International financial centers facilitate global trade and enable remote and virtual work. Global value chains and traditional market principles fade away and a new era of financial globalization occurs. These days, business and people are not restricted by the borders of their habitual residence anymore but adopt corporate solutions anywhere in the world. Offshore jurisdictions provide these international entrepreneurs and nomads with a versatility of solutions to structure their lives and business. Although sometimes controversial, the industry is not illegal per se. Users must pay close attention to the rules and regulation in both the home country and host country of their personal and corporate residency.

Offshore jurisdictions offer corporate services and financial solutions. Among these services are company formation for international business activities and financial solutions related to banking and finance. The beneficiaries of offshore companies tend to view the world as their playground, so they take advantage of the advantages of the industry. This results in a highly efficient operation. Yet, a lack of transparency and good governance of these financial centers may result in regulatory scrutiny and eventually challenges for the people operating in these areas.

The integrity of the financial system is crucial for the functioning of society. Disruption of public confidence can trigger chaos and anarchy. Misuse of this system can cause social disintegration, undermine governmental structures, and erode community cohesion. Therefore, governments seek ways to protect their local financial ecosystem. When financial institutions fail or are likely to fail, an extensive set of measures is imminently implemented. Closure of a financial institution leaves creditors in despair. To avoid panic and creditor outrage, regulators assume control over the financial institution and invoke statutory administration. The special administrator takes office and holds exclusive control over the daily operations of the bank. The activities of the bank are stopped, bank accounts are blocked and other facilities ceased.

In the course of statutory administration, the special administrator may provide emergency relief to creditors and account holders in particular. There may be limited account access, and if the bank cannot be reopened within a reasonable time period, deposit insurance is triggered. Bank deposit insurance for offshore companies is not always the solution for repayment. This is due to the fact that not all account balances can be protect under a local deposit guarantee schemes. Filing a Deposit Guarantee Claim must therefore be done with care and by providing evidence of eligibility, even though this may sound counterintuitive.