What are the downsides of offshore banking?

Top three disadvantages that I can name are:

First of all, are the minimum requirements to maintain an account. Most have a minimum deposit requirement that may not be worthwhile or within reach of everyday users.

The KYC requirements are pretty stringent. As more and more offshore banks are being derisked from the correspondent banking network, the remaining ones want to make sure that those that they onboard have gone through a pretty exhaustive screening process.

Cost of transactions. Everything is expensive. Maintaining an account is expensive. A wire in is expensive. A wire out is expensive. Most offer limited banking facilities. Credit cards are expensive. moving money in and out is usually subjected to inordinate delays.