| There are more offshore banking havens
| |
| | 6. Is Your Haven Financially Stable?
|
| than you can shake astick at. Nicholas
| |
| | Check your prospective haven's financial
|
| Pullen tells you how to separate thewheat
| |
| | stability, bycalculating what percentage
|
| from the chaff, and make sure the haven
| |
| | of its Gross Domestic Product
|
| you choose isreally a safe-house for your
| |
| | isrepresented by foreign aid. Foreign aid
|
| money.
| |
| | is as high as 70% of
|
| There are definite and strong advantages
| |
| | Gross Domestic Product in some havens.
|
| to placing some ofyour hard-earned money
| |
| | The Cook Islands,
|
| in offshore bank accounts:
| |
| | Nauru and Vanuatu being recent examples
|
| First of all you get protection against
| |
| | of this.
|
| your government.
| |
| | A haven's confidence in its liquidity can
|
| Nobody knows what a government will do
| |
| | be judged, atleast to some degree, by its
|
| next, anything ispossible. But, unlike
| |
| | willingness to put in placesolid
|
| funds held in your home country,wealth
| |
| | depositor protection. Enquire of
|
| stashed offshore is greatly protected
| |
| | financialinstitutions in the haven
|
| against anynegative actions your
| |
| | whether or not depositorprotection
|
| government might take, or legislationit
| |
| | exists.
|
| might introduce, tomorrow.
| |
| | 7. Is The Haven Free Of Trouble? Will It
|
| Secondly, you get protection from
| |
| | Stay That Way?
|
| predators and parasites.
| |
| | Does the haven have a trouble-free
|
| Offshore wealth is shielded from the
| |
| | history and a secureculture? A country
|
| attentions of assethunters. Avaricious
| |
| | which has experienced only
|
| litigants, thieves, fraudsters,
| |
| | moderatepolitical, economic and social
|
| conmen,blackmailers (disgruntled
| |
| | change, and where politicaland social
|
| ex-business partners and ex-spouses) who
| |
| | violence is uncommon, is a trouble-free
|
| all seek to pinpoint, target and
| |
| | country.
|
| eventuallyattack individuals with visible
| |
| | A stable past is a good predictor of a
|
| wealth. These sharks haveweapons at their
| |
| | stable future.
|
| disposal, and they use them. They
| |
| | On the other hand, countries with a
|
| routinelyrun asset searches to identify
| |
| | history of civil war,military coups and
|
| just who has what worthtargeting. But
| |
| | civil unrest are definitely not right
|
| offshore assets are safe. Asset
| |
| | forbanking purposes. Cash held in a
|
| searcheswon't uncover offshore assets,
| |
| | banana republic is high-risk. Future
|
| these remain totallyinvisible and safe
| |
| | flash points in volatile regions can
|
| from attack.
| |
| | renderyour cash lost or worthless.
|
| Thirdly, with an offshore bank account
| |
| | Look at the human rights record of the
|
| you are insuredagainst the unknown events
| |
| | haven's government. Agovernment with high
|
| tomorrow might hold. You neverknow when
| |
| | regard for its domestic population
|
| you might be mighty glad of offshore
| |
| | islikely to regard you equally highly. A
|
| cashreserves. If circumstances at home
| |
| | government whichtreats citizens like
|
| make it impossible orunwise for you to
| |
| | cattle to be reared, milked
|
| stay, or impossible to access
| |
| | andslaughtered is likely to come to view
|
| yourdomestic funds, your offshore funds
| |
| | you in the same casualmanner. In such a
|
| provide you with afinancial lifeboat.
| |
| | climate private wealth may suddenly
|
| "Not all banking havens are suitable,
| |
| | becomegovernment property.
|
| safe, or secure."
| |
| | Check if there's a strong socialist
|
| Finally, you can rest secure in the
| |
| | political faction in thehaven. Overtly
|
| knowledge that you havea secret nest-egg.
| |
| | socialist governments can't be trusted
|
| You can build and grow a private stash
| |
| | tolook after your nest-egg. Political
|
| ofcash beyond the gaze of anybody in your
| |
| | upheaval, newideologies and attendant
|
| home country.
| |
| | legislation can change a
|
| The first thing you need do, to enjoy the
| |
| | haven'sattractiveness overnight. Ensure
|
| benefits of anoffshore bank account, is
| |
| | there's little likelihoodof an ultra
|
| to select a good offshore bankinghaven
| |
| | left-wing political party sliding into
|
| where you can open your accounts. This is
| |
| | power inthe foreseeable future.
|
| easier saidthan achieved. You aren't
| |
| | Is the haven free from racial tensions
|
| short of choice, from the Bahamasto
| |
| | and other socialproblems? These can
|
| Vanuatu, Cyprus to the British Virgin
| |
| | trigger crisis which may affectdeposited
|
| Islands,
| |
| | funds.
|
| Switzerland to the Cayman Islands.
| |
| | What about the prospect of foreign
|
| Countries the world overare in the market
| |
| | invasions and war? Theseare slight for an
|
| for, and only too happy to accept, asmuch
| |
| | isolated country. But keep an eye on
|
| foreign capital as they can get their
| |
| | thetreatment your haven receives in the
|
| hands on.
| |
| | international press.
|
| However, you must bear in mind that not
| |
| | Areas and regions seldom become hot spots
|
| all banking havensare suitable, safe, or
| |
| | overnight. Look atrecent political
|
| secure. Some are excellent. Othersare
| |
| | developments and events in the haven
|
| ticking time bombs. If you open an
| |
| | toestablish if there is any potential
|
| account in the wrongcountry, it can prove
| |
| | trouble.
|
| very costly in more ways than one.
| |
| | "A stable past is a good predictor of a
|
| What you need to do is to find out how
| |
| | stable future."
|
| particular bankinghavens measure up
| |
| | Consider local attitudes. Is there wide
|
| before you lodge any of your cash
| |
| | local support forthe financial services
|
| orassets there. This will require you to
| |
| | and banking industries? Does thelocal
|
| perform some researchand investigation.
| |
| | population appreciate that international
|
| This is well worth doing, and thoroughly.
| |
| | bankingoperations are effectively
|
| Mistakes avoided at this early stage save
| |
| | supporting the country's economy?
|
| time, trouble andmoney further down the
| |
| | Or does the presence of foreign capital
|
| road.
| |
| | breed resentment?
|
| I suggest you measure the quality of any
| |
| | Is there a foreign-bashing agenda?
|
| haven whichinterests you by subjecting it
| |
| | Be sure to keep abreast of events and the
|
| to my Ten-Point Suitability
| |
| | socio-politicalclimate in your haven.
|
| Test. Satisfy yourself on all points
| |
| | Subscribe to newsletters coveringsuch
|
| crucial to yourparticular requirements.
| |
| | developments. Read the local press. The
|
| 1. Location, Location, Location?
| |
| | writing isoften, literally, on local
|
| Where is the haven located? Do you want
| |
| | walls in the form of graffiti,for months
|
| to visit your cashregularly? If so, is it
| |
| | before anything actually happens which
|
| convenient or practical to have itstashed
| |
| | mightaffect your bank accounts.
|
| in a banking haven thousands of miles
| |
| | 8. Does Your Haven Provide A Back Door
|
| away fromwhere you live?
| |
| | For Your Government?
|
| Can you access your haven by air -
| |
| | Make sure your banking haven doesn't
|
| directly or indirectly?
| |
| | provide your governmentwith a back door
|
| Is it a problem getting entry to your
| |
| | into your accounts. For example,
|
| haven? Will you needto queue for an entry
| |
| | sometraditional tax havens are existing
|
| visa every time you want to visit?
| |
| | or former Britishcolonies, such as
|
| Also, be aware that making regular,
| |
| | Bermuda, Cayman Islands, the Channel
|
| visible (visa recordsare a paper trail)
| |
| | Islands, and the UK government is
|
| trips to a known banking haven is
| |
| | exerting pressure onauthorities there to
|
| likewaving a red flag at any government
| |
| | release information relating to UKaccount
|
| snoop who might betaking an interest in
| |
| | holders.
|
| your affairs and movements.
| |
| | British citizens should find out if their
|
| Give some consideration to time
| |
| | prospectivebanking haven has tax treaties
|
| differences. Can you manageyour financial
| |
| | in place with the UK. If so,be aware that
|
| affairs efficiently if it's midnight in
| |
| | the treaty allows for the free sharing
|
| yourhaven during business hours at home?
| |
| | ofinformation between the authorities in
|
| Are you happy to waitup until the early
| |
| | the two countries.
|
| hours to speak to financial managers?
| |
| | 9. Does It Offer Enough Freedom For
|
| 2. Do You Speak The Language?
| |
| | Capital?
|
| Effective, smooth-running financial
| |
| | Are you free to take money in and out of
|
| management depends onfluent
| |
| | the haven? If thereare severe
|
| communication. Do bankers and
| |
| | restrictions, the haven is no use to you.
|
| professionals in yourhaven speak English
| |
| | Even ifthere are no exchange controls in
|
| or some other language with which
| |
| | operation now, check thatthe haven
|
| you'refamiliar? You may need to discuss
| |
| | doesn't have a history of exchange
|
| complex financial mattersin technical
| |
| | controls. Youdon't want your cash trapped
|
| detail. It could cost you dear if things
| |
| | in a country which iseffectively stemming
|
| areconfused or compromised by language
| |
| | flight capital.
|
| barriers.
| |
| | Make sure you have adequate guarantees
|
| 3. How Easy Is It To Stay In Touch?
| |
| | that you'll be ableto do what you need to
|
| Are there sufficient and reliable
| |
| | before opening accounts in the haven.
|
| telephone and fax lines?
| |
| | For example, are there restrictions on
|
| Are email facilities available? Is
| |
| | converting foreigncurrency into local
|
| airmail deliveredquickly? How efficient
| |
| | currency and visa versa? Are reportsfiled
|
| is surface mail delivery?
| |
| | on each occasion? Ask financial
|
| If your banking haven is deficient in
| |
| | institutions inthe haven.
|
| these areas, it maybecome difficult to
| |
| | 10. Does The Haven Offer Sufficient
|
| maintain regular and instant contactwith
| |
| | Privacy?
|
| your advisors and account managers. Is
| |
| | Seek out banking havens which recognise
|
| this acceptable?
| |
| | and actively promotesolid banking
|
| 4. Is The Tax Situation Right For You?
| |
| | privacy. Many havens claim to do so only
|
| Ensure your haven provides the exact tax
| |
| | on aninformal basis. Under pressure bank
|
| treatment you need.
| |
| | managers and financialadvisors may
|
| Mistakes can prove expensive. Some havens
| |
| | sacrifice you to the sharks. Does your
|
| imposewithholding tax" on foreign-held
| |
| | haven,and/or the institutions operating
|
| bank accounts. Are yousatisfied that this
| |
| | there, have a history ofrolling over when
|
| is fair exchange for the benefits
| |
| | exposed to external pressures?
|
| youraccount will deliver.
| |
| | Check whether banking privacy is
|
| 5. How About The Legal System?
| |
| | tradition or actual bindinglegislation.
|
| Are the laws in your prospective haven
| |
| | Check whether a professional in a
|
| based on Englishcommon law? Is the
| |
| | particularhaven is breaking the law if he
|
| judiciary of a high standard? Is
| |
| | passes data relating to youand your
|
| itindependent? Is the Court system
| |
| | financial affairs to a third party. Be
|
| effective? Are there rulesto resolve
| |
| | aware that
|
| conflicts of law? Are the banking
| |
| | "confidentiality" laws allow local
|
| regulationsstiff? Or is there ample
| |
| | government access to youraccount details
|
| opportunity for a fly-by-nightmerchant to
| |
| | (although they can't pass the data on to
|
| slip through the nets?
| |
| | athird party).
|
| Are banking services registered with
| |
| | Solid banking privacy legislation is the
|
| regulatoryorganisations that uphold
| |
| | best protection foryour cash. A strong,
|
| professional standards andprocedures?
| |
| | secure haven will have banking
|
| Satisfy yourself that the haven has local
| |
| | privacylegislation which carries stiff
|
| laws and legalpractices which provide
| |
| | penalties (financial andcustodial) for
|
| adequate protection of your fundsand
| |
| | any professional who breaches them and
|
| investor rights.
| |
| | passesdata on to third parties.
|
