Offshore banking refers to the practice of opening a bank account in a country different from where you reside. These banks often provide services that can include higher privacy, asset protection, and potential tax benefits. Many individuals and businesses use offshore accounts to manage their finances more efficiently and securely. Countries known for offshore banking, such as Switzerland and the Cayman Islands, have specific regulations that attract clients seeking confidentiality. While offshore banking can offer advantages, it is essential to comply with the laws of your home country regarding reporting and taxation to avoid legal issues.