The world offshore era is over. At least the period, when somebody could relatively simply, quickly and cost effectively set up an offshore company and to open a related bank account. The banks which cooperatively opened bank accounts for such companies, today not even non-coperative any more, but they started to close the existing bank accounts too. There are some fintech companies on the market, which still open accounts – however more and more difficult – for classic offshore companies, but their daily operations are very shaky. Usually it is not disclosed to the clients, that such fintech companies have no banking licence. It means they have no correspondence bank account, the fintech companies have a simple normal bank account like any other company. Thanks to this fact, they can be “killed” easely. Either the bank which opened a bank account for them, or the regulatory body (National Bank, Financial Services Authority) start an investigation in connection with some suspicious transaction, these fintech companies can be bankrupted immediately, taking to the danger all of their clients. Unfortunately we have seen such a story here in the LAVECO Ltd, if somebody is intrested in details, please contact me….
The international company industry is absolutely overegulated today. Under the pressure of the OECD, today, an Austrian citizen can not, without difficulties, open a company in Slovakia, because the Slovakian bank will ask the Austrian client: why do you set-up a company here in Slovakia and not in Austria? More stupid question could not be given by a banker to the client all over the world, which is globalized, today, but it happens. Thanks to the compliance departments, dominating in any bank today, the front office has to ask this question from the client. If the client tells true, maybe they accept it, maybe not. But most probably, by the principle “better to avoid any even theoretical risk”, the bank account opening application will be rejected. We should also consider, that the compliance officers – all over the world today – not the best qualified and most talented lawyers.
Indeed, even the “best compliance officers” can not do anything with the “big manipolators” in the system. This overregulatory attitude leaded the process to the stage, when the most illegal solutions are used daily. And this is not theoretical thing, it is in our nowdays: the use of Nominee Ultimate Beneficial Owners (NUBOs). In Hungarian language we use a special word for such persons – which word has most probably has German origin – the “institute” of stroman. Stroman is a private person, who has no connection with the business activity, but on the papers everything runs on his name. Can not be more classical money laundering formula, internationally, than this method. But it works in the practice, and in some countries, very well known and respected lawyers are in this position – of course for a substantial amount of money – as they agreed for such a role. And these companies open bank accounts, transfer money internationally, day-by-day, with many thanks, they are ok. Was it really the intention of the OECD? Definetely no. But the overregulation of the financial world leaded us to this position: the richest persons hiding themselves behind others, and the “small fishes” are simply diying, as the banks close their bank accounts.
But if somebody wants to create a structure for long time, never even think about the use of NUBOs. I will explain for you, why do not use it, and what can be used for long term structures…