OffshoreNet

Season's Greetings from Brazil

2007-12-31T18:57:24Z

In this new year of 2008 I'm planning to make an effort to be more diligent and consistent at posting articles and information on this Blog. I have lot's of useful ideas to share, related to setting-up and conducting business offshore. Plus, new and improved global banking products to tell you about and an exciting online Poker project that has been under development for most of 2007 and is soon ready to be announced.

Please bookmark this page and visit again soon.

The Jacobs Report

2007-11-17T00:35:19Z

I met Vern Jacobs by telephone a few years ago, through a referral to his company Offshore Press, then became an early subscriber of his Yahoo Group called the JacobsReport. Ever since I joined I've been impressed with the excellent advise he gives his readers. Although mostly pertaining to Americans he's built up a substantial archive of offshore business knowledge, both on Yahoo and his site Offshore Press.

For advice on International Financial Planning I recommend The Jacobs Report. ]]> Here's the description of Mr. Jacobs Yahoo Group

The Jacobs Report on International Financial Planning is a free e-mail newsletter about U.S. and International tax planning, asset protection and related offshore news topics for the clients or prospective clients of Vernon Jacobs, professional colleagues, customers and subscribers of Offshore Press -- but the list is also open to the public. Answers to questions by customers and subscribers of Offshore Press will be given priority in the selection of questions to answer but answers to questions will only be provided on a time available basis. The responses to questions are based on the author's interpretation of the relevant tax issues and are not intended to constitute specific advice to any member of this list. The information provided does not constitute authoratative support for any tax issue and may not be relied on to avoid potential IRS civil penalties for negligence. Tax professionals involved in international tax law (lawyers and CPAs) may be interested in joining the TaxPros Group, also sponsored by Offshore Press and Vernon Jacobs. (See www.offshorepress.com/taxpros/)

For advice on International Financial Planning I recommend The Jacobs Report.

E-Gold Meltdown

2007-11-07T19:43:15Z

We received the following message today from Capital Conservator

Another indictment, handed down on October 30, 2007, charges E-Gold Ltd; Gold & Silver Reserve, Inc.; and their owners Dr. Douglas L. Jackson, of Satellite Beach, Fla.; Reid A. Jackson, of Melbourne, Fla.; and Barry K. Downey, of Woodbine, Md., each with one count of conspiracy to launder monetary instruments.

Subsequent to the indictment, the Department of Justice has seized all physical gold assets stored in Panama until future notice. The case is being investigated by the U.S. Secret Service with the assistance of the IRS and the FBI. The case is being prosecuted by the U.S. Attorney`s Office for the District of Columbia and the Computer Crime and Intellectual Property Section of the Criminal Division. An indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty.

*Please contact newsletter@capitalconservator.info for a forward of this email*

Internet Gambling

2007-11-05T18:01:46Z

The Safe and Secure Internet Gambling Initiative promotes the principles of safe and secure Internet gambling through practices designed to protect consumers and ensure integrity of financial transactions.

Additionally, the Initiative is a resource for information about the Internet Gambling Regulation and Enforcement Act of 2007. The Initiative provides opportunities for individuals, organizations and companies to support the legislation and engage their elected officials. To learn more click here.

Latin American Secret

2007-10-26T14:23:26Z

Some people really get the wrong idea about Uruguay, maybe it's the name, or maybe it's a Latin American stigma but most likely it's just that it's so far away and most people know so little about it. Having been there I can tell you that it's unlike any other place I've seen in South or Central America. It's actually so safe and civilized to be almost boring. Yes, even San Jose, Costa Rica feels more threatening and dangerous than Montevideo. Capital Conservator who are based out of Montevideo but that's because I agree with the reason which prompted the staff to move offices from Costa Rica to Uruguay, at great time and expense I might add. Nothing wrong with Costa Rica either by the way, it's a great place for operating a global company from, however the growth of Sports Betting in that jurisdiction and the fact that the USA is too close and just too influential over their government, meant that a better place to do business might be further afield. So I made a trip to investigate and was most impressed with what I saw and learned.

In any case, the word about Uruguay is out now because International Living is promoting this country, it's beauty and it's benefits as a great place to retire abroad at an upcoming seminar on November 28 - 30 in Montevideo, Uruguay. Here's an excerpt from their promotion page, followed by a link.

While Panama has actively promoted itself as an offshore financial haven, Uruguay has maintained an enviable low profile. But the fact is, Uruguay is South America's only low-tax, offshore jurisdiction that is not widely known as an offshore haven.

Uruguay offers a number of financial vehicles for those who are concerned with privacy, anonymity, and favorable tax treatment. At the Live and Prosper in Uruguay seminar, we'll have a tax expert on hand to show you what's available.

To read more about what International Living is on-about click here. ]]>

Know Your Customer (KYC)

2007-10-24T19:46:25Z

Know Your Customer (KYC) is the due diligence and bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. Typically, KYC is a policy implemented to conform to a customer identification program mandated under the Bank Secrecy Act and USA PATRIOT Act ]]>

One aspect of KYC checking is to verify that the customer is not on any list of known fraudsters, terrorists or money launderers, such as the Office of Foreign Assets Control's Specially Designated Nationals list. This list contains thousands of entries that is updated at least monthly. As well as sanctions lists there are lists of third party vendors that track links between persons regarded as high-risk owing to negative reports in the media about them or in public records.

Beyond name matching, a key aspect of KYC controls is to monitor transactions of a customer against their recorded profile, history on the customers account(s) and with peers.

Banks doing KYC monitoring for anti-money laundering (AML) and Counter-Terrorism Financing (CTF) purposes increasingly use specialised transaction monitoring software, particularly names analysis software and trend monitoring software. The generated alerts identify unusual activity which is then subject to due diligence or enhanced due diligence (EDD) processes that use internal and external sources of information on the subject, including the internet. This helps to determine whether a transaction or activity is suspicious and requires reporting to the authorities. In the US it would require Suspicious Activity Reporting (SAR) filing to Financial Crimes Enforcement Network (FinCEN). In the UK it would require a report to Serious Organised Crime Agency (SOCA).

KYC has different connotations and the definition above is from an AML CTF perspective.

Know Your Customer processes are also employed by regular companies of all sizes, for the purpose of ensuring their proposed agents, consultants or distributors anti-bribery compliance. Banks, insurers and export credit agencies are increasingly demanding that customers provide detailed anti-corruption due diligence information, to verify their probity and integrity.

Specialists consultancies such as Capital Conservator Treasury Services (UY) help multinational companies and SMEs conduct Know Your Customer processes when entering new markets.

Source: From Wikipedia, the free encyclopedia

Offshore Banking Specialist

2007-10-23T12:45:56Z

My experience with offshore banking dates back to the early 80's while living as an Expat in Australia and requiring access to funds from Canada. However, it wasn't until early the next decade, while living in Florida and working in the Bahamas that I opened my first corporate bank account and began to learn the intricacies of Offshore Banking. Nowadays much has changed but one thing remains the same; you need a good adviser.

Having met dozens of people claiming to be offshore banking experts from many countries, I can say that there's one piece of advice that's consistent, each will tell you; "there's no one-size fit's all solution". ]]>
My suggestion is to get a second opinion on both your asset protection strategy and your offshore banking and business structure. My suggestion is to contact the Offshore Banking Navigator at Capital Conservator Treasury Services and ask for his advice.

The advantages to working with CCTS are too many to list in this short article, so I'm planning to write more about why I so strongly recommend the Offshore Banking Navigator but one of the first and foremost reasons, in my mind, is to have a 3rd party company like CCTS manage your bank relationships and present all the necessary documentation, on your behalf to the bank, for meeting the requirements of the "Know Your Customer" (KYC) fulfillments. KYC requirements works both ways to protect "you" the customer, but also to make it easier for a 3rd party to represent you if and when another Bank needs to be approached.

One famous Offshore Banking Expert I met in Miami early in my career used to like referring to the famous book "The Art of War" written during the 6th century BC by Sun Tzu in which an entire chapter "Adapting to the Situation" focuses on the need for flexibility in your responses. It explains how to respond to shifting circumstances successfully. The example being that it's prudent to have plans in place for opening other bank accounts, incorporating new IBC's and moving assets to other offshore jurisdictions. This, in a nutshell, is the major advantage of having an offshore banking specialist manage these issues on your behalf.

I plan to continue writing about the advantages of doing business with the Offshore Banking Navigator.

Bet on the Rock

2007-10-15T16:56:53Z

Is it any wonder that Gibraltar is a preferred Tax Haven for On-line Gambling companies? Now here's a jurisdiction with a tradition for providing services to whomever rowed ashore. Legend has it that this was the first tax haven, as being a massive ship yard and major port to the British Naval fleet, it was customary for merchant ships returning from India via the Suez Canal laden with gold and gems made from selling opium to the Chinese, to off-load the assets with bankers in Gibraltar before returning to London for inspection by the King's tax man. Hence, the entire concept of "offshore banking" was born in Gibraltar.

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A good example is Casino-on-Net (aka 888.com) one of the largest and oldest on-line gaming companies boast a staff of some 400 employees with customer support personel working 24/7 to handle incoming phone calls from dozens of counties, in dozens of languages. Gibraltar has a digital telephone exchange supported by a fibre optic and copper infrastructure. The telephone operator, Gibtelecom, also operates a GSM network so business travelors can remain in contact by global cell phone and some local hotels provide wifi hotspots.

An excellent legal framework based on English common law. It is expected that specific legislation to facilitate on-line gambling will be introduced in the near future. The growth in the I-Gaming sector has prompted Gibraltar to examine the industry and made commitments to remain in the fore-front in this competitive service sector. The Gibraltar Government state that economy grew in 2004/2005 by 7% to a GDP of 599.18 million pounds. Based on statistics in the 2006 surveys, the Government statisticians estimate it has grown by 8.5% in 2005/6 and by 10.8% in 2006/7 and that the GDP is probably now around 730 million. Inflation was running at 2.6% in 2006 and predicted to be 2% to 3% in 2007.

Speaking at the 2007 budget session, Peter Caruana, the Chief Minister said "The scale of Gibraltar's economic success makes it one of the most affluent communities in the entire world."

With so many choices for world class banking in Gibraltar, favorable laws to I-Gaming, abundant skilled labour force and excellent telecom infrastructure, it's good odds that Gibraltar will remain one of the leading jurisdictions for offshore on-line gambling industry.

Power Shifter

2007-10-14T13:28:18Z

In preparation for an article on the growth of Ghana as an African Tax Haven I've been filtering news about the dark continent. Never a shortage of intrigue on this topic, today I noticed an article in the BBC about the passing of French Mercenary Bob Denard. Now here was a man who believed that If you don't like the laws or the law makers of a jurisdiction then you should just take action and over-throw them.

In 1968 Denard and several hundred fighters tried to invade Katanga, in what is now the Democratic Republic of Congo, by bicycle.
His 1995 coup attempt in the Comoros involved arriving with 30 men in inflatable boats.
Source: BBC News

Why the BVI?

2007-10-11T12:01:05Z

Which offshore jurisdiction is the best for setting up a company to conduct business in the burgeoning I-Gaming Industry? This was the topic of a conversation recently in Barcelona, amongst a group of foreign entrepreneurs attending conferences related to Internet Gambling.

At a glance the I-Gaming Industry is over $10 Billion USD per year in gross revenues, probably just in Poker and Casino because Sportsbetting is more difficult to properly quantify, as much of it happens over the telephone and is so globally pervasive as to be in a category all of it's own.
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Where in the world is the best place for an I-Gaming company to conduct business, this will be the main point of my latest investigation on OffshoreNet. I'm asking the Navigator to weigh-in on this topic, as he's more knowledgeable about Geo-politics as it relates to asset-protection and the Law, than anyone else I know. Plus, I'll try to share some insight into where most of the (approximate) 500 I-Gaming companies are currently incorporated and where they do their banking but more importantly "why"?

An important detail in this investigation; "where is the money coming from?" that drives this industry, year after year, growing faster than any other segment of Internet commerce. How can the business professional best position a corporate structure to capitalize on this great niche.

I named this article "Why the BVI?" because currently this is one of the most popular jurisdictions in the world for incorporating a company, perhaps the primary reason being that major global banks will open accounts for companies from the BVI. Also, Great Britain has become an early leader in the growth of the industry because of progressive laws but also largely due to access to growth capital through it's public stock exchanges.

If you're reading this but your global business aspirations have nothing in common with I-Gaming, then you can still benefit because our objective here on OffshoreNet is to share information and ideas about how to "Go Global" and get connected to the Offshore Business Network.

I Gaming In-Depth Skill Games

2007-09-20T17:55:02Z

This special two-day conference will study the specialty area of skill games and where they fit in the world of I-Gaming. What's popular? What's not? Why add skill games to your suite of player offerings? What business models work best to attract and retain players? These are the questions posed and answered by experts who are working in this emerging area.

Two COMPLETE days of seminars - click here to learn more.

Take this opportunity to network with your peers in the beautiful seaside setting in St. Julians on Malta and discuss the issues that impact this special niche of the gaming and gambling industries.

Avoiding the Earned Income Exclusion Trap

2007-08-14T22:06:05Z

If you are a US person lucky (or smart) enough to live in a country that either has territorial based income tax or does not tax foreign investment income, you still might be caught in a conundrum. This just happened here in Uruguay last month when Uruguay imposed a personal income tax, but excluded foreign investment income from the new tax.

Uruguay will not levy income tax on any foreign "unearned income" such as dividends, pensions, annuities, and other income from investments, however

the United States only excludes foreign earned income from US taxation of its non resident citizens, and then only the first US$80,000 per year per person-all other earned income and all unearned income is taxable, EVEN IF YOU NEVER LIVE IN THE US AGAIN!

The upshot was noted by one of our correspondents in this way:

Of course, if you take income as earnings...the USA will give you an exemption but then UY will require payment. If you take it as a dividend, UY will give you a break but then the USA will want their cut.

Fortunately, there is a way around this problem. If you set up a limited liability company (LLC) and you are the sole owner, you can file IRS form 8832 and elect to have it considered a "disregarded entity" for US tax purposes. Have that company "earn" the money (and take advantage of the US earned income exclusion), and then have that same company pay you a dividend from outside UY so that it is tax-free investment income here. There are other solutions, depending upon size, but this is the simplest. Complete IRS rules for Non Resident Citizens can be found at: http://www.irs.gov/publications/p54/index.html. --The Navigator]]>

Guernsey's Statement to US Senate

2007-06-02T13:38:13Z

At a hearing held on 3rd May entitled 'Offshore Tax Evasion; Stashing Cash Overseas' the United States Senate Finance Committee considered how it could overcome the problem of US taxpayers evading local tax by placing their assets 'offshore'. Information exchange was seen as one of the solutions suggested that could help the US treasury close that 'tax gap'. In the course of the hearing, testimony submitted made particular reference to the use of 'tax havens'. As Guernsey has been included in a list of 'offshore secrecy jurisdictions' and as a 'tax haven country' in bills currently being promoted before the US Senate, it was considered important that the Committee should be made fully aware of Guernsey's status as a well-regulated, well-respected financial centre, and of the considerable steps it has taken, and continues to take, in cooperating in the fight against international financial crime. The Official Guernsey Government Website ]]>

IFC Newslinks

2007-05-24T00:43:36Z

International Regulatory & Judicial News Alert provided by Capital Conservator Treasury Services TROUBLE COMING FOR CAYMAN TAX PARADISE? In recent months, these "offshore" operations of U.S. companies have been under renewed scrutiny in Congress, where some lawmakers say the U.S. Treasury is losing millions of potential tax dollars. Many U.S. firms have subsidiaries registered in the Cayman Islands. Big energy players such as El Paso Corp., Transocean Inc. and GlobalSantaFe Corp. have local subsidiaries. So do hotelier Marriott International Inc., aerospace giant Boeing Co. and food producers Sara Lee Corp. and Coca-Cola Co. http://www.latimes.com/business/la-fi-offshore15may15,1,5929350.story?coll=la-headlines-business ]]> HONG KONG OPTIMISTIC ON DOHA ROUND With its commitment to free trade and the technical competence of its trade policy officials, Hong Kong will contribute to the successful conclusion of the Doha Round negotiations, Financial Secretary Henry Tang has said. Attending a dinner hosted by World Trade Organization Director-General Pascal Lamy in Geneva on Monday night, Tang argued that free trade is key to improving the living standard of people in less-developed economies. http://www.tax-news.com/asp/story/Hong_Kong_Optimistic_On_Doha_Round_xxxx27294.html FINANCE MINISTRY FLIRTS WITH VAT HIKE Prime Minister Aigars Kalvitis was forced to weigh in on a Finance Ministry idea to raise Latvia’s VAT rate from 18 to 20 percent, saying it was a rash idea that would only further fuel the country’s runaway inflation. News that the government was contemplating raising the value-added tax by two percentage points hit the business and financial community like a bomb. Almost unanimously, analysts said any such move would spark more inflationary troubles for the Baltic state, which already has one of the highest levels of inflation in the European Union. http://www.baltictimes.com/news/articles/17849/ BANKS REVEAL OFFSHORE COMPANY AND TRUST DETAILS TO HMRC PKF warns that individuals with offshore company and trusts may be in for 'a nasty surprise', as banks reveal more than expected to HMRC as part of tax 'amnesty.' HMRC's tax 'amnesty' is wider-ranging than previously believed, with banks providing the taxman details of accounts held by offshore companies and trusts with a connection to UK individuals. http://www.financialdirector.co.uk/accountancyage/news/2189953/banks-provide-offshore-company MALTA EMERGES AS NEW EUROPEAN NEARSHORE CONTACT CENTER OUTSOURCING DESTINATION The emergence of new outsourcing markets continues within Europe’s nearshore, and Malta is positioning itself as a location that is able to provide multilingual services across verticals. This is a according to Peter Ryan, Senior Analyst of Contact Center Outsourcing Research with independent market analyst Datamonitor (DTM.L). Ryan recently had the opportunity to visit the location and examine its contact center sector. In his view, Malta's established contact center sector, language capabilities - capacity to provide multilingual services over the long term and its open business environment and incentives, bode well. http://www.crm2day.com/news/crm/122312.php ROMANIA SIGNS ACCORD TO JOIN EUROPEAN ECONOMIC AREA Romania, Bulgaria and three member states of the European Free Trade Association - Norway, Island and Liechtenstein, sign an accord for the accession of Romania and Bulgaria in the European Economic Area in Brussels on Monday. The EFTA-EEA countries agreed to provide a financial contribution of about 100 million euro through two mechanisms for Romania until April 2009. http://english.hotnews.ro/Romania-signs-accord-to-join-European-Economic-Area-articol_44963.htm ************************************* IFC NewsLinks is brought to you by: Capital Conservator Treasury Services SA - The Private Financial Account Solution for Select Clients Looking for a Low profile Alternative to Offshore Banking? Click this link to find out more http://www.CapitalConservator.Com/?id=11 CCTS is pleased to welcome: * accounts from offshore companies, trusts, and foundations; * other non-resident accounts; * customers without bank references; * special account needs; * escrow accounts; and * short-term transit accounts. We provide customer service in English, Russian and Spanish. Online account access coming soon! ************************************* SFST PROMOTES HK IN KAZAKHSTAN The Secretary for Financial Services and the Treasury, Mr Frederick Ma, promoted Hong Kong's strengths and services as an international financial centre among Kazakhstani Government officials and business leaders in Almaty today (May 11) during his two-day visit to the country. http://media-newswire.com/release_1049524.html SWISS INVESTIGATING BAE IN MONEY LAUNDERING CASE Law enforcement authorities in Switzerland confirmed Monday that they had opened a criminal investigation into possible money laundering at BAE Systems, adding to the international scrutiny of the company, the top British military contractor. http://www.nytimes.com/2007/05/15/business/worldbusiness/15bae.html IFC NewsLinks is brought to you by: Capital Conservator Treasury Services SA - The Private Financial Account Solution for Select Clients http://www.CapitalConservator.Com CCTS is a SAFI, a Sociedad Anonima Financiera de Inversion (Financial Investment Company) authorized by the Government of Uruguay to carry out offshore commercial operations on behalf of third parties. Montevideo, Uruguay Tel: +598 (2) 623-5547 Fax: +598 (2) 623-5434 London, UK Tel/fax: +44 (0) 207-99-34-183 Delaware, United States Tel/fax: +1 302-351-8308 OR toll-free 1-877-689-2918 Additional Fax from the US: +1-888-348-3193 SKYPE: ccts-df or ccts-ps or ccts-ck

Bahamas to Improve Private Trust Laws

2007-05-09T20:52:08Z

Legislative amendments to allow for the formation of Private Trust Companies has been introduced in the Bahamas, Parliamentary Secretary, Ministry of Finance, Michael Halkitis has revealed. According to Halkitis, these amendments demonstrated the government's "firm commitment to ensuring the delivery of superior financial services to local and international clients." "This is a progressive step in the continued growth and development of our financial services industry and of our economy," he told last month's Private Trust Company seminar. Continue reading "Bahamas to Improve Private Trust Laws"