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Offshore “hide and seek”? No, thoughtful asset protection!

Do I need to protect assets?

The reasons for the desire to “hide” anything can be very different, from the simple and reasonable desire to protect information and assets to painful suspicion towards other people.

offshore company

When there is a desire to “hide” something, it’s time to ask yourself what it is dictated by, and honestly answer this question to yourself.

When people start hiding something, they are afraid that it will find something. And the strength of this fear determines the hastiness of actions with which a person acts.

Think of a movie where the main character needs to hide something valuable or important from his pursuers, enemies or detractors. He rushes about in a confined space, in a hurry shoves somewhere what needs to be hidden, and at the same time he looks excited and wound up. Spectators are immediately thrown into the face written on the face of the hero excitement and fear.

A paradoxical thing turns out: the stronger a person wants to hide something, the more it manifests itself in his behavior and appearance, that is, the more he reveals his plans and intentions to others. And the more it attracts unwanted attention to itself, the very one from which he so wanted to get rid of.

However, let’s say you managed to hide something. What does this mean in other words? That no one knows that you have something. So, what is next? Once you decide to use the hidden, no one will believe that it is yours. And no wonder – you yourself have convinced everyone that you do not have this or it does not exist at all in nature.

The task of the asset owner in the other is to limit access to information of undesirable persons as much as possible and to make impossible any transfer of assets without the knowledge of the beneficiary.

For this, the offshore industry offers great opportunities.

1. Offshore companies as key to asset protection.

A foreign company is a much more flexible tool for owning property, as compared with direct personal ownership of assets. After all, the company’s shares are easier to sell than the house or factory that this company owns. If the assets are owned by an offshore company, the liquidity of the assets increases.

An offshore company, in addition to increase liquidity, ensures the confidentiality of beneficiaries, since state registries of directors and shareholders, which are accessible to the general public, are not maintained in most tax-free jurisdictions.

This does not mean that information about the owners is absent in principle. It is kept by the agent of the company, and for its unauthorized disclosure, the agent may lose its license. So the agent in the country of registration of the offshore is your ally.

Holding companies created from several foreign companies fall into the category of offshore companies. It turns out a complex multi-stage chain of ownership of the asset, reliably protecting information about the actual owner.

2. Nominal service for an offshore company as a key to asset protection.

If the register of directors and owners of the company is open (Cyprus, Panama), it is advisable to use a nominal service – nominal directors and/or shareholders who manage (own) the company in your interests. Or they give you a power of attorney for management but do not take any part in the activity themselves.

An additional plus of nominal service is that your name does not appear in the constituent documents of the company. This means that losing or stealing company documents does not violate your privacy. Unless, of course, you have the habit of storing power of attorney along with the rest of the documents. A good offshore agent will always warn you that you do not keep a general power of attorney for a Cypriot or Panamanian company along with the main package of documents for this company. The fact that information about bank accounts opened abroad should also be stored separately should also be warned. In guides on the use of offshore bank accounts, you can sometimes find useful information and tips on how and where to store access codes for offshore bank accounts.

3. Bearer shares of an offshore company as the key to asset protection.

A very good way to protect information about the actual owner of an offshore company and its assets. It is still available in a number of jurisdictions (Panama, Seychelles).

Main disadvantages: the issuance of bearer shares does not cancel the obligation to submit information to the agent about the beneficiary (the ultimate owner of the offshore company and its assets). In addition, banks have recently looked at companies that have bearer shares, are suspicious of either asking to hand over bearer share certificates for storage at a bank.

4. A virtual office for an offshore company as the key to asset protection.

Initially, the service was conceived in order to facilitate start-up entrepreneurs to meet the requirements of the law on the presence of a permanent place of business. It is also well suited for offshore companies, which may need to specify the address in the country where the bank is located when opening a bank account.

From the point of view of asset protection, a virtual office (postal address and a dedicated telephone line) is a great way to create a distance between the beneficiary and any person wishing to contact him or his offshore company.

5. Anonymous and numbered bank accounts as the key to asset protection.

Numbered bank accounts until quite recently ensured complete confidentiality of the account holder, since banks could not request and store their personal information. In recent years, however, under the flag of counter-terrorism, the practice of using such accounts has been reduced, and the transfer of money to a numbered account or from a numbered account has become one of the signs of suspicious transactions. You can read about numbered accounts in offshore banks in more detail in one of the articles by Alexandra Listerman:

In pursuit of Numbered Offshore Bank Accounts

The maximum anonymity available in banks today is an “anonymous” bank card. On the magnetic line and the surface of such a card is missing the name of the owner – an individual. However, the bank collects and stores information about the cardholder.

You can learn more about anonymous cards by reading one of Alexandra Listerman’s blog articles about offshore companies and bank accounts:

Corporate Payment System in Combination with Offshore Anonymous Prepaid Debit Cards

6. Trusts as a key to asset protection.

The highest degree of Asset protection is achieved through trusts. First of all, because the assets are transferred to the ownership of the trust company (trustee), that is, they actually change the owner.

This is the main minus of trusts for those who want to maintain control over assets. Intervention in the activities of the trustee will invariably entail attempts to recognize the trust as invalid.

Also, the founder of a trust cannot be its beneficiary, therefore trusts are always established in favor of third parties (children, relatives) and never in favor of the original owner of the assets.

New Zealand offshore trust for US $ 2,660? Give two!

7. Funds as key to asset protection.

The fund has no shareholders (owners). The property of the fund consists of assets transferred to it by third parties. In this case, the assets also change ownership.

The difference from the trust is that the management of the fund can determine the beneficiary at its own discretion. Thus, the original owner of the asset may be included in the number of beneficiaries and receive payments from the fund even after it ceases to be the actual owner.

You can read about the use of funds in more detail in one of Alexandra Listerman’s blog articles about offshore companies and bank accounts:

Private Foundations and Trusts in Panama. Instructions for use.

8. Second passport as key to asset protection.

When granting citizenship, some countries allow the possibility of changing the spelling of the name and surname or issuing a passport to another name.

But, if the person is well known, this information quickly becomes public knowledge. So, it is not a secret for anyone that the British citizen Platon Elenin and the Russian Boris Berezovsky are one and the same person.

That is why it is so important to build a personal asset protection program tailored to individual circumstances. After all, what works great in some situations may not bring any benefit to others.

The further you progress along the path of creating personal capital, the more diversified your assets are, the more urgent it is to solve the problem of protecting assets.

Those who are just starting the path to financial freedom are in a better position: they can create adequate protection for each newly acquired asset as needed.

The components of a successful asset protection strategy are only two:

– high-quality personal asset protection program, taking into account the particular situation,

and

– qualitative implementation of this program in practice.

Therefore, controlling the quality of the proposed solutions is simple.

However, specialists who qualitatively solve your problem of asset protection can be counted on fingers.

At the same time, the high cost of services and the high-profile name of a consultant do not always mean that the solution will be optimal for you.

For more than 12 years I have been creating protective structures for various types of assets and investment projects and have accumulated knowledge and experience that help me to clearly formulate and effectively solve the tasks of protecting personal capital of any complexity.

As a practitioner of registering offshore companies and opening offshore bank accounts, I am ready not only to develop an asset protection program but also to bring it to life.

In addition, anyone can get personal advice on the creation of offshore companies, opening offshore bank accounts, obtaining a residence permit in Europe, business emigration to Singapore. The cost of consulting in 60 – 90 minutes is $ 995 and will be credited to the cost of registering an offshore company, opening an offshore bank account and other services within a year from the date of the consultation.

I wish you to be sure that your assets are safe!

“A ray of light in the dark kingdom” – protect your assets

Today we are confronted with the beginning of what the Russian economist Kondratiev once called the “death cycle,” according to his judgment, this cycle inevitably repeats approximately every 60 years. A similar economic and legal situation developed during the global economic crisis of 1929-30. and between the first and second world wars. Against the background of global economic decline and the uncontrolled production of currency unsupported by real capital, world superpowers have so far avoided the onset of a new global economic crisis, but the risk of currency hyperinflation is growing rapidly with the economic problems of Europe and the American continent, the question no longer sounds like “what , if? ”, now we ask ourselves“ when? ”. To get the most out of taxes, world superpowers are increasingly freezing bank accounts and entering into various tax information sharing agreements that, in turn, deprive people of personal freedom and criminalize global financial activity. Just as it happened during the times of Nazi Germany and the USSR, in the impoverished countries financial activities are becoming more and more criminal – in other words, keeping money in a bank account is no longer safe – either legally or in terms of capital preservation. Precious metals have always protected from political and legal woes, many of the wealthiest families that own banks used this circumstance. For example, not so long ago, the Rothschild banking house removed its assets in gold and silver from England and America, just as it once took them out of Nazi Germany.

In this article we will explain to you why it is better to keep part of the capital in gold or silver, and why New Zealand is great for this. Here are the most obvious reasons:

  • Over the past decade, the value of gold and silver has increased compared to the value of any other currency. In times of economic, social and legal crisis precious metals are almost the only value recognized throughout the world, not counting food and water. They are easy to move, hide, but difficult to mine, so their reserves are always below the demand (unlike paper money). The most economically developed countries (China and India) are now increasingly being spent on the purchase of precious metals.
  • Keeping precious metals in New Zealand does not impose any special reporting obligations on you. Physical ingots of precious metals are placed in bank deposit boxes here. In this country, you can freely import and export physical precious metals without paying any taxes for it. In addition, precious metals may be listed as the property of the trust fund. The policy of New Zealand has never been directed against the storage of gold and in its history, there are no cases of confiscation of precious metals, as, say, happened in Europe, America. And this is unlikely to happen here at all because the country’s central bank does not store assets in gold. Gold and silver here are equal to currencies and therefore are exempt from taxes, including VAT. In addition, the New Zealand structures are designed in such a way that there is not much to worry about embezzlement of precious metals or political risks.
  • Precious metals are liquid and easily sold, moreover, they can be used as guarantee assets for loans (just as real estate is mortgaged), so assets in gold and silver are used not only to protect property but also as a financial mechanism.
  • But there is no better protection of capital than physical gold or silver stored outside the banking system. This means that with a well-formed trust fund, it is impossible to impose an arrest within the framework of a banking structure or by a compulsory court decision, because it is possible to determine their actual location, even without mentioning the use of a warrant for their arrest.
  • Gold and silver can be stored in different countries, be it Singapore, Australia or Switzerland, but the requirements of these countries regarding information sharing are too strict. For example, in Australia, it is quite difficult to buy (for example, in the Perth Mint) and store metals if you do not tell who their beneficial owner is, and even if they do, they often refuse to deal with trust funds. In New Zealand, there are no such strict rules yet, and it’s quite simple to transport gold or silver from the Perth Mint or Switzerland for confidential storage through a trust fund. Thus, to date, New Zealand is perhaps the country with the most convenient regime for acquiring and holding assets in gold and silver without any risk of publicity. Silver Money is a separate subsidiary of the Equity Trust company, which deals with the purchase, delivery, safe storage and resale of precious metals, especially gold and silver, in New Zealand.

The history of gold and silver as money

Gold and silver were mentioned in ancient manuscripts as means of payment 5,000 years ago. But why did people choose these metals for this purpose? Even Aristotle noted that money must be durable, easily portable, divisible, uniform, with real intrinsic value. After many years, it became clear that gold and silver are exactly the materials that meet all these requirements.

Gold and silver act as:

  1. Capital savings
  2. Means of exchange and
  3. Calculated monetary units

The paper money we use today meets the requirements of 2 and 3 but is absolutely not reliable as a means of saving capital. Quite often you can hear that good toga and sandals in ancient Roman times cost an ounce of gold. Today, for an ounce of gold, we can still purchase an excellent men’s suit and a pair of high-quality shoes, which is not the case with any legal paper money that was in use some hundred years ago. At the beginning of the 20th century, we could still buy a suit for twenty dollars, but today, after a century, only a pair of socks can be purchased for the same twenty.

Such a loss of purchasing power once again speaks of how we, over the past hundred years, are increasingly moving away from the possibility of using gold and silver as money. It all began when the end was put to what was called the classic gold or gold coin standard during the Great Depression. At a time when state-owned banks still used gold to pay off debts to other countries, an ordinary person from the street could no longer exchange their banknotes for gold coins, even if he thought that the government allowed himself to overspend, and banks too easily offered loans to everyone contract and depreciate his money.

We moved further away from gold, like money, with the signing of the Bretton Woods Agreement after World War II. It was then that the dollar became the main pillar of the world monetary system, thereby replacing gold. The US government was supposed to keep the dollar at a fixed rate against gold, while other countries could still claim gold instead of US currency. In other words, the dollar simply had to be “as good as gold.”

But in the 50-60s. America invested too much in military and social programs, government revenues were simply not enough to finance them. To cover these expenses, the country began to create a huge amount of dollars that were not supported by real capital.

Ultimately, the French president, Charles de Gaulle, began demanding gold from the United States instead of depreciating dollars. The States, realizing that other countries will follow the example of France and that their gold reserves may soon run out, closed the “golden window” in 1971 allegedly “for a while”. Gold turned out to be completely outside of the monetary system. It is particularly noteworthy that for the first time in history, legal money issued by the government began to be used at the same time in every country. The currency, not backed by real capital, created for plugging debt holes, has been used throughout the world.

That same, supposedly temporary condition, under which dollars are not replaced by gold, is, in fact, valid today. Thus, dollars and, accordingly, the entire world monetary system remain unsupported by gold. All money is printed to cover the debt – a debt that will never be paid.

Why buy gold and silver?

The mechanism of indefinite debt is clearly coming to an end. Obviously, there is only one huge debt, but the financial events of recent years indicate that this “debt bubble” is about to burst.

How can gold and silver protect us in a similar situation?

Your complete inseparable possession of real gold and silver is the only kind of capital that is in no way dependent on other persons. Thus, any “partner risk” is excluded, because there are simply no partners.

What can gold or silver protect us from?

Devaluation – as we mentioned above, paper money has been steadily depreciating throughout the last century. The role of precious metals, which we have defined as a “means of saving capital”, implies protection against the devaluation of currencies imposed by the government. It does not matter whether it is a slow, but inexorably rising inflation, or a sharp depreciation of the currency per day according to a government decision.

Hyperinflation – There are many historical examples of this phenomenon, and some of them are even from the twentieth century. For example, recent events in Zimbabwe, or the notorious German experience in the 1920s. People preferred a more stable foreign currency or precious metals, not wanting to exchange goods for local money. Although, of course, none of the currencies that exist today can be called truly stable.

Derivatives (derivative financial instruments) – According to the International Settlement Banks, the derivatives tower worldwide has already grown to 647 trillion dollars. In 2008 it became clear that this “house of cards” could collapse at any moment. Gold and silver are able to protect against the general collapse of the monetary system, which is more than possible if you push one of the dominoes’ knuckles. And all this again because physical precious metals are not part of the financial system and eliminate the risk of partnership.

Negative real interest rates – There is a misconception that gold is not the best option for investing with rising interest rates since gold does not imply paying dividends or interest. However, the main indicators are real interest rates. The real interest rate is the nominal interest rate minus the expected rate of inflation. Today, the motivation in the form of interest on keeping money in the bank is very weak, real interest rates are actually negative at all.

You can see how gold continued to rise in price throughout the 1970s until interest rates became positive again. However, today, state-owned banks are in a more difficult situation than it was in 1980, and it would be incredibly difficult to raise interest rates to successfully compete with gold, without destroying its own economic structure in the process. Therefore, if bank interest rates had risen, inflation would have increased, and real interest rates would have remained negative, while gold would continue to rise in price since keeping dollars in a bank would still not seem like a tempting idea.