Banking Law
July 19th, 2009 at 02:52pm
Under Banking Law
Banking is a business like all others but customers these days seem at the mercy of whatever the lenders want to charge.
Yes, we can shop around but at the end of the day, they’re all in it for profit, gained by ever fluctuating interest rates. They also take risks investing our money without our knowledge and we are susceptible to those investments failing.
However, with the diverse mix of cultures in every country these days it is not that unusual to see a different banking system coming into play.
The Shariah, or Sharia, system of finance has been set up by the Islamic community to comply with their strict laws on banking in accordance with the Qur’an. Sharia law covers all aspects of everyday living for the Muslim community.
Banking and finance are issues that are covered in depth, from personal finances to business banking. Working on a shared profit and loss system makes this system quite different to Western banking. This prevents the bank from monopolising the economy and is less risky to the borrower.
This way, the borrower is more secure, more businesses succeed, more money is borrowed, thus keeping the whole system afloat and everybody from borrower to lender benefits.
Sharia law prevents the collection and payment of interest. So, how do the banks make money?
If a Muslim wishes to utilise a loan to purchase items, the bank actually make the purchase and re-sell to the buyer for a profit that is agreed between the two parties. That profit is set without alteration and it is essential that it is very clear upon the agreement.
No extra charges can be enforced on this loan, even if payments are late. However, rights to the items purchased remain with the bank until the loan is paid in full.
The same principles apply to mortgages. The house is purchased by the bank and resold at an agreed profit to the buyer. Repayments are made in instalments but without the worry for late payment charges. However, a Muslim is expected to meet his repayments without taking advantage.
The land and property will be in the name of the buyer from the outset of the agreement for the security of the borrower but for protection the bank will ask for strict collateral.
As far as business banking is concerned, an individual can borrow interest free money to set up his own business. As with all loans an agreed profit is decided upon from the outset and repaid in instalments.
The borrower provides the labour while the bank provides the finance thus reflecting Islamic law of profit and loss sharing with no one party carrying all the burden of risk/cost of failure.
Money can be lent to businesses, whether existing or new. It is specified that the business must not contradict Muslim beliefs, such as the selling of alcohol or pork, or be involved in any media business which deals in gossip columns or pornography.
Business banking is not free and neither is there any interest imposed. Money is lent on a floating rate interest loan. This means the floating rate is dependent on the company’s individual rate of return.
The banks profit on the loan is equal to a certain percentage of the company’s profits – the profit sharing side of Sharia law. Once the original agreed amount has been repaid, the profit sharing arrangement ends.
So, money can be lent to businesses and it will be dependent on the individual business as to what the repayments will be. Therefore, any business can afford a loan.
Interest is not paid or collected on current accounts so overdrafts are not permitted. However, there is always the option of Hibah (Gift). This is a voluntary payment by a creditor or debtor in return for a loan. This is usually practiced in Islamic banking but is discretionary.
By Law Article
July 19th, 2009 at 02:52am
Under Banking Law
Offshore banking is becoming increasingly popular as more people recognize exactly how they could benefit from an offshore bank account and because the set up process is straightforward. If you’ve ever wondered whether you could benefit from an offshore bank account, or you’re considering opening an account but you’re not sure which one to go for, this guide has been written with you in mind. Generally speaking anyone is free to open an offshore bank account. In fact, offshore banking has been widely used for many years by both individuals and organizations worldwide. Specifically an offshore bank account can also be of benefit to some expatriates residing in low or no tax countries as any interest earned on offshore bank deposits is paid without the deduction of taxation.
What is Offshore Banking?
Simply defined, an offshore bank account is an account held in a bank that is located outside your country of residence.
Asset Protection Structures
If you’re going to go out now to get your offshore asset protection started, consider the best offshore banking structure: The foundation/corporation. A foundation is an offshore asset protection tool that can be used in the form of a trust. A foundation can hold all your assets and have a bank account, but a foundation can not conduct business. When a foundation owns a corporation, which owns a bank account, this is the only powerful privacy protection offshore structure you will ever need. So if you have your offshore corporation within a foundation, you can conduct your business through the offshore account and plan your income taxes accordingly.
Panama has a number of unique attributes that make this a great asset protection jurisdiction for corporations, foundations, banking and stock brokerage accounts. It is also known as one of the world’s greatest haven for keeping and securing the cash assets of corporations, businessmen and individuals.
Tax Considerations
Most countries have no restrictions on where your business interests, investments or bank accounts are located; it is simply your responsibility to report any income you earn to the appropriate tax authority. You will need to establish a suitable structure in a tax friendly country to gain access to some of the better opportunities available, which is reason enough to go offshore for some even ignoring the tax benefits. Any business that is conducted outside of Panama is not taxable through Panamanian income tax.
Offshore Banks
Virtually all offshore banks want to receive some form of evidence of the account signatories’ identity. Many offshore banks, but not all, request that letters of reference from another bank is provided by account signatories. Some offshore banks go even further: they demand that a bank reference each be given by all directors and shareholders of the company. Sometimes an introduction by a party known to the offshore bank (such as an existing customer) is accepted instead of a reference. A fair number of offshore banks still happily open company accounts without any references at all. Some offshore banks provide their own resolutions for the directors to sign.
Internet Banking Security Concerns
You can shield your internet movements using an anonymising service. Privacy, on the internet, is created by technological means. In fact, the internet has become the global, no barriers, free market.
Privacy
Most (maybe all) traditional jurisdictions are no longer suitable for asset protection, privacy and confidentiality. When a foundation owns a corporation, which owns a bank account, this is the only powerful privacy protection offshore structure you will ever need.
Jurisdiction
Usually such an account is located in a low tax jurisdiction and offers certain financial and/or legal benefits to the holder of the account. If you believe that an offshore bank account structure could benefit you, the next step is selecting the right bank, the right jurisdiction and of course the right account type. There are jurisdictions where banks are under legal obligations to seek references, and there are banks that request references despite any legal obligation to do so. Policies vary greatly across offshore banks and jurisdictions, so make a choice that is acceptable to you.
Belize
Offshore banks in Belize provide their customers with various services including internet and international banking services. You don’t have to worry about confidentiality though; Belize banks will strongly protect any information you provide. The government has created banks secrecy laws which provides harsh penalties for anyone who would violate the secrecy provisions, except when a client is under a criminal investigation in Belize.
Panama
Panama has a number of unique attributes that make this a great asset protection jurisdiction for corporations, foundations, banking and stock brokerage accounts. Any business that is conducted outside of Panama is not taxable through Panamanian income tax. Panama is the most secure banking jurisdiction today, because Panama backs up its strong bank secrecy laws with real life enforcement. Other jurisdictions like Belize (mentioned above) have been known to be lax in their enforcement. Its one thing to have strong banking secrecy laws and its quite another to enforce them.
As a general guide it is often more discrete to establish your offshore structure in a location far from your residential jurisdiction. Panama has a number of unique attributes that make this a great asset protection jurisdiction for corporations, foundations, banking and stock brokerage accounts. Some call Panama the Switzerland of Latin America but this is not fair, Panama is far better than Switzerland and any other jurisdiction. With regard to reliability and stability make sure to investigate the laws and regulations for each jurisdiction you are investigating. Stable governments help to keep investor trust which in turn further adds to the credibility of the banks in that jurisdiction. Some offshore jurisdictions, such as Panama, have rock solid privacy laws governing banking while others such as Switzerland no longer protect their clients in the same fashion as in the past.
By Law Article
July 18th, 2009 at 02:52pm
Under Banking Law
We frequently hear about offshore bank accounts in the news or in the movies because those trying to hide money for criminal reasons usually utilize these accounts so that they are not caught up in their shenanigans. However, that is not all an offshore bank account is about. In fact, having an offshore bank account means saving tax dollars and some may have other reasons behind it. Just because someone has a bank account outside of the country doesn’t mean they are a robber or a member of the mob.
Nevertheless, there are some legal implications and some things that must be kept in mind. One of those things is the fact that it is not legal for a United States citizen to open an offshore bank account. Sure, you may be protecting your money from creditors or from high taxes, but you could get yourself into trouble. This is how some become convicted of tax evasion, but it is very possible that the long arm of the law will not reach your offshore account.
Another risk is the fact that your money doesn’t have the protection of the government. Your money is subject to the laws of the country that it is in. This means that a coup or some accounting scheme could occur that would cause you to lose all of your money. That is when you must ask yourself which country you want to open your offshore account in. Should you choose Switzerland, Bermuda, the Bahamas, or the Caymans? This can certainly be a difficult decision.
Best countries
First of all, you don’t have to be wealthy to have an offshore bank account. Second of all, you do not have to be present to open it and you do not have to visit the bank at any time during the life of the account. For example:
- If you open an account in Switzerland, you can do it via e-mail or in person if you are in the country. Swiss bank accounts are quite secret and that is why so many choose them. They operate much like American banks and keep certain private matters such as divorce private. Switzerland does not change their laws under American pressure like some other countries do.
- Opening an offshore account in Bermuda doesn’t require you to be present at the bank. The account can actually be opened by mail, along with proof of identity. Many of their banks are known for serving clients all over the world and this has made offshore banking in Bermuda quite popular.
- The Bahamas are also known for their secrecy due to their privacy laws. This makes offshore banking in the Bahamas a huge business. They are also compliant with international laws with attractive incentives for their bankers.
- The Caymans are also one of the best because of the similarity to a U.S. bank account. Then there is the possibility of keeping your identity a secret. The Caymans do not encourage tax evasion, but they do not report deposits in the accounts or interest gained from those deposits.
Being safe
Offshore banks do not report your income to the IRS like U.S. banks do, so they use an honor system. This means that it is up to you to report your income, but changing laws and other factors can cause issues if you do not comply with the laws of your own country. However, offshore accounts keep matters private and keep others from learning of your affairs. That is why such accounts are so popular amongst people all over the world.
By Law Article
July 18th, 2009 at 08:52am
Under Banking Law
Bank fraud is a generic term that defines a group of federal and state criminal white collar offenses all of which, simply put, have to do with stealing money from banks and other financial institutions.
Bank fraud charges may include misapplication, embezzlement, false entries in financial institution records, bribery, fraud, making false statements to procure loans, check kitting, bank officers taking out personal loans at preferential rates, computer crimes, and creating overdrafts.
Let’s consider each offense separately. Misapplication is an offense addressed by federal law 18 U.S.C. Sections 656, 657 that is one of the most widely used tools in bank fraud federal prosecutions. This crime involves willfully converting the funds to your own use, benefit or gain, or the use, benefit or gain of a third party.
Embezzlement is an offense very similar to misapplication and is governed by the same statute, 18 U.S.C. Sections 656, 657 that applies to an insider who embezzles funds or property of a financial institution or its holding company. In simple terms, embezzlement is ”the fraudulent appropriation of property by a person to whom such property has been entrusted, or into whose hands it has lawfully come.” The most important element of this statute is that funds must have belonged to victim but the accused must have had lawful possession of the property.
Another bank fraud offense is False Entries in Financial Institution or Holding Company Records, regulated by 18 U.S.C. Sections 1005, 1006. Under this statute, it is a crime for bank employees to make any false entry in bank documents with the intent to defraud the bank. Violation of this law is punishable by a fine of up to $1 million, or imprisonment of up to 30 years, or both. To make their case under this law, the government must establish that (1) the entry is false; (2) the accused either personally made or caused the entry to be made; (3) the accused knew the entry was false when it was made; and (4) the accused intended that the entry injure or defraud the financial institution or holding company or deceive any officer of such institution, company or certain public officials. Section 1006 applies to insiders acting with the intent to defraud while Section 1005 applies to any unlawful participant acting with an intent to defraud.
Bribery (18 USC 215) is another federal bank fraud charge. The law makes it a crime to give, offer, or promise anything of value to anyone with intent to influence or reward a financial institution’s officer, director, employee, agent, or attorney in connection with any business or transaction of the institution. It is also a crime for an officer, director, employee, agent, or attorney of a financial institution to corruptly solicit or accept, or even agree to accept, anything of value from any person, with intent to be influenced or rewarded in connection with any business or transaction of the institution; The penalties for bribery are hefty: the fine of the greater of $1,000,000 or three times the value of the bribe, and/or imprisonment of up to 30 years. However, if the bribe is below $100, the fine is limited to $1,000 and prison term is limited to one year.
The bank fraud statute, 18 U.S.C. Section 1344 is very similar to the federal mail and wire fraud and make it a crime to “knowingly execute or attempt to execute a scheme or artifice to defraud or to obtain, by means of false or fraudulent pretenses, representations or promises, any of the moneys or funds, credits, assets, securities, or other property owned by or under the custody or control of a financial institution”. Over the years since passing of this statute by Congress, this law has been used in prosecutions of virtually any type of fraudulent behavior that has to do with banks, including car title fraud, stolen or phony checks, credit card fraud, ATM fraud, stolen ATM cards, check kitting, etc. In one case, the defendant who participated in scheme of accumulating bank credit was convicted of bank fraud for falsifying income on credit card applications to increase the amount of credit.
Many bank fraud charges were brought for making false statements to procure loans 18 U.S.C. Section 1014. Under this statute, anyone who knowingly makes any false statement or report or who willfully overvalues collateral for the purpose of obtaining credit from a banking institution will be fined for up to $1,000.000 or imprisoned for up to 30 years.
One common bank fraud crime is a check ”kiting” scheme, where one or more persons using checking accounts at two or more institutions systematically exchange checks of similar amounts. The scheme takes an advantage of the delay as the checks are cleared through the Federal Reserve System. As the result, there is an inflated and uncollected balance at the banks involved. While checks drawn against uncollected funds are in the clearing process, the participants in the scheme use the deposited but uncollected monies. Check kitting schemes do often result in prosecution under mail and wire fraud and bank fraud statutes.
By Law Article
July 18th, 2009 at 02:52am
Under Banking Law
The banking industry in Thailand forms an essential segment of the nation’s financial services industry. In other words, banking sector in Thailand is well-established. The history of Thai banking dates back to 1865, when the Hong Kong and Shanghai Bank appointed its agents in Bangkok. Accordingly, the HSBC established a branch in Bangkok, thereby becoming the first bank to open a branch in the country.
Following the establishment of HSBC branch, many European as well as business banks opened their branches. As a result, foreign banks became the dominant players in the nation’s banking industry. In order to counter the supremacy of foreign banks, Siam Commercial Bank – the first Thai bank – was established in 1906. Later, more Thai banks were opened to trade with Asian countries, as a result of the Second World War, when majority of the foreign banks were forced closed.
After the world war, the Thai government introduced a protective policy in order to promote the growth of Thai banks in the country, which included limiting the operation of foreign banks to one branch office. As a result, foreign banks became less dominant players in the banking sector of Thailand. Since 1960, many innovative economic as well as social development plans have been introduced in the country, which in turn has led to rapid expansion of banking sector in Thailand’s provinces, resulting in banks numbering more than 3000 throughout the country.
Thailand’s modern banking system is made up of a variety of financial institutions including commercial banks, special purposes bank, and Government Savings Bank. Commercial banks are perhaps the most popular among the banks in Thailand. Commercial banks include both local and foreign banking institutions.
Being the biggest financial institutions in the country, Thai commercial banks render an array of services including acceptance of time savings as well as demand deposits, lending money via overdrafts, discounting of bills, and leasing. Their activities also cover fee-based services like custodian services, syndication of loans, feasibility studies, and consultations for mergers as well as acquisitions. Apart from these, in some instances, these banks issue negotiable instruments of deposit, apart from underwriting and issuing of debt instruments.
Commercial banks in Thailand, consisting of branches as well as representative offices of foreign banks, are functioned in accordance with the Thai laws and regulations formulated by the Ministry of Finance (MOF) and the Bank of Thailand (BOI.) Formed in 1875 by the Ministry of Thailand, the Ministry of Finance initially acted as an agency of the government to administer national finance, collect revenues, and disburse royal funds.
In 1933, it got its present name and status as a result of the passing of the Civil Service Reform Act. With eight departments and 16 state enterprises under its control, MOF’s major duties include supervision of matters in connection with operations of Government monopolies, property, and treasury. Additionally, it has power to provide loan guarantees for financial institutions, government agencies, and state enterprises.
Bank of Thailand started its operation in accordance with the formulation of the Bank of Thailand Act, on April 28, 1942. Among its duties are devising of monetary policy and supervision of financial institutions.
Now we will discuss banking regulation with regard to bank licensing. As per the Commercial Bank Act, first of all an application, containing particulars as entailed by the Ministry, must be filed with the Ministry of Finance in order to set up a commercial bank in Thailand. On the approval as well as the obtaining of a license from the Ministry, a commercial bank is opened as a limited public company.
However, a foreign bank has to comply with regulations formulated by the Thai government in order to open a branch in the country, such as the money should be brought from its head office. When comes to investment, Thai government permits foreign banks to hold 100% shareholding for up to a period of 10 years. After a period of 10 years, they are not required to divest their shares. But, in case, if they hold more than 49 percent of shares sold, they are not allowed to acquire additional shares.
In addition, the Commercial Banking Act has put forward certain laws and regulations for the maintenance of capital funds and reserves. As such, the commercial banks are required to maintain certain amount and types of the assets in the country.
Special purposes banks are state-owned financial institution whose activities are administered by the Thai government. However, they deal with only specific clients or projects. Included in the special purpose banks are the Bank for Agriculture and Agricultural Cooperatives, the Government Housing Bank, and the Government Savings Bank. When comes to the Government Savings Bank, it consists of an extensive network of branches throughout the nations.
Banking and financial sectors in Thailand are further categorized into: Asset Management Companies, Credit Froncier Companies, Finance and Securities Companies, and International Banking Facilities (IBF.)
By Law Article
July 17th, 2009 at 08:53pm
Under Banking Law
When most investors think about offshore asset havens, the first prospect that comes to mind is the traditional Swiss Bank Account. This has become a virtual stereotype of asset protection, probably because Swiss banks have been in this field of financial services the longest compared to other countries.
Switzerland has maintained a longstanding political distance between itself and the rest of Europe; it maintained neutrality through both World Wars (leading to charges it collaborated with the Nazis); it is not an EU member; and only joined the United Nations in 2002. Christoph Meili, a security guard at the United Bank of Switzerland, became a prominent whistleblower by preventing the destruction of Holocaust-era financial records in 1997 and bringing them to the attention of the public. Subsequently, Meili lost his job and received death threats, and became the first and only Swiss national to be granted political asylum in America. Descendants of Holocaust victims claim Swiss banks are still holding onto some their ancestors’ funds, despite disbursements in recent years.
Regardless of its somewhat unsavory past, Switzerland has traditionally had much to recommend it as an asset haven. It is a stable western country with a well established system of laws, so investors will get no sudden surprises after a coup or regime change.
The financial establishment in Switzerland Banking in Switzerland is known for stability, consistency, privacy and protection of client assets and data. The nation’s tradition of bank secrecy dates back to medieval times, but was officially codified in a 1934 law. All Swiss banks are regulated by the Federal Banking Commission,or FBC, which derives its authority from a series of federal statutes. Banking is a major industry in Switzerland, employing approximately 5% to 6% percent of its workforce and generating 14% to 15% of its annual GDP. It is estimated that approximately one third of offshore funds are stored in Swiss banks. The UBS AG and Credit Suisse are the two largest Swiss banks, holding more than 50% of all deposits in Switzerland.
While secrecy of banking data is guaranteed under Swiss law, in practice it is not unlimited. While secrecy is protected, all bank accounts are linked to an identified individual, and a judge or prosecutor may issue a “lifting order” to give law enforcement access to information relevant to a criminal investigation. Swiss law discriminates between tax evasion and tax fraud. If money is not declared, this is considered tax evasion, a misdemeanor under Swiss law. However, tax fraud such as filing forged tax declarations is considered a criminal offence.
Also, in an effort to stop the use of Swiss banks by criminals, The Money Laundering Act sets standards for the identification of account holders, and requires reporting of any suspicious transactions to the Money Laundering Reporting Office. After 9/11, Switzerland was one of several countries to participate in joint task forces targeting financing of the Al-Queda terrorist organization.
Due to Switzerland’s high profile in the world banking community, it has come under pressure from many nations including the U.S. to alter its privacy laws. European Union members complain that their nationals use its convenient nearby services to avoid taxation at home. The EU is working towards a harmonized tax regime among its member states, and the the Swiss banking officials (and, according to some polls, the public) are against further integration. However, some cooperation has been forthcoming, and since July 1 2005, Switzerland has charged a witholding tax on interest earned by the personal Swiss accounts of E.U. nationals.
In 2001 and 2002, the government of Italy offered a limited amnesty to tax dodgers with Swiss accounts, resulting in the repatriation of 30 to 35 billion euros. In 2003, another such amnesty program was offered by Germany. In 2003, the U.S. announced a new information-sharing agreement under the previously-signed U.S. – Swiss Income Tax Convention, to facilitate more effective tax information exchange.
Swiss numbered bank accounts are legendary to the public as bastions of secrecy, but in reality, the information required to open such an account is the same as that of an ordinary account; completely anonymous accounts are legally forbidden. The only difference between a numbered account and a regular account is that personal data concerning such accounts is restricted to senior bank officers, rather than being accessible to all bank employees. In a criminal investigation, law enforcement can access the numbered account holder’s identification just as easily as that of a regular account.
In summary, anyone who wants to keep a legitimately-gained amount of capital in a safe off-shore asset haven should consider Swiss banks to be a safe bet. However, due to their high profile, these banks may offer less assurance of privacy than some lesser known, and less carefully scrutinized, countries such as the Turks and Caicos or the Guernsey Islands.
Frank Vanderlugt is very interested in Swiss banking.
Swiss Banks
By Law Article
July 17th, 2009 at 02:53pm
Under Banking Law
The answer is simple. All your transactions with a Panama Law Firm are covered by tight Attorney Client Privileged Communication. The lawyer/law firm can not reveal anything about the client or their transactions, business dealings, etc. unless specifically authorized by the client. The exception to this would be if ordered by a Panama Court which is a possibility but something very rarely seen.
Lawyers have to pass background checks from their government in addition to attending law school. The government knows who their lawyers are and regulates them. Lawyers have obligations and fiduciary responsibilities to their clients.
We see many people buying corporations, trusts, etc. from non-lawyer web based businesses and also for bank accounts. It for some reason never occurs to the client that the entity they are doing business with has all their private financial information such as name of their company, ownership of the company, passports, bank and business reference letters, addresses, phones, email, business information, where their bank account is, etc. These entities they are doing business with have no binding legislation or regulations on them preventing them from revealing any of this information to whoever they wish to reveal it to. In most cases they could not protect the client if they wanted to since they have no privileged communication. If they got a phone call from a governmental agency from 6,000 miles away the chances are they would cave in and provide the requested information. These phone calls usually go like this: I am so and so Inspector with the Tax Police of ABC country. Your country already knows that I am investigating this case. This means he sent an email to the government. I have a court order signed by a Judge would you like me to fax it over to you? This means the court order is as a rule almost never valid in the jurisdiction he is calling. Now when your friendly corporation registered agent says something cute like the court order is not from here and you have no authority here what he gets back sounds like this. If you fail to cooperate I will file a suspicious criminal actions report with your police since for all we know you are the owners of the corporation in question and are the guilty parties and we will ask that you be investigated by your police. This is usually done in a threatening way since it is a bluff. Now the corporate agent thinking the last thing he needs is to be the subject of an investigation by his own police and has to hire a lawyer, etc. says, wait a minute what is it you want? Okay wait while I pull it up for you. This probably took 3-5 minutes and your privacy is violated. No attorney client privilege means no downside for the corporate agent to cooperate. What would we say? We’d say there is attorney client privilege in Panama and you must get a court order from a Panama Judge ordering us to release any information about any client and then we’d hang up without providing any information.
Corporate Agents Offering corporations in Many Jurisdictions – Do not be deceived by firms that offer bank accounts and corporations from numerous countries. They are merely corporate agents or resellers of corporations from these countries. It is not very hard to become a reseller in many of these countries. Their ploy for credibility is selling from many different countries so you see a big shopping list of jurisdictions and think they are a real credible operation when they are really nothing more than a relatively unregulated offshore corporation based in some tax haven selling you formations in different jurisdictions most of which are not any good for asset protection, corporate privacy, or even bank secrecy. If you read through our web site you will soon realize that most if not all of these jurisdictions are “has been” privacy jurisdictions that are no longer private. They sell these products to people who are familiar with the jurisdiction from the past reputation but have not followed the recent changes in the laws relating to these jurisdictions in the post 9-11 world. If we knew of a better jurisdiction than Panama we would offer it!
Law Firms in Your Own Country – Be careful about using a law firm in your own country even if they offer to set up an offshore structure for you. The weak link in the chain is the attorney is located in the country where you are. If you felt your country respected the individual’s right to privacy and operated a fair and equitable court system you would probably not be reading this.
Attacking Attorney Client Privilege – An adversary can attack the attorney client privilege claiming your attorney conspired with you or was complicit in some way in something you allegedly did like the fraudulent conveyance of assets to avoid creditors, fraud, misrepresentation, tax violations pertaining to income tax, sales tax, property tax, gift tax, inheritance tax, probate tax, corporate tax, capital gains tax and other assorted and sundry taxes, creation of straw man trusts and other asset protection shams, money laundering, and the list can go on and on. We are not saying you did or should do such things, in fact you should not do such things, we are saying it can be alleged that you did such things and these allegations in these non-privacy countries are enough to break the attorney client privilege you have with the attorney. Jurisdictions that do not respect privacy and do not have fair and equitable court systems are not going to let a thing like attorney client privilege stop a big law firm from taking away your assets in the name of justice.
Suing your Attorney – Let’s assume the judge not understanding too much about offshore structures says well I don’t see anything here to justify the violation of attorney client privilege, what do you think the other side does next, walk away and forget about you? Not so fast, they can smell your assets and want a big bite as soon as they can get it. They see a chink in your armor that they are not finished exploiting. The chink is you did not use an attorney in a privacy oriented jurisdiction even though you might have used an offshore structure in one. So now they just add your attorney into the lawsuit as an additional defendant alleging him or her to be a conspirator in the plot to defraud the creditor out of his pound of flesh he wishes to take from your life savings, real estate, business, estate, etc. This gives them a shot at piercing attorney client privilege which is to say the attorney used an offshore structure to make discovery impossible thus thwarting justice and is sheltering the defendants assets behind attorney client privilege as an another layer in the scheme to defraud their client from collecting his lawful court ordered debt by grabbing your assets. If the other side is motivated and has money they will wear down your asset protection strategy until they can reach out and grab your assets. If you sued a lawyer in a privacy jurisdiction like Panama and did your formations there and banked there, you would be the one wearing down your adversary who would be getting frustrated spending time and money and getting nowhere in the Panama courts. They would be getting their cases dismissed for lack of jurisdiction, incorrect venue, etc. This could motivate your adversary to settle for pennies on the dollar after they had a very expensive taste of the Panama Courts, or they just decide they can’t penetrate your structure not even being sure what your structure is and plain give up. Using a lawyer in your own country to formulate your asset protection strategy is a weak link that should not be presented to a financial enemy. The same applies to using an attorney in another country where privacy and justice have disappeared. One privacy hating unfair jurisdiction can usually reach out to another privacy hating unfair jurisdiction and get their assistance, alleging almost anything will work in these jurisdictions. Some of these countries actually respect the court orders from another country, all that is required is a trip to the local court to have the foreign court order rubber stamped and thus domesticated and made enforceable. This is common with money judgments from foreign countries in the privacy hating jurisdictions but you do not have much to worry about in Panama.
How to do it -Use a law firm only in the jurisdiction where your corporation, foundation and bank are located. This way not only can the law firm that did your asset protection structure help you if trouble comes knocking on your door but your confidential information is out of reach of the courts your financial enemies will use. Do not use a corporation agent or non-lawyer for your asset protection. There is no attorney client privilege.
Anonymity is your Friend – Anonymity is your first line of defense. Only use anonymous bearer share corporations or anonymous foundations where no ownership records are in existence in any government registry (Panama). Panama Foundation assets are not sequesterable (not freezable). This makes discovery of ownership impossible even with a court order. Make sure the corporation or foundation need not file any tax returns and has no tax liabilities based on profit, income or assets (Panama). Tax returns could lead to an audit. Make sure the publicly recorded nominees of the corporation or foundation do not know the owners (Panama). Make sure there is tight Bank Secrecy (Panama has the best in the world now). Make sure there is strong attorney client privilege ( Panama). Make sure the jurisdiction in question is in no tax treaties with any country (Panama). Make sure the jurisdiction in question allows for no fishing expeditions (Panama). Make sure the jurisdiction in question does not cooperate on fiscal offenses (Panama, in Panama all tax offenses are civil not criminal). Make sure the jurisdiction does not allow civil lawsuits concerning matters that did not take place in the jurisdiction to be tried in their courts just because the corporation, foundation or bank account is domiciled there (Panama). Make sure the jurisdiction is dependent on corporate privacy and bank secrecy for its economy (Panama has 400,000 corporations domiciled there and there are 150 banks in country whose population is 2.9 million people, employing 20% of the workforce.
Hello Panama, Goodbye Switzerland!
For more information, please visit:
http://www.panamalaw.org
email at: panamalegal@hush.co
By Law Article
July 17th, 2009 at 08:53am
Under Banking Law
You can obtain a Panama Bank Account without having to come to Panama!
Panama Banks – Panama banks do open bank accounts for foreigners. Panama asides from being the number one retirement haven in the world is also the world’s foremost tax haven. Offshore bank accounts in Panama are the most coveted in the world today. All the banks we use have online banking including the ability to send international wire transfers, check balances, history and other information. You can get an ATM Debit card that is good worldwide for ATM withdrawals and it works for some Point of Sale Purchases. We work with several different banks and savings and loans in Panama. We do not discuss names of banks until after a person becomes a paid client, and all the required documents have been provided, please do not ask. Same applies to sending out bank forms, signature cards, etc. We have a list of banks that we have a working relationship with where we are able to have accounts opened without the need for the parties to come to Panama. Some of these banks are large multi-national conglomerates with assets in the 100 Billion Dollar Range and others are small Panama only Banks that offers a more personal touch and banks with everything in between. We have never had a customer leave us because we could not get them an account with a bank or savings and loan they felt was not suitable. We can normally have an account opened within 5 working days of the receipt of our fee and the required documents, some times faster.
The Process – Making a trip to Panama is not necessary. Panama Banks never accept cash to open an account. Some customers wish to come to Panama to meet the bank, etc. This is fine but we will NOT introduce a person to any bank until after they are a paid up client and we have done our due diligence having their reference letters, passport copy etc. The banks rely on the law firm to do the required due diligence in the area of know your customer which is the same as required by the banks. The banks in Panama have no shortage of customers since a Panama Bank Account is the most coveted in the world right now. The banks do not wish to have potential customers contacting them directly before the law firm has completed their due diligence. The banks are not fond of foreigners calling on the phone about opening up an account. If you are coming to Panama which again is not necessary, we suggest you do the formation of the corporation or foundation before you come and we can get the bank account approved by the new account committee before you arrive so basically you just meet the bank manager, sign the forms and signature cards and then are free to depart and your account should be functional the next day. We can assist with corporate rates on a hotel; get you an English speaking driver with a car, etc. You can have a checking account or a savings account. Time locked deposits for higher interest rates are available. Minimum deposits tend to run between $500 and $2000. Some banks will provide an ATM card with the account immediately. Some banks will issue direct from the bank a Visa card that is a secured debit card. It is good for ATM machines, internet purchases etc. The bank will generally require a security deposit which goes into a special interest bearing account. If your Visa card had a $10,000 credit line they would probably request a security deposit of $12,500. At the end of the billing cycle the money to pay your card balance down to zero would be deducted from your regular account. If a need arose you could ask the bank to clear the balance before the end of the billing cycle freeing up your credit for travel. There is the option of a third party ATM card that has numbers only, no account name at all on the card. There is also the option of having a third party MasterCard or Visa debit card (not credit card) for an extra fee. The Visa or MasterCard debit card also can function as an ATM card.
Documents Required – A notarized copy of the picture page of the Passport, letter of reference from a recognized bank, and a letter of reference from an attorney, accountant or company you do business with on their letterhead. Any bank in the modern world using the international wire system will require at least this much documentation from a foreigner opening up a bank account in their jurisdiction.
Stock Trading – The savings account can also be directly tied to a stock trading account. This allows one to trade online around the world. There is a $50,000 minimum to open such an account. The clearing agent is top drawer. We can also arrange for you to have a separate brokerage account in Panama with minimums as low as $20,000. USA passport holders can not have a personal stock trading account corporate or foundation only.
Type of Account – Offshore bank accounts in Panama can be opened for a corporation or a foundation. Accounts can be opened for personal, corporate or for a foundation. USA passport holders can not open personal bank accounts unless they actually reside in Panama and can document this. We always suggest the offshore bank account in Panama be opened using a Panama corporate structure. This way when wires are sent or received it can not be seen that you are the person(s) behind the corporation. When you use an anonymous Panama Bearer Share Company the ownership of the company is not recorded in any registry or public record database so no snooping entity can determine who is actually receiving the funds, and this makes for very private personal banking. Recently there was a scandal in the media where it came out that the USA was monitoring SWIFT wire transactions for some years. Monitoring a wire transaction to an anonymous corporation is fairly meaningless since nothing is known about the ownership of the corporation. If the sending entity was also an anonymous corporation that would be a good working definition of a dead end both ways. We always advise against personal offshore bank accounts in Panama for these reasons in addition to the fact that a corporate or foundation bank account greatly enhances asset protection but will work on personal accounts at the client’s request. We can not get personal bank accounts for USA residents/citizens. As an additional option one can open an offshore Panama bank account using a Panama Foundation which is also anonymous.
Bank Account Signatory Verification You or your designated signatory(s) will be the only person(s) with access to your offshore Panama bank account. What we do is have the bank opened up as a zero balance account; no money is in the account. Before you load the account with any funds we will show you how to securely contact the bank by phone and verify that no one else can sign on the account or otherwise access the bank account. After the account is funded online banking information will then be emailed to you directly and you reset the password securely online immediately upon receipt. ATM card will be sent by courier directly to you.
Number of Bank Accounts – You can open up more than one Panama offshore bank account in different banks using different corporations or same corporation or a corporation and a foundation. Sending funds from one corporation or foundation to another for payroll, purchases or other reasons can easily be accomplished using the ACH system in Panama which 30 large banks use. This is not a wire transfer and the data is covered by Panama Bank Secrecy laws and only entities covered by these laws have the data. It takes one to two days for the ACH transfer to be completed and the cost is about $1.00 per transaction.
Panama Bank Secrecy – Panama has strict banking secrecy laws better than any jurisdiction we know of. Panama has no tax treaty with any other country. This is not the case with tax havens like Switzerland, Belize etc. who do get into tax treaties with numerous countries. Tax treaties are the legal basis for government fishing expeditions. Fishing expeditions do not happen in Panama. If a bank employee or officer violates the bank secrecy laws they can go to prison, get fined and of course you can sue the daylights out of the offending bank. The bank secrecy laws are statutory in Panama. A question that frequently comes up is if a Panama Bank that is operating under the name of a chain of large international banks is able to maintain true Panama Bank Secrecy. Let us say the Bank is called Bank Two (no such bank in Panama) and Bank Two operates in Europe and North America with 68 bank branches in different countries. The Bank Two banks in other countries can not go into their computers and see account holder information about Panama Bank Accounts. This would violate Panama Bank Secrecy, expose the bank officers to criminal prosecution and enable you to sue the bank and its responsible parties for millions of dollars of damages. In spite of this some people prefer a bank that operates only inside of Panama and we can accommodate this sort of request.
For more information, please visit:
http://www.panamalaw.org
email at: panamalegal@hush.com
By Law Article
July 17th, 2009 at 02:52am
Under Banking Law
We are a law firm which means you have attorney client privilege – We specialize in Offshore Asset Protection. All of your affairs handled with us are covered by attorney client privilege which means that we could not reveal anything about you or your affairs without your specific permission or unless we were ordered to do so by a Panama Court (not a common occurrence). You can benefit from the legal protection and security of dealing with a licensed Panama Law Firm. If you buy an offshore corporation, offshore trust, offshore foundation or an offshore bank account from a non- law firm they could freely reveal your confidential information which they collect from you like name address, passport, name of corporation, bank account information etc. without any statutory penalties, in other words you do not have the benefit of attorney client privilege. Some of these corporate resale agents say they have some sort of financial privacy protections but it is flimsy and cursory at best.
Start here to learn more about why you should use a law firm for Offshore Asset Protection
Why use Panama – Panama is currently the new Switzerland and is also the number one retirement haven in the world. Panama does not tax offshore derived income, capital gains, etc. All tax violations in Panama are civil offenses, none are criminal and Panama has no tax treaties with any country. Panama actually requires all corporations to be formed by a lawyer to protect the privacy of their 400,000 corporations on file thus ensuring renewals each year. Panama cares about privacy, bank secrecy and asset protection. We only deal in Panama which is considered to be the most private jurisdiction in the world today, with the best bank secrecy laws, best corporate and foundation anonymity and strongest attorney client privilege in addition to having world class banks. Panama has no hurricanes, no earthquakes, no active volcanoes and no tsunamis which is why the Panama Canal was built here. So you do not have to worry about being unable to contact your bank by internet or telephone because a storm just passed over their island. Since we are in Panama we can and will represent any of clients who need legal representation in Panama with affordable rates ($150.00 hour). And yes we do get in our car and go down to the Panama banks representing our clients to open their bank accounts and to resolve any issues or problems that may come up down the road when our clients need our assistance. We are your corporate resident agent and would receive any official notices on behalf of your Panama Corporation or Panama foundation and of course we would understand the notices and could advise you not just say “hey, you got a document you need to read”. We are reachable by phone and email seven days a week and of course all communications with us are privileged communications. Always feel free to ask us questions by phone or email.
To learn more about why Panama excels as an Offshore Jurisdiction click here:
http://www.panamalaw.org/attributes.html
To learn more about Panama Asset protection click here:
http://www.panamalaw.org/asset_protection.html
Panama Banking – Panama boasts of having 150 international banks which is a living testimony to their strong bank secrecy laws please keeping in mind Panama is a country of 2.9 million people and these banks are in Panama City which is only about 9 square miles. All the banks we deal with have online banking including the ability to send international wire transfers. You do not need to come to Panama to open a bank account but you do need to supply reference letters and passport copies. You can even get up to 7% interest on 5 year deposits. The national currency in Panama is the US dollar but some euro accounts are available.
For more information on Panama Bank Accounts click here:
http://www.panamalaw.org/offshore_bank_account.html
For information on Offshore Debit Cards click here:
http://www.panamalaw.org/anonymous_mastercard.html
For information on offshore ATM cards click here:
http://www.panamalaw.org/anonymous_atm.html
Panama Anonymous Bearer Share Corporation – Such anonymous corporations are called by this term in Spanish – sociedad anonima. These corporations have no registry or database into which are entered the owners of the corporation. Ownership is through the printed stock certificate called bearer shares. There is no tax on offshore derived income other than the $300 annual tax included in our prices. Transfers of ownership do not have to be reported. With a Panama bearer share corporation wires moving through the wire system are not associated with any natural persons for more privacy. Panama corporations can be formed in 2-3 days. Panama bearer share corporations can own real estate anywhere in the world under Panama law.
To learn more about Panama Corporations click here:
http://www.panamalaw.org/bearer_share_corperation.html
Panama Private Interest Foundations – A Panama foundation has a number of advantages. It is like a combination of a corporation trust and will. Foundations have no real owner. The Panama foundation is anonymous. The foundation instructions are kept secret. Foundation assets including bank accounts are generally non-freezable. Foundations can own corporations and real estate.
To learn more about Panama Private Interest Foundations click here: http://www.panamalaw.org/panama_foundations.html
Panama stock Brokerage – You and or your corporation or foundation can have a Panama Stock brokerage account and play the worlds markets from home. Panama secrecy laws apply.
For more information click here:
http://www.panamalaw.org/stockbroker.html
Panama Passports, Visas and Residency – Panama offer an instant Passport program, a number of exciting and affordable visa programs.
To learn more about these exciting options click here:
http://www.panamalaw.org/passport_program.html
http://www.panamalaw.org/live_and_retire_in_panama.html
To learn more about the Panama Reforestation Visa Program click here:
http://www.panamalaw.org/reforestation_visa.html
Panama Legal Law Firm Panama Asset Protection Strategies:
Formation and Management of Anonymous Panama S.A. Bearer Share Corporations (sociedad anonima)
Asset and Estate Protection with a full range of effective strategies including Panama Foundations and Foundation Protectors
Providing corporate nominee directors and resident agent
Offshore Bank Accounts in Panama with online banking
Anonymous ownership of real estate anywhere
Anonymous ownership of boats and planes anywhere
Real Estate Investment (Panama real estate appreciating 28% per annum)
Panama Passport Program
Panama Residency, Citizenship, Visas
Stock Trading Accounts in Panama with secrecy
Offshore Visa, MasterCard from Panama Bank and other countries
Offshore ATM debit card
Offshore Merchant Accounts for high risk or low risk accounts
http://www.panamalaw.org
http://panamalaw.org/bearer_share_corperation.html
http://panamalaw.org/panama_foundations.html
http://panamalaw.org/foundation_protectors.html
By Law Article
July 16th, 2009 at 08:52pm
Under Banking Law
Critical Analysis of Information Technology Act, 2000
Till year 2000, India did not have any legislation governing cyber space or Information Technology Law. To give consideration to the Model Law on Electronic Commerce adopted by the United Nations Commission on International Trade Law (UNCITRAL) and to give legal recognition to electronic commerce the Information Technology Act, 2000 was enacted. Though this is comparatively a new legislation as far as others areas of law are concerned, still 8 years have passed since this act was enacted and in these 8 years Technology has changed at a much faster pace. Though law cannot possibly be expected to keep pace with changes in technology, still there are few areas in the current cyber laws which need some attention.
Spamming
Spam may be defined as Unsolicited Bulk E-mail. Initially it was viewed as a mere nuisance but now it is posing major economic problems. I think almost all of us receive many unwanted mails daily. Though there are some technical methods to deal with spam, they are not very effective and adequate in dealing with this menace. In the absence of any adequate technical protection, stringent legislation is required to deal with the problem of spam. The Information Technology Act does not discuss the issue of spamming at all. USA and the European Union have enacted anti spam legislation. In fact Australia has very stringent spam laws under which the spammers may be fined up to 1.1 million dollars per day.
Pornography
Though the Information Technology Act talks about publishing of information which is “obscene” in nature, it doesn’t specifically define what is obscene and what may be classified as pornography. Even the punishment for pornography is not sufficient in India. In China the punishment for maintaining pornographic website is life imprisonment but by the proposed amendment in IT Act the imprisonment is being reduced to two years from the present five year imprisonment. Also the intermediaries are exempted from any liability. Though legislations worldwide contain severe provisions for child pornography there is no mention of child pornography in the Indian Act. It is interesting to note down that the Information Technology Act prohibits publishing of pornography but viewing of pornography is not an offence under the act.
Phishing
According to Wikipedia, phishing is the criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. Phishing is typically carried out by e-mail and often directs users to enter personal and financial details at a website. Phishing is an example of social engineering technique used to fool users. There is no law against phishing in the Information Technology Act though the Indian Penal Code talks about cheating, it is not sufficient to check the activity of phishing. Recently a phishing attack was noticed on the customers of State Bank of India in which a clone of the SBI website was used. What is worse is that even SBI has not alerted its customers. So the need of the hour is a legislation which prohibits the activity of phishing in India.
Data Protection in Internet Banking
Data protection laws primarily aim to safeguard the interest of the individual whose data is handled and processed by others. Internet Banking involves not just the banks and their customers, but numerous third parties too. Information held by banks about their customers, their transactions etc. changes hand several times. It is impossible for the banks to retain information within their own computer networks. High risks are involved in preventing leakage or tampering of data which ask for adequate legal and technical protection. India has no law on data protection leave alone a law governing an area as specific as protection of data in electronic banking.
The Information Technology Act talks about unauthorized access but it does not talk about maintaining integrity of customer transactions. The act does not lay down any duty upon banks to protect the details of customers and clients. U.K has a data protection law which was enacted 10 years back that is in 1998 under which banks or any person holding sensitive information may be held liable for damages if it fails to maintain adequate security protection in respect of data. In India, a bank’s liability would arise out of contract as there is no statute on the point.
Privacy Protection
Privacy and data protection are important issues that need to be addressed today as information technology assumes greater importance in personal, professional and commercial spheres. The European Union and the United States have strict policies relating to privacy and protection of personal data when such data or information is being transferred out of their domain.
It also pertinent to note here, that the absence of a specific privacy law in India has resulted in a loss of substantial foreign investment and other business opportunities. This deficiency has also served as an obstacle to the real growth of electronic commerce. Thus, a statute addressing various issues related to privacy is of utmost importance today, if not an entire act can be brought into force, then at least specific provisions relating to privacy and data protection be incorporated into the Act.
Conclusion
These were some of the most important shortcomings of the Information Technology Act, 2000. Though an amendment was proposed in the Act in 2005, the bill has still not been passed and moreover the bill also fails to address these issues and shortcomings. It seems quite evident that by the time the bill is passed, it would have become obsolete and ineffective.
Final Year Law Student
Symbiosis Law School, Pune
India
By Law Article
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