Offshore banking refers to the practice of opening a bank account in a country other than your own, often in a location known for its favorable financial regulations. These banks can provide services such as asset protection, privacy, and tax benefits. Many individuals and businesses choose offshore accounts to manage their wealth more effectively and to safeguard their assets from political or economic instability in their home country. Countries like Switzerland, Cayman Islands, and Singapore are popular destinations for offshore banking due to their strong privacy laws and stable economies. While offshore banking can offer advantages, it is essential to comply with tax regulations in your home country to avoid legal issues.