Ecuador: A New Tax Haven

Ecuador: A New Tax Haven

by Germánico P Vaca

There is so much talk about the criminal enterprises of other countries helping rich Americans, Europeans, and Asians hide their money offshore. In reality, the wealthiest families in the world even provide talks about how the world’s wealthy elite can avoid paying taxes. The Rothschild & Companies will always be happy to help you move whatever fortunes you may have to the United States, free of taxes and hidden from their governments.

Never mind Switzerland or a small island in the Caribbean. The best place to hide all your assets without many disclosure standards is Nevada, Wyoming, and South Dakota. If you get a whim of the perverse and sanctimonious condemnation of American authorities when they talk against tiny Panamá or Cayman Islands is just because most people do not even know about the currents of money flowing in the rich circles.

Well in case you own your own “banco” with some fancy name, you need to know about Trident Trust. A little firm founded by the centuries-old European financial family and institution, The Rothschild. They opened "Trident Trust" company in Reno, Nevada.

Of course, Guillermo Lasso needed such a firm to hide his money. Do not blame him, who would you trust to keep your fortune with the stability of the US and the guarantee that you could prove to your fellow men that you had complied with your tiny country’s tax laws and be ready to be president of his equatorial territory.

Trident Trust Co., one of the world’s biggest providers of offshore trusts, had moved dozens of accounts out of Switzerland, Grand Cayman, where Mr. Lasso had his little accounts out of the reach of the pestilent Rafael Correa and his eager tax grabbers and was probably very happy to see his money being moved into Sioux Falls, S.D., in December, ahead of a Jan. 1, 2017, disclosure deadline and ahead of his presidential run. Of course, Trident trust in South Dakota will tell you all kinds of arguments about the legitimate need for secrecy. Confidential accounts that hide wealth, whether in the US, Switzerland or elsewhere, will protect you against kidnappings or extortion in their owners’ home countries. Mr. Lasso and his very rich pals and people like him also often feel much safer parking their money in the US rather than some other location perceived as unsafe. One can not imagine why the president of Ecuador and bank owner with his own vaults could not feel safe to keep his cash stashed in his own buildings and near his own home. No sir, Lasso felt at ease with his money as far away from him as possible. A desert where the dinosaurs used to roam is apparently the right place for Mt lasso to feel comfy.  

What about a new Tax Haven? Ecuador.

I do have to wonder, if I was a bank owner, I probably would want to create my own offshore haven, and being president of a nation, I could probably want to turn Ecuador into the South American Swiss bank. Imagine being able to hold trillions in assets not reported by account holders in their home countries. Lasso must salivate over the prospect. Probably nobody really knows how many countries and jurisdictions really enforce the new disclosure standards, issued by the Organization for Economic Cooperation and Development, a government-funded international policy group. So, if you could create your own offshore haven wouldn’t you create it?

There’s nothing illegal about banks luring foreigners to put money in the US, Panama, or Ecuador. If you could promise absolute confidentiality and a well-intentioned statement that under no circumstances you will be helping anyone to evade taxes abroad.

For decades, Switzerland and Lichtenstein have been lurking the wealthy individuals that have the need to keep secret bank accounts. However, newly enacted laws by the United States ended up imposing fines on more than 80 Swiss banks, including UBS and Credit Suisse Group AG, who have agreed to pay about $5 billion to the US in penalties and fines.

Among those companies was the Rothschild Bank AG, which entered into a non-prosecution agreement with the US Department of Justice. The bank admitted helping US clients and other world leaders to hide income offshore from the Internal Revenue Service and agreed to pay an $11.5 million dollars as a penalty and shut down nearly 300 accounts belonging to US taxpayers, totaling $794 million in assets. Of course, Panama papers, Paradise papers, and Pandora papers, (PP’s) never talk about the wealthy Americans, Europeans, or Canadians holding their accounts in the secret offshore accounts.

Of course, the PP’s only mention non-US citizens skirting their home countries’ taxes. However, the Treasury department will always tell you how dedicated they are to prosecuting those who avoid the law and tell you how concerned they are about massive inflows of capital into secret accounts that could become a new channel for criminal money laundering. At least $1.6 trillion in illicit funds are laundered through the global financial system each year, according to a United Nations estimate. Yet the Rothschild’s may be interested in opening a branch of their operation in Ecuador.

Offering secrecy to clients is not against the law, and now Mr. Guillermo Lasso may take advantage of being president to lure wealthy individuals to park their money in the gorgeous country of Ecuador. Understandably, they will probably be clear that if Ecuador is to become a tax haven it will not be to help any US firms to avoid taxes. Maybe a good slogan will be something like this”

“Americans and non-US persons are encouraged to come to the beautiful, resource-filled country of Ecuador to stash their cash. Ecuador will provide you with great banking and security, we will not allow anyone to evade taxes, but we are happy to give out own gold for only 3% of royalties, not enough even to cover inflation, but you can buy gold and we will stash for you with great interest fees. Come and bank in Guayaquil”