cryptohunter
Active member
- PPF Points
- 2,738
Offshore companies can be subject to various forms of abuse if their license is given to someone else, including:
- Money laundering: The license holder may use the offshore company to engage in illegal activities such as money laundering, by hiding the origin of illegal funds or disguising the flow of money.
- Tax evasion: The license holder may use the offshore company to evade taxes by shifting profits to low-tax jurisdictions and avoiding paying taxes in the countries where they are actually earned.
- Fraud and corruption: The license holder may use the offshore company to commit fraud, such as misappropriating funds, or to engage in corrupt activities, such as bribing officials or making illegal payments.
- Deregulation: The license holder may use the offshore company to take advantage of lax regulations and weak enforcement in offshore jurisdictions, such as avoiding environmental, labor, and safety regulations.
