How Offshore Banking Works

The entire offshore financial system is based on companies incorporated offshore that a bank accounts onshore and transact through accounts in their own name. All of the money center banks, correspondent banks, the large banks in the world are intermediating this stuff. They run payments back and forth between clients from bank to bank among different parts of the bank. The bank doesn't have any liability for malfeasance through that account because they're banking a licensed bank or an insurance company.