CURRENT OFFSHORE BANKING OVERVIEW! If  it weren't for the lies, distortions, and self-serving  propaganda distributed by the Government, the I.R.S., and the  Bankers, you wouldn't cringe every time you hear the term "Offshore Banking." Why? - Because most people haven't the foggiest idea of what Offshore Banking is, they simply  accept the distortions they read in the controlled media and ASSUME that Offshore Banking is some form of criminal  activity. Or, they ask their lawyer, accountant or financial  planner and he, being as uninformed as they are, advises that  it is too risky, illegal, immoral, or unethical. The  fear and suspicion surrounding Offshore Banking is really only  a matter of "Lack of Knowledge & Information". Very few  people, including both those who condemn it and those who  promote it, really KNOW what offshore banking is. BUT, the  Government, the I.R.S., and the Bankers do know that money  held outside the U.S. is money they cannot legally control,  tax, or use for their purposes. That's why they are adamant in  their defamation and condemnation. They don't know what it is,  but they know it takes money out of their  hands. Unfortunately, those who promote offshore  banking have done little, or nothing, to alleviate or satisfy  the fears and suspicions of the public. As a matter of fact,  because they themselves do not know what offshore banking  really is, these promoters have given the Government, the  I.R.S., and the Bankers the ammunition needed to keep the  public in a state of fear and suspicion regarding offshore  banking, investments, and opportunities. Helping keep your  money in U.S. banks; paying you less and taxing what little  you do earn. So... before we go any further... lets  define Offshore Banking. Then, unlike the politicians,  bureaucrats, bankers, and promoters, YOU will know what the term means. WHAT IS OFFSHORE BANKING? The term  "offshore banking" actually has TWO (2) different and very  distinct definitions; but, I couldn't find either one of them  in any of my dictionaries. One meaning is "MECHANICAL" and the  other is "FUNCTIONAL". Only by knowing both definitions and understanding the relationship, yet distinct differences,  between the two, will you be able to make a decision based on  KNOWLEDGE rather than ASSUMPTION. Since the  "Mechanical" and the "Functional" definitions of offshore  banking have been so intermingled and confused by almost  everyone, it will be necessary to, first define them  separately and distinctly, and then explain why the confusion  exists. MECHANICAL DEFINITION In the "legal" community (lawyers, governments, etc.) the term Offshore  Banking is: A bank "licensed" to do business only outside the  jurisdiction in which it is chartered &  licensed. That means: A bank holding an offshore  banking "license" may engage in most, some, or all activities  (including but not limited to checking, savings, loans, etc.)  normally carried on by any other bank -- but -- that bank CAN  NOT offer or provide those services to the "residents" of the jurisdiction in which the bank is chartered and licensed. An example: A bank, "licensed offshore," in  the Bahamas may offer its banking services to anyone outside  of the Bahamas -- but -- that bank CAN NOT offer or provide  those services to the residents of the Bahamas. Some  jurisdictions allow offshore "licensed" banks to provide any  and all services normally provided by any other bank. Other  jurisdictions (such as the United States) limit an offshore  "licensed" bank to providing some few specified  services. YES -- the United States, through the Federal  Reserve Board, does authorize offshore banking -- but -- so  U.S. bankers can continue to defame and condemn offshore  banking, the Federal Reserve Board has decided to call the  U.S. Offshore Banks by the officious title, "International  Banking Facilities (IBF)." "International Banking  Facility" or "IBF" means a set of asset and liability accounts  segregated on the books and records of a depository  institution, United States branch or agency of a foreign bank,  or an Edge Act or Agreement Corporation that includes only  international banking facility time deposits and international  bank facility extensions of credit. -- 12 C.F.R 204.8(a)(a)  published at Fed. Reg. 32429 (1981). The U.S. law,  although it does not call itself offshore banking, contains  the very elements under which offshore banks are licensed in  other jurisdictions -- i.e. the IBF must be licensed as a  bank; maintain a set of asset and liability accounts on the  books; and CAN NOT provide services to residents of the United  States. As you can see from the U.S. law authorizing  IBF's offshore "licensed" banks are most often (but not  always) A BOOKKEEPING SYSTEM ONLY. Offshore "licensed"  banks, by and large, are BOOKKEEPING SYSTEMS ONLY. For that  reason, they have a very, very low overhead cost in doing  their business. They do not spend their depositors money on  fancy buildings; redundant employee's wages; or the expensive,  non- productive accoutrements found in most U.S. banks.  Therefore, an offshore "licensed" bank is in a position to pay  higher interest to its depositors by virtue of the fact that  less money is spent on fancy and expensive non-productive  frills. Because offshore licensed banks are, by and  large, Bookkeeping Systems Only, they keep and maintain their  operational cash accounts in "checking accounts" with other  commercial banks. Checks drawn on the account are used by the  offshore licensed bank to pay its debts, make loans, invest,  pay interest, or any other normal business purpose. The  Bookkeeping System of an offshore licensed bank, which records  the assets, liabilities, income and expense of the bank,  maintains the records of the bank's depositors and allows the  officers of the bank to make investments and loans from the  public deposits held. The yield from those investments and  loans are the earnings of the bank, which are used to pay the  expenses of the bank and interest to the depositors and the net operating profit to the bank are much, much higher than in  a commercial bank with all of its expensive, non-productive  costs. FUNCTIONAL DEFINITION To the "depositor  public" at large, an Offshore Bank is: ANY BANK OUTSIDE THE  COUNTRY IN WHICH THE DEPOSITOR LIVES. That means: Any  bank outside the United States is an offshore bank, if you are  a resident of the United States. An example: If a U.S.  resident maintains an account of any kind in a bank in Canada;  that bank is an offshore bank for that account  holder/depositor. And, the same holds true for a Canadian  having an account in a U.S. bank. Any time you have  money deposited in, or invested with, a bank in a country  outside of the country in which you live and work, you are  "Banking Offshore," even if that bank is just across the  imaginary borderline between the U.S. and  Canada. Throughout this report, the terms "Offshore  Bank" and "Offshore Banking" shall be used for any bank or  banking service that qualifies under the FUNCTIONAL  DEFINITION, -- at anytime we refer to a bank under the  MECHANICAL DEFINITION, it shall be referred to as an "Offshore  Licensed Bank." Of course, any bank situated in the country where you live and work shall be referred to as a"Domestic  Bank." WHAT ARE ESSENTIAL DIFFERENCES? A Bank is a Bank is a  Bank is a Bank -- whether that bank be a Domestic Bank, an  Offshore Bank, or an Offshore Licensed Bank. No matter  how a bank is structured, where it is licensed &  chartered, or where it does business, ALL BANKS use the same  channels (exchanges, clearing houses, etc.) to facilitate the  movement of funds internationally and/or domestically.  Therefore, since all of the banks in the world are indirectly  connected through their correspondent and inter-bank  relationships, there is no real confusion arising from the  transacting of banking business. The confusion  regarding Offshore Banking is only a matter of "legal  jurisdiction," arising from the fact that no country may  impose its laws in another country without the country's  consent and cooperation. Because of the wide variety of  laws around the world, what is illegal in one country may be entirely legal in another country. Any country can, through  its various policing agencies, investigate any person residing  in their country for a violation of their laws. That same  country, however, has no legal right to investigate the  activities of any person in any other country without first  obtaining the consent and cooperation of the country in which  the investigation is to be conducted. Even then, the  investigation must be conducted under the law of the country  in which the investigation is to take place, not under the laws of the country conducting the investigation. As an  example: The U.S. can not investigate anything in Canada,  without the consent and cooperation of the Canadian  government, and the Canadian Government is totally within its  international rights to refuse to consent or cooperate in the  investigation, Further, countries will not (usually),  without a specific treaty or agreement, assist another country  in enforcing or investigating a crime that is not a crime in  their country. As an example: income tax evasion is a  crime in the U.S., however, in countries that do not impose an income tax, income tax evasion is not a crime. Therefore, those countries are not obligated (and usually don't) assist  the U.S., or any other country, in enforcing or investigation a tax law which does not exist in their own  jurisdiction. THEREIN lies the confusion -- Offshore  Banks, and Offshore Licensed Banks, located in countries that  do not have income tax laws do not (usually) assist the U.S.  Internal Revenue Service in enforcing, or investigation  violations of U.S. tax laws. Therefore, without the consent  and cooperation of those countries, the I.R.S. cannot (in most  cases) get information regarding financial transactions  conducted in those countries by Tax Evaders in the  U.S. Since the I.R.S. is the tax-collecting arm of the  U.S. Government; upon which the Government depends to collect  moneys for its self-serving purposes, the Government readily and willingly supports the I.R.S. in its condemnation of  Offshore Banking. But, why do the Bankers join in the condemnation? The reason is simple. If you take your  savings account out of a U.S. bank and place it, offshore, in a bank in another country, the U.S. bank doesn't have your  money to use any more. To keep you from doing that, the  Bankers jump on the bandwagon to condemn Offshore Banking;  even though a good many of them do have deposits from other countries and do, therefore, benefit from Offshore Banking themselves. As long as they can keep YOU confused, fearful and suspicious about Offshore Banking, they have YOUR MONEY in  their banks to use for this purpose. IS IT ILLEGAL TO BANK OFFSHORE? The U.S. DOES NOT and WILL NEVER have a law forbidding the taking of money out of this  country. WHY? No country that depends upon  international commerce for its existence can write such a law without destroying its own economy. And, if you will notice,  the U.S. has consistently and continuously had an  international trade deficit; which simply means we "buy" more  internationally than we "sell". If the U.S. had a law  forbidding or restricting the movement of U.S. Dollars outside  this country, we would have NO international trade. Companies  overseas would not be able to buy U.S. goods because they  wouldn't have any U.S. dollars, and companies in the U.S.  would not be able to buy goods overseas, because the companies  in those countries wouldn't be able to accept U.S. dollars. Therefore, you, as a resident of the U.S., may  legally move your money anywhere in the world you want. There  is NO RESTRICTION on the amount you move, where you move it,  or how you move it. The ONLY REQUIREMENT imposed upon  you by the U.S. Government is that you must "REPORT" any  movement of cash or certain monetary instruments out of this  country of $5,000 or more. If you've ever been on an  international flight of the U.S., you can probably remember  being given a form to complete that asked you if you were  carrying cash or bearer form negotiable instruments over  $10,000 in value. If you read the complete form, it told you  that it was NOT ILLEGAL to have the money with you, or to take  it out of the country, but it was illegal not to report  it. REPORTING REGULATIONS How many times have you been told that, if you send a deposit of more than $10,000  to an offshore bank, you MUST report it to the  Government? THAT'S WRONG! The law (P.L. 91-508,  31 USC 5316) requires ONLY the reporting of the transportation  of "currency or certain monetary instruments" in an amount  exceeding $10,000. That means: You may move as much money as you want offshore, at any time, WITHOUT REPORTING IT TO ANYONE, as long as you don't send "currency or certain  monetary instruments." You probably know what  "currency" is, but what are the "certain monetary instruments"  referred to in the law? Both "currency" and the "certain  monetary instruments" are defined at law 1 CFR 103.11, as amended), and those definitions are repeated  here: CURRENCY: The coin and currency of the  United States or of any other country, which circulate in and are customarily used and accepted as money in the country in  which issued. It includes U.S. silver certificates, U.S. notes  and Federal Reserve notes, but does not include bank checks or other negotiable instruments no customarily accepted as  money. MONETARY INSTRUMENTS: Coin or currency of  the United States or of any other country, travelers' checks,  money orders, investment securities in bearer form or  otherwise in such form that title thereto passes upon  delivery, and negotiable instruments (except warehouse  receipts or bills of lading) in bearer form or otherwise in  such form that title thereto passes upon delivery. The term  includes bank checks, travelers checks and money orders which  are signed but on which the name of the payee has been omitted, but does not include bank checks, travelers' check or  money orders made payable to the order of a named person which  have not been endorsed or which bear restrictive  endorsements. If you will notice, the last phrase of  the definition of "Monetary Instruments": clearly states,  "does not include bank checks, travelers' checks or money  orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements." (By the way, a "person" under the law  includes any individual such as you or me, and any legal  entity such as a corporation or bank.) So... if you  make a check or money order payable to an offshore bank (which  is a "person" under the law), even if it is for over $10,000,  you DO NOT have to "report" the transaction to  anyone. Or... if you have a check or money order which  is payable to you, you can endorse it with a restrictive  endorsement -- i.e., "Pay To The Order Of: XYZ Bank" -- and  you DO NOT have to report the transaction to anyone. By  the way, the U.S. Customs Service has published a circular  (Circular: ENF-4-$:E:P) for its employees which clearly  defines and illustrates (with drawings and pictures) exactly  which monetary instruments must be reported and which ones are  "exempt" from reporting requirements. Although you DO  NOT have to report your transactions to anyone -- no matter  how much money you send for deposit offshore unless you send  "currency" or the "certain monetary instruments") - - you will  still have to file a "Report of Foreign Bank and Financial  Accounts". (Treasury Form 90.22.1) on or before June 30 each  year -- but -- if you have 25 or more foreign accounts, you  won't have to report where those accounts are or how much  money you have in each account; unless the Department of  Treasury specifically asks you for that information at a later  date. Update 2006: Owing to the various "terrorist"  acts initiated since 9/11/2001, there have been some up dating's  and changes in most of the rules and regulations regarding the  movement of money worldwide. For that reason, you may want to  a search for "P.L. 91-508, 31 USC 5316" on Google. Although I  didn't find any major changes, there are some new rules and  regulations of which you should be aware. UTILIZING AN OFFSHORE ACCOUNT LEGALLY Anyone who holds a Checking or  Savings Account in a U.S. Bank may, legally, move that account to any other bank, anywhere in the world (offshore). If  you have a Savings Account in a U.S. Bank, the odds are that  you have already paid your income tax on that money; before  putting it in your Savings Account. Therefore, your only  further tax obligation on that money is to pay the income tax  on the interest you earn. As an example: If you are a  tax-paying, law-abiding person, and have saved $100 from your paycheck, you have already paid the taxes on your income. The  $100 is your after-tax money, therefore you don't pay taxes on  it again. At the end of the year, when the bank sends you your  Savings Account statement, you add your interest earnings to  your income tax statement and pay your taxes on that earned  income. The same thing holds true if you have your  savings account in an offshore bank. At the end of the year,  when you get your statement, you simply add the amount of  interest earned to your income tax and pay the taxes on that  earned income. HIGHER INTEREST EARNINGS Statistically,  Eurodollar (offshore) accounts pay at least 20%more than  domestic U.S. dollar accounts. You can prove it for yourself  by simply comparing the current U.S. T-Bill rate to the Euro-Dollar Bond rate; as published in the financial section  of your daily newspaper. The Euro-Dollar Bond rate is ALWAYS  higher by at least 20% or more. Beyond that statistical  difference, Offshore Banks can usually offer much higher  interest rates than their U.S. counterparts because one of the  highest non-recoverable costs of doing business in the U.S. is  taxes (income, property, ad valorem, etc..), significantly  reducing the earnings available for distribution to their  depositors and investors. Banks operating in, or from, tax  haven jurisdictions; not being burdened with those  non-recoverable tax costs, can offer their depositors a much  higher return. As a matter of fact, in some  jurisdictions (outside the U.S.), banking establishments are tax exempt on their earnings, or they are allowed certain  exceptional write-downs of earnings, in order to protect the bank's depositors. With the huge drop in interest rates  in the U.S., Offshore Banking opportunities have become even  more attractive. At this writing, interest rates offered in the Offshore Banking community are as much as 2 to 4 times the  interest rates available from U.S. Banks. (And, some offshore  investment opportunities are averaging as high as 6 to 8 times the interest earnings available from U.S. Banks.) MYTHS  & FACTS MYTH: Offshore Banks can't really pay the  high interest rates they offer because, if banks could really pay those rates, U.S. banks would try to meet the competition  and do the same. FACT: Take a closer look at the  financial statements of any U.S. Bank. You will find that  their "gross" profits against public deposits can range from  25% to 40% -- but -- they have written laws to limit the  amount of interest they can pay you on your deposit. The U.S.  banks put their earnings into unnecessary and non-productive  accouterments, while offshore banks do without the fancy  buildings and unnecessary frills and share their profits with  their customers. MYTH: Offshore Banks aren't regulated,  so you run the risk of losing all your money. FACT:  Nothing could be further from the truth. Every country in the  free world has laws, rules and regulations governing banks and  financial institutions. Those laws, rules, and regulations,  however, are far less restrictive than the "protectionist"  U.S. banking laws, rules, and regulations, allowing those  banks greater latitude in earning much greater profits for  their depositors and investors. MYTH: Offshore Banks  are not insured by the F.D.I.C. FACT: Some of them are  but, thank God, not that many. If they are, they must comply with the same protectionist banking rules and regulations as  any other F.D.I.C. insured bank. But, the vast majority of  offshore banks are insured; one way or another. Some  countries have established depositor insurance programs  similar to the F.D.I.C. program, by which the banks in those  countries have their deposits insured. Other banks in other  countries have their deposits insured by independent insurance  companies who, unlike the F.D.I.C., insure 100% of the banks  deposits; not just those under $100,000. (By the way, many  banks in the U.S. are not F.D.I.C. insured, and some of them  insure their deposits with independent insurance  companies.) For the most part, offshore banks are  "self-insured." That means those banks maintain a liquidity factor equal to 100% (or more) of their public deposits. For  every $1 held in public deposits, those banks have $1 (or  more) in liquid assets with which they can cover any depositor  demand. Self-insured offshore banks are actually more  secure than F.D.I.C. insured U.S. banks. The reason being,  F.D.I.C. insured U.S. banks are allowed to maintain a  liquidity factor equal to about 10% of their public deposits.  (Ever wonder why they U.S. has more bank failures each year  than any other country?) Which would you feel more  secure dealing with? -- A. U.S. bank that has 10 cents in cash  for every dollar on deposit? Or, an offshore bank that has $1 in cash for every dollar on deposit? MYTH: Offshore Banks aren't as big or strong as U.S. banks. FACT: Of  the largest and strongest leading banks in the world (in  assets), ONLY one is located in the U.S. (Back in 1986)  The leading banks in the world, according to a survey done by American Banker, were, in order: Dai-Ichi Kangyo Bank - Tokyo Fuji Bank Ltd. - Tokyo Sumitomo Bank Ltd. - Osaka (Japan) Mitsubishi Bank Ltd. - Tokyo Citibank NA - New York, U.S.A. Banque National de Paris - France Credit Agricole Mutual - France Sanwa Bank Ltd. - Osaka (Japan) Credit Lyonnais - France Norinchukin Bank - Tokyo Update 2006: Only the  names have change. MYTH: Offshore Banks can't be too good, or they would advertise their interest rates and  services in the U.S. publications. FACT: Offshore Banks  are restricted by law from advertising in U.S. publications;  unless they subject themselves to the very same protectionist rules and regulations imposed on U.S. banks. For that reason,  you should be wary of any offshore bank that publicly  advertises in U.S. publications. They have sold-out to the  U.S. banking establishment and may subject you to their  sell-out. MYTH: Offshore Banking is only for people  with a lot of money. FACT: Some 20 years ago, that may  have been true. Today, an offshore savings or checking account can be opened with a minimum deposit as low as $100. (Back in  1986) I know of one offshore bank paying 9%, compounded daily, on regular quarterly-statement savings accounts with a minimum  deposit of $100. Update 2006: In 2001, Bank of America  in the Bahamas was paying 5.5% on Savings Accounts while Bank of America in the U.S. was paying only .5% (one-half of one  percent). MYTH: Opening an offshore account is complex,  and you can't get your money back when you need  it. FACT: Opening an offshore account is no more  complex than opening an account with a money market fund (or  ordering from the Sear's catalog), by mail. Getting your money  back is just as simple. HOW TO OPEN AN OFFSHORE BANKING ACCOUNT There are organizations in the U.S. that will  assist you in opening an offshore bank account (in Switzerland  and other countries). Their "fees" for helping you open an  account can range from a few hundred dollars to a thousand  dollars (and, in some cases, much more) -- BUT -- don't waste  your money. You don't need them. To open an offshore  bank account, all you need to do is write to an offshore bank  and request information about opening an account. The bank  will send you all of the necessary forms; tell you what their  minimum deposit requirements are for various accounts; and  their materials will explain how to open an account and how to  make your withdrawals.   Making a withdrawal from your offshore account is just as simple. Depending upon the type of  account you open, you write a check or draft to deposit in  your U.S. bank account; send a withdrawal form direct to the  offshore bank; or send your certificate to the offshore bank  for redemption. The time it will take for you to get your money probably won't be much longer than the 10 to 15 days  hold most U.S. banks are now placing on your  deposits. Today, with instantaneous international  communications, the world is getting smaller every day. Now,  you can enjoy the exceptional interest earnings available from  offshore banks as easily as you deal with your local bank,  stock broker, money market fund, or Sears Roebuck -- by mail,  telephone, or telex. CHECK IT OUT FOR YOURSELF Before dealing with ANY banking facility, check  it out first. When dealing with an internationally  known and recognized banking institution, such as Barclays or  Citibank, you can forego much of your investigation. However,  I would still recommend that for your complete peace of mind,  you request and receive a copy of their annual report before  opening your account. (It is a matter of good, sound practice  to ALWAYS keep yourself informed about he banks you deal  with.) If the offshore banking institution you are  anticipating dealing with is lesser known, you should ALWAYS  request, and receive, a copy of their annual report before  making any deposits. Any "reputable" bank will ALWAYS be able  to provide you with adequate information upon which to base  your investigation. "Private" offshore, and offshore  licensed, banks are a completely different  animal. Before dealing with a "private" banking  operation you should request from them their latest financial  statements (preferably audited) -- AND -- the names and  addresses of their principals and  promoters. Inevitably, when I speak on offshore banking  and investments, I am asked,"How can I go about investigating  these companies?" My answer is, "Don't investigate the  company; investigate the principals and promoters. Know the  principals and you will know the company." You should  be extremely wary of any "private" banking operation that  cannot, or will not, provide you with the information you need  to satisfy yourself as to the credentials and credibility of  its principals and promoters. The wise investor must  deny the separateness of business and come to the realization  that behind each business entity there are real,  flesh-and-blood people who pull the strings and control the  works. By the way -- when was the last time you looked  at the financial statements of your local bank, or spent the  time to learn who the principals (people) are who are  controlling your money? BORROWING FROM OFFSHORE BANKS The  internationally accepted definition of a "bank" is an  institution specifically established and licensed for the  purpose of "accepting deposits and making loans." If it does  one, or the other, but not both, it is usually referred to as  a "non-bank bank." That being the case, any "bank" that  accepts deposits ALSO makes loans. Having published  Offshore Banking News from January 1983 until the early  1990's, I have been asked countless times, "Why don't you  publish the names and addresses of offshore lenders?" We did;  every month. The problem is, their ads go around disguised as  ads seeking depositors. REMEMBER THIS: If a "bank"  accepts deposits, it ALSO makes loans. Therefore, to  borrow offshore all you need do is follow the same procedure  you would follow in seeking a lending source in the U.S.  Simply write a"short" (not more than 1 page) letter of  inquiry to the offshore bank of your choice. Explain your  funding equirements, and ask the bank if they would be  interested in seeing a full financing package on your project.  (Have your"package" ready to go should one or more of the  banks indicate an interest.) But -- don't think because  the banks are offshore they are "easy" or"stupid". Just like  any bank in the U.S., an offshore bank will require all the same documentation, background and financial information normally required. As a poorly presented project will be rejected in the U.S., it will also be rejected offshore.   The major advantage to borrowing offshore is the same advantage in banking offshore.  The interest rates are less.  As there are jurisdictions where you can earn higher interest rates for your deposits, so too are there jurisdictions where you can borrow at lower interest rates.   As an example: Switzerland is well known for its banking secrecy, but it is notorious for its low interest rates. Borrowing offshore should only be considered  when you have a good, solid, bankable funding situation -- but  -- you are looking for the very lowest interest rate possible.  If your funding requirement will not meet the standards of the  U.S. banking community, the chances are it will not meet the  standards in the offshore banking community  either. PERSONAL PRIVACY Without a doubt, the  greatest violator of the privacy of U.S. residents is the U.S.  government itself. The various and many U.S. government agencies maintain a staggering total of over 3.5 billion files on U.S. citizens. Considering the country's population,  of 230 million people, the U.S. government agencies maintain  an average of 15 files on every man, woman, and child in this  country. When you consider that children, and other dependents  probably don't have separate files of their own, the average  number of files on adults rises even higher. Is it any wonder  Americans worry about their personal privacy? Update  2006: That was in 1986 ... today it is even  worse. Files and information maintained outside the  U.S. are neither part of, nor subject to, the scrutiny of the  U.S. government agencies. The U.S. government can (under  normal circumstances) only gain knowledge about your offshore  activities if you tell them about it -- or -- if you are  involved in some form of criminal activity in the U.S., and  their investigation in this country reveals to them evidence  of your offshore activities. Beyond the prying eyes of  the government, your nosey neighbors, business competitors,  ex- spouses, and other snoopy people may well attempt to keep  track of your financial activities for their own purpose. In  this country, even some of the more inept private detectives can easily gain access to your most personal records. However,  records and files on your activities outside the U.S. are  impossible for these snoops to get their hands (or eyes)  on. Banking offshore and maintaining your financial  records and files outside the U.S. allows you the maximum  Personal Privacy available. LEGAL TAX ADVANTAGES As  you are well aware, in the U.S., there are a multitude of  totally legitimate, and legal, "tax shelter" opportunities  available. The same kinds of"tax shelter" opportunities are  also available in almost every country in the free  world. Since the various I.R.S., Treasury, and  Securities Regulators governing "tax shelter" opportunities  are constantly changing, I will not attempt to give you  specific advice regarding such opportunities. But, by  realizing that legitimate and legal "tax shelters" exist both  in the U.S. and in other countries, you can better understand  that you can legally and legitimately shelter your income from  taxes; either here in this country or through a tax-shelter  opportunity in another country. When you find a "tax  shelter" opportunity, whether in the U.S. or offshore, have  your accountant or other tax professional check it out to see  if it conforms with governing regulations. Those professionals  are in a position to keep on top of the governing regulations  in effect at that time and advise you as to the legality and  tax advantage to be gained. SCOFF-LAW  APPLICATIONS As the government (any government) writes  more and more laws regulating the personal activities of the  citizenry (especially if those laws infringe the citizen's  earning capacity), more and more of the citizens will violate those laws without compunction, guilt or remorse. As an example: How many people do you know who have driven faster  than 55-miles-per-hour on a Federally funded  highway? Scoff-laws are, by definition, people who  scoff at, or flout, the law. They have no compunction about  violating those petty laws, rules or regulations that they feel are unreasonable, unrealistic, or infringe their personal  right to life, liberty, and the pursuit of  happiness. These people know that a government that  writes that many laws can't possibly expect to catch the vast  majority of people who violate them. Besides, even if they get  caught, unless they are a major offender, the penalties aren't  that severe or the powers-that-be may simply choose to  overlook the offense. As an example: Most police officers  simply overlook people driving faster than 55 m.p.h., but do  stop those people driving recklessly at any  speed. Because of the multitude of federal, state,  county, city and township tax laws in this country, the vast  majority of people in the U.S. have become tax scoff-laws. It  is physically impossible for any one person to know (or  understand) all of the various and many tax laws, rules, and  regulations. And, the people all know that it is impossible to  be in 100% compliance with all of those laws and, it is just  as impossible, for the government at its many levels to know  who is, or who isn't, paying which taxes under which laws,  rules and regulations. So... most people just report the  earnings, and pay the taxes, they absolutely have to, and feel  no remorse if they don't report some of the income they know  they should. If they do get caught, the penalties aren't that  severe (usually just a fine) and the odds are they won't be  caught. In the article entitled, "Offshore Tax Havens  Lure Main Street Money," which appeared in the August 1, 1983,  issue of U.S. News & World Report, Robert Mirshberger, an  assistant regional commissioner for the I.R.S. in New York was asked about the risk involved in tax cheating. His answer was,  "It would be an unfortunate happenstance if you were caught.  You would be a very unlucky person." The article continued with some examples of the ways modern-day scoff-laws use offshore bank accounts to cheat the U.S. tax  collectors: A doctor received a payment from a patient  and deposited the check in his offshore bank account. Since  the deposit doesn't appear in his business records, the chances are it would never be found, even if the doctor is  audited. One couple sold a piece of art work and had  the buyer send the payment direct to their offshore bank  account. Later, the couple used that money to enjoy a vacation outside the U.S. Mr. Mirshberger with the I.R.S. said,  "There's no way we would ever discover that." Another  example told of a bank customer who got his "unscrupulous"  banker to transfer large amounts of cash to an offshore bank account without reporting the transaction to the I.R.S. Then,  the customer borrowed the money back from the offshore bank.  Since loan proceeds are not taxable, no taxes were  paid. But these examples are only the tip of the  iceberg. It is no longer just the wealthy with art works to  sell or the professionals and businessmen with extra income to  hide. There are hundreds of thousands (maybe even millions) of  blue collar and middle-management white collar workers using  offshore bank accounts to reduce the unbearable tax load  imposed by the federal, state, and local  governments. To assist these tax scoff laws, literally  hundreds of professional advisors in the U.S. and offshore are  busy teaching tax scoff-law techniques; organizing methods and  techniques to make discovery impossible (or, at least, highly  improbable), and actually providing the services necessary to  implement those methods and techniques. Some are purely tax  evasion. Others tread the fine line between tax evasion and  tax avoidance. While others are legal and legitimate tax shelter opportunities. Americans have simply never  liked being taxed. In 1776, the tax scoff-laws of that time  revolted against unreasonable taxation. In the 1980's, the  modern-day tax scoff-laws, with instantaneous communications and high-speed international mobility, have chosen to avoid and evade rather than take up arms against the tax  oppressor. How long this trend will last, before the  modern-day tax scoff-laws choose to follow the example set by  their forebears and take up arms to defend against tax tyranny, is a question that should be in the mind of every government official. OFFSHORE BANKING IS THE SMARTER ALTERNATIVE As you have now learned, Offshore Banking, in and of itself, IS NOT evil, illegal, immoral or unethical. We have all been misled to think otherwise as the powers to be want to insure citizens keep their money and assets in U.S.  Just look at latest law attacking online gambling which entails mostly offshore entities.  The effectively handcuffed us all with a law forbidding the movement of funds to offshore casino firms, so is this freedom as we were assured in constitution?  Not to me it isn't.  The scandalous defamation and condemnations of Offshore Banking is only another ruse foisted upon the  gullible American public by the U.S. government and the U.S.  banking establishment. Their purposes, not offshore banking,  are evil in that the intent is to maintain control over YOUR  MONEY for their own self-serving uses. No matter what  the government and bankers tell you, their purposes are not  intended to restrain the criminal element. They know, as well  as you do, that criminals will do their evil deeds no matter  what laws they have to violate; it is the nature of their  endeavors. The true purpose of the government is to keep YOUR  MONEY within their jurisdiction. The true purpose of the  bankers is to keep YOUR MONEY in their banks. Using an offshore bank account legally; paying your taxes and reporting  your transactions, you can legally enjoy passive income 2, 3  or even 4 times greater than what you can earn in the  U.S. If you choose to use your offshore bank account  for tax scoff-law purposes, the matter will be between you and  your conscience. But, remember, your illegal use of an  offshore bank account does not make offshore banking illegal.  If you get caught, you, not the offshore bank, will be at  fault. For many years, moneyed people have known about  and used offshore banking opportunities in order to increase  their earnings, protect their assets, legally avoid taxation, and gain personal privacy for their financial affairs. Now, anyone with a good income, or modest savings, can enjoy the same exceptional advantages and free themselves from the negative forces active in this country. In recent years the U.S. dollar has eroded to the lowest level ever, yet are we to wait for it to totally collapse?  Is this being a good American, holding the dollar regardless of our personal losses?  I don't think so, in fact, the government has created this mess when they went off the gold standard, and now, are we suppose to pay for it?  Not me. CONCLUSION Don't pass up the exceptional interest earnings available to you simply because you have blindly accepted, without question, the myths regarding offshore banking.  A perfect example is Iraq.  If you open a bank account in Iraq, the current iterest rates are 20% annually, and a new electronic platform is near completion for safe transfer of funds. The fears and suspicions you may have held regarding offshore banking are nothing more than the protectionist scare-tactics used by the Government,  the I.R.S., and the Bankers to keep your money within their  grasp; limiting your earnings, by law (allowing them to keep  the lion's share for themselves), while taxing the paltry earnings they do allow. Why settle for the paltry earnings available to you through the restrictive, protectionist Federal Reserve System which has deceived all of us? To learn more on Iraq banking and investment opportunities, read below on how to secure an account now to enjoy these higher rates of return. Given the U.S. dollars decline, soon to get worse, perhaps converting your dollars to dinar is the most intelligent strategy of all given the Iraqi dinar is on rise of 13% over just the past few months alone, with a potential revalue to even higher value. The offshore banking community is available to you for your use. NO matter  how small your savings ability may be, there is a place for you to earn maximum returns... all you need do, now that you  know how Offshore Banking really works, is find the offshore  situation that will work for you.   This information of Offshore Investments was not provided by GWBOPC.