The financial services industry on Curaçao was started by the Dutch during the 1940’s when Dutch corporations moved their assets to the region to escape the Nazis.
After the war many of the companies returned their head quarter back to the Netherlands but left behind the infrastructure of an offshore center.
The infrastructure includes 70 banks, more than 50 of them international, as well as asset management, trust and insurance companies. The worlds major international audit and law firms are also established on the island.
Picture of Curaçao courtesy of Wiki Commons
The Caribbean island of Curaçao realized that competition for business is stiff. So they had to keep the tax rate extremely low and attractive and add value to business. Being a tax free jurisdiction almost guarantees that you’ll end up on some OECD or IRS blacklist.
So the tax rate on corporate profits was set to 2% only, something that wouldn’t qualify them as a tax haven, but would be low enough to attract entrepreneurs. In addition, Curaçao also looked at ways it could actually provide value to 21st century businesses.
The Internet businesses they hoped to attract all need bandwidth. So Curaçao invested in fiber to the point that its data centers now have among the fastest, most highly connected data centers in the region.
So instead of just being a Curaçao company in name only, businesses can actually host their servers here as well. This helps any Internet business justify why the company is based in Curaçao.
Advantages of being based in Curaçao:
– Not being listed as a tax haven.
– Offering robust local services incl. state of the art internet which support the business.
– International financial center
– A blend of European and Caribbean Culture
The Kingdom of the Netherlands is a member of the European Union. However, Curaçao, Aruba and Sint Maarten all have the status of Dutch overseas countries and territories and are not part of the EU.
The U.K. to join he Chinese-led Asian Infrastructure Investment Bank as a founding member and CIPS the alt. to SWIFT ?
The government of the United Kingdom just announced that they would be applying to join the Chinese-led Asian Infrastructure Investment Bank as a founding member.
The United States currently dominates the global financial system. But after years of sanctions, wars, debt, money printing and regulations, the rest of the world are looking for an alternative.
The soon-to-be-live Chinese International Payment System (CIPS) will provide a way for banks to transfer funds to one another without having to use the US banking system or the US dollar.
Shanghai by night courtesy of Wiki Commons
China is also the initiator behind both the BRICS development bank (called the New Development Bank, or NDB) as well as the Asia Infrastructure Investment Bank (AIIB). Both of these are multilateral development banks that aim to end the dominance of the western-controlled World Bank and IMF.
NDB includes all the BRICS nations– Brazil, Russia, India, China, and South Africa.
Founding members of the AIIB include China, India, Indonesia, Kazakhstan, Mongolia, etc. They’re typically all rapidly growing and/or resource-rich developing nations.
New Zealand was the first western nation to join AIIB in October 2014, and Britain has just announced its intention to become the second.
The signatories to the NDB and AIIB charter documents want to create an alternative to the United States dominance of the global financial system by launching these new development banks and an alternative payment system together.
Armenia launched last year, the first-ever tax-free business zone which is meant to mainly cater to high-tech manufacturing companies.
The tax-free zone covering around 10 hectares (25 acres) of land and office space is designed for companies specializing in information technology, engineering, telecommunications, renewable energy and pharmaceuticals.
Companies based in the zone will be exempt from profit, value-added and property taxes as well as import duties.
Regional Map with Armenia courtesy of Wiki Commons
Putin ordered the launch of the “Double Eagle project” because the US blocked a payment from the Russian embassy in Astana, Kazakhstan in March 2014.
The payment was directed to SOGAZ Insurance Group through SWIFT.
This made Putin furious and he initiated the Double Eagle Project, an international money transferring system named after the Russian Double Eagle gold coin.
Moscow by night courtesy of Wikipedia
SWIFT (Society for Worldwide Interbank Financial Telecommunication) system is the global banking system’s postal system. SWIFT has more than 10,000 members in more than 200 countries, and handles more than 15 million messages daily.
SWIFT is based in Belgium, and subject to EU law. However, the U.S. government claims legal authority over all SWIFT transactions denominated in U.S dollars, even if those dollars never enter a U.S. bank account.
So when European banks used SWIFT to facilitate dollar dominated transactions between Iran and third parties, the U.S. fined those banks billions of dollars for violating U.S. sanctions, even though no money passed through the United States.
Russia launch competing money transfer system
When the United Kingdom, called for Russian banks to be ejected from SWIFT during the height of the Ukraine crisis, the Russian bear was alerted.
Late 2014, Russia announced that they will launch an alternative to SWIFT by May 2015. The new international money transfering system would nominate transactions in roubles, with conversion to and from U.S. dollars at either end.
The liberation of fiat money movements.
A Russian international money transfer system would be an alternative global economic and financial system beyond U.S. rules and Western sanctions.
Russia has joined the New Development Bank, an alternative to the International Monetary Fund and the World Bank. The participating countries, Russia, South Africa, China, India and Brazil, comprise more than 3 billion people, 41.4% of the world’s population, and account for more than 25% of global GDP.
China Merchants Bank now issues the world’s #2 credit card.
Russia and China have both built up their gold reserves.
A new trans-Atlantic cable to allow independent worldwide communications is under development.
Importers, exporters, and investors who are citizens of the EU and US are also likely to make use of the Double Eagle system , instead of SWIFT, when it suits them.
This is a private group. To request membership go to the group here, click Join and your request will be reviewed by the group manager.
The purpose of Tax & Money Havens Linkedin group is to function like alumni forum for the following areas,
– Offshore companies, offshore bank accounts, offshore jurisdictions. foundations and trusts.
– Compare jurisdictions world wide on taxes, bank secrecy, corporate entities, capital protection, storage of bullion, second passport, etc.
Marsascala, Malta picture above courtesy Best of European Union, is a town located at the Marsascala Bay on the southeastern part of the island of Malta.
– Advice that guide you to through turbulent times. Pros and cons of the most interesting offshore locations. Overlooked places and how to use them in an intelligent way, and more.