Tax Havens

Many frauds involve using tax havens, as their confidentiality and secrecy aid fraudsters.

Belize, located on the coast of Central America, is known in the global arena for attracting many North American drug trafficking entities.

Money laundering is the process of transforming the profits of crime and corruption into ostensibly ‘legitimate’ assets, and the hiding of income/wealth from Governments to avoid taxation.

Around four-fifths of money in offshore bank accounts is there in breach of the tax laws of other countries.

As developing countries are higher risk than developed countries, they must pay higher rates of interest to attract foreign investment.

Structured financial entities are established by financial institutions (banks and companies) to sell their debt securities to investors.

A captive insurance business is an insurance company that is wholly owned and controlled by the insured.

Eighty percent of the world’s hedge funds worth US$800 billion are domiciled in the Cayman Islands.

Many companies including Telstra have established entities in tax havens as they operate trading businesses in those tax havens servicing the local population. 

Businesses choose Delaware simply because of their flexible corporate laws, highly respected Court of Chancery, and a business-friendly State Government.