Bullet-Proof Asset Protection

Posted By: Panama Expertos on 09.12.2009
Views: 442, Published in sections: Panama-Expertos ::

Are you a person with substantial assets and/or serious potential financial enemies? The following asset protection strategy may be of value to you; it’s not very complicated but it is highly effective.

BulletProof Asset Protection – For this person an anonymous Panama Bearer Share Corporation is formed. Then an anonymous Panama Private Interest Foundation is the owner/stockholder of the Corporation. Since you do not own the anonymous Corporation, you can say so. And since the Panama Foundations can have no owner you are not misrepresenting anything. It is possible for the Corporation to bank at one bank in Panama and the Foundation at another Panama bank. It is also possible for them to both be in the same bank and use the banks online banking to transfer funds from one account to the other. In this manner there is no need to send a wire or write a check to move funds from one account to the other.

Panamanian Banking has a Panama only ACH system that allows transference money from one Panama Bank account to another. It is even used from Panama bank to Panama Bank. Since their ACH is for Panama only it does not use the non-private international wire system. And if it is Panama Bank to Panama Bank, it is covered by Panamanian Bank Secrecy Laws.

For other asset protection strategies it may be better if the foundation does not have a bank account at all. The Foundation or Corporation may have a stock brokerage account, own real estate in any country, own cars, boats etc. As protector of the foundation, you can donate assets to the Foundation, transfer assets to the Foundation for an annuity, etc. For arrangements such as these we have formal contracts, they are available on our price page.

Another choice is to work for the Foundation as an asset manager, investment manager, real estate manager, or any other applicable position by formal written contract reducing your position to that of an employee of the foundation. A formal agreement specifying compensation, commissions, expenses, benefits etc. can be written. Formal agreements such as these can be secret since they do not appear in any public registry or database. Even if they notarized, apostilled etc. they can still be private.

A Second Armor Coating – The Panama Foundation could own the shares of the anonymous corporation and decide to not have a bank account. We can supply the founder of the foundation so you are not the founder. Relatives can be the beneficiaries of the foundation rather than yourself. In the case of countries that elect to treat a foundation as a trust you would not be the beneficiary of the foundation (some governments may view a foundation as a pass through trust). So in this scenario you are not the founder of the foundation, not the owner of the foundation and not a beneficiary of the foundation, along with not being the owner of the corporation.

Now we need to have a look at the protection aspects of you keeping the assets managed correctly. All Panama Foundations can have a position called a Protector. However, please note the Protector does not really have true control over the foundation, but this position does have features that will give you peace of mind. While protectors can’t initiate a transaction on behalf of the foundation, they can monitor the activities of the foundation to make sure they are on target with the purposes of the foundation. Protectors can approve or disapprove any and all transactions of the foundation.

As investment manager would need to have all activities approved by the Foundation Protector. You can be behind the scenes as the Foundation Protector and the employee investment manager under formal contract. It can be a written foundation charter that for the foundation nominee council members (who are supplied by us and function similar to nominee directors of a corporation) to utilize any of their authority, first they must have the written authorization of the Foundation Protector, committee or other managerial entity appointed by the Founder (the law firm generally is the founder and will do as directed by you at onset). Foundation Protectors do not appear in any public records or database.

Additional Layers – Panama foundations could have three nominee council members or substituted with a judicial person such as a Corporation. Panamanian Anonymous Bearer Share Corporation can substitute on behalf of the three nominee council members. Ownership of the Bearer Share Corporations is based on who has the physical possession of the shares of stock. Again, it is never recorded in any registry or public database even when sold or transferred. Panamanian Bearer Share Corporations may have three nominee directors or they may be substituted lawfully with three other Panama Anonymous Bearer Share Corporations. These in turn could each have other corporations instead of nominee directors. It is easy to see the trail of confusion that can be created to make pursuit by financial enemies an almost impossible, expense and grueling endeavor.

How hard would it be for someone trying to work through this labyrinth of legal structures in Panama with the some of the world’s strongest bank secrecy laws to establish a beneficial owner? What about the time it would take? It would be years; the cost would be most monumental. Think of trying to go to court, of getting orders to pierce all of these corporate layers. With the chances of success being minimal at best and monumental expenses, the risks verse gains would not be gains. A scenario such as this could be ‘over done’ for some needs, but for others it’s simple ‘Bullet – Proof Asset Protection’.

You now have an understanding of what law firms charging $65,000 for asset protection are doing. Swiss Law Firms are the largest purchasers of Panama Corporations and Foundations.

We understand the examples above are complicated. We welcome your questions. We can also design specific scenarios for your specific needs. Don’t hesitate to call us and explore solutions to your needs.