Your December 2015 Sovereign Confidential is Now Available Online

As you know, in Sovereign Confidential Weekly I answer questions from readers. But sometimes I like to pose questions as well, so I can see what’s on your mind and share your views with others (anonymously, of course).

So for upcoming editions, send me your view on this: If you could relocate to another part of the world, where would it be and why? You can name a specific country, but a region (i.e. “Southeast Asia”) will do just fine. Send your comments to sovereignconfidential@sovereignsociety.com.

(Note: A few readers have noted that I’m not using ProtonMail anymore, and have asked whether my new email address is secure. It certainly is. As a result of my ranting and raving, our Sovereign Society email system now uses world-class encryption.)

I am hoping there is more to this subscription than just “put your money in a foreign bank.” A bank is a bank — none of them are to be trusted! Do you have other ideas of what else to do with money, such as buying silver, gold or currencies? Where can I buy gold and silver without it being under the government’s eye?

Sovereign Confidential is about far more than putting money in a foreign bank. In fact, I regularly advise that the best strategy is to diversify into a combination of metals, offshore real estate, collectibles and other forms of quiet wealth. Many prior issues address this specifically, such as The Ultimate Wealth Protection Secret from October 2014. Read those back issues, and stay tuned! I’m working on another offshore gold option right now.

I am from Canada and I am not sure if all of this stuff will be relevant to someone like me.

Aside from some tax and legal specifics, the bulk of what I cover in Sovereign Confidential is perfectly applicable to Canadians (many of your fellow citizens are subscribers). That’s especially true of offshore asset protection and residence strategies. The biggest difference is that Canadian law and your Commonwealth status create slightly different offshore solutions — but they also create important opportunities. For example, as citizens of a Commonwealth country (I’m a South African-U.S. dual national), we have certain pathways to residence in ex-British colonies that others do not. I will be sure to flag such opportunities in future editions about Commonwealth countries like Belize or the West Indian island states.

In my opinion, FATCA really does not matter much. It seems to me that the best way is simply to put all of one’s dealings into a foreign corporation, whether a trust or an actual business. Am I wrong?

Unfortunately, you are. FATCA applies to foreign financial accounts held by an individual as well as those where a U.S. taxpayer is the “beneficial owner” of the structure that controls the account. For example, if you have an offshore limited liability company (LLC), the bank that has the LLC’s accounts will have to report those accounts to the IRS under FATCA. The same applies to trusts and other corporation forms.

For the simple fact that the other country will still have to report tax data to the U.S., it would seem that you are actually trying to hide things from the government by banking offshore. Obviously this will make things even worse.

I disagree. It is perfectly legal to bank offshore, and besides, secrecy isn’t the point of doing so. Banking offshore is more about putting distance between your financial assets and potential attackers in the U.S. than about hiding money. It is true that the government and many politicians give the impression that banking offshore is automatically suspect, but for the vast majority of us who have offshore accounts — I certainly do — this is of no consequence. I appreciate your desire to avoid scrutiny, but I think it’s better to seize the sovereign advantages that offshore banking provides than to cave to governmental pressure.

Kind regards,

Ted Bauman
Editor, Sovereign Confidential