According to the Panama Papers, banks set up 15,600 offshore companies. HSBC alone set up more than 2,300. HSBC is the bank that nearly lost its US licence a few years ago when it was discovered that one of its clients was one of the most murderous and wealthiest drugs barons in Mexico. It would appear that they didn’t learn from their past mistakes and that the lure of wealth and huge profits made them forget their moral, ethical and legal obligations.
But the Panama Papers could be just the tip of the iceberg – let’s not pretend for a minute that there was anything unusual about Mossack Fonseca, because there was not. This is just one of a host of law firms in tax havens doing remarkably similar things. The need is for the FCA to demand that banks put on record all their connections with secrecy jurisdiction lawyers, accountants etc.
This could all lead to hefty fines for the banks, on top of the fines they have already had for fixing the FX markets, gold prices, Libor – the list goes on and on. Plus, hopefully it will help ensure investment banks are a lot more transparent on what they are doing and with whom in the future.
With this in mind, be cautious as to where you place your money as some banks may struggle to survive.
If you want to know what your options are, I am here to help you find the right solution to make your money work for you in the most tax-efficient way possible. You can find out more about our financial management services here and get in touch with me directly by filling in an enquiry form.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Over the years, the trend for South African nationals to seek out new lives and experiences in Portugal has continued to grow and grow; I myself made the move back in 1988 as a fresh-faced economics graduate from Witswatersrand University in Johannesburg, and I’ve never looked back. It’s easy to see the appeal for South Africans – the year-round sunshine and vast expanses of Atlantic coastline are a familiar part of daily life, just as they are back home – but the secure location and easy access to the rest of Europe is something really special. Being as there’s over 11,000 KM of distance between the two countries, a mere 12 hrs by plane give or take, there are going to be some big differences in the way of life, even if there are those obvious similarities. It’s probably advisable for any emigrant to arrive armed with a willingness to accept how things are done in their new home country rather than try to carry on as before and hope for the best. This is never more true than when dealing with your finances.