Offshore News Digest for Week of October 22, 2001

U.S. HOUSE PASSES ANTI-MONEY LAUNDERING BILL

WASHINGTON. Using the now established “anti-terror” excuse, the US House of Representatives on Wednesday passed a bill that seriously compromises financial privacy, targets offshore tax havens and will likely catch few, if any, terrorists. The vote was 412-1.

Rep. Ron PAUL (R-Texas) was the lone dissenting vote against the bill, calling it an "unconstitutional expansion of the financial police state, which will prove ultimately ineffective against terrorism." For Rep. Paul's trenchant analysis of the other major anti-terrorism bill passed by Congress and how it diminishes our liberties, see this story.

Full House debate and text of the bill adopted,

Anti-terrorism bills now go to a House-Senate conference to work out differences. Final votes to compromise our freedoms come next week.

BAHAMAS FREEZES “TERRORIST” ACCOUNT

NASSAU. Based on nothing more than US government suspicion, and without due process, The Bahamas freezes a $20 million bank account where a suspect US citizen is one of four beneficiaries of a father's account.

CARIBBEAN LEADERS BLAST US, OECD

The prime ministers of Jamaica and Grenada accuse the US and OECD of using the terror excuse to crush Caribbean tax haven financial sectors, while terror cash flows through major nations' banks.

EX-IRS LAWYER ON TRIAL FOR TAX EVASION

An ex-US Internal Revenue Service attorney is on trial for setting up a Cayman Islands front company to evade taxes.

HONG KONG GLOOM SAPS SPIRIT

The former Far East tax and asset haven is down in the dumps.

CORRUPTION EQUATED WITH TERRORISM

It seems everything is now "terrorism."

LIECHTENSTEIN HIRES TOP SWISS

The Principality hires away the top Swiss anti-money laundering expert to head a new financial crimes unit.

MONTENEGRO ON THE NET: FRAUD, CROOKS WELCOME

Ready made banks, fake passports, royal titles? All for sale.

E.U. DEMANDS INTERNATIONAL TAX REPORTING

The EU demands the US, Switzerland, Liechtenstein, San Marino, Monaco and Andorra adopt anti-tax evasion rules and an information exchange system to support international taxation.

SWISS BANKS SAY SECRECY IS NOT NEGOTIABLE

In spite of the EU demands, SWITZERLAND absolutely refuses to go along with the cross border tax reporting and will not yield on financial privacy for its customers.

SWISS IMAGE DAMAGED?

Switzerland's new money laundering control boss says the country's reputation as a haven for dirty money will be difficult to change.

E.U. GRASPS POWER WORLDWIDE

BRUSSELS. Using the terror excuse, EU officials have voted to force all EU financial institutions, attorneys, real estate agents, gem dealers, aacountants, et al to report "suspicious activities."

The EU nations also agreed to impose penalties on third countries considered "un-cooperative" in fighting money laundering.

The new EU controls apply to nations blacklisted by the OECD's Financial Action Task Force and will ban EU-based banks opening branches in any "un-cooperative" country.

IRELAND OPPOSES E.U. CRIME PLANS

DUBLIN. Not all nations agree with a super EU criminal code.

THAILAND IMPOSES CASH CONTROLS

All foreigners financial transactions are being tracked.

ANTI-PRIVACY VILLAIN: THE O.E.C.D.

Using the terror excuse, the OECD and FATF seek power and control over financial activities everywhere.

SENATOR DROPS ANTI-ENCRYPTION IDEA

Sen. Judd Gregg (R-NH) won't seek to insert backdoors into encryption software products.

U.S. MILITARY CREATING POLICE STATE?

The line between armed forces and law enforcement blurs as US local police are trained and supplemented by military units.

CANADA USES TERROR EXCUSE

The Liberal government wants to curb Canadian liberties.

MORGENTHAU'S BIG LIE TECHNIQUE

NEW YORK CITY. The aging district attorney for NYC, Robert Morgenthau, using the complicit pages of The NY Times, yesterday perpetrated a pack of lies about offshore banking and finance. Using the usual anti-terrorism excuse he demanded support for pending US legislation that will destroy offshore financial privacy. He lied repeatedly implying that bin Laden terror cash has been found in traditional tax haven accounts; implying the CAYMAN ISLANDS was used by terrorists for their dealings; and implying that tax havens have failed to cooperate in the search for suspect terrorist accounts. All untrue! Small wonder the public doubts the words of public officials.

LUXEMBOURG COOPERATES

The Luxembourg State Prosecution Service has frozen six bank accounts possibly containing funds of suspect terror-linked origins.

CARIBBEAN SECOND PASSPORTS STILL AVAILABLE

GRENADA has only 'suspended' its economic citizenship program, but NEVIS, DOMINICA and BELIZE have not.

U.K. HUGE EXPANSION OF FORFEITURE POWER

LONDON. Again, the terror excuse: Tony BLAIR wants a new law allowing police to seize cash and assets based on mere suspicion.

UK police and Customs officers will get new powers to search for and seize suspect cash in an individual's possession or their home.

IRELAND SHOWS THE WAY

DUBLIN. The one EU nation with the lowest taxes and highest growth rate is set to continue as Europe's and the world's leader.

TERRORISTS AIMED AT FREE MARKETS

SHANGHAI. President BUSH claims "The terrorists hoped world markets would collapse. But markets have proven their resiliency & strength."

TENOR TOPS TAXMAN: PAVAROTTI NOT GUILTY

An Italian court has acquitted opera star Luciano Pavarotti of charges of filing false tax returns. He lives in MONACO.

OFFSHORE INTERNET BANK RETRENCHES

The Bank of Ireland reels in its F-Sharp Internet Bank from the Isle of Man; two years and only 2000 clients.

NEW U.S. MONEY LAUNDERING LAWS

What new US anti-terror financial laws may do to banking.

CYBER-SURVEILLANCE AND YOU

Here's how the 'anti-terror' digital eavesdropping legislation racing through the US Congress vastly alters the existing legal terrain.

CANADA RUSHES CURBS ON FREEDOMS

The Liberal Canadian government is rushing through liberty curbing restrictions, many of them allowing spying on citizens.

Stepped up anti-money laundering restrictions are also planned.

IDENTITY THEFT DOUBLED LAST YEAR

ID thefts reported by banks surged in 2001, more than double over last year, according to a new report released yesterday.

INSURANCE COMPANIES DETECT FRAUD VOICES

UK insurance firms now use 'fraud detecting' voice analysis that reveals liars' vocal stress patterns. Are politicians next?