Recently in Tax Havens Category

One of the world's leading experts in financial services regulation and financial crime in offshore centres will give a talk to business leaders next month.

Stephen Platt, a professor in law at Washington DC's Georgetown University, who is based in Jersey, will talk to senior members of the trust and fiduciary industry including managing directors and compliance managers about financial services regulation and the impact on national and international economies, at an event hosted by Investec Specialist Private Bank.

He will address key issues in the market that include global risk, FACTA, the Bribery Act and Sanctions. Attendees will have the chance to quiz the professor after his presentation.

The event is an example of Investec's ongoing commitment to work in partnership with its clients by allowing access to experts in the field and to provide the best service and standards of an international financial centre.

'I am delighted to have been invited to speak to members of Guernsey's business community and impart some of my knowledge on current issues affecting the global financial services industry, which include in particular the ever-growing topic of regulation and financial crime,' said Professor Platt.

Professor Platt also regularly advises many of the world's largest non-US banks on risks of criminal and civil liability relating to breaches of Office of Foreign Assets Control (OFAC) sanctions and Anti-Terror Act legislation. He acts primarily for institutional clients and regulatory authorities globally. For the former he advises on governance, risk management and regulatory compliance. For the latter he conducts regulatory inspections and provides advice on AML/CTF rules and the regulation of trust companies, banks and investment business.

Professor Platt regularly advises companies, individuals and governments on sensitive matters such as sanctions, money laundering, corruption and asset recovery, with international expertise and a strong knowledge of the inner workings of US state and federal regulations and legislation.

We have noted with disappointment the comments made by the leader of the opposition, Ed Miliband, over the weekend, in which he urges action by the EU against British Crown Dependencies, including Jersey.

It is disappointing when political leaders choose to make inaccurate accusations about Jersey which do not reflect the positive contribution that Jersey and the other Crown Dependencies make to the broader UK economy. Once again the confusion between the terms "tax avoidance" and "tax evasion" creates a false impression of Jersey's co-operative, well-regulated offshore financial centre.

Tax evasion is illegal in Jersey and it is a criminal offence - not a civil one -to facilitate or engage in tax evasion. The majority of Jersey's activities are focussed on the pooling of and structuring of international funds that have already been taxed.

The last Labour Government commissioned the Foot Review in December 2008. The report highlighted the value that Jersey provided to the UK during the banking crisis in the form of hundreds of billions of pounds of liquidity. That contribution continues to this day.

Furthermore, the report concluded that the amount of tax avoided by UK corporates using British Crown Dependencies and Overseas Territories was "significantly lower than estimates produced by previous studies have suggested." Therefore, the Foot report and most recent analysis from the HMRC (September, 2011), both suggest that tax avoidance is considerably lower than the wildly inflated figures produced by self-appointed lobby groups such as the Tax Justice Network.

The characterisation of Jersey as a "tax haven" fails to recognize the regular endorsements that the island has received from the OECD and IMF. Moreover, the accusation made today that Jersey is not co-operative with the HMRC is quite simply wrong: Jersey has signed both a Tax Information Exchange Agreement (TIEA) and a Double Taxation Agreement (DTA) with the United Kingdom. Jersey has very clear, open and transparent lines of communication with HMRC and is fully co-operative on tax matters. We also work alongside the UK in fighting financial crime and tax evasion. Ian Gorst, the Chief Minister of Jersey has today extended an invitation to Mr Miliband to visit the island to learn first hand how Jersey actually operates as a stable, reliable and responsible international financial centre.

Few jurisdictions in Europe can truly act as an economic bridge between West and East. Cyprus can certainly lay claim to such a position, and just might prove to be the fundamental economic ace card in the years ahead. Cyprus' geographical location makes it more than just a hub for trade and ideal for so many time-zones. It instils a long history of collaboration and close cultural ties with nearby country markets. Indeed, not to be underestimated in international business relations and professional services.

For centuries, Cyprus has been a stepping stone for many major world powers; both from the West and (Mid) East. Not just a stepping stone, but a nation that has learned to be hospitable to foreigners, and in doing so, facilitating a healthy trade relationship. As such a unique multi layered culture was formed, and one that relates to Europe, the Middle East-Asia and Africa. This is a great asset to have in business and international geopolitical relations. In Europe, this affiliation naturally includes the European Union (EU), with Cyprus being a Member State since 2004 and in the Eurozone since 2008. However, the country also has close relations with Eastern Europe, the Balkans, Russia and the CIS - located towards the East and historically linked to the Orthodox world - exemplified by the many activities in Cyprus driven from this part of the world, as well as by Russia's recent government loan. In the Middle East, Cyprus maintains healthy relationships with all, and continues to grow its dealings with major emerging Asian countries such as China and India.

Infrastructure for professional services in Cyprus is superlative, no doubt assisted by the nation's Commonwealth status and take on the British (and to a lesser extent European) legal system. Furthermore, so many accounting and legal professional are educated and qualified in the UK, US, South Africa and Australia, understanding both advanced systems and well versed in the English language. Meanwhile, the not so recent influx of Eastern European and Russian professionals has helped Cyprus better service these markets.

Cyprus should continue to gain points over the next decade as the preferred jurisdiction for tax planning in the European Union, maintaining the lowest corporate tax rate at 10% and an extensive amount of double tax treaties with other nation, among other benefits. Cyprus is also the lowest non-offshore tax jurisdiction in the world. This attractive tax structure should help encourage inward investments to Cyprus and Europe, and act as an ideal bridge to business and investment activity in the Middle East and Africa.

The Cypriot economy has also over the years proven to be quite resilient, and particularly strong in key stronghold sectors that could make the difference over the next year, such as professional services and tourism. Cyprus' two key contributors to GDP should continue to perform and maintain the economy, even though initial estimates of Real GDP growth will drop for 2012 and only stabilize in 2013. Professional services in Cyprus are some of the most advanced in the world, in terms of infrastructure and corporate tax planning efficiency. In such times, Cyprus might prove to be a good option for tax restructuring and investment strategies. As such, it just might be able to attract inward investments where others can not.

Tourism and hospitality should also continue to benefit. Although global tourism should only stabilize in 2012, and perhaps even drop as businesses cut back on expenses and leisure travelers think twice, people still need to take some sort of vacation - previous downturns have already proven this. In fact, travelers tend to stay closer to home, and within their own region. Thus, Cyprus constitutes a good option for key feeder markets in Europe, such as the UK, Germany, France, Scandinavia, Switzerland, Poland, Russia, Ukraine and CIS, among other. Especially motivated by value-for-money half board or all-inclusive packages, and an increase in low cost carriers flying to Cyprus. Actually only recently leading low-cost carrier Ryan Air announced a base in Paphos and to increase service there. This will boost tourism to Cyprus dramatically, especially as continued instability in many destinations in the Middle East & North Africa further enhance Cyprus' appeal as a secure European summer destination.

Finally, we must highlight recent developments in natural gas findings in Cyprus, currently being extracted by US-based Noble Energy. This will prove to be a major boost for the local economy, for Europe, as well as other stakeholders. Although this should not have an immediate affect in 2012, even just the prospect of what might happen in the mid to long term should be enough to fuel foreign direct investor confidence in Cyprus and begin the process of new activities. Beyond this, great potential in natural gas (and thus far only fro what has been discovered in one block) should inject a massive multilayer boost to the European and Cypriot economy.

Offshore Gateway Cyprus

info@offshore-gateway.eu

Visit us at www.offshore-gateway.eu to learn about our global climate friendly initiative

The British Virgin Islands Financial Services Commission has published statistics on the islands' financial services industry for the second and third quarters of 2011, showing that business activity increased last year.

Business incorporations and registrations, at 17,056 in Q3, showed improvement on Q2 registrations and incorporations of 15,689. This was a marked increase on that recorded in Q3 2010, where a total of 15,946 businesses were registered or incorporated, with 2011 set to breach 2010 levels. Incorporation and registration statistics however remain subdued compared to 2008 levels.

A total of three banking or fiduciary service licenses were issued in the third quarter. Total assets under management in the banking and fiduciary sectors increased over the quarter, to USD2.45bn, up from USD2.418bn in Q2 2011.

A total of 44 investment business licenses were issued in Q3, down from 50 the previous quarter. This was an improvement on the 31 licenses approved in Q3 2010.

During the third quarter, the British Virgin Islands provided information to third countries, facilitating 31 formal requests for non-public information, an increase on the previous quarter but consistent with Q3 2010 levels.

Enjoy Exquisite Dining Events at One of the Premier Luxury Hotels in Dubai

DUBAI, UNITED ARAB EMIRATES, Dec 27, 2011 -- An opulent retreat in one of the world's most sought-after destinations, The Ritz-Carlton, Dubai International Financial Centre welcomes guests to celebrate the season in high-style with an array of events sure to delight and inspire travelers and natives alike. From festive celebrations with your closest friends, to starting a new family tradition, New Year's at one of the premier hotels in Dubai will surely create memories for a lifetime.

The Ritz-Carlton, Dubai luxury hotel's seasonal events include:

New Year's Eve at Center Cut Indulge in a six-course menu, sumptuous dessert and cheese stations, and a glass of Champagne at midnight. Dinner starts at 8:00 p.m. on December 31.

New Year's Eve at Blue Rain Prepare your senses for a seven-course Thai menu and a glass of Champagne at midnight, accompanied by cool jazz music. Dinner starts at 8:00 p.m. on December 31.

New Year's Day Brunch at the Terrace Enjoy prime beef, lamb cuts and grilled lobster along with made-to-order salads, a chilled seafood bar and fresh oysters, followed by an array of dessert. Kids' activities, bouncing castles and face painting will be on-hand. Available 12:00 p.m. - 4:00 p.m., January 1.

Please visit our website, or call +9714 372 2323, to learn more about our Dubai luxury hotel's culinary events.

About The Ritz-Carlton The Ritz-Carlton Hotel Company, L.L.C., of Chevy Chase, Maryland, currently operates 77 hotels in the Americas, Europe, Asia, the Middle East, Africa, and the Caribbean. The Ritz-Carlton is the only service company to have twice earned the prestigious Malcolm Baldrige National Quality Award, which recognizes outstanding customer service. For more information, or reservations, contact a travel professional, call toll free in the U.S. 1-800-241-3333, or visit the company web site at www.ritzcarlton.com . The Ritz-Carlton Hotel Company, L.L.C. is a wholly owned subsidiary of Marriott International, Inc.

The Channel Islands are well-known as a place where individuals and companies from Britain often choose to invest their hard-earned cash. They are an example of an offshore financial centre; but what exactly is an offshore financial centre and what are the benefits of placing your money there? Are there any pitfalls to watch out for?

What is an 'offshore financial centre'?

The term 'offshore' simply refers to the fact that the country or territory in question is not the one in which the investor usually lives. Ironically, one of the most important offshore financial centres is landlocked Switzerland; others include Luxemburg, Bermuda, the Cayman Islands, the Bahamas and, of course, the Channel Islands.

Independent of Europe; dependent on finance

The Channel Islands are not part of the European Union (and not even part of the United Kingdom). This gives them an element of protection from European financial regulation, enabling them to have more autonomy over their own economies.

In addition, since the 1960s the Channel Islands have relied heavily upon financial services to provide national income. Jersey in particular is heavily dependent on the financial service industry.

Taken together, this gives the Channel Islands both the ability and the motivation to provide a favourable environment for potential investors. This most visibly translates as lower tax rates, making the Channel Islands one of the so-called 'tax havens'.

Tax benefits and other positives

Looking at Guernsey as an example, individuals and companies pay only a 20% basic rate of tax on investments. Better still for offshore investors, non-resident companies are classified as tax-exempt and pay just £600 a year in tax. Should external regulators succeed in closing this particular tax loophole, foreign investors can still legally set themselves up as an international company, paying a maximum of 30% tax. Guernsey also attracts the banking sector by offering tax-free interest on deposit accounts.

As well as tax benefits, some individuals choose to invest offshore to keep their transactions secret, using statutory confidential banking laws. Although this may seem dishonest, secrecy can be an important factor when, for example, a high-profile, wealthy person wants to buy a large volume of shares without pushing up their price by announcing the fact. However, regulation has succeeded in changing these practices and such laws are now only found in countries such as Singapore and Switzerland.

Are there any negatives?

As with all investment strategies, there are potential pitfalls that investors need to be aware of. Probably the most off-putting factor in offshore investing is the prohibitive costs involved in getting started. The legal and registration fees involved in setting up a corporation can be very steep and favours bigger companies.
The tax benefits are also shrinking all the time, mainly due to the increasing sophistication of onshore tax collection, which means that investors have to remain aware of changing tax laws to avoid being penalised for tax evasion.

The myths about offshore banking

Many people have been influenced by popular myths about offshore banking. Most of these tales suggest that the regulatory environment in offshore banks is looser than in mainland financial institutions and that financial transactions are shrouded in secrecy. There is an implication that tax havens harbour individuals and companies involved in dishonest tax practices and even money laundering.

While this may have been the case in the past, it is now generally accepted that since the turn of the century offshore financial centres have become just as well-regulated, if not more so, than their onshore counterparts. For example, they employ robust anti-fraud measures and comprehensive identification is compulsory when opening an account. It seems that investors prefer to entrust their money to well-regulated financial markets

So Brits, and other nationals, invest in offshore centres mainly to save money by taking advantage of lower rates of tax on investments. Although some may see this as dishonest, or even illegal, it is more accurate to understand tax havens as an ongoing compromise between international regulation and national freedom.

A survey by The Banker magazine shows that the Cayman Islands can hold their own against international standards relating to service or regulation. For the third time in a row, The Banker magazine's 2011 International Financial Centre (IFC) survey has awarded the top spot to the Cayman Islands in the Specialized Financial Centre category, besting its nearest competitor, Guernsey, by eight points.

The work of long-serving specialist banks such as Cayman Institutional Bank (CIB) goes a long way to explaining how the Cayman Islands became the world's premier Specialist Financial Centre and how they have adapted to remain at the top. Founded in 1972, CIB combines the personal service of a private bank with the sophistication and knowledge necessary to serve the demanding and complex offshore financial industry.

"We have always believed that Cayman was getting it right with its commercially sensible yet internationally responsible regulatory environment and this latest survey by The Banker shows that the larger investment community agrees," said Roger Hanson, Managing Director at CIB. "Winning the survey three times in a row is not an accident. It means we are doing something right here. At CIB, we are proud to be part of the Cayman financial community whose hard work, vision, and adaptability have contributed to this achievement."

CIB specializes in providing banking and custody services to structured corporate transactions and hedge funds in keeping with the business now transacted in the Cayman Islands although initially both CIB and the Cayman Islands had their roots in private banking. CIB offers operating accounts in all major currencies, escrow accounts, foreign exchange and term deposits, complete SWIFT narrative on statements for all incoming wires, and a client web application for straight through transaction processing and reporting.

Press Release - BM

Jersey has climbed two places, retained its position as the highest rated offshore international finance centre and enhanced its global reputation, according to the latest Global Financial Centres Index (GFCI) released on Monday 26th September 2011.

Overall, Jersey is placed 21st in the competitive rankings, which are published every six months, ahead of Guernsey in 31st, the Isle of Man (40th), Cayman Islands (46th) and Malta (70th).

In addition, Jersey has climbed into the top ten locations in the world for wealth management and private banking services, being named in eighth position, and is the fifth highest ranked location overall in Europe, only behind major city centres London, Zurich, Geneva and Frankfurt.

Jersey has also moved from being categorised as a 'transnational specialist' to a 'global specialist' centre, becoming the only offshore to achieve a 'global' profile, listed alongside centres such as Beijing, Dubai and Geneva. The Index also scores Jersey well in terms of stability and as the 16th highest ranked centre globally in terms of reputation - the only offshore centre to appear in the top 20 centres by reputational advantage.

Noting that confidence amongst financial professionals has risen since the last index for virtually all centres, the report comments that Eurozone centres, such as Dublin, Luxembourg and Malta, have suffered in the rankings. It also states that offshore centres 'are now recovering' as respondents 'recognise the contribution these centres can make to global finance', and that 'Jersey and Guernsey are working to change perceptions and to 'rise above' the status of offshore specialist centres by being seen as more diversified'.

London is named as the number one centre overall in the rankings again, marginally ahead of New York and Hong Kong.

Geoff Cook, chief executive of Jersey Finance Limited, commented:

"Jersey has performed extremely well in this latest Index, holding on to its position as the top offshore centre, which it has now held for five consecutive Indexes. To be listed ahead of major European centres such as Paris, Munich and Luxembourg, confirms that Jersey is incredibly well regarded on the global stage.

"This is particularly pleasing when you consider that Jersey is one of the only offshore centres to have improved its global ranking and is now referred to as a global player and one of the top centres worldwide for wealth management services. That Jersey's stability is also emphasised is extremely positive in the current climate, whilst the fact that the Index recognises Jersey's reputation is testament to the hard work that goes in to promoting Jersey both at home and in key foreign markets.

"It is interesting that the Asian centres are continuing to consolidate their position in the rankings. Both Hong Kong and Shanghai remain in the top five, emphasising how important it is that Jersey continues to maintain its marketing efforts with overseas centres like Hong Kong and Greater China in order to drive Jersey's future success."

For further information, please contact Adam Riddell at Crystal Public Relations on tel. +44 (0) 1534 639505
or e-mail adam@crystalpr.co.uk

THE Isle of Man will be promoted as an international business centre at an event in Shanghai in October.

Representatives from The ILS Group, Department of Economic Development and Capital International will attend the China Offshore Summit event on October 26 and 27.

They will take part in a half day seminar event called The International Tool Kit: Achieve your wealth management goals through international offshore structures and investments.

The seminar will address the benefits of using a global fiduciary services provider, effective investment management, offshore fund structures and will use Isle of Man case studies and solutions to show individuals how to achieve their wealth management goals.

Chris Eaton, ILS Group Chief Executive, said: "This is a significant opportunity for The ILS Group. We are looking forward to our involvement at such a high profile event and to joining forces with the Isle of Man Government and Capital International to showcase the Isle of Man and ILS's comprehensive range of global fiduciary services.

"We will have a dedicated audience of 250 business leaders from around the globe and will certainly ensure they take the Manx message home with them."

Matthew Sumner, China offshore director for The ILS Group, said: "The China Offshore Summit has been designed to explain to China's top financial intermediaries how they can benefit from the unique asset management and corporate product offerings available in the world's international offshore financial centres.

"The Isle of Man is an established platform where business success and prosperity are commonplace and we are delighted The ILS Group, Department of Economic Development and Capital International will be promoting the Island's unique offering to our Chinese delegates."

More than 250 Chinese professionals, entrepreneurs and financial intermediaries will attend the China Offshore Summit which will include presentations, workshops and panel discussions which will address issues in China's outbound offshore investments.

The ILS Group and the Department of Economic Development will also exhibit at the Society of Trust and Estate Practitioners (STEP) Asia conference in Singapore on November 1 and 2.

Statistics published on May 26 show that the value of investment fund business in Guernsey grew by GBP6.2bn (2.4%) during the first quarter of 2011.

The increase represents the seventh consecutive quarter of growth and takes the net asset value (NAV) of funds under management and administration in the island to a new record high of GBP263.6bn, as at the end of March 2011. This is a rise of GBP66.2bn (33.6%) compared to the end of March 2010.

Peter Niven, Chief Executive of Guernsey Finance, the promotional agency for the island's finance industry internationally, said: "We are continuing to build very positively on the exceptional growth during 2010 to start this year with a further, [albeit] slightly slower, increase in the value of funds business carried out in the island. It was always going to be difficult to sustain the rates of increase experienced last year but the fact that we have maintained the upward trend and now recorded seven consecutive quarters of growth shows the strong way in which our funds industry has bounced back from the financial crisis. These figures are the latest in a number of positives at play during the last few months and this is very encouraging for the future of Guernsey's funds sector."

The new figures from the Guernsey Financial Services Commission show that Guernsey domiciled open-ended funds reached a net asset value of GBP57.6bn at the end of March, which was a decrease of GBP0.3bn (0.6%) during the quarter but an increase of GBP1.5bn (2.7%) year on year.

The Guernsey closed-ended sector was valued at GBP114.8bn at the end of March, up GBP5.3bn (4.8%) during the first three months of 2011 and an increase of GBP22.5bn (24.4%) compared to twelve months earlier.

Non-Guernsey schemes, where some aspect of management, administration or custody is carried out in the island, increased in value by GBP1.2bn (1.3%) during the quarter to reach GBP91.2bn at the end of March 2011, some GBP42.2bn (86.1%) higher than the value at the end of March 2010.

Patrick Firth, Chairman of the Guernsey Investment Fund Association, said that the "figures are an endorsement of Guernsey as a jurisdiction for the administration of a diverse range of funds. All three categories, open-ended, closed-ended and non-Guernsey schemes have stood up well which is extremely encouraging coming on the tail of significant increases in 2010. This really does illustrate the strength of Guernsey's funds industry at the moment and we will be looking to sustain this momentum during 2011."

Niven noted that the figures follow hot on the heels of Guernsey being given the green light for its companies to list on the Hong Kong Stock Exchange; data from the London Stock Exchange showing that there are more Guernsey companies and securities listed on its markets than there are entities from any other competitor jurisdiction; a survey from Private Equity News/State Street showing that 61% of Chief Financial Officers prefer Guernsey as their destination of choice for private equity outsourcing; and a very successful Guernsey Funds Forum in London which attracted more than 300 delegates.

"Taken together, these developments show the extremely high regard in which our investment sector is held internationally. Guernsey Finance will be continuing to work with industry to ensure that we press home these very positive messages to key decision makers not just in the City of London - traditionally our principal source of new business - but also in the emerging markets such as China, India and Russia," he said.

As the flow of wealth from many nations of tax advantaged, "offshore," jurisdictions continues the need for and profitability of offshore banking services increases virtually day by day. The problem in this picture is that as the demand for offshore banking services has increased the ease of setting an offshore bank has become more difficult throughout most of the "offshore" world. A jurisdiction that has not suffered many of the problems that inhibit other offshore jurisdictions is New Zealand. A New Zealand Offshore Financial Company provides an excellent opportunity to provide offshore banking services and avoid a number of problems that plague other offshore banking jurisdictions.

The Problem Elsewhere

For those interested in setting up an offshore banking presence in most, but not all, jurisdictions the bad news is primarily related to the United States Patriot Act enacted after the destruction of the World Trade Center twin towers. An offshore bank is typically not allowed to do business with residents of the jurisdiction in which it is licensed but its license allows it to do business throughout the world. To do so the bank will need correspondent banks in other countries. Banks throughout the world that do business with banks in the USA typically need to satisfy certain criteria based on the Patriot Act.

Because many banks are not willing to jeopardize their current banking relationships they will often not take on correspondent accounts with new offshore banks. Sometimes there are, in fact, problems with the jurisdiction or the bank involved and sometimes the bank simply does not want to take a risk of being branded by US authorities.

Because of this situation some jurisdictions no longer offer offshore banking licenses. Some still do but the problem of getting correspondent banks remains so that it has become very difficult to actually do any banking even if an individual or corporation has obtained a license and set up an offshore banking business.

The Opportunity in New Zealand

A New Zealand Offshore Financial Company (NZOFC), also called a New Zealand Offshore Financial Institution (NZOFI) can be set up to provide a whole range of financial services without being called or being a bank. Because there are no capital requirements for setting up a NZOFC such a venture can be entered into at low cost.

Correspondent Accounts, Shell Banks, and Problems Elsewhere

A correspondent account is an account established by a domestic banking institution. It receives deposits from and makes payments on behalf of a foreign financial institution. A correspondent account allows foreign banks to conduct business and provide services to their clients without the expense of a physical presence in that country. Typically the larger bank provides deposit and lending services allowing the smaller, usually offshore, bank to experience a lower cost of operation.

Patriotic Act restrictions prohibit banks from doing business with offshore banks that have no affiliate in the USA. This fact and a number of other restrictions make setting up and running an offshore bank very difficult in this day and age.

A NZOFC, especially with a New Zealand director, will typically not have problems setting up a working relationship with a registered bank in New Zealand.

The NZOFC Alternative

Because of the difficulty in obtaining a banking license and the difficulty, if a license is obtained, of finding a correspondent bank willing to deal with the paperwork many have found a better solution, the NZOFC

A NZOFC or New Zealand Offshore Financial Corporation is not a bank. A NZOFC will not do business with residents of New Zealand which is typical of offshore companies. However, such a company can do business with persons and corporations from throughout the world.

Setting up a relationship with a New Zealand bank will allow the NZOFC to operate internationally.

A NZOFC has no capital requirements. It can take deposits, lend money, offer wire transfer services, and issue credit and debit cards. A NZOFC can provide payment processing services, manage funds, market investments, and deal in a variety of other financial instruments and guarantees.

New Zealand

New Zealand is a good and safe place to do business and to do business from. The country is developed, safe, democratic, and pro business.

New Zealand is an island nation (two islands) east of Australia in the Southern Hemisphere. New Zealand is part of the British Commonwealth. This business friendly nation has always had a democratic government. It is politically stable and functions strictly under the rule of law. This is not a place where the laws change overnight to the detriment of investors.

New Zealand law provides for banking type services to be offered by a number of business entities including finance companies, building societies, credit unions as well as capitalized and registered banks. A finance company is unique in that it is not subject to capital requirements and is not supervised by the governing authority for banks, the Reserve Bank of New Zealand. Nevertheless a finance company can offer banking services throughout the world, restricted only in that in cannot offer services to residents of New Zealand.

New Zealand has a well respected banking system with both Registered Banks and offshore institutions. New Zealand is not on anyone's blacklist for suspected money laundering, etc. Organizations such as the Organization for Economic Cooperation and Development, OECD, do not list New Zealand as a tax haven. In fact New Zealand is a member of OECD as well as the World Trade Organization.

English is the primary language of New Zealand which was a crown colony and is a member of the British Commonwealth of Nations. The majority of law pertaining to financial institutions is based upon English banking law. New Zealand is not a European Union member and not obliged to follow the EU Savings Tax Directive.

New Zealand is a modern country with first world infrastructure including roads, air transport, telephone, internet, and health services. With broad band internet New Zealand offers no internet related impediments to doing banking business by internet throughout the world. The economy is strong and stable and its professional community functions of a level of competence consistent with the best in the world. Any issues a NZOFC may come up against will be handled professionally and competently with the highest prospects of favorable resolution.

A NZOFC

Besides operating under English banking law New Zealand encourages local investment by offshore entities to provide world wide banking services from this island nation. In order to facilitate the set up of financial companies in New Zealand the country has streamlines is rules and regulations to make the application process and running the actual business "use friendly." The lack of unduly harsh and cumbersome regulations makes setting up a NZOFC efficient and lends toward profitability of an ongoing operation. New Zealand is a good place to do business.

It is possible to set up a NZOFC and offer identical services to those which a bank would offer. However, the cost of operation of a NZOFC will be substantially less than that of a regular bank in New Zealand starting with the fact that the operation will be subject to no capital requirements. A NZOFC can offer online banking services to clients all over the world. In keeping with its policy of attracting business to New Zealand's shores such a company will have low initial costs and low operating costs compared to a registered bank.

An addition capability of a NZOFC is that it can act as a hedge fund with the attendant possibility of substantial profit. It is also possible with professionally designed financial/banking software to run a NZOFC with minimal personnel thus keeping costs to a minimum too. There are very few limitations to who can operate a NZOFC. NZOFC services are essentially bank services but the company cannot call itself a bank or use the word "bank" in it name. It is possible to obtain private label debit and credit card support also.

A NZOFC will have a director and at least one shareholder. These individuals or corporations can be of any nationality.

Although the paperwork is not extensive and is in English it is best to obtain competent counsel in setting up a NZOFC. A competent advisor will form and register the NZOFC and can maintain the legal aspects of the company. In setting up such an entity it is important to understand those with the knowledge to set things up and that they understand you. In setting up a NZOFC the principals need to have a clear idea of what services they wish to offer and make sure that those services are included in the beginning an ongoing business plan. Knowing tax consequences of the business, for example, will be something that you will want to know up front.

Clear Rules and Regulations under the Rule of Law

As a former British Crown colony and member of the British Commonwealth of Nations New Zealand is a country steeped in legal tradition and law. New Zealand laws pertaining to a NZOFC are based on English banking law, are clear, and reasonably straightforward. As we have noted a NZOFC is not a bank and is not subject to supervision or regulation by the central banking authorities in New Zealand. However, various facets of what a NZOFC does are covered in a number of laws in New Zealand. What this means is that the investor who sets up a New Zealand Offshore Financial Company can be assured that there will be surprise rulings or changes in regulations.

Law pertaining to NZOFC's are spelled out in a number of statutes going back as far as 1908 with the Bills of Exchange Act, and progressing over the years with the 1952Property Law Act, the Cheques Act of 1960, the 1969 Unclaimed Money Act, the 1971 Stamp and Cheque Duties Act, the Securities Act of 1978, the Fair Trading Act of 1986, the 1989 Reserve Bank of New Zealand Act, the Proceeds of Crime Act of 1991, the Companies Act and Consumer Guarantees Act of 1993, the Financial Transactions Reporting Act and Investment Advisers (Disclosure) Act of 1996, the 1999 Personal Property Securities Act, the Electronic Transactions Act of 2002, and the 2003 Credit Contracts and Consumer Financial Act.

This is not a list that the investor needs to memorize. Certainly none of these acts was written specifically for NZOFC's. This list is simply meant to demonstrate that the NZOFC is well founded in various statues of New Zealand law. The rules and regulations NZOFC are embedded in the fabric of New Zealand law making it a safe as well as potentially lucrative offshore business setup.

Running a New Zealand Offshore Financial Company

The principal or principals setting up a NZOFC will want to have a degree of knowledge and expertise in various financial matters relating to the services the company will offer. However, the principles need not expect to be expert in every aspect of setting up such an organization from day one. That is what competent counsel and technical experts are for. With the right people an individual or corporation setting up a NZOFC can expect expert assistance with general organization of the company, setting up a bank account in New Zealand or elsewhere, setting up the ability to provide wire services, and all aspects of the application process. With competent assistance the company can efficiently obtain the appropriate documentation and licensing necessary to operate as a bank in all but name.

Much of the work done by a NZOFC will be facilitated by a relationship or relationships with registered banks in New Zealand or elsewhere. These relationships are typically in place already through the advisor and counsel who will help set up the organization. The use of at least one New Zealand resident as a company director will often ease the way in dealing efficiently and quickly with set up and management issues as relate to banking relationships.

The "sovereign democratic federal state" of St. Christopher-Nevis (as its 1983 constitution ceremoniously describes it), has a governmental form and name almost bigger than its population (45,000), and total land area (267 sq. km.).

But this tiny West Indies island nation, known to the natives as "St. Kitts-Nevis," has become very big in certain exclusive international financial circles. That's because Nevis has no taxes, extremely user-friendly incorporation and trust laws, and an official attitude of hearty welcome to foreign offshore corporations and asset protection trusts.

In his second voyage to the New World in 1493, the year after Columbus discovered what was to become known as "America," (actually landing first at what is now the Dominican Republic), his explorations included two of the Leeward Islands. One of these he named (perhaps for a bit of ego gratification), St. Christopher, much later shortened to the current "St. Kitts."

It is reliably reported that when Columbus saw the smaller of the two islands, two miles south of St. Kitts, he was instantly impressed by the majestic volcanic mountain in its center, an almost perfect cone rising 3,232 feet, smothered in thick clouds. His diary indicates the intrepid Columbus was reminded of the snow-capped peaks of the Pyrenees, and so he named the island Nieves, the Spanish word for "snows."

Though Columbus claimed the islands for Spain, the first colonization was by the British in 1623 and 1628 respectively. In fact these islands became the mother British colony in the Caribbean, the launching pad for other settlements in Antiqua, Barbuda, Tortola, and Monserrat. The French arrived a few years later, inexplicably bringing a bunch of monkeys with them, and they (the French, not the monkeys) also used the islands as a starting point for their West Indian colonial designs in Martinique, Guadeloupe, St. Martin, St. Barts, La Desirade, and Les Saintes.

Located 225 miles east of Puerto Rico and about 1,200 miles south of Miami, until the islands September 19, 1983 declaration of independence, both were British colonies.

The islands are now a member of the Commonwealth of Nations and recognize as nominal head of state, Queen Elizabeth II, who appoints a local Governor General. The elected unicameral Parliament sits in the capital of Basseterre on St. Kitts (population 35,000), but Nevis (10,000) has its own Island Assembly as well, and retains the constitutional right of secession from St. Kitts. Now and again newspapers in Nevis (pronounced NEE-vis) issue heated editorial demands for separation, but if it happens, it will be without shots being fired, other than a few verbal salvos.

The tiny 2-island nation is a member of the United Nations, the Organization of American States (OAS) and is an associated Commonwealth participating state of the European Union (EU). It is also a member of the Caribbean Community (CARICOM) economic and trading group, along with fourteen other area nations including the Bahamas, Bermuda and Belize.

Although it was formerly a member of the British sterling bloc, the country's currency is now the Eastern Caribbean dollar used by several CARICOM nations, pegged to the United States dollar at a rate hovering around EC$ 2.60 to 2.70, to US$ 1.00. U.S. currency is freely accepted, but your change will be in EC dollars.

Most St. Kitts-Nevis islanders are descendants of African slaves imported by the British and French, the original American West Indian natives being long since extinct. The population is 94 percent black, 40 percent urban. English is the official and spoken language, but with a lilting West Indian accent, "mon."

The legal and judicial system, originally based on English common law, has now incorporated many of the basic elements of United States commercial law, especially that of New York and Delaware, for good reasons that will be clear in a moment.

The islands have a pleasant, healthy climate, warm with cool breezes throughout the year, low humidity and no real demarcated rainy season. Average annual rainfall is about 55 inches, most of it in the fall, which is also the hurricane season. The official tourist "season" is from December 15 to April 14, only because that's when weather is nastiest in the northern hemisphere and Caribbean islands most fashionable. Temperatures year-round average 78 to 85 degrees Fahrenheit, and from November through January the islands experience increased "Christmas winds," as they are called locally.

A low-key economic promotional program authorized by the 1984 "Citizenship Act" offers nationality and a passport in return for a $200,000 investment, usually the purchase price of a seaside condominium and certain "fees." Citizenship for the investor and spouse are included in the deal. (A less expensive route to citizenship is marriage, since St. Kitts & Nevis is one of the few countries that gives instant citizenship upon marriage to a spouse of either sex.)

Nevis is attractive for financial reasons, as we shall see, but it is also known for its natural beauty -- long, curving beaches of white and black sand, lush foliage and flowers, mineral spa baths and restored sugar plantations now used as charming country inns, many nestled high in the mountains surrounded by lavish tropical gardens. For the energetic resident there is mountain climbing, swimming, tennis, horseback riding, snorkeling. But the going is easy here with hammocks for naps, lobster bakes on palm-shaded beaches, candlelight dinners in stately dining rooms and relaxation on romantic verandas.

Nevis is located two miles south of St. Kitts, a leisurely 45-minute ferry ride away, except Thursday, which is ship maintenance day, and the Sabbath. There is also inter-island air service.

The "Premier Off-Shore Corporate Jurisdiction"

That's the way local boosters describe the smaller of the two islands, Nevis, where its capital, Charlestown, has become a miniature international corporate business center.

About 1,200 of the island's 9,300 inhabitants live in the town, founded in 1660, a place full of ancient buildings with fanciful galleries, elaborate gingerbread woodwork, shutters, colorful hanging plants -- and a small but effective cadre of international corporate and asset protection experts, both lawyers and bankers.

The British Virgin Islands has reversed recent trends by becoming the only offshore financial centre to have its rating boosted in the latest Global Financial Centres Index (GFCI 9).

The improvement comes against a backdrop of decline among all other offshore jurisdictions. The ninth edition of the GFCI revealed that the BVI has improved its GFCI rating by two points, securing 40th place in the rankings outright, having previously shared the spot with Brussels.

BVI's achievement was made all the more remarkable by the fact that every other offshore centre fell in both the ratings and rankings, continuing a trend that began with the global financial crisis in 2008.

Sherri Ortiz, Executive Director of the BVI International Finance Centre, believes the BVI's boost in the latest edition of the GFCI is testament to the centre's ongoing commitment to regulation, transparency and continued growth in its financial services offering.

"We are obviously thrilled to witness the jurisdiction's advancement in the GFCI ratings and gaining a higher ranking while so many others have slipped is a real achievement," she said. "However, we know a number of threats continue to be mounted against offshore financial centres and we continue our work to position the BVI to strongly rebut these challenges."

Commenting on the challenges faced by the BVI, the government said:

"GFCI 9 has been published at a time when offshore financial centres continue to be subject to scrutiny from international bodies such as the OECD. However, the BVI has been on OECD's "white list" of compliant jurisdictions since August 2009 and signed its 20th Tax Information Exchange Agreement, with India, in February of this year. The financial centre continues to be viewed internationally as a well-regulated, cooperative and compliant jurisdiction. Public revenues have also remained steady throughout the financial crisis."

"In fact, an International Monetary Fund report published in October 2010 indicated that the recent global financial crisis has not affected the health of BVI financial institutions. The report further acknowledged the BVI Financial Services Commission's (FSC) cooperation as a full partner in international information sharing alongside the strength and independence of the BVI's regulatory regime."

The government further said that "The BVI's strong performance in GFCI 9 confirms the findings of the June 2010 follow-up report by the Caribbean Financial Action Task Force (CFATF), published in October last year, where the team examined the capacity, implementation and effectiveness of the BVI's institutional framework, laws, regulations and systems. The report found that recommended actions from 2008 have been met or adequately addressed the examiners' recommended actions and concluded that 'these measures demonstrate Virgin Islands' commitment to complying with FATF AML/CFT standards'."

Limassol, Cyprus, 03/21/2011 - DeltaQuest Group has launched another of their online specialized service portals: MyBankingLicense, which is specifically designed to assist clients in obtaining offshore banking licenses in over 15 jurisdictions worldwide.

MyBankingLicense.com offers clients from across the globe assistance in acquiring both onshore and offshore banking licenses. The DeltaQuest Group consultants have expert knowledge in the procedures of country specific banking licenses and provide specialist expertise and guidance with respect to the regulatory framework of obtaining a banking license and forming an offshore bank.

The services provided on mybankinglicense.com include; preliminary consultancy, company formation, business plan preparation, capital adequacy consultancy, compliance advisory, fit and proper test, SWIFT membership, card issuing license, acquiring license and correspondent bank relations.

The DeltaQuest Group is a leading legal consultancy company and specializes in corporate, legal, management and offshore services. They have broadened their online portfolio to include their offshore banking license and bank formation services, with the introduction of MyBankingLicense.com/.

The MyBankingLicense.com portal allows for individuals and businesses alike to obtain banking licenses suited to their needs, in jurisdictions of their choice. The offshore banking sector is gaining weight in the banking industry and is now a popular choice for people to set up banking businesses. A banking license enables you to engage in a range of banking activities, regardless of the area of banking you are interested in; whether it be retail of private banking, DeltaQuest Group consultants can assist you from the introductory interview stages to the final steps in becoming an offshore bank license holder.

DeltaQuest Group consultants offer specialist knowledge and guidance to facilitate the process in obtaining a bank license, these procedures are known to be lengthy and fairly complex which is where DeltaQuest Group comes in. Their consultants have many years of experience in offshore banking and will make the process of obtaining the bank license as efficient and stress free as possible, they will also advise you on the best location to open your offshore bank in.

MyBankingLicense.com also offers bank license packages, the principal banking package offered by DeltaQuest Group permits the holder to engage in merchant acquiring, cash management, fund management, trade finance and retail banking. Depending on your individual needs, DeltaQuest consultants provide detailed information about the types of banking licenses available to you in your chosen jurisdiction, whether it is a restricted or unrestricted license.

About MyBankingLicense.com
MyBankingLicense.com is an online portal offering specialist expertise in obtaining an offshore bank license specific to your chosen jurisdiction. The DeltaQuest team can also assist clients in all areas of offshore banking related activities, from deciding which license best suits your needs to the formation of the offshore bank.

MyBankingLicense.com provides a range of comprehensive offshore banking services for clients including applications for bank licenses, offshore bank formation, offshore banking legal support, tax advice and banking software. These services are managed by the DeltaQuest consultants who are specialists in this unique area of offshore business and are offered in all jurisdictions which comply with the relevant offshore banking law.

About DeltaQuest Group
DeltaQuest Group (deltaquestgroup.com) was established in 1998 by a group of successful individuals with many years of experience in different fields of business life: law, accounting, banking, commodities trading and shipping. Today DeltaQuest Group is one of the most dynamic consultancy and legal services firms employing over 250 employees and having a network of representations and offices in 58 countries.

Complaint Alleges Over 100 Cases of Seychelles' Seizure of Funds Without Justification, While Accepting IMF Loans and Help from The African Development Bank and Devastating the Nation's Offshore Banking Industry

NEW YORK--(BUSINESS WIRE)--Two Companies, Cooperhill Investments Limited and Kazou BV, recently filed a lawsuit in the United States District Court for the Southern District of New York seeking to recover $10.8 million that the companies allege the Republic of Seychelles illegally seized from them in 2010. As alleged in the complaint, this seizure is the latest in a campaign of financial piracy by the Republic of Seychelles, which has seized over 100 bank accounts of foreign individuals and companies since 2008. Following a consistent pattern of behavior that has been exposed in two previous lawsuits alleging financial piracy, the Seychelles' Financial Intelligence Unit (FIU), who took the money, has offered no explanation at all for its seizure of the assets. One of these prior lawsuits, according to the Complaint, alleged that Seychelles even kidnapped foreign nationals, threatened them with false drug charges and harassed a teenage girl to meet its goal of stealing money from the plaintiffs in that case.

The Complaint alleges that this program of state-sponsored financial piracy is being undertaken by the Republic of Seychelles in order to rebuild its foreign reserves as the result of an acute financial crisis stemming to 2008. Furthermore, as the Complaint pleads, Seychelles is obtaining financial assistance from both the International Monetary Fund (IMF) and the African Development Bank, while, at the same time, stealing money from Seychelles' banking customers. This conduct, the Complaint alleges, is consistent with findings of the U.S. State Department that Seychelles officials sometimes engaged in corrupt practices with impunity.