By Boyd N. Reneau

The approach of the year 2000 will mark not only the beginning of a new millennium, but also the start of a brand new way of life for millions around the world. Nowhere will this be more evident than in the way the Offshore Finance Industry will influence people. The effect of this super industry cannot be over emphasized as its diversity and impact on nations economy continues to expand.

Today more than ever the Offshore Industry is booming and contains a large portion of the world's wealth. Astounding opportunities are opening for large multinational companies, small businesses and individuals as well. The Offshore Finance Industry today has evolved from what traditionally were known as "tax havens." There are those who were critical and suspicious of Offshore activities. But much information has been published regarding Offshore Finances and the word is out that "Offshore" is the way to go. The Centers are no longer conceived merely as a place to escape from high taxation. The volume and level of businesses transacted in these Offshore Financial Centers (OFC's), to meet standards of global demands attest to their sophistication.

Besides the incorporation of Offshore companies, the establishment of Banking Licence or setting up of Leasing or factoring companies there are other areas including Trusts and International Estate planning, asset protection, shipping, reinsurance and the management and facilitation of international business.

Today, because of the Internet, information can reach clients in a flash. More people are accessing the various web pages of service providers in OFC's the same way cyberspace users are logging on to the "Mars Rover". In every instance companies and individuals alike are capitalizing on the advantages that an offshore company can provide.

The Caribbean is a chief region in the offshore world today with some of the most popular and prestigious centers such as Bermuda, The British Virgin Island, Belize, Panama and The Cayman Islands. OFC's however covers a wide range of territories. Each has its own advantages, but ideally, a complex series of business transactions, or a major Offshore structure will require the use of more than one OFC.

The increase occurrence of more business and individuals of high net worth using offshore structures is evidently seen in the performances of the main offshore jurisdiction on the globe. Panama's success has also been dramatic: Over a four year period the 140 international banks increased deposits by 100%. Most banks in the Caribbean that are involved in offshore banking have adopted the current marketing strategy of restructuring their services portfolio to facilitate smaller business and professional individuals.

As the Practicing of offshore business is a relatively new concepts even the most popular and prestigious offshore centers are undergoing constant metamorphosis to achieve the exact equilibrium between freedom and autonomy in conducting business as against jurisdictional regulatory controls. At the same time each offshore jurisdiction realizes the importance of creating the offshore tools to be able to accommodate the broadest spectrum of possibilities to suit each potential investor/depositor needs. As a result banking regulation, trust laws, insurance and investment laws, various IBC Legislatures, shipping registry and residency laws, to name a few, are constantly undergoing a process of amendments and restructuring, whereas the smaller jurisdictions in Central America and The Caribbean are more flexible than their larger counterparts, elsewhere. Another important factor for the successful operation of offshore centers is the need for excellent infrastructures to be in place. As a result most of the offshore centers especially in the Caribbean have some of the most excellent infrastructures in place. They have excellent communications, banking, international accesses, power and hotels comparable to other countries in the world.

The entry level for new offshore jurisdiction is very high because of all the encompassing trust factor. One of the major issues in the offshore world today is the conflict between confidentiality and disclosures and the ever present need to prevent international crime of fraud and money laundering. Most local authorities in the various offshore centers expend a lot of effort in their preoccupation with regulation and controls and the overwhelming desire to portray the highest level of integrity and confidentiality and competence.

The needs of potential offshore users are usually wide and diverse and as a result most companies that offer Offshore Services do maintain a wide range of services and they maintain a supporting staff of professionals in most fields of business. A big advice to the public at large and in particular anyone contemplating doing business Offshore, do make sure that the adviser or professional, who is responsible for charting the course your offshore venture should take, is a bonafide professional with a clear and all encompassing understanding and knowledge of the Offshore world.

The competition between the various Offshore Finance Centers has resulted in some been able to offer additional advantages. Belize for example conducts an Economic Citizenship Program and its "Passport" offers holders 'visa free' entrance into 80 countries.

Direct and Indirect solutions to many problems facing peoples from all types of background have been met utilizing the various structures found in the Offshore Finance Centers. Specialized solutions can be configured to meet any demands.

What started as the first tax haven in Bermuda in 1927, has evolved into a worldwide phenomena. Many countries are trying to get a piece of the pie and frankly, a huge portion of the world's finance is transferred electronically to some Offshore Bank or another every day. With the present growth of the Industry and the changes in the world today, we can expect to see the Offshore Finance Industry continue its dynamic performance and more people switching from 'onshore' to "Offshore."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.