With an acceleration in the creation of global wealth, private banking services are increasing in demand. The industry is currently fragmenting between onshore and offshore private banking although most of the serious players have a foot firmly entrenched in each camp. Onshore private banking is expected to show the fastest growth, particularly within the EU, where political initiatives to increase free trade and co-ordinate fiscal regimes are gathering increasing momentum, not least with the recent introduction of the Euro. There has also been a worldwide move to restrict the use of offshore centres for individuals and companies seeking to evade taxes, or wash the illicit proceeds of crime through the banking system. This has led to increased legislation and compliance is often as rigorous in offshore centres as in the best regulated onshore territories.
