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One plus for using Panamanian banks is that they often pay an eighth or a quarter-percent more than U.S. banks on similar time deposits like CDs. But Panamanian banks tend to have less free services than U.S. banks. And Panama is Latin America’s main regional financial center, second only to Miami, dealing with international companies, foundations and trusts as well as those from all over the Caribbean, and South and Central America. “Panamanians are good bankers and pretty sophisticated,” Sambrook says, “but if people want ultra-sophistication, they go to Zurich.” .
Swiss/Liechtenstein Banks Switzerland has a world famous tradition of private banking, and Liechtenstein has a well-earned reputation as an even more exclusive financial center. However, we don’t recommend either of the two big Swiss banks (UBS or Credit Suisse) because they don’t offer the privacy often associated with Swiss banks. The merger creating UBS AG was approved by the U.S. Federal Reserve in 1999 only after the Swiss bank agreed to provide the U.S. government with all information “necessary to determine and enforce compliance with … [U.S.] federal laws.” This surrender goes far beyond the financial information required to be exchanged under the U.S.-Swiss Tax Treaty. On the bright side, we do recommend SwissFirst Bank, and specifically its branch in Liechtenstein that combines both maximum privacy and service. Swiss banks often require higher minimum balances than other banks, (as much as US$1 million), and they also charge higher fees. What you get for that is sophistication, experience, safety and privacy. For example, custodian banks carry all accounts in the name of their clients. Securities are traded and held in the bank’s name but on behalf of client accounts, segregated from the bank’s own assets. There are no anonymous accounts—banks have to know who you are and that your money is legitimate. But knowing that, they’ll protect that information tooth and nail. For asset protection purposes, these
banks are excellent. No information about these accounts can be released
to anyone, foreign governments included, unless a court first authorizes
it; and then only after notice of a hearing is given to the account holder.
Contrast that with the United States where accounts can be frozen with
no notice.
Austrian Banks For absolute privacy, you can’t beat Austrian banks. When Austrian banking law was codified in 1979, the well-established tradition of bank secrecy was already two centuries old and banking secrecy was written right into Austria’s new constitution. Article 38 of the banking act says Austrian banks can’t divulge information to any third party. That means they aren’t allowed to outsource their back office work, either. What’s more, banking secrecy wasn’t affected by Austria’s entry into the European Union in 1995—it would take a constitutional amendment to change it. And Austrian banks have built an excellent reputation. When the U.S. published its banking blacklist four years ago, Austria was not on the list. Austrian banks are also rock-solid—no Austrian bank has failed since 1939. And Austrian banks offer custodian portfolios, where stocks and other securities are bought in the bank’s name and held in the client’s separate accounts. Finally, if a client passes away
without giving instructions as to what to do with his or her account, an
Austrian bank must keep that account open until a beneficiary comes to
claim it—even if that means forever. In that case, the account will be
managed according to the client’s last instructions.
Danish Banks as a Banking Haven Jyske Bank is a Danish Bank with a division—Jyske Bank Private Banking—that focuses on private and offshore banking. And Denmark isn’t a bad place to bank. In 2004, Moody’s rated it as the safest country in the world in which to open a bank account. Jyske Bank is the second largest Danish bank and has offices all over Europe—Copenhagen, Zurich, Hamburg, London, Gibraltar, and more. Jyske Bank is a great bank to use if you want to invest the money in your offshore account, particularly if you want to invest in currency markets or the specialty products that Jyske Bank creates for its own clients. “Our clients get their own personal advisor—no call centers,” explains Thomas Fischer, Jyske’s head of client services. “And our bank is used to trading currencies— we’ve done it for centuries. We’re very strong on the emerging markets and have a 24-hour trading desk.” One of the differences between Jyske Bank and leading Swiss and Austrian banks is that Jyske’s fees are lower, Fischer says. But it’s not just about low fees. It’s also about products. For example, in March, we sent out a Sovereign Individual Flash Trading Alert recommending the JBPB (Jyske Bank Private Banking) Metals II 2008—a structured product created by Jyske Bank for its customers. It contains two elements—a zero coupon bond together with call options divided equally between gold, aluminum and copper. This gave Jyske’s clients a chance to play the metals market while still getting a guaranteed return of their capital investment. Jyske Bank is introducing discretionary portfolio management, Fischer says, and will probably introduce a new mutual fund that is basically a hedge fund. That means it will look for absolute returns instead of relative returns. “The fund can go from 100% cash to 100% bonds to 100% stocks—that’s not possible in normal mutual funds.” What you won’t get is the extreme
privacy that you’ll find in Switzerland or Austria. At the end of the calendar
year, Jyske Bank gives its information to the Danish tax office, which
operates under the EU tax directive. However, Fischer points out that if
a client opens an account in a corporation, trust or foundation, the bank
doesn’t release information about the beneficial owner of that corporation,
trust or foundation.
Well, there you have it; four great places to do your offshore banking, each with its own advantages. Just make sure that wherever you bank, you ask where their back-office work is done. If it’s jobbed out to a low-bid contractor in Asia, consider looking for the exit. .
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The
Sovereign Society, headquartered in Waterford, Ireland, was founded in
1998 to provide proven legal strategies for individuals to protect their
wealth and privacy, lower their taxes and to help improve their personal
freedom and liberty.
The
Strange Disappearance of 100,000 American Millionaires.
