[box]AML & KYC are the first issues for consideration, when planning an Offshore Capital Structure.[/box]
The best course of action to ring-fence liability, is this ORS/402(b) program. FATCA and the Automatic Exchange of Financial Information reporting rules are enforced now. The PRC has the same rules about foreign financial account reporting as does the USA.
Some people in the PRC feel that it is a matter of survival for them to rely upon non-disclosure (a hiding). Which means they have money that has not been disclosed to PRC Tax Authorities. If you accept those funds you can be prosecuted for money laundering.
[box type=”info”]The second area of concern, which is the one we have looked at so completely, is the automatic reporting between a person’s own domestic financial institution and that of a Foreign Financial Institution (FFI).[/box]
That reporting between governments occurs from where the money is at now, whether it be from a business, a trust, a nominee account, life insurance company, bank or other person or entity, to where it is going is now enforced by intergovernmental agreement by means of the automatic exchange of foreign financial account information gathering and reporting.
The purpose of all governments to enforce financial account information sharing agreements is to find the ”hiding behind”, the non-disclosure, to find those who hide to avoid paying tax.
[box type=”note”]Experience says that KYC & AML on PRC source money is generally inadequate.[/box]
One way to eliminate this liability problem and eliminate any query from Tax Authorities is when your client goes through the ORSO/402(b) because it is specifically the one thing that is legally and tax recognized in the PRC, Hong Kong and the USA. In fact it is the only thing.
Therefore, to eliminate your risk would be to accept funds only from the PRC persons Hong Kong regulated and PRC recognized compliant financial account that is structured under international agreement occupational retirement law. Which means the retirement plan trustee/administrator provides you with a pre-authorized AML compliant client.
Offshore Capital Structure Corporatization
This is the Only Type of Foreign Financial Account that U.S. Individuals can use for carrying Interest on Gains and Accumulations of their income.
Assets held in this plan are recognized globally as not included in worldwide taxable assets. Contributions to this foreign company plan are for persons working inside or outside the United States.
IRC 402(b) is a self-contained program:
We provide a turn-key facility for deferred income credential status globally; while you keep command and control of your own business.
The components of this IRC 402(b) Offshore Capital Structure are:
- Legal
- Technical
- Administration
- The movement of money custodian to custodian
- Finally the administrative and operational investment management
[box type=”tick”]This is the best way for you to have regulatory reporting, tax compliance and AML pre-authorized cash flow that is registered and recognized fully compliant at the financial institution level and also at the individual tax compliant level.[/box]
[box type=”alert” size=”large” style=”rounded” border=”full”]Control over your personal tax position is only what your investment account allows it to be.[/box]
Photo credit: vgm8383 via Visual hunt / CC BY-NC
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