Offshore Banking
Offshore Banking is normally defined as opening and using a bank account in a bank located in another country. In the majority of cases this is a country that has relaxed tax laws. Offshore Banking can also refer to banking transactions undertaken in a currency other than your own.
Offshore banks are often used as a form of asset protection. By moving control or storage of certain assets to another country you may be able to avoid paying some or all of the relevant taxes associated with using, investing or disposing of the asset in your home country.
Additionally if you are a contractor who spends most of your time working overseas or for foreign companies, it can be advantageous to have an offshore bank account that you can use to handle all your income and investments, regardless of where you normally live.