C8 - Offshore Banking Services

Question 1

Reasons for using offshore bank accounts

Answer 1

Interest paid gross
Nah not he subject to tax in country of residence if income not remitted back to country
Statutory secrecy
Less stringent regulation

Question 2

Foreign exchange markets

Answer 2

Transaction risk rate change between transaction date

Question 3

Forward rate

Answer 3

Set sale for specified date

Question 4

Banking licence

Answer 4

Must be fit and proper

CIF

Competence
Integrity
Financially sound

Question 5

Competence

Answer 5

Experience staff
Procedures
Quality control

Question 6

Integrity

Answer 6

Ownership by reputable person

No conviction

Question 7

Financially sound

Answer 7

Capital funds
Insurance
Business plan

Question 8

Managed bank

Answer 8

Bank managed by another bank
May not be able to get a licence
Less set up
Employees 
Infrastructure

Question 9

Basill committee on banking supervision

Functions

Answer 9

Global Standards
Strengthen regulation
Enhance stability
Forum for regular cooperation

Question 10

Basil committee on banking supervision

Basil I

Answer 10

1988

Implementation of a credit risk management framework

Question 11

Basil committee on banking supervision

Basil II

Answer 11

Closer alignment of regulatory capita alignment
Maintain sufficient consistency
Further strengthen sounds and stability
Three pillars:

Minimum capital requirements

Supervisory reviews of internal assessments

Disclosure ‘market discipline ‘

Question 12

Basil committee on banking supervision

Basil III

Answer 12

Improve risk management and governance

Transparency

Improve shock absorbable