The offshore banking:
1. provides access to politically and economically stable jurisdictions
2. is operated in regions of low tax but highly restrictive legal regulations
3. provides strong privacy to customers
Which among the above is / are correct statements?

Answer: [C] Only 1 & 3

An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages viz. strong privacy, less restrictive legal regulation, low or no taxation, easy access to deposits and protection against local political or financial instability. These types of banks provide access to politically and economically stable jurisdictions.

This question is a part of GKToday's Integrated IAS General Studies Module