 |
08.10.01. Money Laundering Excuse. A-Letter.
THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Prosperity & Privacy in the Offshore World
Friday, August 10, 2001 - Vol. 3 No. 63
In This Issue:
* COMMENT: That Money Laundering Excuse - Again!
* OFFSHORE: Private Banking Boom. Avoid U.S. Banks. FBI World Police. Liechtenstein Bares All. Swiss Chase Abacha Plunder. Isle of Man Denies Irish Tax Evasion Help. Pacific News. Panama Helps Russia. Caribbean Havens Court Libya Aid. Grenada Bank Mess Report.
* WEALTH: Tax Competition Primer. OECD Boosts Aussie Taxes. New Labour Escapes Tax. Goldman Sachs. Strong Dollar. Dirty Money.
* PRIVACY: US Spy Technology Under Challenge. No US Lawyer Lies, But They Can Squeal. Read the IRS Criminal Investigation Manual.
COMMENT: Money Laundering Excuse - Again!
by Bob Bauman, Editor
On June 9, 1994 at Los Angeles International Airport Hosep Krikor Bajakajian, his wife and two daughters, were boarding a flight to Cyprus. Inside their checked luggage was $230,000 in US currency, with $127,144 more in their carry-on bags.
Customs inspectors, using dogs, discovered the money in the checked luggage and when Bajakajian failed to declare the cash on the US Customs departure form, he was arrested and the money seized. The Bank Secrecy Act 31 USC 5316, requires reporting of $10,000 or more being transported into or out of the U.S., and another law requires forfeiture to the government of "any property...involved in such offense..."
Bajakajian's funds were not criminally or drug connected. He planned to pay off debts in Cyprus with his own hard earned money. The US argued he must be punished for this terrible crime - failure to fill out and submit a one page form - by forfeiting $357,144.
Even the Supreme Court found this to be too much to stomach. By a 5-4 vote in 1998 the Court, for the first time in US history, struck down a forfeiture as an "excessive fine" prohibited by the VIII Amendment to the Bill of Rights. The forfeiture was "grossly disproportional to the gravity of the offense," they said. US v. Bajakajian,
LINK: http://laws.findlaw.com/us/000/96-1487.html
Every since, the US Justice Dept. has been feverishly trying to find ways around this ruling, painfully aware of a large dent in their forfeiture cash flow.
I recount this because this week US Atty. Gen. John ASHCROFT announced the Bush administration wants to overrule this decision, making transport of any amount of unreported cash grounds for forfeiture of all the money. Ashcroft issued a laundry list of new powers he wants for the hoards of federal money police.
LINKS: http://www.msnbc.com/news/610546.asp?cp1=1
Click Here.
Which raises the question - does the DOJ know what the Treasury Department is doing? For months reports have been rife that Bush advisors may recommend changing the onerous US$10,000 cash transaction reporting law.
LINKS: http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3UDYIVENC&liv
Click Here.
-----
ENVIRONMENTAL TRUTH. I don't usually stray away from offshore issues, but this news item mirrors the biased media attack on offshore havens - constant repetition of lies and false statistics.
LINKS: http://www.nytimes.com/2001/08/07/science/earth/07GREE.html
http://www.economist.com/science/displayStory.cfm?Story_ID=718860.
============================================================
* OFFSHORE *
OFFSHORE PRIVATE BANKING BOOM
A new study says offshore private banking is showing huge growth, despite, (or because of), all the OECD false attacks and propaganda.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=4826
-----
U.S. BANKS NO PLACE FOR DIRTY MONEY
Earlier this week we reported Sen. Carl LEVIN (D-Mich) had introduced a bill that would severely restrict US banks role in offshore banking. His excuse was, as usual, money laundering.
LINKS: http://www.miami.com/herald/content/business/digdocs/078941.htm
http://www.tax-news.com/asp/story/story.asp?storyname=4806.
In Manila, where a major scandal features alleged millions stashed in US banks by ex-Pres. ESTRADA, a local newspaper explains why "Anyone wishing to hide his ill-gotten wealth will never pick on a US bank to place his money."
LINK: http://www.mb.com.ph/OPED/Ng/2001/wn010808.asp
-----
U.S. FBI BECOMES A WORLD POLICE
The fumbling FBI's expansion into an international law enforcement agency is a mistake for many reasons, says Alan BOCK.
LINK: http://www.antiwar.com/bock/b080801.html
-----
LIECHTENSTEIN TRUSTEES BARE ALL
As part of a "get off the FATF blacklist" deal, Liechtenstein trustees are exposing data relating to "economically authorized persons" in the principality, including personal client profiles.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=4843
Which may explain why the Liechtenstein Landesbank (LLB) profits dropped 7.1% last year with gross earnings also down 9%.
LINK: http://www.news.li/news/meld5.htm
-----
SWISS PURSUE ABACHA PLUNDER
Swiss authorities question bankers and lawyers about $4 billion shipped by ex-Nigerian dictator ABACHA through Swiss and UK banks. Law suits are filed.
LINK: Click Here.
-----
MANX OFFICIALS DENY TAX EVASION
DOUGLAS, Isle of Man. Officials here take umbrage over Irish media charges about local financial secrecy laws hiding tax evasion. There are no such laws.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=4845
-----
IN THE PACIFIC:
HONG KONG is upset by possible tax increases.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=4807
A New Zealand journalist is banned from a Pacific Islands Forum in NAURU after reporting alleged involvement in the tax haven's banking by the Russian Mafia.
LINK: http://onenews.nzoom.com/news_detail/0,1227,52170,00.html
-----
PANAMA HELPS RUSSIA CLEAN UP
Panama is an unlikely savior for a Russia seeking to avoid FATF sanctions for its anti-money laundering laxity.
LINK: Click Here.
-----
CARIBBEAN HAVENS THUMB NOSES AT U.S.
Prime ministers of Antigua, Dominica, Grenada, St. Kitts-Nevis & St. Vincent plan official visits to LIBYA seeking financial aid.
LINK: Click Here.
-----
GRENADA BANK MESS
The First International Bank of Grenada mess slowly is unraveled.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=4810. Liquidator's second report available as a free pdf file at LINK: http://www.offshorebusiness.com/Documents/fibgsecondreport.PDF
============================================================
* WEALTH *
OFFSHORE TAX COMPETITION PRIMER
"Why Tax Harmonization and Information Exchange Undermine America's Competitive Advantage in the Global Economy."
LINK: http://www.heritage.org/library/backgrounder/bg1460.html
-----
O.E.C.D. BOOSTS AUSSIE TAXES
CANBERRA, Australia. The busybodies at the OECD advise the government here to raise taxes on the wealthy.
LINK: Click Here.
And the OECD wants AUSTRIA to crack down on trusts and other tax savings devices.
LINK: ttp://www.tax-news.com/asp/story/story.asp?storyname=4871
-----
NEW LABOUR TAXES SELF, CREDULITY
LONDON. For a a few hours it looked like PM TONY BLAIR and his cabinet colleagues might have to pay taxes like other Brits.
LINKS: http://www.accountancyage.co.uk/News/1124236
http://www.accountingweb.co.uk/cgi-bin/item.cgi?id=54664&d=448
-----
GOLDMAN SACH'S ASIAN TROUBLES
First in JAPAN, now in SINGAPORE.
LINK: Click Here.
-----
STRONG DOLLAR'S DAYS NUMBERED
US policy makers risk losing credibility if they continue to talk up the currency.
LINK: Click Here.
-----
RELIGIOUS INVESTMENT FRAUDS GROW
Regulators warn growing numbers of religion based US offshore investment schemes are defrauding unwary investors.
LINK: Click Here.
Here's an example: minister gets 27 years in jail for a $448 million (£320m) scam defrauding over 18,000 people.
LINK: http://www.naplesnews.com/01/08/florida/d613342a.htm
-----
MONEY LAUNDERING
Inevitable- the Internet is being used by dirty money launderers. Does this mean government will require reporting all e-mails?
LINK: Click Here.
-----
SOUTH AFRICA: A new anti-ML law here imposes heavy burdens on an already faltering financial sector.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=4847
-----
RUSSIA: To get off the FATF blacklist, Pres. PUTIN signs a new anti-ML law requiring reports of all $20,500+ transactions.
LINKS: Click Here.
Click Here.
Russia's growing band of nouveaux riches oligarchs have fought the tax police, political foes and business rivals. Now tycoons face a new threat: legal action by their first wives.
LINK: Click Here
***********************ADVERTISEMENT***********************
SECURE WEALTH as Only the Super Rich Can! Gain the upper hand over lawyers, bankers, insurance agents, credit card representatives, travel agents, financial advisors or any government official. How? By discovering what they hide from you at any cost....Knowledge. Increase your fortune and live far better for the rest of your life with the knowledge you'll receive in International Wealth and Power.
To learn more, click here.
============================================================
* PRIVACY *
U.S. GOVERNMENT SPYING CHALLENGED
US officials invoke 'national security' to shield new computer key stroke spying technology from court review.
LINK: http://www.wired.com/news/politics/0,1283,45851,00.html
US judges disable government software monitoring them.
LINK: http://www.wired.com/news/politics/0,1283,45936,00.html
Law suits against new US government spying technology.
LINK: http://www.csmonitor.com/2001/0809/p17s1-stct.html
-----
U.S. LAWYERS MAY SQUEAL MORE ON CLIENTS
The ABA votes to expand loopholes in lawyer-client confidentiality restrictions.
LINK: http://www.nytimes.com/2001/08/08/national/08ETHI.html
-----
UNDERCOVER U.S. PROBES HALTED
OREGON Supreme Court says lawyers are not allowed to lie or deceive, so they can't take part in undercover police investigations.
LINK: Click Here.
The official IRS Criminal Investigation Handbook describes in 95 chapters investigating procedures, including undercover operations and surveillance.
Read it here, LINKS: http://cryptome.org/irs-ci/irs-ci.htm.
Surveillance & Non-Consensual Monitoring LINK: http://cryptome.org/irs-ci/36209a.html. Undercover Operations LINK: http://cryptome.org/irs-ci/36211a.html
***********************ADVERTISEMENT***********************
THE VERY LATEST IN COMPUTER PRIVACY: Use a PC to surf the Net & you leave a trail; half-deleted files, "cookies" that give experts a detailed picture of exactly where you've been, files you created and lots more. Here's a new report revealing practical strategies to protect your PC & Net privacy with Windows based total file deletion, easy encryption, how-to PGP and much more.
Protect your PC privacy! Click here now.
============================================================
THE SOVEREIGN SOCIETY OFFSHORE A-LETTER. E-mail to: info@sovereignsociety.com. * SUBSCRIBE FREE or send to a friend at LINK: http://www.sovereignsociety.com
============================================================
THE SOVEREIGN SOCIETY Ltd., 5 Catherine St., Waterford, Ireland. TEL: 353-51 844 068 FAX: 353-51 304 561. Copyright (C) 2001. All domestic & international rights reserved.
|
|
