Over the years the region has become an area abundantly supplied with tax havens. The financial sector of the Caribbean enhances also offshore banks. The origins of the development of the offshore financial sector here can be traced down to the 1960s when financial institutions in other countries began to be confronted with legislation which provided very strict rules and high taxation. There are also other factors that played as an advantage for this region, namely its proximity to the United States and of course the combination of new technologies and modern ways of telecommunications.
Nowadays, offshore banks in the Caribbean provide a large number of services such as for example, the issuance of debit and credit cards, provision of multi currency accounts and of course very comfortable offshore internet banking services.
Caribbean offshore banking sector offers financial services which a subject to minimal controls and provides bank 
secrecy. For many years now the Caribbean offshore centers began to attract notoriety as havens for the proceeds of tax evasion and other serious criminal activities. Indeed, it became the norm for any international criminal seeking to continue operations, boost profit and evade detection to run critical phase of his business through the offshore have bank. This was attributed to the ease of the information, lenient supervision and confidentiality of these financial vehicles. With time this situation changed as the Caribbean took measures by tightening financial regulations and the issue related to bank secrecy by adopting provisions on money laundering and reporting requirements. There were introduced important amendments to the withholding tax and reporting rules on payments targeting foreign financial intermediaries. The main aim of such regulations was to promote and guarantee transparency and cooperation, in order to identify Americans who owe the US government tax on their income.
Antigua: There are no registration requirements imposed on the assets must be on deposit, no screening of applicants.
Bahamas: It is not very difficult to create a company here. The relevant law does not require a screening or any reporting of assets. The Central bank is not involved in the supervision or regulation of financial institutions.
Bermuda: The major offshore business is insurance followed by trust investment companies and offshore banking. These activities make up around 40 per cent of GNP.
Cayman Islands: The jurisdiction represents the traditional Caribbean tax haven. The bank secrecy regulations are stricter than those present in Switzerland. No one is allowed access to account information, or the identity of client, unless there is a court order which is issued on the basis of suspicion of criminal activities.
Netherlands Antilles: The Antilles is one of the most active Caribbean offshore banking jurisdictions.
Panama: The financial sector represents 9 per cent of GNP.
