| With financial success comes many great | | | | through the use of fines, employment |
| opportunities and freedoms, but there is | | | | termination and even imprisonment if an |
| also a dark side with high income | | | | official is caught disclosing client |
| earners subjected to higher income tax | | | | information. |
| rates. In the post 9/11 world, many | | | | In addition to the rock solid privacy |
| offshore banking jurisdictions have | | | | and secrecy laws in place Panama also |
| signed tax treaties and disclosure | | | | provides asset protection vehicles that |
| treaties with the US government with the | | | | are not subject to income taxes. |
| goal of stamping out money laundering, | | | | Panama bank accounts can be secured for |
| drug trafficking, terrorism and other | | | | as little as US$695 and come with online |
| illegal activities. | | | | banking access, ATM card, and rock solid |
| There are a few places left in the world | | | | privacy protection. |
| that cater to offshore banking clients | | | | Even when banking in countries with good |
| by providing solid privacy and | | | | asset protection laws depositors can run |
| protection laws. Offshore banking is a | | | | into privacy troubles. The Cayman |
| bank located outside the country of | | | | Islands as a good example. The Cayman |
| residence of the depositor. | | | | Islands has laws that send bank |
| Generally offshore banking provides | | | | officials to jail for disclosing |
| legal, financial and tax advantages to | | | | information to the IMF, CIA or Treasury |
| the depositor. The Bahamas used to be a | | | | Department. |
| haven for offshore banking but since | | | | In recent financial news a bank owner |
| they introduced stricter banking laws | | | | from the Cayman Islands named John |
| that give the banks the discretion to | | | | Masterson allegedly reported over 1 year |
| provide 45% of their collected | | | | worth of his bank's records to the |
| information about their clients to | | | | United States government that got a lot |
| authorities who ask. | | | | of US taxpayers into hot water. If the |
| On the flip side of the coin the | | | | banking secrecy laws of the Cayman |
| Republic of Panama has total banking | | | | Islands were strictly enforced in this |
| secrecy laws in place in spite of | | | | case, Mr. Masterson would be serving a |
| pressures from the IMF and US government | | | | long sentence in jail. Mr. Masterson |
| asking them to report any suspicious | | | | currently lives free so anyone |
| activity to local authorities. Banking | | | | considering offshore banking beware, no |
| secrecy laws in Panama protect clients | | | | offshore setup is perfect. |