subject: Private banking offshore: singapore (east) or switzerland (west)? [print this page] Private banking offshore: singapore (east) or switzerland (west)?
Surely there are a number of international investors who are concerned about their offshore banking and wealth management services in Singapore .Yet, beyond a doubt, Singapore is a very sophisticated banking arena, and it has chalked up a well-earned reputation for discretion and confidentiality.
Nevertheless, the following quote was recently noted on an Internet discussion group:
The Singapore government is proposing changes to its tax laws to meet demands from the U.S. and Europe to clamp down on bank secrecy. Singapore will seek to amend its domestic laws to allow it to extend further cooperation on information exchange via double-taxation agreements with other countries, the Finance Ministry said in a statement. It is seeking public comments through July 28 on the amendments.
However, concerning Switzerland , as we all well know, it takes the personal right to financial privacy and confidentiality more seriously than the above quote.A good example would be the present UBS case, where there has been a serious Swiss debate for over a year concerning the revealing of personal banking information.Such incidents raise some hard questions:1) How do we interpret these reports?, 2) Should we conclude regarding Singapore or Swiss banking secrecy that one is better than the other?, and 3) Can we truly say that banking secrecy has ended?
Whatever we do we must be honest and examine these incidents in context rash decisions are not allowed. Naturally, it is excellent to see Switzerland fighting for her sovereignty.Yet, common sense has always dictated that offshore clients should avoid doing business with the big, Swiss, international banks like UBS and Credit Suisse.Why?You shouldn't select an offshore bankthat has a large US presence the bull's-eye is blinking -- you will get hit.At the same time, there is a much better way to seek security and privacy when desiring to use the Swiss banking system bank with Swiss Cantonal Banks they have always been low profile.
Now, considering Singapore , this is a place where we haven't done much banking business, therefore the above quotation gives us a jittery feeling a reluctance for doing business there. However, we must admit that banking closer to home, in the West (Europe and Latin America), is more in line with our security comfort zone than doing private banking in the East ( Singapore ).
Certainly, Singapore is very convenient for Asians and Australians due to cultural backgrounds, time zones and languages. Then, again, Singapore is scaling the heights to be up there with Hong Kong (top of the hit list) for the Aussie tax authorities, who are relentless these days, as seen in their recent ridiculous attempts to tax those companies in the mining business.
But, we must ask, is banking in Singapore and Hong Kong truly a good idea for Europeans and North Americans?When considering all the pros and cons -- probably not.Why?Both the European Union (particularly the UK ) and the USA have fairly strong, on going, political ties there.And, to make matters worse, we must constantly remind ourselves that neither the UK nor the USA are friends of offshore private banking.Regardless, the political situation for Canadians is slightly different -- they might fair well in Singapore .
In life there are rules of thumb for virtually everything.A good, general, ground rule for private banking is, "If it is easy it is a threat to privacy."Therefore, when seeking the most private and best bank, it is usually best to locate a bank that is both geographically distant and culturally different than your home country.To find such an offshore private bank you need to accumulate and use the wisdom of others that have gone before you. Europeans might do well in Latin American havens like Panama and Uruguay . North Americans might still do well in more remote corners of Europe -- example Andorra .
Now, whatever you finally decide, remember, the odds are that no private banking decision will probably last forever. The offshore world of finance is always changing -- it must constantly be monitored.It pays to work with banks that are ultra-savvy and can move your funds quickly in an emergency. So, be sure to select banks that have a multi-jurisdictional presence.
In concluding, let's ask a timely question.Has banking secrecy ended? No, it's much alive!But, don't be confused. You never want to get into trouble by not declaring your offshore account if your country of residence and citizenship commands by law that you do so.Americans, in particular, are required to declare all offshore bank accounts unless the total value is under $10,000 -- the IRS is very strict on enforcing this!
Nevertheless, if you have a Biblical conscience and you know there are moral laws that definitely govern right and wrong, and that it is wrong for a government to be spying into your private, personal, financial affairs, then you have genuine reason to go offshore. That's where smart money moves!
