The following are examples of the systems set up by governments to eradicate financial privacy. They are proof that there is now a global surveillance of almost all transactions, a global sharing of information, and an approval from governments of more intrusion in the future.

A) FinCEN

The Financial Crimes Enforcement Network, or FinCEN, is the organisation the US government uses to trawl through financial records trying to catch unsuspecting victims. FinCEN is a real danger. So, here's a little background.

FinCEN began as a fairly low-key operation in 1990, but by 1993 it spread its wings - and now it is flying through the world of both the guilty and the innocent like some grotesque vulture scouring the land for potential corpses on which to feed.

Its main purpose, as stated on its own web site, is "to work with its domestic and international partners to maximise the information sharing network and find new ways to create efficient measures to prevent and detect financial crime". Its projected budget for 1998 was $23 million - of which 56% is allocated to "drug related" law-enforcement.

What this means in real terms is that the US alone is spending 23 million dollars a year for one agency to develop sophisticated techniques for snooping on all financial transactions.

The ultimate goal is to track all transactions in real time - internationally.

To give you an idea of how powerful FinCEN is; when Russian President Boris Yeltsin wanted to locate stolen communist party funds, he turned not to his own sources, but to FinCEN to help him out!

FinCEN has strong ties with the CIA (although this has never been publicly admitted, it has never been denied either) and employs over 50,000 confidential snoops who work in other areas. If knowledge of how large FinCEN is and how it works became widespread, it is unlikely the US public would stand for it. But, for the moment, this particular agency has a carte blanche to pursue by whatever means it deems necessary both the innocent and the guilty alike.

An interesting statistic: fewer than 10% of the people collared by FinCEN would fall under the bracket of being criminal under moral grounds. In other words, over 90% of the people caught had nothing to do with drugs, arms, etc.

FinCEN also works closely with the National Security Agency (NSA) that routinely intercepts all fax, phone and email messages being sent, under a programme called Echelon. And we mean ALL! Then, they are fed through a computer and, if certain "hot" words are used in the communication (banking, passport, offshore, the President, etc), these communications are then stored in a file which may be accessed by FinCEN, the Drug Enforcement Agency, the CIA, the FBI, Customs agents, the IRS and so on.

B) The Financial Action Task Force

FinCEN has teamed up with the Financial Action Task Force - a 26-nation organisation created by the G7 countries to address the problems of money laundering.

There is no way to avoid the prying eyes of this particular Network. But you need to know that it is there, and that many other governments world-wide are now cooperating with requests to divulge information about innocent transactions.

To know the strategies of people who may be a threat to your security is to learn how to deal with them.

As with so many things, preparation is the key.

C) Financial Intelligence Units (FIUs)

These are bodies set up by countries to co-operate with FinCEN. Examples include NCIN (UK) and AUSTRAC (Australia). Other countries are following suit.


D) Tax Treaties

These treaties require information exchange between different countries for civil and administrative enforcement of revenue laws. In other words, the countries involved help each other out when trying to track down tax-evaders by exchanging as much information as possible whenever asked. Always check into the tax treaties that currently exist between the country in which you reside and that to which you are relocating, or in which you wish to bank.

Currently the US has over 50 tax treaties with other countries all over the world. The justification for them is that they help individuals pay tax in more than one jurisdiction. The reality is that your information can and will be made accessible to another government at their request.

There are some instances, however, where these treaties actually allow for a tax saving to be made! So, it is worth getting the advice of a professional on this front in order to ensure you have the latest information as to what treaties exist between which countries. As governments do not like this, they are continually updating or changing the treaties, so we can do no more than let you know of their existence in this report.

E) Mutual Legal Assistance Treaties (MLATs)

These provide for exchange of financial records in the investigation of suspected criminal activities. MLATs override local confidentiality laws. They allow for exchange of information in criminal cases involving drug trafficking and insider trading, but this can once again be turned to their advantage if they decide to make an innocent person a target. MLAT's obligate the countries that sign them to share information and produce evidence.

For your information, MLAT's have been signed with the following countries: Australia, Bahamas, Barbados, Belgium, Bermuda, Canada, the Cayman Islands, Colombia, Italy, Germany, Haiti, Israel, Jamaica, Mexico, Morocco, The Netherlands, Panama, Sweden, Turkey, The United Kingdom and Venezuela. More will follow.

F) AI/MPP

AI/MPP is the database that allows what could be called proactive targeting of "suspicious" - or normal - activity. AI/MPP allows all government databases to be interfaced, so that a huge single landscape of financial actions/transactions can be monitored in real time.

G) Reporting Requirements

Make sure you know the limits imposed on the amount of money that you can take out of your country legally. Most places have introduced specific amounts. If you take (or send) more than this amount at one time, you will be liable for investigation. In the US, the amount is $10,000. In Germany, it is DM 20,000, in the UK £10,000 and in Switzerland you now have to divulge your identity, as a new customer, for any cash deposit over SFr 10,000.

As the law now stands, anyone who wishes to deposit more than ECU 15,000 in cash or monetary instruments anywhere within the EU must identify the source of the funds. Banks, financial institutions, bureaux de changes, and even casinos are all required to report any suspicious behaviour on the part of their clients.

If you think you can get round this by sending smaller amounts, think again. This is seen as structuring. It will be picked up, your account (or accounts) will be flagged and you will get into trouble.

H) Telephone monitoring systems

Congress has set aside $500 million to develop a system that will enable government agencies to listen in to more than 50,000 calls at the same time.

Similar moves, with slightly smaller budgets (!), are being considered in several other countries.