The Bahamas and Cayman Islands are known for their warm, sandy beaches and their

Question

Quizplus · Accepted Answer

The Bahamas and Cayman Islands have a history of being used as tax havens and for the establishment of shell banks, which are unregulated financial institutions used for illicit activities such as money laundering. They are not known for Edge Act corporations (A), which are US financial institutions located overseas, or section 20 affiliates (C), which are subsidiaries of US banks that engage in securities activities. High taxation (D) is also not a defining characteristic of these jurisdictions.

The Bahamas and Cayman Islands Are Known for Their Warm