There is no single accepted definition of the term “OFCs”, but EDFI considers the following to be the key characteristics of territories, which are often regarded as OFCs:

• large number of financial institutions engaged primarily in business with non‐residents;
• external assets and liabilities disproportionate to domestic financial intermediation designed to
finance domestic economies;
• low taxation of non‐residents with no activities “onshore”; and
• established legal and commercial infrastructures which are capable of facilitating cross‐border
investments.