Global Financial Centers (GFC)

A Global Financial Center is an area officially designated by the International Monetary Fund (IMF), to be a place of banking, investment, incorporation, company formation, foundation formation, trust formation, insurance and other vehicles of wealth preservation and asset protection.

The IMF is an international organization of 185 member countries that oversees the global financial system. They do this by observing exchange rates and balance of payments as well as offering financial and technical assistance. It was established to promote international monetary cooperation and exchange stability and orderly exchange arrangements to foster economic growth and high levels of employment and temporary assistance to countries that need help in these areas. It is headquartered in Washington, D.C.

In order to be on the official list of the IMF, the jurisdiction must meet the following criteria:

• have relatively large numbers of financial institutions engaged primarily in business with non-residents,
• have financial systems with external assets and liabilities out of proportion to domestic financial intermediation designed to finance domestic economies

As the world gets smaller, regulations are getting larger. Please see you tax practitioner for the latest rules and regulations for cross border business.

The IMF (International Monetary Foundation) lists the official Global Financial Centers as:

OPIC – Overseas Private Investment Corporation is an agency of the United States Government that overseas and promotes economic development fostering new and emerging markets helping US businesses offshore. It was established in 1971. The agency provides political risk insurance against the risks of inconvertibility, political violence, or expropriation. OPIC also provides financing through direct loans and loan guaranties.

If you would like more information about GFCs, please call us at TrustMakers for a free 20-minute consultation.