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I suggest you measure the quality of any haven which interests you by subjecting it to my Ten-Point Suitability Test. Satisfy
yourself on all points crucial to your particular requirements.
1. Location, Location, Location?
Where is the haven located? Do you want to visit your cash regularly? If so, is it convenient or practical to have it stashed in a banking haven
thousands of miles away from where you live?
Can you access your haven by air - directly or indirectly? Is it a problem getting entry to your haven? Will you need to queue for an entry
visa every time you want to visit?
Also, be aware that making regular, visible (visa records are a paper trail) trips to a known banking haven is like waving a red flag at any
government snoop who might be taking an interest in your affairs and movements.
Give some consideration to time differences. Can you manage your financial affairs efficiently if it's midnight in your haven during business
hours at home? Are you happy to wait up until the early hours to speak to financial managers?
2. Do You Speak The Language?
Effective, smooth-running financial management depends on fluent communication. Do bankers and professionals in your haven speak English or some
other language with which you're familiar? You may need to discuss complex financial matters in technical detail. It could cost you dear if
things are confused or compromised by language barriers.
3. How Easy Is It To Stay In Touch?
Are there sufficient and reliable telephone and fax
lines? Are email facilities available? Is airmail delivered quickly? How efficient is surface mail delivery?
If your banking haven is deficient in these areas, it may become difficult to maintain regular and instant contact with your advisors and account
managers. Is this acceptable?
4. Is The Tax Situation Right For You?
Ensure your haven provides the exact tax treatment you need. Mistakes can prove expensive. Some havens impose withholding tax" on
foreign-held bank accounts. Are you satisfied that this is fair exchange for the benefits your account will deliver.
5. How About The Legal System?
Are the laws in your prospective haven based on English common law? Is the judiciary of a high standard? Is it independent? Is the Court system
effective? Are there rules to resolve conflicts of law? Are the banking regulations stiff? Or is there ample opportunity for a fly-by-night
merchant to slip through the nets?
Are banking services registered with regulatory organisations that uphold professional standards and procedures?
Satisfy yourself that the haven has local laws and legal practices which provide adequate protection of your funds and investor rights.
6. Is Your Haven Financially Stable?
Check your prospective haven's financial stability, by calculating what percentage of its Gross Domestic Product is represented by foreign aid.
Foreign aid is as high as 70% of Gross Domestic Product in some havens. The Cook Islands, Nauru and Vanuatu being recent examples of this.
A haven's confidence in its liquidity can be judged, at least to some degree, by its willingness to put in place solid depositor protection.
Enquire of financial institutions in the haven whether or not depositor protection
exists.
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