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INTERNATIONAL BANKING AND FINANCE GROUP PROJECT OFF SHORE BANKING 23 RD JULY 2009 GROUP-__

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THIS FILE HAS EVERYTHING ABOUT OFF SHORE BANKING AND ALSO 2 CASE STUDIES AND MUCH MORE!!!!

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Page 1: OFF SHORE BANKING

INTERNATIONALBANKINGAND

FINANCEGROUP PROJECT

OFF SHORE BANKING

23RD JULY 2009

GROUP-__

TYBBIK.C.COLLEGE

(CHURCHGATE)

Page 2: OFF SHORE BANKING

OFFSHORE BANKING

MEANING:

An offshore bank is a bank or an investment institution located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages. These advantages typically include:

greater privacy (bank secrecy, a principle born with the 1934 Swiss Banking Act)

low or no taxation (i.e. tax havens) easy access to deposits (at least in terms of regulation) protection against local political or financial instability

While the term originates from the Channel Islands being "offshore" from the United Kingdom, most offshore banks are located in island nations including Swiss banks and those of other landlocked nations such as Luxembourg and Andorra.

Offshore banking has often been associated with the underground economy and organized crime, via tax evasion and money laundering; however, legally, offshore banking does not prevent assets from being subject to personal income tax on interest. Except for certain persons who meet fairly complex requirements, the personal income tax of many countries makes no distinction between interest earned in local banks and those earned abroad. Persons subject to US income tax, for example, are required to declare on penalty of perjury, any offshore bank accounts—which may or may not be numbered bank accounts—they may have. Although offshore banks may decide not to report income to other tax authorities, and have no legal obligation to do so as they are protected by bank secrecy, this does not make the non-declaration of the income by the tax-payer or the evasion of the tax on that income legal. Following September 11, 2001, there have been many calls for more regulation on international finance, in particular concerning offshore banks, tax havens, and clearing houses such as Clear stream, based in Luxembourg , being possible crossroads for major illegal money flows.

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Defenders of offshore banking have criticised these attempts at regulation. They claim the process is prompted, not by security and financial concerns, but by the desire of domestic banks and tax agencies to access the money held in offshore accounts. They cite the fact that offshore banking offers a competitive threat to the banking and taxation systems in developed countries, suggesting that Organisation for Economic Co-operation and Development (OECD) countries are trying to stamp out competition.

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OFFSHORE FINANCIAL CENTRES

Offshore financial centres refer to the low tax and lightly regulated jurisdictions facilitating the formation of offshore companies. Forming offshore companies or incorporating offshore means you need to select a country. Each jurisdiction has a slightly different value proposition for international clientele and the benefits vary. Here are just some of the general benefits of offshore company incorporation:

Anonymity Asset Protection Lawsuit Protection Taxation (varies depending on your jurisdiction) Simplicity Financial Privacy

Performing business and conducting banking transactions in the name of a legal entity provides significant privacy benefits. The names of the underlying officers, directors and shareholders can be omitted from the offshore company's documentation in many jurisdictions.

Characteristics

Offshore banking accounts can be opened only by non resident individuals, corporates, trutees or offshore companies.

The offshore banking units would operate balance sheet in foreign currency only.

They would be exempted from cash reserve ratio and statutory liquidity ratio.

The main activity in which the offshore banking cetres engage is the eurocurrency loans, undrwriting of eurocurrency bonds and over the counter trading in derivatives for risk management and speculative purposes.They also provide speacialised services including asset management, foreign exchnange, custodian and trustee services.

In terms of offshore banking centres, in terms of total deposits, the global market is dominated by two key jurisdictions: Switzerland and the Cayman Islands, although numerous other offshore jurisdictions also provide offshore banking to a greater or lesser degree. In particular, Jersey, Guernsey and the Isle of Man are known for their well regulated banking infrastructure. Some offshore jurisdictions have steered their

Page 5: OFF SHORE BANKING

financial sectors away from offshore banking, as difficult to properly regulate and liable to give rise to financial scandal.

Where Should an Offshore Bank Account be Established?

It is important that the proper jurisdiction be selected to use as an offshore banking jurisdiction. The majority of the offshore jurisdictions have prudent, sound regulations in place geared towards safeguarding the deposits and maintaining their confidentiality.Though they all offer a comparatively confidential and secure environment, it bears consideration to outline what the banking goals are and then choose the jurisdiction accordingly. A small minority of the offshore jurisdictions do a poor job of managing and regulating their banking institutions, but the informed investor or advisor will deem these as unsuitable for themselves or their clients. Further, these poorly organized and run jurisdictions are often manipulated by illicit depositors and hence prove easy targets of the FATF (Financial Action Task Force) looking for money laundering or other criminal activity.

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HISTORY OF OFFSHORE BANK ACCOUNTS

It is an unfortunate fact that Europeans have always been subjected to relatively heavy tax burdens. This was as true on the British Isles as it was on the continent. Faced with the prospect of watching their hard earned assets and wealth diminish with every out-reach of the tax collector’s hand, they were ripe for a solution. And a solution came the small, island nation state known as the Channel Islands convinced these frustrated depositors that deposits placed in its banks could be free from scrutiny and hence the heavy-handed taxation burden. The Euros were convinced and soon this service thrived, with other small jurisdictions becoming savvy to this foreign capital-attracting status and they began to revamp their banking institutions, adopting sound, pragmatic banking rules and regulations that eased the potential concerns of investors and depositors.

And soon the term “Offshore banking” became synonymous with any smaller, haven jurisdiction that offered safe, secure, confidential banking with practical regulations. Soon the rest of the world was “in the know”, and began to look at these havens as viable solutions to their needs. Americans, Africans, Asians, etc., found these Offshore bank accounts quite useful for a myriad of reasons. Unlike their banks at home, these Offshore banks were not regularly subjected to political turmoil or economic strife, and were most welcome for their stability and asset protection benefits.

In the years since they have come into greater use and thus more visible, offshore banking accounts have been unfairly portrayed by the media and by the larger jurisdictions as the stomping grounds of the criminal underground-a veritable haven for their illicitly-obtained assets and funds, or the locales for their money-laundering schemes. Investors know that offshore banks can be remarkably effective havens for assets and funds in need of safe, secure, confidential keeping. They know that these banks can safeguard their funds from the perils of civil, economic, or political strife in their home countries. Today, offshore banks continue to keep their end of the bargain and continue to provide a safe, confidential haven for those seeking to safeguard their assets and funds from the perils of undue regulation and taxation.

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ADVANTAGES OF OFFSHORE BANKING

Offshore banks can sometimes provide access to politically and economically stable jurisdictions. This will be an advantage for residents in areas where there is risk of political turmoil, who fear their assets may be frozen, seized or disappear.

Some offshore banks may operate with a lower cost base and can provide higher interest rates than the legal rate in the home country due to lower overheads and a lack of government intervention. Advocates of offshore banking often characterise government regulation as a form of tax on domestic banks, reducing interest rates on deposits.

Offshore finance is one of the few industries, along with tourism, in which geographically remote island nations can competitively engage. It can help developing countries source investment and create growth in their economies, and can help redistribute world finance from the developed to the developing world.

Interest is generally paid by offshore banks without tax being deducted. This is an advantage to individuals who do not pay tax on worldwide income, or who do not pay tax until the tax return is agreed, or who feel that they can illegally evade tax by hiding the interest income.

Some offshore banks offer banking services that may not be available from domestic banks such as anonymous bank accounts, higher or lower rate loans based on risk and investment opportunities not available elsewhere.

Offshore banking is often linked to other structures, such as offshore companies, trusts or foundations, which may have specific tax advantages for some individuals.

Many advocates of offshore banking also assert that the creation of tax and banking competition is an advantage of the industry, arguing with Charles Tiebout that tax competition allows people to choose an appropriate balance of services and taxes. Critics of the industry, however, claim this competition as a disadvantage, arguing that it encourages a "race to the bottom" in which governments in developed countries are pressured to deregulate their own banking systems in an attempt to prevent the off shoring of capital.

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DISADVANTAGES OF OFFSHORE BANKING

Offshore banking has been associated in the past with the underground economy and organized crime, through laundering. Following September 11, 2001, offshore banks and tax havens, along with clearing houses, have been accused of helping various organized crime gangs, terrorist groups, and other state or non-state actors. However, offshore banking is a legitimate financial exercise undertaken by many expatriate and international workers.

Offshore jurisdictions are often remote, so physical access and access to information can be difficult. Yet in a world with global telecommunications this is rarely a problem for customers. Accounts can be set up online, by phone or by mail.

Offshore private banking is usually more accessible to those on higher incomes, because of the costs of establishing and maintaining offshore accounts. However, simple savings accounts can be opened by anyone and maintained with scale fees equivalent to their onshore counterparts. The tax burden in developed countries thus falls disproportionately on middle-income groups. Historically, tax cuts have tended to result in a higher proportion of the tax take being paid by high-income groups, as previously sheltered income is brought back into the mainstream economy.

Offshore bank accounts are sometimes touted as the solution to every legal, financial and asset protection strategy but this is often much more exaggerated than the reality.

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BANKING SERVICES

It is possible to obtain the full spectrum of financial services from offshore banks, including:

Multi currency deposit taking Long term and short/medium term credit facilities, external

commercial borrowings and loan syndication. wire- and electronic funds transfers foreign exchange letters of credit and trade finance investment management and investment custody fund management trustee services corporate administration

Not every bank provides each service. Banks tend to polarise between retail services and private banking services. Retail services tend to be low cost and undifferentiated, whereas private banking services tend to bring a personalised suite of services to the client.

FOR EXAMPLE:

Halifax International Fixed Rate Web Saver accountDo you want to know exactly what interest your savings will earn and don't need access to your savings?

Halifax International Fixed Rate Web Saver Account offers you a guaranteed rate so you know exactly what interest you'll earn and when.

Fixed interest rates - so you know what interest your offshore savings will earn.

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Choice - save over a term that suits you from 6 months1 year, 2 year or 3 years.

Our 2 year Fixed Rate Web Saver account gives you a rate of 3.50% gross p.a. and our 3 year Fixed Rate Web Saver account gives you a rate of 4.00% gross p.a.

No withdrawals or additional deposits- after account opening. However if you do need emergency access to your money you can close your account after 6 months. We'll simply charge an amount equivalent to 6 days' interest (calculated at the same rate at which interest is paid on your account) for each remaining month or part month of investment term you chose. This is subject to a minimum of 30 days' interest.

When your fixed term ends, your savings and interest will be transferred into your Sterling Variable Rate Web Saver Account which will be opened at the same time as your Fixed Rate Web Saver Account.  

A choice of using online or telephone banking to manage your offshore savings account.

Minimum opening balance is £1,000. The maximum balance is £1 million.

The Halifax International Fixed Rate Web Saver Account is only available in Sterling.

Other information:

Halifax participates in the Isle of Man deposit compensation scheme

Interest is paid gross of tax subject to the provisions of the European Union Savings Tax Directive.

Please note….

Interest rates are fixed on receipt of your opening deposit.        

The rate on your Fixed Rate Web Saver Account is not fixed until the receipt of your deposit. If you're planning on funding your account later, interest rates may have changed by the time your opening deposit is received. Please check with us by phone or online to find out the correct interest rate for your account.

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Fixed Rate Web Saver

Effective 6th July 2009. Indication purposes.

Term and minimum balance

Annual Gross* p.a.

Annual Gross* AER**

3 years £1,000 4.00% 4.00%2 years £1,000 3.50% 3.50%1 year £1,000 2.05% 2.05%6 months £1,000 1.85% 1.86%

*Gross - the contractual rate of interest paid without the deduction of tax at the rate specified by law. Please note that you must declare any interest earned to the income tax authorities in your country of residence.**AER - Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year.  Sterling savings account maintained in the Isle of Man office of Bank of Scotland International Limited. 

Page 12: OFF SHORE BANKING

Statistics concerning offshore banking

Offshore banking is an important part of the international financial system. Experts believe that as much as half the world's capital flows through offshore centres. Tax havens have 1.2% of the world's population and hold 26% of the world's wealth, including 31% of the net profits of United States multinationals. According to Merrill Lynch and Gemini Consulting's “World Wealth Report” for 2000, one third of the wealth of the world's “high net-worth individuals”—nearly $6 trillion out of $17.5 trillion—may now be held offshore. Some $3 trillion is in deposits in tax haven banks and the rest is in securities held by international business companies (IBCs) and trusts.

The IMF has said that between $600 billion and $1.5 trillion of illicit money is laundered annually, equal to 2% to 5% of global economic output. Today, offshore is where most of the world's drug money is allegedly laundered, estimated at up to $500 billion a year, more than the total income of the world's poorest 20%. Add the proceeds of tax evasion and the figure skyrockets to $1 trillion. Another few hundred billion come from fraud and corruption. "These offshore centres awash in money are the hub of a colossal, underground network of crime, fraud, and corruption" commented Lucy Komisar quoting these statistics.[1] Among offshore banks, Swiss banks hold an estimated 35% of the world's private and institutional funds (or 3 trillion Swiss francs), and the Cayman Islands (1.9 trillion US dollars in deposits) are the fifth largest banking centre globally in terms of deposits.

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REGULATION OF OFFSHORE BANKS

In the 21st century, regulation of offshore banking is allegedly improving, although critics maintain it remains largely insufficient. The quality of the regulation is monitored by supra-national bodies such as the International Monetary Fund (IMF). Banks are generally required to maintain capital adequacy in accordance with international standards. They must report at least quarterly to the regulator on the current state of the business.

Since the late 1990s, especially following September 11, 2001, there have been a number of initiatives to increase the transparency of offshore banking, although critics such as the Association for the Taxation of Financial Transactions for the Aid of Citizens (ATTAC) non-governmental organization (NGO) maintain that they have been insufficient. A few examples of these are:

The tightening of anti-money laundering regulations in many countries including most popular offshore banking locations means that bankers are required, by good faith, to report suspicion of money laundering to the local police authority, regardless of banking secrecy rules. There is more international co-operation between police authorities.

In the US the Internal Revenue Service (IRS) introduced Qualifying Intermediary requirements, which mean that the names of the recipients of US-source investment income are passed to the IRS.

Following 9/11 the US introduced the USA PATRIOT Act, which authorises the US authorities to seize the assets of a bank, where it is believed that the bank holds assets for a suspected criminal. Similar measures have been introduced in some other countries.

The European Union has introduced sharing of information between certain jurisdictions, and enforced this in respect of certain controlled centres, such as the UK Offshore Islands, so that tax information is able to be shared in respect of interest.

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Joseph Stieglitz, 2001 Nobel laureate for economics and former World Bank Chief Economist, told to reporter Lucy Komisar, investigating on the Clear stream scandal:

"You ask why, if there's an important role for a regulated banking system, do you allow a non-regulated banking system to continue?

It's in the interest of some of the moneyed interests to allow this to occur. It's not an accident; it could have been shut down at any time.

If you said the US , the UK , the major G7 banks will not deal with offshore bank centres that don't comply with G7 banks regulations, these banks could not exist. They only exist because they engage in transactions with standard banks."

In the 1970s through the 1990s it was possible to own your own personal offshore bank; mobster Meyer Lansky had done this to launder his casino money. Changes in offshore banking regulation in the 1990s in the form of "due diligence" (a legal construct) make offshore bank creation really only possible for medium to large multinational corporations that may be family owned or run.

OFFSHORE FINANCE

Author interview

Feb 22nd 2007From Economist.com

A discussion with Joanne Ramos, Banking Correspondent of The Economist

“In the past, a lot of offshore financial centres let in a lot of good money as well as bad money. But in recent years, because of international pressure spearheaded by organisations like the IMF and the OECD, a lot of them have tightened up their regulation. So the smaller tax havens that are well regulated are good for the financial system because they add financial and tax competition.”

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CASE STUDY 1:

HALIFAX INTERNATIONAL

Halifax International offers savers the ability to hold money in an account outside the UK. Great for British expats around the world who want to save their money with a UK bank they know and trust. With three fantastic products it really is offshore savings made simple. Customers can access their money online with phone support available from our expert teams in Jersey and Isle of Man...Halifax International is part of HBOS, the same banking group as Halifax, the UK’s No.1 savings provider. Customers can expect an exceptional service, security and attractive rates that you’d expect from Halifax, with the added benefit of offshore savings.  

ABOUT COMPANY

The UK's No.1 for savings brings you   offshore savings with Halifax International  

Halifax International is part of the same banking group as Halifax, the UK's No.1 savings provider. We offer the same exceptional service, security and attractive rates that you'd expect from Halifax -  plus the benefits of offshore savings that are not always available in the United Kingdom.

Saving offshore is easy with Halifax International

It offer all the services you'd expect from saving offshore and a little bit extra - Offshore Savings with Halifax International.it make saving offshore simple, because we know that's what you want. You can choose to save in two ways - with our Halifax International Web Saver, Regular Saver accounts and Fixed Rate Web Saver  each of which offers its own distinct benefits.

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it make managing your offshore savings with Halifax International easy too. You can access your money online, and we also have a phone team in Jersey and Isle of Man for you to speak to about your account. We're expats ourselves - so you'll be talking to people who know offshore savings inside out.   

ABOUT ACCOUNTS

We make savings simple by offering three great accounts - Halifax International Web Saver, Regular Saver account and Fixed Rate Web Saver. Each account offers what you'd expect from an offshore account and a little bit extra.

Halifax International Web Saver account

This is ideal for everyday saving and its tiered rates reward you with more interest the more you save. You can save in Sterling, US Dollars or Euros. Our Halifax International Web Saver account also gives you extra as you can transfer money in and out of your account whenever you like with no loss of interest, and no hidden catches. So you don't need a calculator to work out what a withdrawal will cost you - unlike some other banks.

Regular Saver account

This Sterling account is perfect if you want to save regularly and put away between £100 and £2,000 per month and watch you nest egg grow. It gives you a great rate fixed for a year so you know exactly how much you'll get back on your account and when. Our Regular Saver account also gives you extra if you want to use several accounts to fund your account, you can as long as the total deposits per month does not exceed £2,000. You can find out more here.

Fixed Rate Web Saver

If you want to be certain of the exact return your savings are earning our Fixed Rate Web Saver is the right account for you.  You can choose a fixed period from 6 months up to 3 years - so you know how much you'll get back on your account and when.

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PRODUCT OFFERED BY HALIFAX:

1. Fixed intrest rate web saver a/c:

Halifax International Fixed Rate Web Saver Account offers you a guaranteed rate so you know exactly what interest you'll earn and when.

Fixed interest rates - so you know what interest your offshore savings will earn.

Choice - save over a term that suits you from 6 months1 year, 2 year or 3 years.

Our 2 year Fixed Rate Web Saver account gives you a rate of 3.50% gross p.a. and our 3 year Fixed Rate Web Saver account gives you a rate of 4.00% gross p.a.

No withdrawals or additional deposits- after account opening. However if you do need emergency access to your money you can close your account after 6 months. We'll simply charge an amount equivalent to 6 days' interest (calculated at the same rate at which interest is paid on your account) for each remaining month or part month of investment term you chose. This is subject to a minimum of 30 days' interest.

When your fixed term ends, your savings and interest will be transferred into your Sterling Variable Rate Web Saver Account which will be opened at the same time as your Fixed Rate Web Saver Account.  

A choice of using online or telephone banking to manage your offshore savings account.

Minimum opening balance is £1,000. The maximum balance is £1 million.

The Halifax International Fixed Rate Web Saver Account is only available in Sterling.

2.variable rate web saver:

Flexible access -transfer money in and out whenever you want. Pays a great tiered variable rate. Online and telephone banking. Available in Sterling, US Dollars or Euro.

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Open with £1,000, $1,000 or €1,000. Earn interest of 1.40% AER/gross pa on Sterling balances over

£25,000.

3. monthly regular saving:

Regular monthly savings account. Pays a great rate of 4% AER/gross p.a. fixed for just 1 year. Simple standing order savings of between £100 and £2,000 per

month for 12 months      

 4.gurantee return: 

A Sterling fixed rate account paying a guranteed return on your savings

Choice of terms - 6 months, 1 year, 2 years or 3 years. Minimum opening balance £1,000. No withdrawals or additional deposits allowed. Earn 3.50% gross p.a.fixed for 2 years or 4.00% gross p.a.fixed

for 3 years.

5. Easy online access:

Flexible access -transfer money in and out whenever you want. Pays a great tiered variable rate. Online and telephone banking. Available in Sterling, US Dollars or Euro. Open with £1,000, $1,000 or €1,000. Earn interest of 1.40% AER/gross pa on Sterling balances over

£25,000.

 

Page 19: OFF SHORE BANKING

Press ReleaseEmbargoed until:00:01 18.07.09Too many savers pay unnecessary tax!

Savers, who rely on the interest they receive on their savings deposits for a significant proportion of their income, have been hit hard by the recent decline in interest rates. Following analysis of its savings customer book, Halifax, the UK's largest savings provider, has released new figures for the first time, which show that only a third (33%) of savers over 65 are registered to receive gross interest.This illustrates that many pensioners may be missing out on the use of up to 20 per cent of their interest.Savers must pay tax on any savings income unless their total earnings for the tax year are less than their annual tax-free income limit. As savings providers have to deduct 20 per cent tax at the source unless the customer is registered to receive interest gross, savers who do not earn above this limit must complete an HMRC R85 declaration, enabling them to receive their interest without tax taken off.Pensioners could be losing £75 a month in excess taxAn Example: A 70 year old saver who is in receipt of a state pension:• Personal allowance (2009/10) for 65-74 year olds = £9,490 pa• Basic State pension is £95.25 per week (2009/10) = £4,953 pa• Interest and other income that can be paid before being taxed = £4,537 paIf the pensioner in the example earned £4,500 in savings income and did not complete an R85 declaration they would pay £900 in unnecessary tax, reducing their monthly income by £75. If more tax is deducted than they have to pay, a repayment of tax can be claimed directly from HMRC.

Savers hit hard by the recent decline in interest ratesMany savers who have previously earned more than their individual tax allowances may have seen theirincome drop below the tax threshold as a result of interest rate cuts and the increase in tax allowancesat the start of the new tax year on 6th April. People who are non tax payers can ask their bank orbuilding society to pay their interest without tax taken off.

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For example, the average deposit rate1 has fallen from 3.10% in August 2008 to 0.77% in April 2009,according to the latest Bank of England figures. This decline in interest rates has reduced annualinterest income by an average of 75%. A saver with £250,000 in a typical savings account would haveseen their annual interest fall from £7,750 to £1,925, taking income well below the basic level ofpersonal allowance for those under 65 of £6,475.

Halifax is part of the Lloyds Banking Group

Flavia Palacios Umana, head of Halifax Savings products, said:"Savers who rely on their savings to supplement their pension may have selected the right product fortheir needs but could be paying unnecessary tax. Halifax urges all savers, particularly pensioners, toreview their income and ensure they register for gross interest if they are eligible.Halifax makes it easy to register, just pop into one of our branches or call our savings helpline for moreinformation. Customers who are unsure what changes in tax allowances mean for them are alwayswelcome to visit us in branch for a saving and investments review."Registering is easy with HalifaxFor those who should be receiving gross interest, Halifax makes it even easier to register by acceptingregistration verbally and confirming this declaration in writing to the customer. Just call into a branch orcall 0845 601 8150 for more information.Notes to Editors1Average amount paid to households with an interest bearing sight (i.e. instant access) account.Tax on savingsTotal individuals' income tax liabilities on savings (before allowances given as income tax reductions) areprojected to have fallen from £8,478 million in 2007-08 to £5,540 million in 2008-09 (Source: HMRC,January 2009).

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Very low interest rates are expected to reduce savings income, and therefore tax liabilities, significantlyfurther in 2009-10.

Call to actionSavers who wish to check whether they are entitled to receive their interest without tax deducted canvisit the HMRC website and use their online calculator.* For savers who are eligible, the R85 form canbe downloaded from the HMRC website and submitted to their Bank or Building Society. Some banksand building societies have systems that allow this declaration to be given verbally. The bank thenconfirms it in writing to the customer.Savers who believe they may have paid too much tax on their interest have up to five years after theend of the tax year in which the overpayment was made to reclaim it. Further information on this processand the required forms can also be found on the HMRC website**.

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CASE STUDY 2:

About Griffon Bank

Private Banking with the personal Touch

Griffon Bank Limited is a private offshore bank chartered in the Commonwealth of Dominica, West Indies. Dominica is an independent English speaking country located between the French islands of Guadeloupe and Martinique.

Griffon Bank Limited was established and licensed in 1997 under Offshore Banking Act 1996. We provide banking services to our customers worldwide in a protected environment supervised by the Government of Dominica and Eastern Caribbean Central Bank.

Our international staff from multicultural backgrounds is here to assist you every step of the way towards financial liberty through modern offshore banking. Every client is important and receives individual attention from their personal accounts manager.

Griffon Bank Limited offers a wide variety of services to satisfy your most demanding international banking needs. Explore our website to find more about our products and services, submit your application and you're well on your way to hassle free banking.

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History

Griffon Bank Limited was established in the Commonwealth of Dominica in 1997 by the group of businessman under the Offshore Banking Act 1996. In the same year bank received the Class A (unrestricted) bank license.

In 2001 after receiving the approval by the Government of Dominica Griffon Bank Limited was taken over by the new shareholder and new Board of Directors have been elected.

In January 2002 Griffon Bank Limited has successfully launched state-of-the-art secure Internet Banking services which proved to be reliable and user friendly up to date.

In March 2002 Griffon Bank Limited has launched it's website French, English, Spanish and Mandarin.

In May 2004 Griffon Bank Limited has moved its offices into the most modern office building in Dominica - the Financial Center. This building is equipped with standby generator facility, backup high bandwidth Internet line, modern fire alarm and security systems and is occupied as well by the Prime-Minister and Ministry of Finance of the Government of Dominica, OECS, representative office of the Eastern Caribbean Central Bank, cellular communication provider Orange and other prime organizations and companies.

Griffon Bank Limited is currently undergoing major development of its operations in order to improve and expand our services and become prime offshore bank conveniently located in the secure regulated jurisdiction.

Management

Board of Directors of Griffon Bank Limited is the highest managing authority of the bank which is also acts as the Investment Committee. All new and major investment decisions of the Bank are approved by the Board of Directors.

Mr. Dmitrijus Apockinas, BA (hons.), MBA - banker with extensive knowledge of offshore business, municipal infrastructure development and financial analysis is the Chief Executive Officer of Griffon Bank Limited since 2001.

Mr. Leonard Bedneau, CGA - banker with solid experience working with audit companies, banks, financial institutions like Mutual Fund division of BBVA (Cayman), have been appointed as the Chief Financial Officer of Griffon Bank Limited in 2004.

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Correspondent Banks

Griffon Bank has correspondent account for many currencies (other correspondent accounts may be available). Details of wire instructions are also available to our customers.

Country Currency SymbolUnited States of America Dollar USDGermany Euro EURAustria Euro EURBelgium Euro EURSpain Euro EURItaly Euro EURFinland Euro EURSwitzerland Swiss Franc CHFDenmark Danish Kroner DKKSweden Swedish Kroner SEKJapan Japanese Yen JPYUnited Kingdom Sterling GBPCanada Canadian Dollar CADNorway Norwegian Kroner NOKAustralia Australian Dollar AUDIsrael New Shekels ILSKuwait Kuwaitian Dinars KDCzech Republic Czech Koruny CZKPoland Poland Zlotych PLZLatvia Latvian Lat LATEstonia Estonian Kroon EEKRussian Federation Russian Ruble RUBBelorussia Bealrus Ruble BYRUkraine Ukraine Hryvnia UAHKazakhstan Kazakhstan Tenge KZTMoldova Moldovian Leu MDL

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Contact Details

Bank Office

Financial Center, Roseau,Commonwealth of Dominica, West Indies.

Postal address

P.O. Box 1324, Roseau,Commonwealth of Dominica, West Indies.

Telephones

+1 767 449 9254 +1 767 449 2518 +1 767 440 3724

E-mail

General inquiries: [email protected] New accounts: [email protected] Payment cards: [email protected] Technical support: [email protected]

Products and Services

Griffon Bank Limited provides these products and services:

24/7 Internet Banking Personal and Corporate multicurrency Current Accounts Savings Accounts Offshore Company Incorporation Term Deposits Payment Cards Currency Exchange

All our services are offered to current account holders only, so if you wish to use our banking facilities, please complete the current account application form and submit it to the bank and a member of staff will guide you through the account opening process and respond to any queries you may have.

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Security

The growth of the Internet has offered great flexibility for us all, but it also brings new risks that must be guarded against. At Griffon Bank we use industry standard security technology and practices to safeguard your account from any unauthorized access.

Please read the following security recommendations from Griffon Bank to safeguard your PC and your online banking. They will help you to protect your personal information when you are on online.

GRIFFON BANK IN NEWS

Griffon Bank hosts Christmas Charity event and extends it's personal touch to the wider community

December 17, 2008

On 13 December 2008, Griffon Bank hosted its 5th annual Children's Christmas party in the Carib territory. Two hundred children were chosen to receive presents for this event, from kindergarten to junior primary, specifically between the ages of 2 years to 6 years.

Griffon Bank donates XCD10,000.00 to PSFH

January 15, 2009

Griffon Bank Limited, has again affirmed its commitment to the improvement of the health care system in Dominica with the donation of their third annual contribution to the Private Sector Foundation for Health (PSFH).

Dominica Carnival 2009

February 20, 2009

Dominica's Carnival, held at the traditional pre-lenten time, is a feast of calypso, shows and two exciting days of street jump-up. Carnival is formally opened about a

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month before the two final days of jump-up. Carnival 2009 Dates are February 23rd & 24th.

SuperCard - new credit card for those who can not wait!

May 7, 2009

Griffon Bank Limited is happy to introduce a new credit card for its valuable clients. It is an unembossed nameless MasterCard credit card for the electronic use only which can be issued immediately.

TERM DEPOSITS

Current Account holders may open a term deposit in USD, EUR or GBP with Griffon Bank.

Deposit orders are accepted through the Internet Bank, and are fulfilled on the banking day following their receipt. Interest accrues from the day of the deposit account credit entry. At maturity, interest earned will be credited to the Client's Current Account. On the day following maturity and in the absence of client's instructions to terminate the deposit, Griffon Bank will automatically renew the deposit for the same maturity as of the original deposit.

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Interest Rates of Term Deposits

Minimum Amount

MaturityInterest rate %

p.a. USDInterest rate %

p.a. EURInterest rate %

p.a. GBP

10,00012

months4.25 4.25 3.65

50,00012

months4.50 4.50 3.70

100,00012

months4.75 4.75 3.75

10,00024

months4.50 4.50 3.70

50,00024

months4.75 4.75 3.75

100,00024

months5.00 5.00 3.80

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COMPILED BY:

ASHU SAPAHIA 03CHINTAN JAIN 09JINISHA PATEL 15LATA THAKUR 21MONA OSWAL 27NIHAR DESAI 33RAJASHREE BHAKHARE 39SANTOSH 45SONIYA MAREDIA 51VIKESH 57