23 December 2008
Money laundry in whatever names it is called is illegal. I know in Singapore and Hong Kong, the punishment is fine and jail term of up to 15 years. So do not do it .
I am leaving for Hong Kong now. In the last two days I have come to understand another way in which funds are transferred. There are people who does this transfer of fund and very professional. They go by very different name card and they make their money from commission earned as a percentage of the amount transferred.
Forming an offshore company, there are a few queries that you need to understand
1. Choosing a name for the company, most people will take one off the shelf
2. Place of incorporation, most of the time it is stated for BVI as there are certain tax implication
3. The three key position - Shareholders / Directors / Secretaries, find the company secretary and they can help with making the appointment.You just have to pay. The important thing to note is the beneficiary of the company.
4. The authorized and pay up is standard in most countries.
5. Source of Fund is the most critical question of the setting up and the secretary will need to clarify. Most of the time they will require a reference letter from you.
6. Finally you just have to sign it.
The next task is the bank formation. This is like going to form any corporate bank account. I will not go into the details. The major issue for bank formation is that the bank will need the applicant to be carried out in person........ and knowing the source of fund.
I did not talk much about Macau. I was here in 1998 and in the last ten years the place has changed tremendously. In my first trip, I still remember staying in the Hotel Lisbon which was facing the sea, now there is several huge hotels in front of the Hotel Lisbon called Wynn Hotel and Star World Hotel. Back then there is only one casino now there are thirty major casinos and they are huge setup. It is just like Las Vegas. Macau has a small population of half million people and I believe about the size of one third Singapore, but 20 million goes through the island every year mainly by ferry from Hong Kong and China. It is actually very close to China. It is at the mouth of the Yellow River in China with Hong Kong on one side and Macau on the other side of the river mouth. If you visit the place you will find that has a lot of Portuguese influence, after all it was under the Portuguese for hundreds of yeas before it hand over to China on 20 December 1999. So much about Macau. visit it and enjoy ;-)
Anyway have to go and catch my ferry for Hong Kong. Hope you have enjoyed the little write up about Macau, money laundering and offshore bank formation. This little details will come in useful to you someday.