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Offshore banking: US vs Swiss Bankers will backfire in the long run...

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  • Offshore banking: US vs Swiss Bankers will backfire in the long run...

    Offshore banking: US vs Swiss Bankers will totally backfire in the long run...

    Max Keiser (and many others) are of the view that the US banking and finance system is currently designed for laundering large sums of money -- and there are some well known reasons why this is absolutely true
    1. Incorporation is at the state level, and the states don't police offshore entities incorporating (especially if it is done by lawyers).
    2. As long as incorporation and bank account setup is done with corporate information only (no personal telephone numbers or addresses) -- policing becomes toothless.
    3. With 50 states and some 3000 banks, it is a money laundering paradise just by the numbers.
    4. Although there is a 10000 USD transfer limit for persons [where audit information is not required], US law has no actual hard limit for corporations.
    5. As long as bank accounts and corporate entities are constantly created and deleted at some fixed rate -- investigation can become hopeless.

    The US does not need actual bank secrecy laws to help launder money, the finance system's base design is optimal for that function. Tracking down people that own limited share corporations can be difficult ... when those corporations are owned by corporations.

    Swiss banking privacy is overblown, as there is a tiny snippet in the banking code that allows for tradesmen in remote areas to look up and bill your account -- but this same rule also applies in the urban centers [and may have some role in the way the Swiss pay bills via post]. This rule was designed to aid the Postal Bank, but the rule effectively eleminates all the Swiss banking privacy law stuff.

    However, the offshore banking centers will get their revenge for the US interference.

    I expect at least 3 or 4 new offshore banking centers to emerge from this US action.

    Most offshore baking centers will strengthen their rules and regulations so as to generally inhibit the US's ability to eliminate banking privacy. The law changes will be done in such a way so as not to raise US suspicion -- and the offshore money flow will increase with no corresponding possibility of the money returning to the US finance system.

    I don't know about the holding of USD offshore (technically it is not necessary), but the trend it hold gold and silver offshore.
    Last edited by billstew; 03-18-09, 08:08 AM.