Text banking at Bank of America is free and allows users to retrieve information about accounts by texting commands to ‘MyBofA’. The functions available through text banking include balance and recent transaction information. The Bank of America Web site includes an overview of this new facility.

Text banking is growing in popularity as growing numbers of consumers become more comfortable with the technology and the younger, “text-savvy,” generation becomes a large segment of banking custom

1) Conduct proper due diligence on the banker, accountant or offshore practitioner you are considering to handle your offshore business. Do not depend on appearances and expensive looking offices.

You must conduct your own due diligence into professional service providers and any proposed offshore financial activity. Ask for and check references and professional credentials.

2) Do comparison shopping. You usually get what you pay for. A careful comparison of service providers fees is in order – if very cheap beware.

3) Get independent professional advice on any proposed legal structure or money investment. Get competent legal counsel responsible to you, and only you, with experience to realistically evaluate a deal.

4) Turn your back on too-good-to-be-true deals of quick profits. The best money making opportunities require hard work, risk and time. Easy money and promoters that guarantee unrealistic profits – more than 10% to 15% annually, or guaranteed and consistent profits are red flags.

5) Don’t rely on secrecy. Dealing with an offshore banking promoter who claims that he can help you “hide money” from tax authorities is fraught with risk.

6) Diversify. Do not risk everything on one venture. Wise investors diversify investments in stocks, bonds, mutual funds, currencies, and sovereign debt.

7) Stay abreast of latest news in the offshore banking sector. One easy way is to set up a Google or Yahoo News Alerts for example and receive daily updates on the industry. Remember you are are primarily responsible for securing your assets.

Mario Garza, chief of the International Monetary Fund mission to Belize, stated in a press release  that "Economic activity stagnated in 2009…"

"Growth has resumed
since late 2009, but the recovery is still narrowly based, while
inflation appears to be picking up somewhat, driven by the rise in fuel
prices. For 2010, the mission expects growth to resume modestly, and
export prices and tourist receipts to recover slightly, allowing foreign
reserves to stabilize at just over three months of imports of goods and
services. Despite the recent tax revenue actions, the overall fiscal
deficit is likely to widen in FY2010/11, owing largely to upward
pressure on primary current spending and increased investment, while the
public debt would remain high. The overall banking system appears
liquid and well capitalized, but the mission is concerned about the rise
in nonperforming loans (NPLs).

"The consultation discussions centered on strategies to promote
sustainable growth and reduce poverty. The mission underscored the need
to strengthen fiscal and external buffers to deal with future shocks.
Building on the recent revenue measures and in order to put the public
debt-to-GDP ratio on a firm downward path, the primary fiscal surplus
would need to be raised significantly over the medium term, by
restraining the growth in current spending; prioritizing investment; and
placing the pension system on a strong and sustainable footing. The
mission also encouraged the authorities to press ahead with current
plans to improve tax and customs administration.

"In the monetary and banking area, the mission welcomed recent reforms
to improve the conduct of monetary policy, by relying more on
market-based monetary instruments and further reducing non-remunerated
reserve requirements. It encouraged the authorities to advance these
reforms, which should help reduce intermediation spreads, while
maintaining a disciplined monetary stance. The mission also advised the
authorities to remain vigilant in their supervision of domestic and
offshore banks, ensure that sufficient provisioning is made to cover
NPLs, and further strengthen prudential regulations."

The newspaper report adds that "A spokesman for Lord Ashcroft denied that the decision to stand down as
chief
executive of BCB Holdings Ltd, which has banking and “other interests”
in
Belize, was connected to the new requirement on MPs and peers to be
domiciled and resident for tax purposes."

More on the story at The Telegraph

Most Caribbean leaders have condemned the OECD tax standards as discriminatory, pointing out that many financial centers in the U.S.A. and Europe also conduct offshore banking, but have not been
subjected to the same scrutiny as many of the Caribbean territories that
have been singled out. The
Government of Belize recently signed tax information agreements with a number of
nations including the U.K., Australia, Belgium, and The Netherlands.

But
it appears the Government has not done enough, because this week when
the OECD announced that it had removed three countries from its
cautionary “grey list” to its safe “white list”, Belize was not one of
them.

The OECD has placed Dominica, Grenada, and St. Lucia on its
white list, for having substantially implemented the standard on
transparency and exchange of information.  The OECD says the three
countries have signed at least twelve tax information exchange
agreements.

Jeffrey Owens, Director of the OECD’s Centre for Tax
Policy and Administration, said: “We continue to see a great deal of
progress in the Caribbean as jurisdictions move to sign agreements.

“We
will be working with the remaining Caribbean jurisdictions – Belize,
Costa Rica, Guatemala, Montserrat and Panama – to encourage them to
follow this trend, providing them with whatever assistance is needed.”

It was April of 1982. Belize Prime Minister George Price and British Minister of State Neil Marten had just signed the Belize-UK agreement for the promotion and protection of investments; the first such agreement Belize had signed since independence.

An official press release said "it is reasonable to assume" that similar agreements would be signed with other countries.  Indeed others were signed with a number of countries.

Price's investment strategy was to openly court foreign investors to form joint ventures with local investors for the transfer of capital and technology; he personally led the charge until 1984 achieving very limited success.

The agreements provide for reciprocal protection of investment in both countries; for fair and equitable treatment and full protection and security for investors. In case of disputes between an investor and the host country, the disputes would be referred to international arbitration.

Foreign investors pumping money into unknown Third World countries are reassured by these agreements because they are the internationally accepted framework for settling investment disputes; it’s a standard feature of international relations among countries.

International arbitration ensures that any dispute will be resolved in a neutral forum, before arbitrators who are independent and impartial, avoiding any “home-town” bias, real or perceived. This is important for investors dealing with states which exert control over their judiciary.

As Belizeans we were on the receiving end of “home-town” bias when the Swiss organization FIBA selected a Swiss judge who ruled against our national basketball team in favour of FIBA.  Recourse to international arbitration conducted by three independent, impartial and respected judges vindicated our claim and restored national pride. As a country we decried FIBA’s telling abolition of appeals to such international arbitration in any future case.

On April Fools’ Day the government enacted a legislative torpedo – the Supreme Court of Judicature Amendment Act – that has blasted a gaping hole through Belize’s regime for foreign investor protection.

The Act gives the Belize Courts jurisdiction to issue injunctions against investor companies or international arbitrators restraining them from commencing or continuing with arbitration proceedings or from seeking to enforce an arbitration award, in Belize or abroad. The Belize Courts may also actually declare an award given by an international arbitration panel as null and void.

Any investor who ignores the injunction (or their directors, shareholders, secretaries and advisors) can be tried summarily in absentia and fined up to $500,000.00 or imprisoned for up to ten years.

Investors that refer disputes to international arbitration may find themselves slapped with a Belize injunction preventing them from continuing with arbitration on pain of massive fines or imprisonment.  Or, after having gone through the time and expense of getting an arbitral award, may suddenly find that a court in Belize has set aside the award.

Belizeans would be outraged if after expending the time and expense of winning against FIBA in arbitration, FIBA simply ignored the judgment in favor of Belize and denied its sporting rights.

Why would the Government of Belize, struggling desperately to meet grave socio-economic challenges and needing substantial foreign direct investment, deliberately piss into the air to have it blow into the faces of foreign investors? (See Flashpoint April 29th 2009)

The government’s response will be to contextualize the legislation. When it nationalized BTL, GOB said investors needn’t fear; that nationalization was intended to deal only with the nefarious Lord Ashcroft who wanted to subject the whole nation to a kind of “new age slavery”.

Doubtless, it will say that the new law will be used only against arbitration awards based on immoral or secret contracts, so investors should not fear.

But no bona fide investor will be reassured on the mere say so of a local politician.  In the eyes of investors every contract willingly signed in black and white is a good contract; morality plays no role in international business.

Besides, the government has already demonstrated that its refusal to honor international arbitration awards goes beyond those supposedly based on immoral or secret contracts.

 In June of 2008, a company called Newco got an arbitration award of $8 million against the government for breaching a contract to lease the international airport. The government initially said it would have to pay but later made up fictitious taxes against the company and obtained an injunction restraining it from seeking to enforce the arbitration award in the US.

 The government has arbitration awards against it worth in excess of $100 million – and more pending. It can’t blame all of this on the secrecy, corruption and bad deal-making of the past government. It’s already responsible for a half billion dollar compensation package to the shareholders of the nationalized Telemedia.

 Deploying extraordinary legislation to avoid accrued liability or litigation is never a good idea. As Attorney General I introduced legislation in parliament designed to stymie the lawsuit of an environmental NGO against government’s approval of a hydro-electric dam.

 The thinking was that it was justified because busybody NGOs were interfering in the government’s right to development Belize and to reduce its reliance on Mexico for power supply.  Plausible justification can always be found to justify ad hominem, targeted legislation.

 The Privy Council considered the law a very serious matter. The Reporter newspaper excoriated me for it.  The current Prime Minister, then Leader of the Opposition, laughed when I was obliged to stand in parliament and repeal the Act or face humiliation later before the judges of the Privy Council.

Now the Prime Minister has done the same thing; passed legislation to stymie the enforcement of lawful international arbitral awards. Will he say that the Act will be repealed as soon as Lord Ashcroft is run out of town?

This is a matter that should fully engage the attention of the Chamber of Commerce; it is as yet silent. Presumably it is not yet aware of the implications of the Act for foreign direct investment in Belize and its impact on existing treaty obligations.

The new law will not create a buzz abroad. Belize is not of any significance. Nothing short of a revolution here will get world attention. So the government will get away with it; at least in terms of the absence of international pressure.

But so long as this piece of legislation stays on the statute books, the country will pay an economic price. Today the target seems to be international investors. The law, however, is broad enough to be used inward against any businessman or union in Belize that might try to enforce a right against the government.

Contributed by Godfrey Smith. (Mr. Smith is former Attorney General of Belize).

  

Those who utilize offshore banking structures to protect their interests are advised to contact their offshore service provider to ensure compliance. Belize has one of the most modern offshore service industries in the world and with careful planning and advice client assets and privacy can be preserved.

The press release comes amidst a feud between the new United Democratic Party overnment and various banking institutions, namely the Belize Bank Ltd, and First Caribbean Bank. Since taking office in February 2008, the new Belize Government has been persecuting various business establishments and investors including Lord Michael Ashcroft owner of the Belize Bank. It has taken out lawsuits against both banks for allegedly conducting foreign exchange transacations on the parallel market over five years ago – a practice common to most Belize businesses when Casas De Cambio (Foreign Exchange Centers) were licensed for operation.

The Government of Belize has hired a battery of private attorneys close to the party at an alleged cost of millions of dollars to launch a slew of law suites, amend the constitution and even pass laws in one day day sittings of the legislature in what some local commentators see as an attempt to conduct a political vendetta against entities that did not support its efforts to gain power. Another theory is that the Government of Belize wishes to drive certain business establishments and investors out of Belize to make room for political cronies.

So far, despite it’s best efforts, the Belize Government has been losing the battle against its alleged enemies in round after round of court cases. The press release today by First Caribbean Bank International is seen by local observers as an attempt to defend itself from a continuing smear campaign being conducted by media houses including a newspaper, radio and television stations controlled by the government.

FirstCaribbean is a major Caribbean bank offering a full range of market-leading financial services in Corporate Banking, Retail Banking, Wealth Management, Credit Cards, Treasury and Capital Markets. It is the largest, regionally-listed bank in the English-speaking Caribbean, with assets of over US$12 billion and market capitalisation of US$3 billion. The Bank has over 3,500 staff; over 100 branches, banking centres, and offices in 17 regional markets, serving 800,000 active accounts.

FirstCaribbean has maintained an “A-” rating by Standard & Poor’s from inception, the highest rating of any commercial bank in the Caribbean Community. It was formed in 2002 with the merger of CIBC West Indies Holdings and Barclays Bank PLC Caribbean operations. As at December 22nd 2006, CIBC became the majority shareholder in

Offshore FAQ

Some people have the impression that sheltering assets offshore is difficult or
cumbersome to achieve. Our expertise in Belize which is one of the best tax
havens in the world, with modern legislation specifically enacted to protect the
investor, is your assurance of a process that easy, convenient, confidential and
secure.

To help you, here are some commonly-asked questions and answers about offshore
planning.

What does offshore investing really mean? *

How confidential and secure are Belize offshore Trusts and IBCs? *

What are the main reasons for moving assets offshore? *

Is it legal for me to have offshore investments, companies, and bank accounts? *

Why should I deal with a Belize-based offshore specialist?

What is offshore investing?

Typically, offshore refers to a tax jurisdiction other than where you reside.
Belize is our country of choice since this Caribbean nation is stable,
democratic, has its laws based on English common law, and has specifically
developed modern laws aimed at offering the highest level of security and
confidentiality for offshore business. Top

How confidential and secure are Belize offshore trusts and IBCs?

Secure proof enough to withstand even the best efforts of the US SEC. Belize was
the first country to turn away the SEC in a landmark Supreme Court ruling. In a
landmark decision asserting Belize’s sovereignty as an offshore financial
jurisdiction, the Supreme Court of Belize upheld the country’s confidentiality
laws by revoking a previous court order set in motion by the Securities and
Exchange Commission of the United States requesting that confidential documents,
belonging to Swiss Trade and Commerce Trust, Ltd., be handed over to them.

In the case, Securities and Exchange Commission (SEC) vs. Swiss Trade and
Commerce Trust, Ltd., Banner Fund International, Lloyd Winburn et al, Supreme
Court Justice Troadio Gonzalez ruled that documents held by the Belize court
belonging to Swiss Trade and sought by the SEC, be immediately returned to Swiss
Trade and Commerce Trust, Ltd.

Lawyers for Swiss Trade said that what this means for Belize is that this aspect
of confidentiality, which is an important feature of the offshore industry, has
been upheld. The decision was a major shot in the arm for Belize’s offshore
financial services sector. A country’s ability to assert its sovereignty without
the interference of outside forces is a major deciding factor in choosing a
place to invest and protect personal property.

When asked for his comment related to the decision, Lloyd Winburn, Director of
Swiss Trade & Commerce Trust, Ltd., in Belize, stated, “The Court’s decision
confirms our reasons for establishing our company in Belize originally. The law
related to confidentiality has been tested and found to be not lacking clarity
and strength.

The case arose after the SEC investigators attempted to get information on
individuals holding assets with Swiss Trade. The Supreme Court decision was
upheld by the Court of Appeals in 1996. Top

What are the main advantages of moving assets offshore?

There are many advantages to moving assets offshore, Some of these are:

Asset Protection – To secure against future claims such as judgment,

divorce proceedings, bankruptcy, creditors and litigation. *

Estate Planning – Family and Protective Trusts for accumulation of investment
income and long-term benefits for beneficiaries on a favourable tax basis
(without inheritance, income, or capital gains taxes) *

Confidentiality – From claimants, ex-spouse, competitors, and other parties from
whom you wish to keep your business interests private; and *

Reduction of Tax liability – Through International Tax Planning – a foreign
jurisdiction can offer unparalled opportunities for reducing tax liability.

Is it legal for me to have offshore investments, companies, and bank accounts?

Absolutely. Because every developed nation encourages international trade and
investment, there are no restrictions on residents doing business or having bank
accounts in other countries. Offshore investment vehicles are used every day by
sophisticated and knowledgeable high-net-worth individuals and corporations all
over the world. Top

Why should I deal with a Belize-based offshore specialist?

Dealing with advisers and tax planners based in your own home country, can be
dangerous. Individuals and firms in North America for example are subject to
jurisdiction in those countries and are vulnerable to pressure from regulatory
agencies to divulge sensitive information. Even professionals can be
“encouraged” to give up your identity and financial information by threats of
investigations or tax audits against the local firm. In the event that an
offshore consultant in your home country is involved in litigation, he or she
could conceivably enter into a deal with tax authorities to give up your
financial information in exchange for leniency.