With the expansion of today’s financial system the interconnectedness of the global financial markets gave rise to Financial Globalization, which in itself represents a process of unification of financial services, liberalization of customs, banking operations and unification of the coordination payment systems.Development of Financial Globalization could be characterized through the process of financial innovations, meaning the creation of new and complex financial instruments and technologies in order to reduce the currency, credit and stock transaction risks and costs. While globalization has opened new markets to the rich-world companies, the increase of the world capital flows, characterized by intensity and dynamism, gave way to a number of fast-moving and adaptable multinationals emerging from the developing world. In its turn, in order to reduce cost, attention was shifted to the offshore centers or sometimes referred to as tax havens. Offshore financial centers, which are low-tax jurisdictions, who’s economic activity concentrates on provision of professional corporate and commercial financial services, mutual funds, trust and company administration and specialized services, involving banking, shipping, structured financial transactions, life insurance and pensions. In other words, it is a system that provides a favorable financial and business infrastructure, which is responsive to the requirements of the non-resident investors. The low/zero-tax structure allows a more integral financial planning and risk management for international finance and trade. The corporate tax-trend of 1 9 8 0 ’s through 2010 has trended lower with the top OECD countries. Therefore the offshore centers’ economic activity permits capital to increase its rate of return, as well as result in an major economic, social and political impact for people in other jurisdictions. Moreover, the confidentiality and low disclosure of private of financial information creates a favorable environment for managing taxes on capital gains, income and inheritance. The offshore centers are often seen as a threat to the global financial system due to the extent of the balance sheet management provided by the regulatory framework, facilitating incentives for money laundering, abating tax revenues from the developed countries by tax arbitrage allowance, as well as rendering of capital flows into and out of developing countries. Having financial globalization described as the latest stage of capitalism, and nationstates unleashing capital from territorial boundaries, the innovational processes of financial instruments along with the technological developments create more dynamism and challenges for the roaming capital.