### Question
How does MONETARY TRANSACTIONS define offshore banking license?


### Answer
Under *31 U.S.C. § 5318*, **offshore banking license** is defined as:

> a license to conduct banking activities which, as a condition of the license, prohibits the licensed entity from conducting banking activities with the citizens of, or with the local currency of, the country which issued the license

#### Citation:
  - *31 U.S.C. § 5318*
  - Heading: **SUBTITLE IV-MONEY > CHAPTER 53-MONETARY TRANSACTIONS > SUBCHAPTER II-RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS**

