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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Privacy & Prosperity in the Offshore World
Friday, December 19, 2003 - Vol. 5 No. 150
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In This Issue:
* COMMENT: The Bahamas: 51st State?
* OFFSHORE: Bermuda vs. UK. Swiss Release. Irish ?6 Billion Hidden? Monaco Royal Illness. Terror Diplomacy. Two Asian Expat Havens.
* WEALTH: IRS Reg Attacked. New $ Low vs. ?. Missing Gold, Missing Billions. Western Union Wire$ the World.
* PRIVACY & RIGHTS: Court Rebukes Bush on Detainee. UK Big Brother. US Liberty to Return? FATF Demands. Fly and Tell All.
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COMMENT: The Bahamas: 51st State?
Dear A-Letter Reader:
This week the Bahamas lower house of parliament approved a Tax Information Exchange Agreement (TIEA) with the United States, a treaty this relaxed island nation had resisted stoutly for many decades. The TIEA is not retroactive and applies on criminal matters from Jan 1, 2004 and on civil tax matters from Jan. 1, 2006.
The TIEA is also another nail in the coffin of The Bahamas as an offshore financial center for Americans.
During the 20th century these islands off the southeast coast of the US blossomed into a major tax and asset protection haven, especially for citizens of the nearby US. It offered tax exemption for foreigners and a series of well-crafted laws allowing IBCs, trusts, offshore banks and insurance -- all wrapped in maximum financial privacy protected by law.
Then back in November 2000, in just one month, the subsequently ousted FNM government passed what some called the "11 bills of Christmas." Many of these laws were written by US government "advisors" sent to pressure Nassau. These laws are still being contested in Bahamian courts and some have been ruled unconstitutional.
The excuse for suddenly abandoning decades of pro-offshore financial laws was the OECD blacklisting of The Bahamas for allegedly being lax on money laundering and for not taxing foreign investors ("unfair tax competition").
Of the 120,000-strong Bahamian work force, about 5,000 work in offshore banking accounting for an estimated 20% of the GDP. Largely due to increased offshore financial activity, the economy grew by 40% from $3.2 billion in 1992 to $4.5 billion in 2000. Since then the numbers have headed south.
Since 2000, 200 of 223 private banks in the Bahamas have closed and 30,000 international business companies have been stricken from the official register. Local news media attributed these departures, at least in part, to stricter money laundering laws and a weakening of banking and financial secrecy.
In May 2002, the PLP opposition won control of parliament and a new Prime Minister, Perry Christie, took office. The PLP charged the 2000 laws had damaged the offshore financial community and although they promised to review and revise many of these laws, they failed to do so. Indeed, they went ahead with the US TIEA initiated by the defeated Ingraham FNM government.
It makes one wonder if the The Bahamas are still a sovereign nation. Or are they just an offshore territory of the United States IRS colonial division? Maybe they should apply for US statehood.
That's the way that it looks from here.
BOB BAUMAN, Editor
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COMMENT LINKS:
* Bahamas Commits to US Tax Information Exchange.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=14475
* Threats To Bahamas Financial Sector.
LINK: http://www.tax-news.com/asp/story/story_print.asp?storyname=7392
* Nassau Institute Comments on the TIEA. LINK:
http://www.nassauinstitute.org/news/articles.asp?m=1&c=100&p=0&cat=COMMENTAR
Y&a=312
* After reforming its banking, Bahamas searches for growth. LINK:
http://www.etaiwannews.com/Business/2002/10/29/1035857411.htm
* Bahamas Financial Service Law ruled unconstitutional.
LINK: http://www.freedomandprosperity.org/Papers/ni/ni.shtml
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* OFFSHORE *
BERMUDA PREMIER UNHAPPY WITH LONDON DICTATES
HAMILTON: Scott doesn't want London to dictate local policies. LINK:
http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20031218/NEWS/1121
80078
* Premier presses London for Bermuda Chief Justice appointee. LINK:
http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20031218/NEWS/1121
80077
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SWISS RELEASE SOME OF ABACHE MILLIONS
ZURICH: Some of Nigerian ex-dictator's cash goes home. LINKS:
http://www.swissinfo.org/sen/swissinfo.html?siteSect=111&sid=4560137
http://www.nzz.ch/2003/12/17/english/page-synd4560137.html
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IRELAND CLAIMS Eur6 BILLION HIDDEN IN MANX ACCOUNTS
DUBLIN demands explanation for Isle of Man bank accounts. LINK:
http://www.politics.ie/modules.php?name=News&file=article&sid=2658
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TAX HAVEN MONACO'S PRINCE ILL
Prince Rainier, 80, is hospitalized with the flu. LINK:
http://www.newsday.com/news/nationworld/world/wire/sns-ap-monaco-rainier-hos
pitalized,0,5406603.story
* More about H.R.H. Prince Rainier of Monaco.
LINK: http://www.hellomagazine.com/profiles/princerainier/
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TERRORISM REQUIRES MORE DIPLOMATS
WASHINGTON: Even Liechtenstein now has a US ambassador. LINK:
http://www.rockymounttelegram.com/news/content/coxnet/headlines/1218_diploma
ts.html
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TALES OF TWO ASIAN EXPAT HAVENS
Why not live in exotic THAILAND or sophisticated SINGAPORE.
LINK: http://www.escapeartist.com/efam/53/Asia_Investment.html
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* WEALTH *
I.R.S. REGULATION ATTACKED BY U.S. CONGRESSMEN
WASHINGTON: Proposal to report foreign investors US income may
drive billions out of America; leaders strongly object.
LINKS: http://www.tax-news.com/asp/story/story.asp?storyname=14458
http://www.freedomandprosperity.org/ltr/crane-foley-irs/crane-foley-irs.shtm
l
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U.S. DOLLAR HITS NEW LOW AGAINST THE EURO
The dollar is under heavy pressure as its slides down. LINK:
http://www.reuters.com/financeNewsArticle.jhtml;jsessionid=WGVBCSDCRCNG0CRBA
EKSFEY?type=businessNews&storyID=4013767
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MISSING GOLD, MISSING MILLIONS
* The case of AFGANISTAN's missing cache of gold. LINK:
http://www.economist.com/world/asia/displayStory.cfm?story_id=2281950
* Government of KENYA trying to find $1 Billion missing offshore. LINK:
http://www.voanews.com/article.cfm?objectID=86CFE61A-BACC-480D-A001ECE34DE42
2D8
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TRANSFERRING FUNDS OFFSHORE
Can Western Union keep on delivering? LINK:
http://www.businessweek.com/magazine/content/03_51/b3863153_mz035.htm
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* PRIVACY & RIGHTS *
U.S COURT REBUKES BUSH ON DETAINING CITIZENS
Appeals Court says Bush can't hold US citizen without charges.
LINK: http://abcnews.go.com/wire/US/reuters20031218_309.html
* Citizen Padilla: Dangerous Precedents.
LINK: http://www.cato.org/dailys/07-01-02.html
* US holds thousands across the world in a secret universe.
LINK: http://www.iht.com/articles/122006.htm
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BIG BROTHER LIVES IN THE UNITED KINGDOM
Blair's Labour government spies on everyone, everywhere. LINK:
http://www.iol.co.za/index.php?click_id=24&art_id=qw1071636482295B216&set_id
=1
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WILL AMERICAN LIBERTY EVER RETURN?
Walter Williams has his doubts. LINK:
http://www.townhall.com/columnists/walterwilliams/ww20031217.shtml
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FINANCIAL ACTION TASK FORCE
What does FATF want from nations they accuse of money laundering?
LINKS: http://www1.oecd.org/fatf/pdf/40Recs-2003_en.pdf
http://www1.oecd.org/fatf/SRecsTF_en.htm
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FLY TO THE U.S. FROM EUROPE: TELL ALL
European governments give US access to passengers' details. LINK:
http://www.expatica.com/source/site_article.asp?subchannel_id=19&story_id=32
46
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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER. *
Bob Bauman, Editor * Daniel Aponte, Jr. Research Asst.
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