| Offshore bank accounts are only for spies and | | | | have a tax treaty with anyone. In fact they |
| criminals and money launderers -- Although | | | | have bank secrecy laws on their books to |
| no-one can claim that criminals don't use | | | | prevent this kind of information sharing. |
| offshore bank accounts, their uses in this | | | | |
| regard have been severely limited due to the | | | | Someone will find out about my offshore bank |
| MLAT treaty. In fact, many fortune 500 | | | | account -- Not if you don't tell them. Most |
| companies now bank offshore to protect their | | | | offshore accounts are managed over the |
| assets and to gain competitive tax | | | | internet using secure encryption. This is the |
| advantages. | | | | same encryption used by banks and e-commerce |
| | | | sites around the world. It is secure, |
| Offshore banking is too complex for the | | | | trusted, and well tested. |
| average person -- Nothing could be farther | | | | |
| from the truth. All the complicated work is | | | | A court can order me to bring back the money |
| done by your offshore professional and only | | | | -- If you are in a lawsuit already, and you |
| takes about a week to complete. Typically an | | | | move the money offshore, you must be careful |
| offshore setup includes a bearer share | | | | under what circumstances. This will be |
| corporation. The combination of a bearer | | | | considered a fraudulent conveyance. If, |
| share company and an offshore bank account is | | | | however, you take the money offshore before a |
| roughly equivalent to the old numbered swiss | | | | lawsuit starts, and say donate the money to |
| bank accounts of the past. | | | | an offshore foundation, the money is not |
| | | | legally yours anymore. The judge cannot force |
| Only a rich person can afford an offshore | | | | you do something illegal. If the money is not |
| asset protection setup -- This is totally | | | | yours he cannot order you to go and get it! |
| false. The basic package, which is adequate | | | | |
| for 90% of clients, costs less than $2000 US. | | | | If I move money offshore, someone will be |
| The basic package includes an offshore bank | | | | able to track down where it went -- If you |
| account and a Panama bearer share | | | | were to wire the money to its final |
| corporation. It has proven time and again to | | | | destination directly that would be true. |
| be a very solid protection mechanism for our | | | | Clients concerned with this usually move the |
| clients and is very useful for tax planning | | | | money to a intermediary bank in another |
| as well. | | | | offshore banking haven. For example, they |
| | | | will wire the money to an bank in the Cayman |
| 9/11 has weakened bank secrecy -- This is | | | | Islands, and then rewire the funds to Panama. |
| certainly true onshore! Even though pretty | | | | Someone coming after the money would have to |
| much all the offshore countries are now in | | | | break the Cayman Island's bank secrey to find |
| the MLAT treaty, this has not weakened bank | | | | out the money is now in Panama. This is not |
| secrecy unless the matter is criminal in | | | | likely to happen and you would likely have |
| nature. Even at that the issue must a crime | | | | plenty of time to move the money to a third |
| in both countries. In Panama, for example, | | | | or fourth jurisdiction. Because authorities |
| tax evasion is not a crime. As such a MLAT | | | | know that, tracing money is only done is high |
| request for information based on a tax | | | | profile cases. |
| evasion case would be flatly denied by the | | | | |
| Panama government. | | | | I can use my offshore account do do the same |
| | | | things I do with on local personal bank |
| To open an offshore bank account you need to | | | | account - This is true except for one |
| visit the country in question -- This is a | | | | feature. You cannot pay bills online in most |
| falsehood. We open bank accounts regularly | | | | offshore jurisdictions. Actually some banks |
| for our clients without ever seeing them. | | | | have this feature but it will not apply to |
| Everything is done by fedex, phone and fax. | | | | your local country. International bill |
| | | | payment is not offered by any bank I know of. |
| The MLAT treaty has ruined the effectiveness | | | | Also this would likely not be a wise action |
| of offshore jurisdictions -- This is true for | | | | anyway. Typically money kept offshore is not |
| any major criminals. Requests made through | | | | intended for day to day payments. Having said |
| the MLAT treaty must be a crime in both | | | | that, many offshore clients carry a bank card |
| countries (Tax evasion is not a crime in | | | | that they can use to withdraw cash anywhere |
| Panama for example.) The requesting country | | | | in the world. Of course the bank card does |
| must show that it has strong evidence and is | | | | not have their name on it or tie to them. |
| not on a fishing expedition. There is a great | | | | |
| deal of flexibility in the treaty. The | | | | Operating an offshore bank account is illegal |
| requesting country cannot force co-operation. | | | | -- Operating an offshore bank account is 100% |
| If a country like Panama doesn't think the | | | | legal and many fortune 500 companies do it |
| case has merit, they can keep asking for more | | | | everyday. In fact much of the money kept |
| documentation, or simply deny the request. | | | | offshore is deposited by these companies to |
| Panama, for example, doesn't like | | | | protect large sums of money from lawsuits. |
| co-operating on minor crimes. | | | | Most people don't realize that most major |
| | | | corporations are actually comprised of 50-100 |
| All the countries share tax information now. | | | | smaller corporations. Many of these |
| -- Many tax treaties have been put in place | | | | corporations in offshore banking havens, |
| but offshore countries like Panama do NOT | | | | offering asset protection and tax advantages. |