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7. Is The Haven Free Of Trouble? Will It Stay That Way?
Does the haven have a trouble-free history and a secure culture? A country which has experienced only moderate political, economic and social
change, and where political and social violence is uncommon, is a trouble-free country. A stable past is a good predictor of a stable future.
On the other hand, countries with a history of civil war, military coups and civil unrest are definitely not right for banking purposes. Cash
held in a banana republic is high-risk. Future flash points in volatile regions can render your cash lost or worthless.
Look at the human rights record of the haven's government. A government with high regard for its domestic population is likely to regard you
equally highly. A government which treats citizens like cattle to be reared, milked and slaughtered is likely to come to view you in the same
casual manner. In such a climate private wealth may suddenly become government property.
Check if there's a strong socialist political faction in the haven. Overtly socialist governments can't be trusted to look after your nest-egg.
Political upheaval, new ideologies and attendant legislation can change a haven's attractiveness overnight. Ensure there's little likelihood of
an ultra left-wing political party sliding into power in the foreseeable future.
Is the haven free from racial tensions and other social problems? These can trigger crisis which may affect deposited funds.
What about the prospect of foreign invasions and war? These are slight for an isolated country. But keep an eye on the treatment your haven
receives in the international press. Areas and regions seldom become hot spots overnight. Look at recent political developments and events in the
haven to establish if there is any potential trouble.
"A stable past is a good predictor of a stable future."
Consider local attitudes. Is there wide local support for the financial services and banking industries? Does the local population appreciate
that international banking operations are effectively supporting the country's economy? Or does the presence of foreign capital breed resentment?
Is there a foreign-bashing agenda?
Be sure to keep abreast of events and the socio-political climate in your haven. Subscribe to newsletters covering such developments. Read the
local press. The writing is often, literally, on local walls in the form of graffiti, for months before anything actually happens which might
affect your bank accounts.
8. Does Your Haven Provide A Back Door For Your Government?
Make sure your banking haven doesn't provide your government with a back door into your accounts. For example, some traditional tax
havens are existing or former British colonies, such as Bermuda, Cayman Islands, the Channel Islands, and the UK government is exerting
pressure on authorities there to release information relating to UK account holders.
British citizens should find out if their prospective banking haven has tax treaties in place with the UK. If so, be aware that the treaty allows
for the free sharing of information between the authorities in the two countries.
9. Does It Offer Enough Freedom For Capital?
Are you free to take money in and out of the haven? If there are severe restrictions, the haven is no use to you. Even if there are no exchange
controls in operation now, check that the haven doesn't have a history of exchange controls. You don't want your cash trapped in a country which
is effectively stemming flight capital.
Make sure you have adequate guarantees that you'll be able to do what you need to before opening accounts in the haven. For example, are there
restrictions on converting foreign currency into local currency and visa versa? Are reports filed on each occasion? Ask financial institutions in
the haven.
10. Does The Haven Offer Sufficient Privacy?
Seek out banking havens which recognise and actively promote solid banking privacy. Many havens claim to do so only on an informal basis. Under
pressure bank managers and financial advisors may sacrifice you to the sharks. Does your haven, and/or the institutions operating there, have a
history of rolling over when exposed to external pressures?
Check whether banking privacy is tradition or actual binding legislation. Check whether a professional in a particular haven is breaking the law
if he passes data relating to you and your financial affairs to a third party. Be aware that "confidentiality" laws allow local government access
to your account details (although they can't pass the data on to a third party).
Solid banking privacy legislation is the best protection for your cash. A strong, secure haven will have banking privacy legislation which
carries stiff penalties (financial and custodial) for any professional who breaches them and passes data on to third parties.
Beginning Your Research
A very good place on the Internet to begin your investigations of suitable tax havens is
http://www.escapeartist.com axhavens axhavens.htm. The Offshore Journal is a useful e-publication which frequently reports on relevant events and
changes in banking havens around the world. Subscriptions cost 15 per year. Subscribe at http://www.rpifs.com
Find this article of interest? Visit The Freebooter website at http://www.freebooter.com or contact Henry Morgan at
mailto:henrymorgan@freebooter.com and take advantage of pointers, tips and articles to help you to remain free. Subscribe for free to The
Broadside, his monthly Privacy Tips Newsletter, by mailing mailto:admin@freebooter.com or at the Web site.
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