Where Currents Meet: The Offshore Interface Between Corruption, Offshore Finance Centres and Economic Development

Abstract

Summary The connections between economic development, corruption and the increasingly globalized financial system are not yet fully understood. In this article we examine tax havens and Offshore Finance Centres (OFCs) which form an interface between developed countries and LDCs. The central argument is that the existence of these financial channels facilitates and can even encourage onshore corruption. The combination of new technology with strict bank secrecy in the ‘private banking’ offshore networks of major banks allows rapid and non?transparent international flows of funds, creating an increasing synergy between the offshore interface, globalization and onshore corruption.