When you build a foreign company, you can place your assets offshore by titling your bank accounts and other assets to the organization. Thus, while you retain control over these accounts and assets, you don’t technically own them — the organization does. This makes your assets incredibly hard to find, even while a professional asset search, affording you a high level of monetary privacy.
Advantages of Privacy
- The main one is that it offers a secure layer of protection against future liabilities.
When a legal opponent ensures to take litigious action against you, the initial step in pursuing a suit will generally be an asset search. This ensures that there will be financial return for your opponent if judgment is awarded to him or her. As earlier mentioned, forming foreign assets and titling your assets to that organization is a technique to make your assets incredibly tough to find, even when a professional asset search is being arranged. It’s difficult for any entity to lay claim to your assets when it can’t find them.
- Confidentiality rules in foreign jurisdictions protect data about your identity, accounts, and transactions.
In onshore jurisdictions, confidentiality rules and regulations are much less stringent, leaving your identity and personal information out in the open. With most offshore jurisdictions, information is guarded strictly. The only exception to this is investigations into criminal activity, including money laundering, terrorism, and drug trafficking. However, if you are using your foreign account for licit reasons, as most are, you should have no reason to worry.
- Offshore companies can be an excellent process to protect your privacy, effectively screening your assets from public view.
This affords you an extra layer of protection from litigation and can even help you remain anonymous should you choose. However, it is crucial to note that the number of foreign jurisdictions with specific legislative restrictions for truly anonymous organizations (means no one outside is privy to the identity of its owners and managers) has declined over the course of the past several years.
Best Country for Asset Protection – Switzerland
Switzerland has long had a name as being one of the best foreign banks to hide cash. One of the main reasons for this is the country’s strict privacy laws. They date back over 300 years, How Stuff Works explains. Swiss law forbids bankers from disclosing any information about your account without your consent. Bankers who violate this law can face up to six months in prison. Plus, the authorities can find them up to 50,000 Swiss francs. The only exception to this privacy law is in the case of criminal acts. Plus, there is a once- yearly reporting to foreign tax authorities to avoid tax evasion.
The best asset protection plan disconnects your assets from your home country; and its courtrooms. To do so, it is vital to hold your account in an offshore LLC or trust. The privacy laws in Switzerland plus the asset protection laws of the Cook Islands or Nevis make that possible.
Another reason behind Switzerland’s popularity as a bank for asset protection is its security as a low- risk investment. Switzerland’s political and economic climates are stable. The Swiss Bankers Association (SBA) regulates the banks. Switzerland levies no taxes on interest, dividends or inheritance if a Swiss company does not earn those profits. Swiss law demands high capital adequacy as well. As of 2004, the SBA revised the Depositor’s Protection Agreement. This agreement guarantees that in the event of bank failure, depositors will still receive their legally privileged claims.
Conclusion
For more information, contact us.
