And in neighboring GERMANY legally enforceable medieval crafts-guild regulations are stifling the nation's economy and driving businesses from the country.

BVI Bends to OECD Demands

The BRITISH VIRGIN ISLANDS, determined the territory must escape the OECD's list of  so-called "uncooperative tax havens," has stepped up its "clean up" campaign with announcement of new measures aimed at curbing financial privacy. That may include an end to beneficial ownership secrecy of IBCs.
LINK: http://www.tax-news.com/html/oldnews/st_jbvONeal_09_06_00.htm

Tsar Putin the Terrible

Taking a page from Russia's tsarist past, president PUTIN this week allowed the arrest of a dominant player in Russia's independent media who is a frequent critic of the government. (The US protested). 
LINKS:http://www.cnn.com/2000/WORLD/europe/06/15/russia.arrest/index.htmlandhttp://www.cnn.com/2000/WORLD/europe/06/13/russia.media.02/index.html

Come Join Us on the EUROPEAN ADVANTAGE TOUR to Zurich, Vienna, Liechtenstein, September 16-23, 2000

Protect your wealth from predators! Earn double-digit returns on currency fluctuations! Open a Swiss, Austrian or Luxembourg bank account! Meet your own personal European banker or international lawyer. Have your wealth protection specialist develop the very best investment structure just for you! All that and more! Join us for our EUROPEAN ADVANTAGE TOUR, Sept. 16-23. Spaces limited and booking fast.
Contact Amberlee Huggins, US Tel: 410 223 2633; Fax 410 223 2650

WEALTH 

IRS Might Get Offshore Bank Information

US Rep. RON PAUL shared with us the written answers of US Treasury Dep. Sec. EIZENSTAT concerning on HR 3886, the "International Counter-Money Laundering Act of 2000," a Clinton proposal giving government discretionary power to cut off from the US banking system offshore banks and even entire nations that displease Washington. (See A-Letter, June 3). It also forces US banks to gather information from offshore banks about Americans with accounts abroad. In reply to the question whether such information "will be shared with the IRS" Eizenstat says "the IRS would have access to information obtained by the Treasury Dept." He also revealed plans to use the new powers to force bank identification of offshore "beneficial owners" and to block correspondent and even pay through accounts for uncooperative offshore banks. Observers doubt the bill will become law, at least in its present form. 
NEWS LINK: http://www.tax-news.com/html/oldnews/st_Laundering_12_06_00.htm

For a copy of HR 3886, go to LINK:
http://thomas.loc.gov/cgi-bin/query/z?c106:H.R.3886: (Note: This link must be copied and pasted into your URL "Location" browser space).

US Money Laundering Prosecutions Rise

Don't believe false reports this week that US money laundering prosecutions are down in number. Reuters (June 2) carried such a story that was countered by US Dep. Treas. Sec. Stu Eizenstat in a letter to the Miami Herald. He claimed US "money laundering investigations and prosecutions rose substantially" from 1995-1999, when IRS cases referred for prosecution rose 32% to 1,646 from 1,243. At Customs, investigations increased to 5,312 from 4,759, while indictments went from 909 from 774. US Justice Department figures show defendants indicted under the principal ML statute rose from to 2,044 from 1,596. Eizenstat claims more "suspicious activity reports" (SARs) filed by banks account for the increases. 

Miami Herald 
LINK: http://www.herald.com/

Meanwhile the Treasury's FinCEN admits that during 1999 the business cost of filling out various government required ML reports to be at least US$108,982,512. 
LINK: http://www.treas.gov/fincen

South African News & Blues

Toronto based Franco-Nevada Mining Corp. and Gold Fields Ltd. this week announced their merger to form one of  the world's largest (US$3.7 billion) and strongest gold companies. 
LINK: http://www.goldfields.co.za/

Diamond mining giant De BEERS this week called for a coordinated international response to stop trade in so-called "conflict" or "blood diamonds" which are funding rebel armies in Africa. 

The JOHANNESBURG Stock Exchange has a brand new, state of the art electronic headquarters. But the exchange that began 2000 as a widespread investor favorite has plummeted 17% in dollar terms. The RSA currency, the rand, has fallen to all time lows while violence over land grabs in neighboring Zimbabwe is driving foreign investors out of South Africa and the African market in general.
LINK: http://www.jse.co.za/

Ten Percent Interest Guaranteed

The Irish owned, Isle of Man based F-SHARP BANK says it's the first offshore online bank to allow accounts in multiple currencies and international cash transfer and payments from your desktop PC. Its new sterling account claims the best annual rate of return offshore - 10% on a one year deposit account of £2500. But US persons need not apply. 
LINK: http://www.fsharpbank.com/index-flash.htm

Tax News

ESTONIA has just repealed all corporation taxes except for a 26% levy on gross distributions to private individuals. With 21 bilateral tax treaties, this creates some interesting tax planning opportunities for companies located in those 21 countries. See the list at. 
LINK: http://www.tax-news.com/html/oldnews/st_estonia_13_06_00.html

The Net revolution continues. Starting Oct. 1, the US will give electronic signatures the same force of  law as their paper equivalents. 
LINK: http://www.washingtonpost.com/

Free Market Tech

A new Web site called TechCentralStation says it's "Where free markets meet technology. It will serve as a forum for news and opinion on technology and finance from an unabashed free market perspective. 
LINK: http://www.techcentralstation.com/

One it first renderings makes very interesting reading for offshore enthusiasts. It's entitled "Shopping for Government" and explains for the uninitiated how market friendly, low tax governments can now compete for capital as never before.
LINK: http://reason.com/tcs/061200.html

Spotlight on: DOUG CASEY

A distinguished member of the Sovereign Society Board of Advisors is Doug Casey, explorer, adventurer, individualist and discoverer of huge profits in natural resources. Doug is editor of  his investment newsletter, "The Speculator" and author of "The International Man." and one of the best-selling financial books ever, "Crisis Investing." To see what Doug is saying now, visit 
LINK: http://www.dougcasey.com

Your Own 90 Minute World Tax Haven Tour!

Here's the talked about video that takes you on a worldwide tour of known (& little known) tax havens. In an enjoyable & informative 90 minutes, "Your Money & Your Life" escorts you across the globe. Noted asset protection attorney David Melnik of Canada and world traveler Roger March team up to show you first hand the places you know by name but may have missed. You get the flavor, the feel, the spirit of the Bahamas, Monaco, Andorra, Ireland, Malta, even that mysterious Swiss/Italian enclave, Campione d'Italia. Banks, businesses, investments, retirement homes -- this video tour is a must for anyone considering going offshore. And it comes with a 138 page guide book filled with contacts and info. Get the tape & guide for a newly reduced price of just US$49. Mail orders to: The Sovereign Society, PO Box 1566, Newburgh, NY 12551. Tel: US (toll free) 888-358-8125. Fax: 888-892-1542. Outside US Tel: 353-51-844-068. 

PRIVACY 

NSA: Spys-R-Us

The super-secret US National Security Agency, home of the Echelon world electronic surveillance system, announced last week it plans to turn over to private industry development & management of most of its nonclassified information technology. A computer meltdown at the NSA's headquarters in January rendered the vast spy agency incapable of processing its global intelligence signals for several days. 
LINK: http://www.govexec.com/dailyfed/0600/060800k1.htm

The Terrorism Excuse

Under the usual excuse of fighting "terrorism" a US commission is urging even more power and money for the NSA. 
LINK: http://www.wired.com/news/politics/0,1283,36868,00.html

UK Net Spy Plans Cause Furor of Protests

British plans to allow police to monitor all Internet communications in and out of the UK is meeting with a rising tide of protest. A bill pending in Parliament would enable Scotland Yard, MI5 and other state police agencies to intercept all Internet communications. 
LINK: http://news.bbc.co.uk/hi/english/sci/tech/newsid_784000/784426.stm

UK business leaders charge the Net spy plan will drive privacy-conscious businesses overseas and hurt British business.
LINK: http://news.bbc.co.uk/hi/english/sci/tech/newsid_788000/788789.stm

The Channel Islands of GUERNSEY and JERSEY, planning for e-commerce, say the bill is a disaster for them and demand its withdrawal. 
LINK: http://www.tax-news.com/html/oldnews/st_jgeecom_13_06_00.htm

Allowing UK's MI5 to monitor people's internet habits goes further than George Orwell's worst nightmare argues says The Manchester Guardian. 
LINK: http://www.guardian.co.uk/freespeech/article/0,2763,331533,00.html

Protecting Medical Privacy Passes US Congress

The US House of Representatives this week adopted Rep. Ron Paul's proposal which prohibits the federal government from imposing a privacy destructive "uniform standard health identifier" number on each US citizen. 
LINK: http://www.house.gov/paul/press/press2000/pr061400.htm

And a national commission to study privacy has been proposed in a US Congress that seems bent on destroying it. 
LINK: http://www.heritage.org/

Denmark: To Bank or Not to Bank?

In response to a reader who is considering opening an offshore bank account in DENMARK, here's the Danish privacy (or lack thereof) story. The nation's constitution "guarantees" financial privacy, but by law all banks must report to the government each New Year's day the name, address, amount and interest paid to all account holders during the previous year - and that includes non-Danish persons as well. The government bases income taxes on that info. No wonder Hamlet had so much on his mind. Jyske Bank, Copenhagen.
LINK: http://www.jyskebank.com