As more and more Chinese and foreign-funded banks settle in the China (Shanghai) Pilot Free Trade
Zone (CSPFTZ), it has become an imperative to enhance risk management of offshore banking. At the international
level, the regulatory effort for offshore banking mainly focuses on tax evasion and money laundering.
Existing regulatory frameworks have established standards to identify countries providing facilities for money
laundering and developed punitive measures. In terms of strategy, it is suggested that, firstly, relevant regulatory
measures should be improved in the short term, and it is necessary to define the scope of offshore banking and
regulatory measures for Chinese banks and foreign-funded banks under a suitable legal framework. Secondly,
it is necessary to establish risk exposure mechanism and risk evaluation system for the offshore banking in the
CSPFTZ, while risk management measures are implemented based on on-site supervision. Thirdly, in the medium
and long term, it is necessary to enhance management of potential risks which can be created by offshore banking
due to deregulation. Fourthly, on the one hand, specific regulations should be formulated to provide a regulatory
basis for taxation; on the other hand, tax informational exchange agreements (TIEAs) may be used as a reference
for achieving effective tax regulation.
ZHANG Chuanyong (张传勇)
. Review of Managing the Risks of Offshore Banking and Its Implications for the China (Shanghai) Pilot Free Trade Zone[J]. Journal of Shanghai Jiaotong University(Science), 2016
, 21(1)
: 33
-43
.
DOI: 10.1007/s12204-016-1696-1
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