Offshore Business Environment

DEVELOPMENT AND FEATURES OF OFFSHORE CENTRES

Students will be able to:-

• trace the development of the offshore industry and the economic influences that allow it to continue
• understand who uses offshore centres
• identify the key features of an offshore centre

CHOOSING AN OFFSHORE CENTRE AND A SERVICES PROVIDER

Students will be able to:-

• identify factors to be considered when choosing an offshore centre
• identify various offshore centres
• identify factors to be considered when choosing a services provider

ENGLISH LAW

Students will be able to:-

• discuss the importance of English law in offshore jurisdictions
• distinguish between civil-law and common-law jurisdictions
• explain the basic concepts of English law, and the relationship between common law and equity

LEGISLATION, INTERPRETATION, AND CASE LAW

Students will be able to:-

• outline how legislation is enacted
• explain statutory interpretation
• explain case law

CONTRACT LAW

Students will be able to:-

• define contract and the essentials required to form a contract
• define offer, acceptance, and invitation to treat
• outline the law relating to offer, acceptance and invitation to treat
• describe situations of termination of an offer
• define consideration, and the rules of consideration
• outline circumstances of intention to create legal relations
• outline contractual capacity
• define the rule in Cutter v Powell
• outline the exceptions to the rule
• define breach of condition, in particular anticipatory breach

DIFFERENT TAXES

Students will be able to:-

• discuss the principles of income tax, corporation tax, capital gains tax, and inheritance tax
• identify the implications for clients while recognising the need for expert advice and management and control

RESIDENCE & DOMICILE

Students will be able to:-

• outline tax-planning concepts
• distinguish between residence, ordinary residence, and domicile
• expand upon the difference between residence and ordinary residence
• give details of temporary non-residence
• discuss the general principles of domicile
• distinguish between domicile of dependency, domicile of spouses and children, and deemed domicile
• discuss tax consequences of the different types of status

TAXATION OF ENTITIES

Students will be able to:-

• explain the meanings and uses of ‘offshore structures’ and ‘offshore entities’
• understand the principles of the taxation of trusts
• understand the principles of the taxation of companies
• continue to discuss tax-planning concepts
• explain the difference between tax avoidance and tax evasion
• discuss the OECD’s Harmful Tax Practices Initiative

BANK ACCOUNTS

Students will be able to:-

• discuss various types of bank accounts available
• discuss different types of bank savings accounts
• distinguish between ordinary deposit accounts, investment accounts and instant access accounts
• explain references and enquiries made prior to opening a new account

PAYMENTS

Students will be able to:-

• describe the different payment method, including cash, cheques, bankers draft, standing orders, direct debits, and plastic cards
• outline CHAPS, SWIFT, TARGET, and payment systems in the United States

FOREIGN EXCHANGE (FX)

Students will be able to:-
understand the mechanism of FX deals
appreciate the importance of timings and risk involved in forward exchange contracts (FECs)

OFFSHORE BANKING

Students will be able to:-

• discuss banking services provided from offshore centres
• explain client confidentiality provisions in offshore centres
• discuss regulation and supervision of offshore banks
• discuss the types of banking licences available in offshore centres
• discuss and distinguish between managed banks and IBFs

EVOLUTION OF THE SECTOR

Students will be able to:-

• explain why a specialist financial-services sector has evolved

REGULATION AND SUPERVISION OF OFFSHORE FINANCIAL SERVICES

Students will be able to:-

• discuss the regulation and supervision of the financial-services sector offshore

TRUST AND CORPORATE SERVICES

Students will be able to:-

• discuss trust and company administration services available offshore

INSURANCE, LEGAL AND TAXATION SERVICES

Students will be able to:-

• understand the need for specialised insurance services such as captive insurance
• recognise the need for expert specialist advice to ensure that all undertakings meet legal requirements
• understand that the scope of work ranges from drawing up documentation to advising on tax and estate planning
• identify the two broad categories of tax compliance and tax planning

INVESTMENT MANAGEMENT SERVICES

Students will be able to:-

• identify the two main areas of retail fund managers and private portfolio management
• discuss the portfolio management services provided: execution only; advisory management; and discretionary management

MONEY LAUNDERING AND ITS HARMFULNESS

Students will be able to:-

• define money laundering
• explain the main stages of money laundering
• explain why money laundering is considered harmful

ANTI-MONEY-LAUNDERING (AML) LEGISLATION AND FURTHER INITIATIVES

Students will be able to:-

• outline anti-money-laundering (AML) legislation in historical context
• discuss money laundering in offshore centres and AML cooperation, including the Wolfsberg Principles, and inter-governmental cooperation
• explain the informational requirements of services providers
• explain the principal features of AML legislation and JMLSG Guidance Notes
• explain the need to ‘know your customer’ (‘KYC’)
• outline the requirements of a suspicious activity report