Asset Protection and Brokerage Accounts with a Second Citizenship
Executive Summary – There are really only two ways to accomplish secure asset protection. By secure asset protection what is meant is that the bank or stockbroker used does not know who you are. One way of doing this is to use Trust Agreement Banking where the law firm is the signatory on the bank account or stockbroker account. The other way is to obtain a second citizenship along with identity card, passport and driver license.
Second Passport Banking – The way this works is to obtain a second citizenship and passport from another country. The country used must not tax offshore-derived income. To use a country that taxes worldwide income is of course going to incur unnecessary expense, require filings of tax reports and defeat the purpose. The next consideration is to use a country that will allow one to do a name change that is not in the public records. It can be a sealed court proceeding held in judges chambers. You should be able to get at least two government issued photo identity documents one being a passport. The other document is usually a national identity card with a photo. This document is often referred to as a “Cedulla” in Latin America. Sometimes if one is a driver a driver license can be easily obtained as well.
More Details – One will usually have to travel to the country issuing the documents. This is to provide fingerprints, photos and signatures in the government offices. After documents are obtained then one should go to a bank in that country and open up an account with a nominal balance (say 0). This enables one to get a bank reference letter if needed. Then you get a reference letter from a lawyer in that country. Next rent a virtual office and have a cell phone billed to that address for a utility bill. This will get you all the requirements for opening a bank account in a solid jurisdiction like Switzerland, Singapore, Austria, Luxembourg, or Hong Kong. There are banks in Hong Kong and Switzerland that offer insurance on the entire account without any limitations backed by the government.
When you approach banks in these jurisdictions coming in as a citizen of a country that does not tax offshore derived income you will find account opening to be much easier. The bank knows that they are not going to have your country requesting records since your new country does not tax offshore-derived income. They are much more relaxed about giving you an account for this reason. It is like night and day if you are coming from a high tax country that taxes worldwide income.
Renunciation – It is most important to use a country that will not require the renunciation of any previously existing citizenship. Make sure there is no associated military conscription involved that could affect you.
Country Credibility – One needs to make sure the citizenship being obtained comes from a credible nation. No reliable bank will open a bank account for one with a passport from an African nation, except South Africa. Some people offer passports from non-existent countries like Hutt River or the World Passport for instance. These are real passports from not real countries. They are useless for travel or banking.
There are also passports being sold from countries that used to exist, but no longer exist such as Rhodesia or British Honduras. These are referred to as camouflage passports. Again, worthless documents good for nothing. When these passports from not real countries first hit the Internet market six or seven years ago they were working in terms of travel and opening bank accounts. Over time the banks and countries became educated about them and now they are completely worthless but they are still being sold on the Internet.
Asset Protection Value – Your financial enemies will not know your new identity. Remember a confidential name change is a vital ingredient of this package. They will not be able to locate any of your bank or brokerage accounts because they do not know what they are looking for. You do not need to have a corporation to cover your bank and brokerage accounts but we do recommend it anyway to protect your new identity. Anonymous bearer share corporations where the ownership records do not appear in any public registry or database are the best kind to use.
Real Estate Asset Protection and Second Passports – A great way to protect real estate is to have it in the name of your second passport. This can also work for boats, and airplanes. Again using a corporation as well is suggested. This makes punching through the asset protection structure near impossible.
Questions – If you are in need of a new citizenship and passport feel free to contact us for help in obtaining a second citizenship and passport. We usually have several Latin American options available.
Aurelia Masterson is an associate of Panama Legal law firm (http://www.panamalaw.org). She has years of experience in the field and now shares her observations of current events, politics, and law with the Internet community. She can be contacted at: email@example.com.
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