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    Question

    For which of the following reasons, offshore financial centers have faced criticism?

    A They offer low taxes and minimal regulation Correct Answer Incorrect Answer
    B They facilitate tax evasion and money laundering Correct Answer Incorrect Answer
    C They provide a wide range of international financial services Correct Answer Incorrect Answer
    D They cater mainly to the needs of their national economies Correct Answer Incorrect Answer
    E They have infrastructure that is male-centric Correct Answer Incorrect Answer

    Solution

    Offshore financial centers: Offshore financial centers (OFCs) are jurisdictions that provide tax and regulatory advantages to businesses and individuals. These are centres that are primarily tax havens for wealth management and global tax management rather than providing the fully array of international financial services. Examples include the Cayman Islands, Bermuda, and the British Virgin Islands. These centers offer low taxes, minimal regulation, and strict secrecy laws that make them attractive to those seeking to reduce their tax burden or conceal their financial activities. However, OFCs have faced criticism for facilitating tax evasion and money laundering.

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