Editor's Analysis

Many readers enquire each week about which jurisdiction we recommend.  Of course this depends on your specific situation.  Having said that here is my analysis:

In short my recommendation to most is Panama and here is why...

Belize

With only 5 banks managing 164 million US, Belize is just too small for my liking.  It looks promising but for now I recommend a jurisdiction with a longer track record.  Heck the first "offshore" bank in Belize was licensed in 1998!  At just 9 years old I would recommend steering clear.  In contrast Panama has 150 banks !  More on this later...

Switzerland

Switzerland has a reputation that earned it worldwide recognition during the second world war.  Boasting numbered accounts, it quickly became the world leader in offshore banking.  Unfortunately, due to pressure from the international community (mainly goverments like the United States who were loosing too many tax dollars) the Swiss gave in.  They stopped giving out numbered accounts.  Today this jurisdiction regularly co-operates with foreign goverments for issues like tax evasion.  Panama on the other hand will turn investigating authorities down flat when they come snooping around on tax related issues.

Bahamas

Banking secrecy in the Bahamas is weak.  In fact, banking institutions are freely permitted to divulge the fact that a particular person or company does in fact have an account with that bank.  Since the Bahamas introduced their new banking legislation allowing the free flow of information 45% of the deposits have left the Bahamas banks.   Panama, on the other hand, has complete banking secrecy.

Cayman Islands

The Cayman Islands law seem quite impressive.  In fact bank officials that break the secrecy law face imprisonment !  Unfortunately I have a story to tell you about.  John M. Masterson was the owner of Guardian Bank.  He provided the IRS with over 1 year worth of bank records !  Thousands of US taxpayers found themselves in a very bad situation.  Now if the law stipulates jail time for a bank official divulging just one person's banking information, wouldn't you think John would be going to prison for a very long time?  So did John go to prison?  Nope.  In fact, as far as we can tell, nothing happened to him.   So the Cayman Islands look good on paper, but in practice I would stay away.

Panama

Panama seems to be the most stable jurisdiction offering banking secrecy.  In fact, Panama still has bearer share corporations which are accepted by the Panama banks.  This kind of banking secrecy is very hard to come by but Panama passes all the tests.  Not only that but the cost of living is Panama is a fraction of that in the United States.  Many citizens of the US, Europe and Canada retire in Panama and live like a King.  What would be a meager retirement fund in the US or Europe affords a very high standard of living in Panama.  In fact, it is common practice in Panama to have servants.  A driver and full time house keeper costs only about $400 per month.