Dear ,

A specific type of Hong Kong pension law framework, when structured compliantly, can produce a cross-border financial financial structure that is government regulated, registered and recognized to reduce the cost of tax for cross-border investment into and out of any country in the world.

Set-up a pre-qualified AML & KYC Clean Nominee Bank Account

Letter of Engagement available upon request.

Has a bank told you they have no problem with FATCA, CRS or Automatic Exchange of Financial Information?

Some misunderstand what they have said. What they have said is ''we'' only accept transfers from Financial Institutions who have performed the AML & KYC.

For lack of a clean AML & KYC no financial institution would send or receive a transfer of funds.

Tax and Money Laundering are two separate issues. Paying tax does not clean dirty money. Money Laundering prosecution is for the receiver, processor, anyone who touched or had influence over the money and the advisor.

The Clean Nominee Bank Account Third Party Administer is a Financial Institution recognized by Financial Institutions globally as a freeway to transfer in money.

It is absolutely impossible to have any U.S. Tax Counsel, International Tax Counsel or any Bank, Financial Institution, Clearing Bank or Custodian accept your verbal words as proof of anything.

Financial Action Task Force (FATF) rules extends to everybody and leads to freezing up non-compliant banking, people and businesses. Banks are scared of a hiding and therefore only accept transfers from compliant financial institutions.

Anti-Money Laundering (AML) & Know Your Customer (KYC) rules include but are not limited to:

a) An explanation by contract, service agreement or other documentation of how the money was earned. For example services performed, product delivered or other as document description between you and the party paying these funds.

b) Documentation showing exactly from whom and from where the money is coming.

c) Documentation on the source of funds

d) Documentation of the tax jurisdiction of anyone connected to the money as receiver or beneficiary.

Compliance to AML & KYC rules is to make sure that you are not involved in Money Laundering!

Prosecution for Tax Evasion 3-5 years & Money Laundering 20 years. The prosecutions are not segregated which means both are possible. Total of 71 years is also possible.

U.S. Criminal Prosecution: Tax Evasion & Money Laundering

Tax evasion and money laundering may result in criminal prosecution by the US Department of Justice for both tax crimes and “related sister felonies”: wire fraud & mail fraud. When a taxpayer fails to pay taxes due (whether income, estate or gift taxes) and uses the “tax cheating” proceeds (which courts have ruled amount to “profits”) to make investments or purchase assets the taxpayer is liable to be criminally prosecuted for multiple felonies:

1. Tax Crimes: Tax Evasion (5 year felony), obstruction of tax collection (3 year felony), file false tax returns (3 year felony);
2. Money Laundering: the use of proceeds from a Specified Unlawful Activity (“SUA”), in this case tax evasion, to purchase assets/investments which “transmutes” the illegal proceeds from tax cheating into new assets (20 year felony);
3. Sister felonies: Mail fraud (the use of the postal system to effectuate a scheme to defraud, 18 USC 1341, a 20 year felony) and wire fraud (the use of the telecommunications facilities to effectuate a scheme to defraud, 18 USC 1343, a 20 year felony). In the 2005 US Supreme Court Case, Pasquantino the “wire fraud” which triggered a felony conviction was the use of a telephone to make an inter-state telephone call.

For those US taxpayers who cheat on their taxes and then make investments they face 6 different federal felonies, which subjects them to up to 71 years in jail. If the taxpayer conspired with another party to impede the IRS collection of taxes it is known as a “Klein conspiracy” and under 18 USC 371 both parties face 5 years in jail for conspiracy to commit tax evasion.

Money Laundering

Money laundering may be linked to tax evasion. A violation of the money laundering statutes includes a financial transaction involving the proceeds of a specified unlawful activity (“SUA”) with the intent to either:

1. Promote that activity;
2. Violate IRC Sec. 7201 (which criminalizes willful attempts to evade tax);
3. Violate IRC Sec. 7206 (which criminalizes false and fraudulent statements made to the IRS).

Regarding asset seizure, the U.S. government may seize assets pursuant to a violation of the money laundering laws. In addition, the IRS has authority for seizure and forfeiture under Title 26. Under IRC Sec. 7321, any property that is subject to forfeiture under any provision of Title 26 may be seized by the IRS.

IRC Sec. 7301 allows for the IRS to seize property that was removed in fraud of the Internal Revenue laws. IRC Sec. 7302 allows the IRS to seize property that was used in violation of the Internal Revenue laws.

A Hong Kong ORSO is after tax contribution with the idea that withdrawals after age 55 would, via Dual Tax Agreement, be tax free.

An ORS402b is deferred income, it is not your income until it is your income...

If you are an entrepreneur, which means you do not earn the same amount of money each month, in fact, as example this year if you earn one million and next year you earn 100,000. If you are in a 40% tax bracket that means you paid 400,000 plus 40,000 in tax over the two year period.

IF you can live on $60,000 a year than in an ORS42b you would have paid a total of $48,000 in tax over the two year period instead of $440,000 and invested 1,152,000.00 instead of 660,000.00

Prior to taking out retirement funds you move out of Canada to live outside Canada and when you receive from your ORS402b income it is not taxed in Canada because you are not a tax resident of Canada...oh my goodness your withdrawals are free from tax....

Which means for persons who have high fluctuations of income the deferred income plan is much much better....and besides when you retire are you really going to want to live in cold Canada?

Industry representatives in the British Virgin Islands are shouting it from the rooftops: BVI’s financial services sector is a boon to the global economy.

A recently released economic impact report commissioned by BVI Finance shows:

1. 417,000 companies are registered in BVI
2. The companies have US$1.5 trillion in global assets
3. The sector supports 2.2 million jobs worldwide.

Impressive as the results are from our British colonial cousin (applause, applause), we are certain that a similar analysis of the Cayman Islands’ global impact would yield similar – perhaps larger – figures.

As a matter of fact, we happen to have at hand one such study, which was conducted by University of Amsterdam researcher Jan Fichtner, who wrote about his findings in the latest issue of our sister publication Cayman Financial Review (CFR), and which we also referred to in a story in the most recent issue of another Pinnacle Media publication, Grand Cayman Magazine.

If, as we would hope, local industry group Cayman Finance (our country’s counterpart to BVI Finance) is considering trumpeting the success of our all-important financial services sector, here are a few bullet points from Mr. Fichtner’s research that are well worth highlighting:

Cayman is home to US$4 trillion in investments from abroad

More than US$2.6 billion of that is in foreign portfolio investments, notably hedge funds

Cayman is not only a vital conduit to invest in U.S. financial markets, but also acts as a mechanism for “round-tripping” for U.S. investors who use Cayman-based funds to buy U.S. securities. As Mr. Fichtner wrote in CFR, “In fact, when excluding U.S. long-term debt, of which the central banks from both Japan and China hold more than $1,000 billion each, Cayman is the largest holder of U.S. securities in the world.”

“Cayman is not a random exotic small island financial center but a key component of contemporary global finance,” he said.

“Hedge fund managers are extremely concentrated in New York and London, while most funds are legally domiciled in the Cayman Islands,” Mr. Fichtner wrote. “Actually, in this respect Cayman could be seen as a branch of or a special bookkeeping device for Wall Street and the City of London.”

During the span of two generations, Cayman’s financial services sector has transformed our islands from a forgotten (or never discovered) Caribbean backwater to a cosmopolitan destination, and propelled our standard of living from “subsistence-based” to “first-world.”

As our readers well know, the “Cayman miracle” has yielded innumerable benefits at home, including well-paying jobs, a robust economy, limitless opportunities for our young people and an enviable quality of life. Our country’s financial services sector has also been advantageous to people who have never taken a single step on our beautiful beaches, who might not be able to locate Cayman on a map, or who may even be vociferous critics of so-called “offshore tax havens.”

Frankly speaking, if professional detractors such as the Tax Justice Network or the Organisation for Economic Co-operation and Development got their way and pulled the plug on offshore financial centers such as ours, the gears of the global economy would grind to a halt.

That’s a message Cayman should be proactively projecting to the rest of the world.

The report from BVI Finance is important because it offers a counter-narrative to the tired old stories speculating about tax evasion, money laundering, terror financing, “unfair business practices” or “income inequality.”

Instead of shrinking from the negative rhetoric peddled by ignorant or agenda-driven foreign officials, advocacy groups and many media outlets, Cayman should take pride – publicly – in the vital role our country plays in international finance.

We are good at what we do. And what we do is good.

Jurisdictions such as Cayman (and BVI, and Bermuda) are the hubs around which the global economy rotates. That’s a story that needs telling.

Source: The Cayman Compass

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