Today's comment is by Mark Nestmann, our Privacy Expert, and expert speaker at the upcoming Total Wealth Symposium in Panama City, Panama.
Dear A-Letter Reader,
If you're making a so-called "private" transaction in either your U.S. bank or securities account, you might as well publish your financial activity right on the front page of The New York Times . After all, practically anyone can see it anyway.
Why do I say that?
First there's the U.S. Department of Justice. Armed with only with a "national security letter," with absolutely zero due process, the FBI and other federal investigative agencies can demand a complete list of every banking transaction you've ever conducted. And get this: it's illegal for your bank to tell you about their demands. (You can thank the U.S. PATRIOT Act for this legal provision!)
Second, there's the IRS, which may also obtain your bank records without the use of a summons or other legal procedure if the IRS believes you could be violating tax laws.
Third, there are "pretexters." Those are private investigators, identity thieves and others who, by impersonating you, can gain access to the information in your bank account.
Next, if you're sued, and lose, the winner may be able to obtain a court order to obtain your bank records.
And finally, there are banks and brokers, who themselves can sell your personal financial information to the highest bidder. They can do so without restriction, if the transactions are made between "affiliates" or with outside service providers that market the bank or broker's products or services.
Where Privacy Still Reigns Around the World
It's simple: your private information just isn't "private" anymore. That's why we have long recommended placing part of your wealth in offshore jurisdictions with strict bank secrecy laws.
Things are very different in countries like Switzerland, Liechtenstein and Austria, where professionals at financial institutions are forbidden from disclosing any aspect of your financial transactions, including private bank account information, without an order from a local court. Closer to the United States, Panama also has stringent bank secrecy laws to protect your privacy.
Unlike the United States where average bank employees can - and must - reveal your personal financial details, many offshore nations impose fines and prison sentences on bank employees who violate the privacy of account holders. That's the outstanding hallmark of an offshore account.
Why the Whiners Don't Like These Regions
Naturally, the IRS and other U.S. government busybodies don't like offshore bank secrecy. They constantly whine that terrorists, tax evaders and narcotics dealers use these offshore banks to keep their illicit secrets.
But these accusations are mostly "hot air." Panama, Liechtenstein, Switzerland and the rest of the privacy havens have strict anti-money laundering laws to ensure that its financial institutions aren't used for unlawful purposes. They've all set up offices to track potential money-laundering violations. They're on the lookout for suspicious activity, because they don't want to assist illegal dealings either.
Not to mention offshore banks must comply with strict "know-your-customer" procedures. "Know-your-customer" rules means you can no longer set up anonymous "numbered accounts" in offshore jurisdictions.
If you walk into a bank in say Liechtenstein, and ask to set up an offshore account, they'll politely ask you to fill out several forms. These forms will include a detailed application and your source of funds, so they can make sure you're exactly what you are - a freedom-seeking individual who's interested in higher investment returns, stronger asset protection and true financial privacy.
The bottom line is that offshore privacy havens like Switzerland and Austria vigorously defend their bank secrecy laws, so they offer wonderful alternatives to the absolutely ZERO privacy available in the United States. Rest assured, as long as you're keeping your offshore dealings legal, your secrets are safe in such an offshore region.
MARK NESTMANN, Privacy Expert and
President, The Nestmann Group, Ltd.
assetpro@nestmann.com
www.nestmann.com
EDITOR'S NOTE: With the U.S. Department of Justice, IRS and really anyone else able to poke their noses in your bank accounts, there's never been a better time to take your assets offshore. At our Total Wealth Symposium in Panama City, Panama May 2-5, you'll hear from banking professionals from Switzerland, Austria, Denmark, Liechtenstein and more, so you can decide the best location to set up your offshore bank account to get the privacy you deserve. Interested in attending? Click here to sign up right now while we still have spots remaining.
