Offshore Financial Centre Law and Legal Definition

An offshore financial centre (OFC) is a small, low-tax jurisdiction that provides corporate and commercial services to non-residents in the form of offshore companies and the investment of offshore funds. The term offshore financial center was first coined in the 1980s. In general, OFC include all economies with financial sectors disproportional to their resident population. It means that the financial services offered to nonresidents in OFC are on a scale that is disproportional with the size and the financing of its domestic economy.