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