Offshore financial centers

Offshore financial centers (OFCs) are countries or regions that offer financial services to non-residents, often featuring low or no taxes, privacy, and less stringent regulations. They attract businesses and wealthy individuals looking to reduce tax burdens, safeguard assets, or enhance financial privacy. Common examples include places like the Cayman Islands and Luxembourg. While OFCs can facilitate legitimate tax planning and investment opportunities, they may also be associated with tax evasion and money laundering, raising concerns among governments and regulatory bodies seeking greater transparency in global finance.