Offshore banking is the activity of having a financial balance outside of the nation of residence. Since its beginning, offshore banking has turned into an extensively rewarding business. A significant number of individuals who participate are searching for a safe haven to put their savings in or take advantage of the possibility of paying lower taxes. Offshore banking is known for providing a wide range of benefits. The rules of these bank ensure that the money is secure and, in some cases, it is even possible making it exempt from taxation. The most important benefit that these banks have to offer is strict privacy. All dealings conducted are protected by the bank’s country. Based on that, there are individuals who misuse these benefits of foreign banks and utilize the business ventures for unlawful activities instead of the first reason for the dealings. Offshore banks appear to have an unbiased acknowledgment of many customers inside the bank that make a lower standard of morals rather than the morals intended to be held—this incorporates those of a political position. Besides, this can possibly be negative to the economy. Till this very day, there is still very little academic research done based on offshore banking. The scarcity of data is due to the fact that none of the big offshore banking centres are transparently showing their numbers. In this paper we will examine the legal aspects of offshore banking (when does it become illegal) and analyse cross border data in order to understand how big, offshore banking actually is and how much of the world’s economy does it occupy.