Jurisdictional Arbitrage Law and Legal Definition

Jurisdictional arbitrage means the act of taking advantage of the disagreements between competing legal jurisdictions. It takes its name from arbitrage. For instance, the practice of hiring legal service for a lower value in one jurisdiction and offering it for a higher value in another jurisdiction is a jurisdictional arbitrage. Just as in financial arbitrage, the attractiveness of jurisdiction arbitrage depends largely on its costs of switching legal service providers from one government to another. Jurisdictional arbitrage is an important concept in modern free market anarchist schools of thought. Jurisdictional arbitrage is often employed by the transnational criminals such as terrorists, money launderers, cyber-attackers to hinder attempts at governmental prosecution include. Jurisdictional arbitrage often helps in tax avoidance.