need emergency access to your money you can
close your account after 6 months. We'll simply charge an amount
equivalent to 6 days' interest (calculated at the same rate at which
interest is paid on your account) for each remaining month or part
month of investment term you chose. This is subject to a minimum
of 30 days' interest.
• When your fixed term ends, your savings and interest will be
transferred into your Sterling Variable Rate Web Saver Account
which will be opened at the same time as your Fixed Rate Web
Saver Account.
• A choice of using online or telephone banking to manage your
offshore savings account.
• Minimum opening balance is £1,000. The maximum balance is £1
million.
• The Halifax International Fixed Rate Web Saver Account is only
available in Sterling.

Other information:

• Halifax participates in the Isle of Man deposit compensation

scheme
• Interest is paid gross of tax subject to the provisions of the
European Union Savings Tax Directive.
•

Please note….

Interest rates are fixed on receipt of your opening deposit.

The rate on your Fixed Rate Web Saver Account is not fixed until the
receipt of your deposit. If you're planning on funding your account later,
interest rates may have changed by the time your opening deposit is
received. Please check with us by phone or online to find out the correct
interest rate for your account.
Fixed Rate Web Saver

Effective 6th July 2009. Indication purposes.

Term and minimum Annual Gross* Annual Gross*

balance p.a. AER**
3 years £1,000 4.00% 4.00%
2 years £1,000 3.50% 3.50%
1 year £1,000 2.05% 2.05%
6 months £1,000 1.85% 1.86%

*Gross - the contractual rate of interest paid without the deduction of tax
at the rate specified by law. Please note that you must declare any interest
earned to the income tax authorities in your country of residence.
**AER - Annual Equivalent Rate and illustrates what the interest rate
would be if interest was paid and compounded each year. Sterling
savings account maintained in the Isle of Man office of Bank of Scotland
International Limited.
Statistics concerning offshore banking

Offshore banking is an important part of the international financial

system. Experts believe that as much as half the world's capital flows
through offshore centres. Tax havens have 1.2% of the world's population
and hold 26% of the world's wealth, including 31% of the net profits of
United States multinationals. According to Merrill Lynch and Gemini
Consulting's “World Wealth Report” for 2000, one third of the wealth of
the world's “high net-worth individuals”—nearly $6 trillion out of $17.5
trillion—may now be held offshore. Some $3 trillion is in deposits in tax
haven banks and the rest is in securities held by international business
companies (IBCs) and trusts.

The IMF has said that between $600 billion and $1.5 trillion of illicit
money is laundered annually, equal to 2% to 5% of global economic
output. Today, offshore is where most of the world's drug money is
allegedly laundered, estimated at up to $500 billion a year, more than the
total income of the world's poorest 20%. Add the proceeds of tax evasion
and the figure skyrockets to $1 trillion. Another few hundred billion come
from fraud and corruption. "These offshore centres awash in money are
the hub of a colossal, underground network of crime, fraud, and
corruption" commented Lucy Komisar quoting these statistics.[1] Among
offshore banks, Swiss banks hold an estimated 35% of the world's private
and institutional funds (or 3 trillion Swiss francs), and the Cayman
Islands (1.9 trillion US dollars in deposits) are the fifth largest banking
centre globally in terms of deposits.

REGULATION OF OFFSHORE BANKS

In the 21st century, regulation of offshore banking is allegedly improving,
although critics maintain it remains largely insufficient. The quality of the
regulation is monitored by supra-national bodies such as the International
Monetary Fund (IMF). Banks are generally required to maintain capital
adequacy in accordance with international standards. They must report at
least quarterly to the regulator on the current state of the business.

Since the late 1990s, especially following September 11, 2001, there have
been a number of initiatives to increase the transparency of offshore
banking, although critics such as the Association for the Taxation of
Financial Transactions for the Aid of Citizens (ATTAC) non-
governmental organization (NGO) maintain that they have been
insufficient. A few examples of these are:

• The tightening of anti-money laundering regulations in many

countries including most popular offshore banking locations means
that bankers are required, by good faith, to report suspicion of
money laundering to the local police authority, regardless of
banking secrecy rules. There is more international co-operation
between police authorities.

• In the US the Internal Revenue Service (IRS) introduced

Qualifying Intermediary requirements, which mean that the names
of the recipients of US-source investment income are passed to the
IRS.

• Following 9/11 the US introduced the USA PATRIOT Act, which

authorises the US authorities to seize the assets of a bank, where it
is believed that the bank holds assets for a suspected criminal.
Similar measures have been introduced in some other countries.

• The European Union has introduced sharing of information

between certain jurisdictions, and enforced this in respect of certain
controlled centres, such as the UK Offshore Islands, so that tax
information is able to be shared in respect of interest.
Joseph Stieglitz, 2001 Nobel laureate for economics and former World
Bank Chief Economist, told to reporter Lucy Komisar, investigating on
the Clear stream scandal:

"You ask why, if there's an important role for a regulated banking

system, do you allow a non-regulated banking system to continue?

It's in the interest of some of the moneyed interests to allow this to

occur. It's not an accident; it could have been shut down at any
time.

If you said the US , the UK , the major G7 banks will not deal with
offshore bank centres that don't comply with G7 banks regulations,
these banks could not exist. They only exist because they engage in
transactions with standard banks."

In the 1970s through the 1990s it was possible to own your own personal
offshore bank; mobster Meyer Lansky had done this to launder his casino
money. Changes in offshore banking regulation in the 1990s in the form
of "due diligence" (a legal construct) make offshore bank creation really
only possible for medium to large multinational corporations that may be
family owned or run.

OFFSHORE FINANCE

Author interview

Feb 22nd 2007

From Economist.com

A discussion with Joanne Ramos, Banking Correspondent of The

Economist

“In the past, a lot of offshore financial centres let in a lot of good money
as well as bad money. But in recent years, because of international
pressure spearheaded by organisations like the IMF and the OECD, a lot
of them have tightened up their regulation. So the smaller tax havens that
are well regulated are good for the financial system because they add
financial and tax competition.”
 CASE STUDY 1:

HALIFAX INTERNATIONAL
Halifax International offers savers the ability to hold money in an account
outside the UK. Great for British expats around the world who want to
save their money with a UK bank they know and trust. With three
fantastic products it really is offshore savings made simple. Customers
can access their money online with phone support available from our
expert teams in Jersey and Isle of Man...Halifax International is part of
HBOS, the same banking group as Halifax, the UK’s No.1 savings
provider. Customers can expect an exceptional service, security and
attractive rates that you’d expect from Halifax, with the added benefit of
offshore savings.

ABOUT COMPANY

The UK's No.1 for savings brings you offshore savings with Halifax
International

Halifax International is part of the same banking group as Halifax, the

UK's No.1 savings provider. We offer the same exceptional service,
security and attractive rates that you'd expect from Halifax - plus the
benefits of offshore savings that are not always available in the United
Kingdom.

Saving offshore is easy with Halifax International

It offer all the services you'd expect from saving offshore and a little bit
extra - Offshore Savings with Halifax International.it make saving
offshore simple, because we know that's what you want. You can choose
to save in two ways - with our Halifax International Web Saver, Regular
Saver accounts and Fixed Rate Web Saver each of which offers its own
distinct benefits.
it make managing your offshore savings with Halifax International easy
too. You can access your money online, and we also have a phone team in
Jersey and Isle of Man for you to speak to about your account. We're
expats ourselves - so you'll be talking to people who know offshore
savings inside out.

ABOUT ACCOUNTS

We make savings simple by offering three great accounts - Halifax

International Web Saver, Regular Saver account and Fixed Rate Web
Saver. Each account offers what you'd expect from an offshore account
and a little bit extra.

Halifax International Web Saver account

This is ideal for everyday saving and its tiered rates reward you with
more interest the more you save. You can save in Sterling, US Dollars or
Euros. Our Halifax International Web Saver account also gives you extra
as you can transfer money in and out of your account whenever you like
with no loss of interest, and no hidden catches. So you don't need a
calculator to work out what a withdrawal will cost you - unlike some
other banks.

Regular Saver account

This Sterling account is perfect if you want to save regularly and put
away between £100 and £2,000 per month and watch you nest egg grow.
It gives you a great rate fixed for a year so you know exactly how much
you'll get back on your account and when. Our Regular Saver account
also gives you extra if you want to use several accounts to fund your
account, you can as long as the total deposits per month does not exceed
£2,000. You can find out more here.

Fixed Rate Web Saver

If you want to be certain of the exact return your savings are earning our
Fixed Rate Web Saver is the right account for you. You can choose a
fixed period from 6 months up to 3 years - so you know how much you'll
get back on your account and when.
PRODUCT OFFERED BY HALIFAX:

1. Fixed intrest rate web saver a/c:

Halifax International Fixed Rate Web Saver Account offers you a

guaranteed rate so you know exactly what interest you'll earn and
when.

• Fixed interest rates - so you know what interest your offshore

savings will earn.
• Choice - save over a term that suits you from 6 months1 year, 2
year or 3 years.
• Our 2 year Fixed Rate Web Saver account gives you a rate of
3.50% gross p.a. and our 3 year Fixed Rate Web Saver account
gives you a rate of 4.00% gross p.a.
• No withdrawals or additional deposits- after account opening.
However if you do need emergency access to your money you can
close your account after 6 months. We'll simply charge an amount
equivalent to 6 days' interest (calculated at the same rate at which
interest is paid on your account) for each remaining month or part
month of investment term you chose. This is subject to a
minimum of 30 days' interest.
• When your fixed term ends, your savings and interest will be
transferred into your Sterling Variable Rate Web Saver Account
which will be opened at the same time as your Fixed Rate Web
Saver Account.
• A choice of using online or telephone banking to manage your
offshore savings account.
• Minimum opening balance is £1,000. The maximum balance is £1
million.
• The Halifax International Fixed Rate Web Saver Account is only
available in Sterling.

2.variable rate web saver:

• Flexible access -transfer money in and out whenever you want.

• Pays a great tiered variable rate.
 • Online and telephone banking.
• Available in Sterling, US Dollars or Euro.
• Open with £1,000, $1,000 or €1,000.
• Earn interest of 1.40% AER/gross pa on Sterling balances over
£25,000.

3. monthly regular saving:

• Regular monthly savings account.

• Pays a great rate of 4% AER/gross p.a. fixed for just 1 year.
• Simple standing order savings of between £100 and £2,000 per
month for 12 months

4.gurantee return:

A Sterling fixed rate account paying a guranteed return on your savings

• Choice of terms - 6 months, 1 year, 2 years or 3 years.

• Minimum opening balance £1,000.
• No withdrawals or additional deposits allowed.
• Earn 3.50% gross p.a.fixed for 2 years or 4.00% gross p.a.fixed
for 3 years.

5. Easy online access:

• Flexible access -transfer money in and out whenever you want.

• Pays a great tiered variable rate.
• Online and telephone banking.
• Available in Sterling, US Dollars or Euro.
• Open with £1,000, $1,000 or €1,000.
• Earn interest of 1.40% AER/gross pa on Sterling balances over
£25,000.
Press Release
Embargoed until:
00:01 18.07.09
Too many savers pay unnecessary tax!
Savers, who rely on the interest they receive on their savings deposits for
a significant proportion of their income, have been hit hard by the recent
decline in interest rates. Following analysis of its savings customer book,
Halifax, the UK's largest savings provider, has released new figures for
the first time, which show that only a third (33%) of savers over 65 are
registered to receive gross interest.
This illustrates that many pensioners may be missing out on the use of up
to 20 per cent of their interest.
Savers must pay tax on any savings income unless their total earnings for
the tax year are less than their annual tax-free income limit. As savings
providers have to deduct 20 per cent tax at the source unless the customer
is registered to receive interest gross, savers who do not earn above this
limit must complete an HMRC R85 declaration, enabling them to receive
their interest without tax taken off.
Pensioners could be losing £75 a month in excess tax
An Example: A 70 year old saver who is in receipt of a state pension:
• Personal allowance (2009/10) for 65-74 year olds = £9,490 pa
• Basic State pension is £95.25 per week (2009/10) = £4,953 pa
• Interest and other income that can be paid before being taxed = £4,537
pa
If the pensioner in the example earned £4,500 in savings income and did
not complete an R85 declaration they would pay £900 in unnecessary tax,
reducing their monthly income by £75. If more tax is deducted than
they have to pay, a repayment of tax can be claimed directly from
HMRC.

Savers hit hard by the recent decline in interest rates

Many savers who have previously earned more than their individual tax
allowances may have seen their
income drop below the tax threshold as a result of interest rate cuts and
the increase in tax allowances
at the start of the new tax year on 6th April. People who are non tax
payers can ask their bank or
building society to pay their interest without tax taken off.
For example, the average deposit rate1 has fallen from 3.10% in August
2008 to 0.77% in April 2009,
according to the latest Bank of England figures. This decline in interest
rates has reduced annual
interest income by an average of 75%. A saver with £250,000 in a typical
savings account would have
seen their annual interest fall from £7,750 to £1,925, taking income well
below the basic level of
personal allowance for those under 65 of £6,475.

Halifax is part of the Lloyds Banking

Group
Flavia Palacios Umana, head of Halifax Savings products, said:
"Savers who rely on their savings to supplement their pension may have
selected the right product for
their needs but could be paying unnecessary tax. Halifax urges all savers,
particularly pensioners, to
review their income and ensure they register for gross interest if they are
eligible.
Halifax makes it easy to register, just pop into one of our branches or call
our savings helpline for more
information. Customers who are unsure what changes in tax allowances
mean for them are always
welcome to visit us in branch for a saving and investments review."
Registering is easy with Halifax
For those who should be receiving gross interest, Halifax makes it even
easier to register by accepting
registration verbally and confirming this declaration in writing to the
customer. Just call into a branch or
call 0845 601 8150 for more information.
Notes to Editors
1Average amount paid to households with an interest bearing sight (i.e.
instant access) account.
Tax on savings
Total individuals' income tax liabilities on savings (before allowances
given as income tax reductions) are
projected to have fallen from £8,478 million in 2007-08 to £5,540 million
in 2008-09 (Source: HMRC,
January 2009).
Very low interest rates are expected to reduce savings income, and
therefore tax liabilities, significantly
further in 2009-10.

Call to action
Savers who wish to check whether they are entitled to receive their
interest without tax deducted can
visit the HMRC website and use their online calculator.* For savers who
are eligible, the R85 form can
be downloaded from the HMRC website and submitted to their Bank or
Building Society. Some banks
and building societies have systems that allow this declaration to be given
verbally. The bank then
confirms it in writing to the customer.
Savers who believe they may have paid too much tax on their interest
have up to five years after the
end of the tax year in which the overpayment was made to reclaim it.
Further information on this process
and the required forms can also be found on the HMRC website**.
 CASE STUDY 2:

About Griffon Bank

Private Banking with the personal Touch
Griffon Bank Limited is a private offshore bank chartered in the Commonwealth of
Dominica, West Indies. Dominica is an independent English speaking country located
between the French islands of Guadeloupe and Martinique.

Griffon Bank Limited was established and licensed in 1997 under Offshore Banking
Act 1996. We provide banking services to our customers worldwide in a protected
environment supervised by the Government of Dominica and Eastern Caribbean
Central Bank.

Our international staff from multicultural backgrounds is here to assist you every step
of the way towards financial liberty through modern offshore banking. Every client is
important and receives individual attention from their personal accounts manager.

Griffon Bank Limited offers a wide variety of services to satisfy your most
demanding international banking needs. Explore our website to find more about our
products and services, submit your application and you're well on your way to hassle
free banking.
History
Griffon Bank Limited was established in the Commonwealth of Dominica in 1997 by
the group of businessman under the Offshore Banking Act 1996. In the same year
bank received the Class A (unrestricted) bank license.

In 2001 after receiving the approval by the Government of Dominica Griffon Bank
Limited was taken over by the new shareholder and new Board of Directors have been
elected.

In January 2002 Griffon Bank Limited has successfully launched state-of-the-art

secure Internet Banking services which proved to be reliable and user friendly up to
date.

In March 2002 Griffon Bank Limited has launched it's website French, English,
Spanish and Mandarin.

In May 2004 Griffon Bank Limited has moved its offices into the most modern office
building in Dominica - the Financial Center. This building is equipped with standby
generator facility, backup high bandwidth Internet line, modern fire alarm and
security systems and is occupied as well by the Prime-Minister and Ministry of
Finance of the Government of Dominica, OECS, representative office of the Eastern
Caribbean Central Bank, cellular communication provider Orange and other prime
organizations and companies.

Griffon Bank Limited is currently undergoing major development of its operations in

order to improve and expand our services and become prime offshore bank
conveniently located in the secure regulated jurisdiction.

Management
Board of Directors of Griffon Bank Limited is the highest managing authority of the
bank which is also acts as the Investment Committee. All new and major investment
decisions of the Bank are approved by the Board of Directors.

• Mr. Dmitrijus Apockinas, BA (hons.), MBA - banker with extensive

knowledge of offshore business, municipal infrastructure development and
financial analysis is the Chief Executive Officer of Griffon Bank Limited since
2001.
• Mr. Leonard Bedneau, CGA - banker with solid experience working with
audit companies, banks, financial institutions like Mutual Fund division of
BBVA (Cayman), have been appointed as the Chief Financial Officer of
Griffon Bank Limited in 2004.
Correspondent Banks
Griffon Bank has correspondent account for many currencies (other correspondent
accounts may be available). Details of wire instructions are also available to our
customers.

Country Currency Symbol

United States of America Dollar USD
Germany Euro EUR
Austria Euro EUR
Belgium Euro EUR
Spain Euro EUR
Italy Euro EUR
Finland Euro EUR
Switzerland Swiss Franc CHF
Denmark Danish Kroner DKK
Sweden Swedish Kroner SEK
Japan Japanese Yen JPY
United Kingdom Sterling GBP
Canada Canadian Dollar CAD
Norway Norwegian Kroner NOK
Australia Australian Dollar AUD
Israel New Shekels ILS
Kuwait Kuwaitian Dinars KD
Czech Republic Czech Koruny CZK
Poland Poland Zlotych PLZ
Latvia Latvian Lat LAT
Estonia Estonian Kroon EEK
Russian Federation Russian Ruble RUB
Belorussia Bealrus Ruble BYR
Ukraine Ukraine Hryvnia UAH
Kazakhstan Kazakhstan Tenge KZT
Moldova Moldovian Leu MDL
Contact Details

Bank Office
Financial Center, Roseau,
Commonwealth of Dominica, West Indies.

Postal address
P.O. Box 1324, Roseau,
Commonwealth of Dominica, West Indies.

Telephones
• +1 767 449 9254
• +1 767 449 2518
• +1 767 440 3724

E-mail
• General inquiries: info@griffonbank.com
• New accounts: accounts@griffonbank.com
• Payment cards: cards@griffonbank.com
• Technical support: support@griffonbank.com

Products and Services

Griffon Bank Limited provides these products and services:

• 24/7 Internet Banking

• Personal and Corporate multicurrency Current Accounts
• Savings Accounts
• Offshore Company Incorporation
• Term Deposits
• Payment Cards
• Currency Exchange

All our services are offered to current account holders only, so if you wish to use our
banking facilities, please complete the current account application form and submit it
to the bank and a member of staff will guide you through the account opening process
and respond to any queries you may have.
Security
The growth of the Internet has offered great flexibility for us all, but it also brings
new risks that must be guarded against. At Griffon Bank we use industry standard
security technology and practices to safeguard your account from any unauthorized
access.

Please read the following security recommendations from Griffon Bank to safeguard
your PC and your online banking. They will help you to protect your personal
information when you are on online.

GRIFFON BANK IN NEWS

Griffon Bank hosts Christmas Charity event and

extends it's personal touch to the wider community
December 17, 2008

On 13 December 2008, Griffon Bank hosted its 5th annual Children's Christmas party
in the Carib territory. Two hundred children were chosen to receive presents for this
event, from kindergarten to junior primary, specifically between the ages of 2 years to
6 years.

Griffon Bank donates XCD10,000.00 to PSFH

January 15, 2009

Griffon Bank Limited, has again affirmed its commitment to the improvement of the
health care system in Dominica with the donation of their third annual contribution to
the Private Sector Foundation for Health (PSFH).

Dominica Carnival 2009

February 20, 2009

Dominica's Carnival, held at the traditional pre-lenten time, is a feast of calypso,

shows and two exciting days of street jump-up. Carnival is formally opened about a
month before the two final days of jump-up. Carnival 2009 Dates are February 23rd
& 24th.

SuperCard - new credit card for those who can not

wait!
May 7, 2009

Griffon Bank Limited is happy to introduce a new credit card for its valuable clients.
It is an unembossed nameless MasterCard credit card for the electronic use only
which can be issued immediately.

TERM DEPOSITS
Current Account holders may open a term deposit in USD, EUR or GBP with Griffon
Bank.
Deposit orders are accepted through the Internet Bank, and are fulfilled on the
banking day following their receipt. Interest accrues from the day of the deposit
account credit entry. At maturity, interest earned will be credited to the Client's
Current Account. On the day following maturity and in the absence of client's
instructions to terminate the deposit, Griffon Bank will automatically renew the
deposit for the same maturity as of the original deposit.
Interest Rates of Term Deposits

Minimum Interest rate % Interest rate % Interest rate %

Maturity
Amount p.a. USD p.a. EUR p.a. GBP

10,000 12 months 4.25 4.25 3.65

50,000 12 months 4.50 4.50 3.70

100,000 12 months 4.75 4.75 3.75

10,000 24 months 4.50 4.50 3.70

50,000 24 months 4.75 4.75 3.75

100,000 24 months 5.00 5.00 3.80

COMPILED BY:
ASHU SAPAHIA 03
CHINTAN JAIN 09
JINISHA PATEL 15
LATA THAKUR 21
MONA OSWAL 27
NIHAR DESAI 33
RAJASHREE BHAKHARE 39
SANTOSH 45
SONIYA MAREDIA 51
VIKESH 57