Off shore banks:
A) Are illegal to do business with if you are a US citizen
B) Are used by US high net worth individuals for favorable tax treatment
C) Often are subsidiaries of US banks
D) All of the above

Question

Off shore banks: 
A) Are illegal to do business with if you are a US citizen
B) Are used by US high net worth individuals for favorable tax treatment
C) Often are subsidiaries of US banks
D) All of the above

Quizplus · Accepted Answer

Offshore banks are legal, but some countries have tighter restrictions on them. US citizens can still do business with offshore banks, but they must report their offshore accounts to the IRS and pay taxes on any interest earned. Offshore banks are often used by high net worth individuals for favorable tax treatment, as they may offer higher interest rates and lower taxes. While some offshore banks may be subsidiaries of US banks, many are independent entities.

Off Shore Banks