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One of the questions we often receive from readers is “What country does not have a tax information exchange treaty (TIEA) with Country X?”

In other words, many people have been rather freaked out by recent developments such as Swiss and Panamanian banking information exchange agreements with the US and the UK. They are naturally looking for the best offshore banks in jurisdictions that have still not signed any information exchange treaties with major countries.

My standard response is that, while there are some of these countries (Andorra, for example, has not signed up to any information exchange with the US or the UK and doesn’t show any sign of doing so in the short term), jumping from bank to bank, jurisdiction to jurisdiction as rules change is becoming an ever more hopeless task. Yes, you can move once or twice – but the trend is definitely away from secrecy. Each time you change bank, you also put your privacy at risk. It’s much better to adapt your strategy and live within the system, while choosing a private, offshore bank that has its wits about it and values its international clientele.

The news is not all bad. There are still lots of ways to keep your affairs under the radar within the system. Most people I talk to these days, while they are committed to the idea of privacy as a fundamental principle, are much more concerned about asset protection and diversifying their investments. These are the themes we cover in The Q Wealth Report members’ area. Why go offshore? Tax evasion, as I’ve often stated, is not a good reason to go offshore today.

There’s one country I know of, however, that is really off the radar when it comes to offshore banking. You can open multi currency bank accounts here, and get full internet banking – including of course the chance to send multi-currency international bank wires online. US citizens are very welcome. And everything can be set up by mail, with no need to travel there.

This country, I should warn you, is in Africa. Some people lose interest right there, but I think that is a mistake. This is actually an important gold producing nation, so not surprisingly, it’s doing well at the moment. If you think gold will keep going up in dollar terms (I do) then this country will continue to prosper. The bank I recommend there, to consulting clients, is actually based in Europe and owns a gold refinery.

The country I’m talking about is Tanzania. Here are some of the reasons I like it as a private banking haven:

• The Chinese and Indians certainly have no hesitations about Africa and have been pouring billions in here. It’s a matter of following the smart money.

• Since 2000, production of gold on an industrial scale has increased, especially from the Geita (AngloGold/Ashanti) and Bulyanhulu (Barrick) mines. The future of Tanzania looks bright.

• The Tanzanian government recently abolished a number of taxes, including Capital Gains Tax. And passed a new mining act. There is absolutely no tax on foreign bank accounts held by non-resident individuals or companies.

• Double taxation treaties have been signed with Canada, Denmark, Finland, India, Italy, United Kingdom, Norway, Sweden, and Zambia. Tanzania is also in the process of negotiating treaties with other countries including Belgium, Burundi, Iran, Lebanon, Malaysia, Mauritius, Pakistan, Rwanda.

• The Tanzanian Central Bank was heavily criticized for excessively restrictive precautionary banking regulations during the last decade. The result is that the Tanzanian banking sector is strong and healthy today.

A typical structure I might recommend to consulting clients, depending on their circumstances of course, would be a Nevis LLC with a bank account in Tanzania. As I said, that can easily be set up within a few weeks, with no need to leave home. The bank account can also be used as a platform for buying and selling stocks and investments internationally, though it should not be compared to an international online brokerage account.

More information on this and many other private banking and offshore wealth protection matters can be found in the Members Area here at Q Wealth Report. If you haven’t yet signed up, click here to see a list of the membership benefits.

Peter Macfarlane comments on Offshore Companies, Banking and Investing for Q Wealth Report

Even though not much has appeared in the press since the election of the new British government, it’s clear from the word on the street that offshore service providers in the BVI and TCI are feeling the heat…

Some years ago, especially under Margaret Thatcher,  policy in London was to encourage the development of offshore financial centres in British territories around the world. It suited Whitehall perfectly: a diverse group of islands with not much going for them, except small tourist industries and dying sugar and banana businesses, could – with the advent of fibre optics and the like – suddenly become tropical trading desks and would no longer need to be propped up with subsidies.

Some islands, like Anguilla, have become minor offshore players that never really took off. Others, most notably the BVI (British Virgin Islands), the Cayman Islands and the TCI (Turks and Caicos Islands) have done really well for themselves, carving out respective niches in the offshore investing business. Cayman is famous for offshore banking and captive insurance, while BVI is possibly the world’s most important offshore corporate registry with a reputation for quality. Over 600,000 IBCs or International Business Corporations are incorporated in the British Virgin Islands, with most of the demand for such services these days coming from Asia.

Unfortunately, all is not rosy and the professional service providers in the BVI and elsewhere are clearly worried. Very worried. Offshore finance has become a thorn in the side of the British government and today, it is something they would love to close down. It can’t be done overnight, as revenues from the offshore finance business provide the largest single contribution to BVI government revenues. But every move London makes in this direction is another nail in the coffin for jurisdictions like the BVI and TCI.

Last year, then UK Prime Minister Gordon Brown explicitly warned several British overseas territories that they would face tough economic sanctions if they did not make further commitments to increase tax transparency and dilute banking secrecy. Faced with little choice, they jumped to attention immediately. The new British government is no less hostile to the British offshore havens, and the writing is on the wall.

I have advised clients for years to avoid doing offshore business in British territories but people are sometimes tempted by the good publicity and marketing, and the assurances from company formation providers there that “everything will be OK.” Recently, however, I’ve had a stream of clients with BVI Business Companies looking to redomicile. Even though not much has appeared in the press since the election of the new British government, it’s clear from the word on the street that offshore service providers are feeling the heat.

Where then, can you go?

You may not have to go far. A lot of people don’t understand the difference between British territories and Members of the British Commonwealth.

British territories are ‘owned’ by the UK. While territories operate with a substantial degree of independence, they are not democratic but are ruled by governors sent from London to represent the Queen.

Members of the Commonwealth, however, are independent sovereign nations who do not have to obey diktats from London. This group include offshore centres like the Bahamas, Antigua, St Vincent, Dominica and my personal favourite for a number of reasons: Nevis. (It’s no coincidence that two of these countries offer economic citizenship programs, that the British territories cannot because people who live on those islands hold British passports)

Looking a little further afield, Panama is another of my favourites. I like to tell people, somewhat tongue-in-cheek, that Panama is a ‘real country’. What I mean by that is you can live there without getting island fever. Panama, with its canal, is a real hub of international trade, of such strategic importance that the US are not about to mess with it. While everyone knows that a BVI company is only at best a brass plate that is not even permitted to do any local business in its place of incorporation, Panama is a real thriving business centre, travel and trade hub where you can easily fly in set up a serious office. Panama also has hundreds of stable banks, whereas little Caribbean islands typically have two or three that are worth speaking of.

So my advice: if you’re looking to incorporate offshore, avoid jurisdictions that are British territories.

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Peter Macfarlane reports on Offshore Banking, Offshore Investing and Asset Protection for Q Wealth Report.

The FDIC yesterday shut down seven more banks in five US states, bringing to 37 the number of bank failures in the U.S. so far this year, on top of the 140 that collapsed in 2009. The news was particularly bad for depositors of Advanta Bank in Utah, as regulators were unable to find another bank to take it over. Therefore anyone with deposits exceeding the FDIC insurance level of $250,000 loses the excess.

These Friday afternoon bank raids have become commonplace by now. What’s interesting, however, is that regulators, quoted by AP, are now saying that “The pace of bank seizures this year is likely to accelerate in coming months, as losses mount on loans made for commercial property and development.”

It was not many months ago here in Q Bytes that we warned you about the coming US commercial property bust, which will make the residential/sub-prime crisis look tiny in comparison.

The FDIC is planning to spend about $100 billion bailing out banks over the next four years. But  get this: they will only deal in future with smaller bank failures. Legislation now in the senate proposes to set up a completely different system to cover failures of big, complex financial institutions. Besides, for reasons we’ve written about frequently including in the latest Q Wealth Report, we believe $100 billion will be nowhere near enough. The government printing presses will soon be rolling again, leading to further devaluations.

Our intention here at Q Wealth is not to scare you. In fact, we have always said that with careful planning and a little thought, there are numerous ways you can profit from the crisis… turn the crisis to your advantage.

First of all, our advice is to reduce dollar exposure. If you have savings, the first thing you need is a simple multi-currency bank account that allows you to switch currencies online. That way you maintain flexibility and privacy. Very few if any US banks offer multi currency accounts, so you’ll probably need to go to an offshore bank. While we do believe FDIC insurance will protect the dollar amounts in US bank accounts, what is the value of having the same amount of dollars in five years, if you can only buy half as much with those dollars?

Fortunately, the best offshore banks are a much safer place to stash your money. If your know how to choose an offshore bank carefully, you can avoid exposure to risky business practices which are bringing down so many US banks. And whilst a million will get you better service in a different class of bank, offshore banking is not just for millionaires. There are good offshore banks out there where you can test the waters by opening foreign currency accounts with $500 or less. Another myth, also untrue, is that US citizens cannot open offshore accounts. Full details of some of these recommended banks, including  our list of offshore banks and contact information, can be found in our free Practical Offshore Banking Guide 2010 available to members.

The last laugh, however, is with the real estate speculators – whom many blame for causing the crisis. No matter what happens to financial markets, people will always need a place to live. When there is ‘blood in the streets’ there are bargains around. Our Q Wealth Expert and Real Estate Guru Thomas Bolther has recently said he believes it’s time to BUY US real estate. Real estate investors who have followed Thomas’s advice from past Q Wealth events and stayed liquid are now set to make a killing. Thomas will be writing more about this on his own blog over coming weeks, at bolther.com He’s also confirmed as a scheduled speaker at our event in Ireland in September (see below)

You might have noticed recent news reports about how a US court forced Google first to block an innocent user’s private e-mail account, then reveal that person’s identity – all because a careless bank employee accidentally e-mailed sensitive data to that Gmail account.

This case certainly demonstrates why anyone who values their privacy would be better off keeping their e-mail on offshore e-mail servers. Here at The Q Wealth Report, for a limited time we are offering a free offshore e-mail account on an encrypted server to all our subscribers. Details of how to claim yours are below.

Let’s look a little more about how overseas or offshore e-mail can protect your online privacy. Maybe you are concerned about the privacy of your financial communications with your offshore bank. More likely, you simply value your freedom too much and don’t want Big Brother looking over your shoulder.

I don’t have much confidence in the US court system, but even I was amazed to read about this severe intrusion on a user’s privacy. Imagine the inconvenience of having your e-mail account blocked because just somebody sent you an e-mail my mistake – something you most likely deleted believing it to be spam. Well that’s exactly what happened.

News reports indicate that the court issued an order, insisting that Google block the e-mail account in question, then reveal whether the account was still active and whether the data in question had been viewed. And if the account was active, the order continued, Google was required to hand over the account holder’s identity and contact information.

Google, to their credit, did fight the case – but  lost. The plaintiffs, Rocky Mountain Bank (who were responsible for the error in the first place) even had the nerve to try to hush everything up: they filed a motion to seal the entire case on the grounds that if the information became public, “it would create panic and result in a surge of inquiries from customers.” Fortunately the court rejected this motion.

“The case underlines what should be obvious to Google watchers,” comments Cade Metz, writing in The Register. “Though the company vows to protect your personal data, it can be compelled by court order or subpoena or natural security letter to divulge such info. And then there’s the judge’s ill-advised decision to order the deactivation of a bystander’s email account.”

And therein lies the problem, to which offshore e-mail is the solution. For a limited time, we are offering a simple but effective free e-mail account to all subscribers. This e-mail account will be hosted on a fully encrypted offshore server, safely outside your home country’s jurisdiction (though no-one would routinely notice that, as it’s hosted on a .com domain). You can connect to it via an SSL encrypted connection. The account is yours absolutely free and without obligation while you remain a subscriber. If you are not yet a subscriber, simply sign up now.

Please email our contact office in London to get your free secure e-mail account set up. In your e-mail be sure to state your preferred user name (this will become your secure e-mail address) and an initial password. As soon as the account is set up, you will be able to log in to the control panel and change your password.

It’s worth pointing out the difference between this account and your regular free e-mail account. The main difference is that this account is accessible not only via SSL encrypted webmail, but also by secure IMAP and POP. You can also send messages from your favorite e-mail software without revealing the IP address you are connected from.

Shortly, our colleagues will be offering a suite of premium communication services, such as encrypted Voice over IP (VOIP) or the possibility to host your own domain on our offshore secure servers.You will also have a chance to go ” Beyond Encryption” with a secure USB advice that routes your communications entirely via a private, encrypted offshore server. For more on this, watch this space.

If you would like to read more about IT privacy and security, we also recommend our Secure Communications page.

The bailout of General Motors is another nail in the coffin of the US dollar. But still, most people haven’t even noticed the real ‘stealth’ devaluation being imposed by the United States government. And yet all of us, Americans or not, are affected by this in a big way, due to the dollar’s status as a reserve currency (and also due to China’s effective control of the dollar, that I have previously touched on…)

Is the dollar “collapsing” or merely “declining”? I believe it is collapsing, but some people might misunderstand this. The dollar is not just going to crash one day, or even one week. It’s an ongoing thing, that started many years ago but has substantially speeded up in the last five years or so (yes, even during the times when the US economy was supposedly booming, that too was based on scams by the financial services sector)

Geithner, Bernanke, Obama and the whole crew are involved in a constant battle to patch over the dollar collapse.  Yet in spite of their attempts, the cracks have widened. The greenback continues its inexorable march downward. This week’s events at G.M. have accelerated the collapse a little more. And I believe that the collapse of the dollar will continue to accelerate with time. What will happen when it hits the bottom is anybody’s guess, but I certainly want to be well prepared when it happens. You should be too. And the Q Wealth website is about helping you do just that – protecting your assets from this stealth devaluation.

The US is not going to crash like Mexico did in 1995, or like Argentina and Brazil have done since with overnight currency devaluations. Neither will go bankrupt in one day like Iceland. The US government still has way too much influence and political power for that to happen. It’s a stealth devaluation because your portfolio will appear to be going higher. You will have more dollars. The stock market will be up. But in real terms, you are losing money faster than ever before. This is what some people have a hard time getting their head around – but it’s very important. The government will try to persuade you that things are going well, when really they are not. Bottom line? It’s a scam being perpetrated on you by government. If you care about protecting your assets and creating new wealth, you have to understand this.

So where can you actually put your money to protect against the stealth devaluation and collapse of the dollar? What about other currencies? Well, necessity dictates that we need to use currencies like dollars, euros and pounds to carry on business. And common investing sense dictates that you should diversify assets, so at least having a proportion of euros is better than having all dollars. It’s a start.

But unfortunately none of these currencies look good. Every other major central bank is participating in the very same scam, meaning that their currencies are equally doomed. So it would not be safe to assume that buying, say, euros, will give you any serious protection against the loss of your assets.

My number one mantra to clients is diversification, diversification and diversification. If you have a portfolio above six figures, it should be in different currencies, in different banks, on different continents. Opening overseas personal accounts, while having no tax consequences, can certainly help asset protection…the geographic diversification protects against the threat called government, while the mere fact that the assets are offshore significantly reduces the risk of you being sued in the first place, especially if you live in a litigious place like the USA or increasingly the UK.

Generally, private international banks are also a whole lot more flexible and service minded too. They offer Swiss-style wealth management banking facilities. For example, I noticed the other day that one of my European private offshore banks (not in Switzerland in this case) had quietly added gold ounces to the list of currencies I could hold in my multi-currency checking account. I guess that means I can even write cheques denominated in gold ounces, though I haven’t tried that yet. I see some of the larger European clearing banks like RAIFFEISEN ZENTRALBANK OESTERREICH AG in Austria are now maintaining gold correspondent accounts for their institutional clients. Interesting, huh?

Which are the best offshore banks for this kind of wealth management? For the answer to that question you need to be a member of The Q Wealth Report. Download the Practical Offshore Banking Guide (available instantly as soon as your payment is approved) and you will find ten of them for starters, with impartial comments on each… together with the form for a free e-mail consultation if you would like to discuss your individual circumstances with me directly.

Gold, probably is number one on my list of recommendations as a hedge against dollar decline. There are ways you should buy gold, and ways you shouldn’t. One way you should not invest in gold is by following typical mainstream advice and investing in ETFs, the most famous of which is GLD the SPDR Gold ETF. Ther are significant concerns about whether you could really get your gold out, or even your money back in dollars (which is not what you would want anyway at that stage) in the case of an economic meltdown.

For example, what do you think of this quote directly from the GLD prospectus?

The Trust’s gold may be subject to loss, damage, theft or restriction on access.

There is a risk that part or all of the Trust’s gold could be lost, damaged or stolen. Access to the Trust’s gold could also be restricted by natural events (such as an earthquake) or human actions (such as a terrorist attack). Any of these events may adversely affect the operations of the Trust and, consequently, an investment in the Shares.

The Trust may not have adequate sources of recovery if its gold is lost, damaged, stolen or destroyed and recovery may be limited, even in the event of fraud, to the market value of the gold at the time the fraud is discovered.

If you would like to know about better ways to invest in Gold offshore, you need my Gold Report – How to Buy and Hide Gold Bullion Offshore which is likewise available free of charge for immediate download to our paid up members.

Not a member yet? Sign up to Q Wealth Report here.

says Peter Macfarlane, Offshore Banking Expert at The Q Wealth Report

The recent scandal involving Swiss bank UBS and the closure of 19,000 offshore bank accounts for American account holders has people running scared. It’s been a big publicity coup for the IRS and indeed for European tax authorities too. However, I was interviewed the other day for a forthcoming magazine article, and the interviewer asked me bluntly whether offshore banking, and more specifically Swiss private banking, is “over.” This got me thinking.

The why and the how of offshore banking for security and asset protection is alive and well. In fact, for American and European Union citizens, banking offshore is more important than ever. Here’s why:

1. First of all, the hype in the media suggests that those 19,000 account holders will be in trouble with the IRS. This is not true. Sure, it’s what the IRS want you to believe, because they don’t want you to bank offshore. If you bank offshore they have less control over your money – so bad news for governments. But provided you have done nothing illegal, those people have nothing to fear. Even if those people have been illegally evading their US tax obligations, most likely they still have nothing to fear – though they should be taking urgent steps to put things right. The truth is that IRS attempts to learn the identities of the 19,000 account holders will be handled by UBS on a case-by-case basis strictly in accordance with both Swiss and American law and the respective international treaties, with UBS refusing to cooperate in any wide-net fishing expedition. By closing the accounts, UBS have done the right thing in helping to protect their clients.
2. UBS clients will need to move their accounts to other banks, or the clients will receive checks in the mail. Obviously, depositing the checks in a home bank would leave a paper trail – playing right into the hands of the IRS. The IRS hopes that those affected who might not have declared their Swiss bank accounts will be scared and own up. If they don’t, however, the chance that they will be ‘caught’ is almost nil. Fortunately, there are still plenty of lower profile, secure offshore banks out there who are willing to take on the new business – even from American or European citizens.
3. The mistake these people made was banking with UBS in the first place. It is stretching things these days even to call UBS a Swiss bank. It would be better described as an international bank, and it has a huge presence in the USA. It is therefore vulnerable to pressure being put on its US operations to breach Swiss bank secrecy laws. If you want further proof, Senator Carl Levin of Michigan said “We can’t get every bank in front of us to do what they did,” referring to UBS rolling over and apologizing. Very true words from the Senator! The basic rule in choosing an offshore bank is to go for one that has no offices or employees in your ‘home’ country. Another basic rule is “you don’t know until you go” – in other words, if you want to open a serious Swiss or other offshore bank account, get on a plane!

I mentioned above that affected account holders should be taking “urgent steps to put things right.” What are those steps? The fact is there are plenty of ways you can achieve the goals you are seeking, serious asset protection, and full compliance with all applicable laws and regulations. Those are topics we frequently write about here in The Q Wealth Report, and you will find some starting points in my Practical Offshore Banking Guide 2009 which is available right now for free download in the Members’ Section. The Practical Offshore Banking Guide includes some offshore banking notes especially for US citizens and residents, and another section especially for European Union residents and citizens.

Q Wealth Report is your resource for offshore asset protection, banking privacy, and wealth creation information. A subscription costs just $87 per year, and if you don’t feel  our service is worth a lot more than that once you have signed up, you are covered by our full no-quibble money back guarantee! Plus, as soon as you sign up you gain instant access to our members section to download a series of free reports including the Practical Offshore Banking Guide 2009. What are you waiting for? Join today!