Offshore Banking Units (OBUs) refers to branches of a bank located outside of its home country and processing transactions made in a foreign currency (commonly known as “euro currency”).
OBUs make it easier for individuals and legal entities to carry out international banking operations and open offshore accounts.
Individuals may choose to keep their money offshore if there is instability in their own country and they are afraid of losing their investment.
Offshore bank accounts must be declared in the owner’s country of residence for tax reasons; however, in some countries, foreigners are allowed to receive capital gains without paying taxes.