An offshore bank is one located outside the resident country of a depositor, typically in a country that provides greater privacy and little or no taxation. Offshore banking is often linked to tax havens for criminals, money launderers and tax cheats. Experts believe that as much as half the world's capital flows through offshore centers. Tax havens have 1.2% of the world's population but hold 26% of the world's wealth, including 31% of the net profits of U.S. multinational corporations. It is estimated that more than $3 trillion is currently being held in these accounts. Offshore tax evasion is a global problem and has been called the biggest theft among societies and neighbor states ever committed. It is estimated our Treasury loses about $280 billion a year in tax revenue from wealthy Americans and companies hiding money in offshore banks. It is difficult to tax offshore accounts. Although the IRS requires taxpayers to declare offshore bank accounts, many do not. Most offshore banks, protected by secrecy rules, have no legal obligation to report these accounts either.

Proposed Legislation: Reintroduction of S.725 - Stop Tax Haven Abuse Act (117th Congress 2021-2022)
Prospective Sponsor: Sen. Sheldon Whitehouse (RI)