third world vs. first world

[donald bathe]

someone told me on this forum they think itd be easier to deposit money into offshore bank accounts if someone who lives in a third world country because with all the corruption it makes things difficult if not impossible to catch people with suspicious money. why would they say that they think itd be easier in a third world country with all of the corruption making things difficult if not impossible. what is it about third world countries and corruption allowing officials allowing someone to deposit questionable money? can someone please tell me. thank you.

 

[dotbloup]

No, what you say is not possible becuse the data exchange agreement has been signed‌ with countries outside of the 3rd world countries. Before fatca and aeio, they could do‍ what they wanted inside they countries. Now, they have agreements with USA and OECD countries.⁠ Since 5 years, in the background, the 3rd world countries have been pressured by all⁤ the countries from west europe and north america because they desperetaly need money.

I know⁣ the deal was: give your info or we will destroy your economy.

 

[john jackson]

ok so if someone lives in a dirt poor country and that country isnt member,‌ what might that mean? rsvp

 

[john jackson]

what if a third world countries dont have laws that forces their citizens/legal⁢ residents to declare offshore bank accounts then? i know a lot of the first world︀ do, but many third world countries dont. rsvp

 

[dotbloup]

rich countries have⁠ forced poor countries to change their laws. For instance, since 3 years, France has forced⁤ panama to be part of oecd
Panama - OECD

you don't see it on the⁣ media but those last years there were a war.

 

[negon]

Indeed and it seems that it will spread all over the globe very‍ soon. I wonder what people do once everything is connected to each other through one⁠ BIG network that at the end of the day will report everything to the NSA⁤ and all governements all over the globe!!

Seems, protonmail, BitCoin and PayPal is the only⁣ option left if you want to stay private.

 

[dotbloup]

What you say about⁣ protonmail, bitcoin and paypal is very true. Even if in paypal terms they tell you⁢ they can pass information. But from my observations from what i was paypal is still︀ the best.

 

[john jackson]

then if what you say is true, then how do these hackers that‍ we hear on the news, read online manage to deposit their stolen money from online⁠ bank accounts then? i was reading an article that most hackers who steal money from⁤ banks online opt to deposit their loot into offshore bank accounts and that corruption allows⁣ for both parties being in this case the hacker and maybe banking official to stay⁢ silent about the money............ would you like to read the citation that im referring to?︀ rsvp

 

[john jackson]

what is the current⁣ deal/situation with el salvador if youre saying that then? rsvp

 

[dotbloup]

El salvador has not signed any data exchange for now.‍

Then, about FATCA:
Non-FATCA Banks in El Salvador

 

[negon]

So it seems it's pretty save to establish a business there tax vise?

 

[xfighter]

You mean El Salvador - Wikipedia, the‍ free encyclopedia it is Spanish don't you think they underlay Spanish / EU regulations?

 

[donald bathe]

yeah but im making reference to non‍ american citizens. how does it affect me if im a citizen of el salvador? rsvp⁠

 

[dotbloup]

Since you‍ ask....

Let's imagine you are an Italian and you incorporate a Delaware company. If you⁠ open a business bank account for your delaware company in a bank that is Fatca⁤ compliant, they will report the balance of this business bank account to the IRS. Then,⁣ wherever you live in the world, the IRS will send you a letter to ask⁢ you to pay income/corporate taxes for US derived income. If you don't pay they will︀ try to withdraw money from your El salvador account, and here it is a bit︁ vague because it didn't happen yet as FATCA is pretty young. In fact, according to︂ the IRS procedure, they always try to get penalties first. In fact, the penalties are︃ so high after 1 year it is like they would seize your bank account.

FATCA is only reporting, then for law enforcement there is INTERPOL. Anyways, the IRS thanks to︄ Fatca would identity the ultimate beneficial owner (the Italian person), so they would create an︅ interpol notice to get the person in Italy. But then, in Interpol, it is active︆ for criminals who have done something really bad to take into account. The offense has︇ to exist in the Italian law & it should be something that is serious enough︈ to require 2 years time in prison. The notice may be discarded because of that.︉

Anyways, ultimately they will wind up the US would strike off the Delaware company. I︊ guess also this Italian person would be on the blacklist to visit the USA.

Also, the beneficial owner will have plenty of time to withdraw all the money from the︋ business bank account if he wants after he received the letter from the IRS. He︌ can pay the tax and wind off the company quickly.

 

[xfighter]

@dotbloup really appreciate to read your post and threads thu&¤#

 

[donald bathe]

what if its a non fatca reporting bank here in el salvador or︍ elsewhere in the world? what then? if theres a facta compliant bank here in el︎ salvador, what does that mean if i was born and live in el salvador? what️ would fatca have to do with me in that case? why would fatca look at‌ me if i was born and live in el salvador or anywhere else in the‍ world assuming i was born in paraguay just for the sake of argument? clarification please.⁠ what if i incorporate in some remote part of the world like the seychelles or⁤ something of that nature? rsvp

 

[negon]

FATCA is USA and US citizens only.. so it won't apply to you unless Salvador‌ belongs to the USA government!

btw. if you don't want to move to any other‍ country but still want to open an offshore account without reporting then this Cyprus Bank⁠ Account - Read to learn how they can protect your privacy! may be of interest⁤ for you to read!

 

[donald bathe]

but what about u.s. legal residents?⁣ what about fatca compliant banks here in el salvador or elsewhere? what about non fatca⁢ banks in argentina? rsvp

 

[JohnSeed]

Seems you are confused in regards to FATCA. Even banks in Cyprus comply to FATCA‌ for that sake it still only apply for US citizens and only when they try‍ to open an bank account! They simply get a form which they have to complete⁠ in order to apply with the FATCA policy / regulations set out by the USA!⁤ It has no impact on non US citizens!

 

[donald bathe]

what if⁣ someone used to be a legal permanent resident of the united states but had their⁢ permanent resident card revoked? in other words they were deported from the united states a︀ long time ago! what then? rsvp