| 10 Biggest Offshore Banking Myths
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| | passwords. Due to terrorism and money
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| Explained
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| | laundering laws these accounts came to an
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| Introduction - Today offshore banking is
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| | end. Other countries also issued numbered
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| a hot topic of much interest to many
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| | accounts. There are still numbered
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| living in countries where litigation and
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| | accounts in Switzerland but they are not
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| confiscation of assets from various
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| | like the old days. The Swiss banks
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| sources is a problem. This has caused a
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| | require ID and limit the access to the ID
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| large amount of people in various
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| | to a few select bank employees and issue
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| jurisdictions to move their money
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| | a numbered account this way. Nothing like
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| offshore. We will explore the 10 Largest
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| | the old Swiss numbered bank accounts.
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| Myths pertaining to Offshore Banking.
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| | These accounts will of course draw a lot
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| Definition of Offshore Banking - Offshore
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| | of unwanted attention when wires are sent
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| banking is a term that used to pertain to
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| | and received and in some countries the
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| using a bank in a Caribbean island
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| | offshore banks will refuse to send or
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| jurisdiction. Today the term applies to
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| | receive wires to such accounts. Panama
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| one using a bank in a country other than
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| | has solved the problem by having dead
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| their own. The offshore jurisdiction of
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| | anonymous Bearer Share Corporations.
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| today could be a land locked country or
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| | These Corporations have no registry or
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| an island tax have country. If the
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| | database which records ownership of the
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| offshore bank is in another country than
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| | corporation. The ownership of the
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| the country of domicile for the
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| | corporation is based on who physically
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| individual then the bank can be labeled
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| | has the stock certificates. There is no
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| an offshore bank.
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| | requirement to report changes in
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| Offshore Banking Myth #1 - The offshore
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| | ownership as well. Panama also has
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| banking jurisdiction is the most
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| | anonymous foundations also with no
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| important element to look for.
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| | registry or database to record ownership.
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| Not true. The laws of the jurisdiction
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| | So when wires move to and from an
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| are of course important and vary from
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| | anonymous Panama Bearer Share Corporation
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| country to country and are vital but one
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| | or anonymous Panama Foundation no one can
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| must look to the bank itself. The
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| | determine who the natural persons are
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| soundness of the bank is most important
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| | behind the corporation or foundation
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| because what good does it do you to have
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| | because of the Panama Bank Secrecy Laws.
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| an offshore bank account in a bank
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| | A very nice combination of corporate and
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| located in the greatest privacy
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| | banking privacy legislation.
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| jurisdiction in the world if the bank
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| | For more information on Panama Bearer
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| fails. So a very financially sound
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| | share Corporations click here:
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| offshore bank in a jurisdiction with weak
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| | For more information on Panama
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| privacy laws would be better than a
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| | Foundations click here:
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| really financially weak offshore bank in
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| | Offshore Banking Myth #7 - Offshore Banks
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| the best privacy jurisdiction. Of course
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| | are fine if they are on a little island
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| certain countries monitor their banks
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| | Not true.
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| better than others like Panama is top
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| | One must also take into account weather
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| notch in this department.
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| | conditions of the jurisdiction
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| To learn more about Panama as an Offshore
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| | considered. Many of the offshore banking
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| Banking Jurisdiction go here:
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| | countries in the Caribbean get hit with
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| Offshore Banking Myth #2 - All offshore
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| | hurricanes and storms of a great
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| banking jurisdictions are about the same.
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| | magnitude. This can cause their internet
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| Not true. One must see if the country has
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| | and phones to go out for weeks at a time.
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| tax treaties with other countries. Tax
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| | I am most sure you would not be enjoying
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| treaties are where the fishing
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| | the experience of waiting for a few weeks
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| expeditions come from. One must gain a
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| | to see if your offshore bank is still
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| knowledge of the offshore banking laws in
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| | alive and well after their phones and
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| the particular jurisdiction being
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| | internet get knocked out. The reason the
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| considered. Many has been offshore
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| | Panama Canal was built in Panama is
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| banking jurisdictions have changed their
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| | because Panama has no hurricanes,
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| once favorable offshore banking laws
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| | earthquakes, volcanoes, tornadoes,
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| since 9/11 and are basically doing
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| | tsunamis etc. Panama is tops when it
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| business with people who do not take the
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| | comes to an offshore jurisdiction for
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| time and trouble to check the offshore
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| | offshore banking, corporations and
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| banking laws for the country in question.
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| | foundations.
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| For instance Belize does not have any
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| | Offshore Banking Myth #8 - The national
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| banking secrecy laws written in statues.
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| | currency of the offshore bank is
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| Switzerland has modified their laws to
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| | irrelevant.
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| suit the EU. Many of the Caribbean island
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| | Not true.
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| offshore banking jurisdictions have given
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| | Even if the offshore bank gives you an
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| in to EU and American pressure and being
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| | account in several currencies inquire
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| afraid of losing their cruise ship
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| | about the conversion costs. Frequently
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| business have changed their bank secrecy
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| | every time you convert a currency they
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| laws for the worse.
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| | move you first into their national
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| Offshore Banking Jurisdictions additional
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| | currency and then into the destination
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| information by country is included at the
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| | currency. At the end of the day this type
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| links to the right.
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| | of offshore banking conversion expense
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| Offshore Banking Myth #3 - No Offshore
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| | can be painful. Panama uses the US dollar
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| bank will ever reveal information about
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| | for it's national currency so this is the
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| the bank accounts or banking clients.
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| | currency the banks operate on with some
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| The truth is offshore banks will reveal
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| | euro accounts available.
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| some information in some cases. This
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| | For more information about Panama Bank
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| varies from case to case and country to
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| | Accounts click here:
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| country. Panama will cooperate in four
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| | Offshore Banking Myth #9 - The US Dollar
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| categories of crimes: terrorism, money
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| | is not stable enough for use in Offshore
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| laundering, narcotics trafficking and
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| | Banking.
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| child pornography. Countries have what is
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| | Think again.
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| called MLAT (Mutual Legal Defense
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| | What many do not realize is that a nice
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| Treaties) that call for the release of
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| | low currency on the international
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| information under certain defined
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| | exchange helps a country enabling it to
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| circumstances. Most offshore countries
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| | sell exports. It helps them with their
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| have Tax Treaties that call for the
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| | balance of international payments. It
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| release of other information to other
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| | encourages foreign tourism and they bring
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| countries in the treaty. Panama has no
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| | in foreign currency by converting to
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| tax treaties with other countries and is
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| | dollars. Do you really think the EU could
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| most unique in this respect being the
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| | let the USA lower the value of their
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| only offshore banking and incorporation
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| | dollar further? Think about what it would
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| jurisdiction without any tax treaties. In
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| | do to the price of US imports in the EU
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| Panama all tax offenses are considered
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| | like cars for instance. It would make
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| civil offenses. As a general rule the
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| | them cheaper. The EU would need to slap
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| MLAT treaties require that the crime
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| | on punitive taxes and the USA would
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| being investigated by the requesting
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| | reciprocate in kind hurting their sales
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| country must also be a crime in the
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| | of cars in the USA. There is a lot of
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| country the information is being
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| | fatalistic talk of the US dollar falling,
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| requested from.
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| | true and it has fell but only to a level
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| So offshore banks will under certain
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| | of comfort for exports.
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| circumstances release information about
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| | What about housing prices falling in the
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| the bank accounts they have. Again, one
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| | USA? Well they were driven up by
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| must select the right country not only
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| | speculators and now comes the adjustment.
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| the right offshore bank.
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| | A nice drop of 30% to 40% in housing
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| To learn more about MLAT and Tax treaties
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| | prices will make the houses somewhat more
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| click here:
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| | affordable. Can the US fix it's problems
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| Offshore Banking Myth #4 - Offshore Banks
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| | domestically? Probably much could be done
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| are regularly Licensed Banks.
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| | if they wanted to do something. They
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| No so.
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| | could create tax incentives for business,
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| Most offshore banks hold an offshore
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| | get interest rates down lower and so
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| banking license from the jurisdiction
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| | forth. On the broad horizon a steep drop
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| they are in. These licenses allow them to
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| | in the housing prices makes things more
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| conduct full banking activities, just not
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| | affordable versus constant speculation
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| with any resident of the country they are
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| | which would eventually drive the housing
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| located in. In some countries they are
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| | prices to the point where a 3 bedroom 2
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| also prohibited from conducting business
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| | bath 180 sq meter home would cost
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| with any corporation or trust formed in
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| | $1,000,000 in a small city and $6,000,000
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| that country as well. If this is going to
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| | in a major area. A country is better off
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| scare you I do not know what will. The
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| | with affordable housing where housing
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| offshore jurisdiction issues a license to
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| | prices are set by people wishing to live
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| an offshore bank that does not let them
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| | in the house because they like the area,
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| bank with anyone in the country. Not too
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| | the schools are desirable, the house is
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| reassuring huh. In Panama our law firm
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| | close to shopping, airports, hospitals
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| only introduces clients to banks with
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| | etc. When housing prices are set by
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| full banking licenses that are allowed to
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| | people thinking if I buy this house now I
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| do business with the residents of the
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| | can sell it for a 27% profit in two or
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| country, have branches, drive through
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| | three years, this is a mania that will
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| tellers, etc.
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| | end poorly. This is the end of this mania
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| Offshore Banking Myth #5 - Offshore banks
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| | in the USA. They are adjusting not
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| that are part of a large international
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| | collapsing.
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| conglomerate will compromise your
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| | There are still branch banks in rich
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| privacy.
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| | neighborhoods of South Florida, Southern
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| Not so.
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| | California, parts of New York city, etc
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| The general line of unfounded thought is
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| | where these branches of US banks have a
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| that if the international bank has a
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| | branch office with in excess of
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| branch in the USA or EU it can be
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| | $100,000,000,000 (one hundred billion
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| compelled to reveal banking records from
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| | dollars) in deposits. I mean the little
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| the offshore country where it also has a
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| | neighborhood branch offices have this
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| bank. If you are in an offshore country
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| | much on deposit, of course the whole bank
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| like Panama this would be unlikely to
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| | is much larger. There are a lot of people
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| happen. The bank in Panama is a separate
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| | with many millions of dollars in the USA
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| corporate entity from the banks in other
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| | and they tend to congregate near each
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| countries. The bank in Panama would have
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| | other in the same communities. We could
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| it's own Panama banking license and would
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| | also talk about all the stock, option
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| be bound by Panama banking secrecy laws.
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| | future exchanges all working in dollars
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| It would be a violation to give access
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| | but then this would go beyond the scope
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| To employees located in another country
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| | of the article.
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| not bound by Panama bank secrecy laws. Of
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| | So let's say you are scared of the US
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| course some jurisdictions that used to be
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| | dollar and go into Euros and the dollar
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| secure with their banking laws are no
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| | strengthens back to where it was and you
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| longer secure. Again this is a matter of
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| | lose 25% of your value? The dollar is
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| knowing your jurisdiction and bank. At
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| | already down and it is not likely that
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| times clients of our law firm ask us to
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| | the other countries would want to see it
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| get them a bank account with a bank that
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| | go down further since they would suffer
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| does not have any operations outside of
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| | in the long run competitively from such a
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| Panama and this is of course a request we
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| | drop. We suggest that one need not be
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| can readily accommodate.
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| | afraid to have an offshore banking
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| Offshore Banking Myth #6 - Offshore banks
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| | account in US dollars but we also offer
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| will create numbered bank accounts.
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| | Euro accounts for those who need them.
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| Not really.
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| | Offshore Myth #10 - It is illegal to own
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| The offshore numbered bank account was a
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| | an offshore bank account.
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| creation of Switzerland mostly and these
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| | Not so.
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| came to an end in the 1980's. They
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| | We are not aware on any jurisdiction that
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| originally were accounts requiring no
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| | makes it illegal to have an offshore bank
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| identity documents and no name. They were
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| | account.
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| operated by account numbers and
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