WAM offers also other services that are demanded by narrower group of people. In addition to services related to international business and tax planning, which form the core of our activities, we are partners of several companies dedicated to valuation of assets and available funds.
Specialised services for the creation and development of international business are focused on some less frequent requirements of our clients, such as setting up their own offshore bank or other financial institution, for example forex broker, establishment of trusts and foundations, obtaining a second passport and economic citizenship or a permanent residential address (permanent residence in another country). We also offer services related to the sale of licenses and patents in accordance with international tax planning and convention on the avoidance of double taxation.
Valuation of funds that were obtained through properly designed and applied international tax planning and business are another opportunity for our clients to protect their assets as well as to evaluate them. It is up to each client whether they search for risky investments with higher potential valuation, or for low-risk investments with lower capitalisation. Financial markets are unpredictable and may react differently in the short-term than they should according to the fundamental assumptions. However, almost always there occurs collusion between fundamental value and estimated market value of the instrument. The portfolio of our partners offers a wide range of possibilities to valuate assets, associated with tax advantages of offshore jurisdictions – of course, with a high degree of anonymity, safety, and beyond the reach of domestic authorities and unexpected lawsuits. We also offer basic training for laymen to independently control broker accounts and the basics of technical analysis.
Other offshore services
Establishment of offshore banks
Obtaining a banking license and managing own bank is a dream for many people, but it requires possession of sufficient capital, professional knowledge and experience in banking, a detailed business plan, and knowing all the pitfalls and regulatory requirements that must be met. Obtaining a banking license in an onshore country can be very problematic, this process is a little easier in some offshore countries.
Obtaining a banking license authorises the holder to carry out all traditional banking activities such as take deposits from and lend money to clients, issue payment cards, provide investment services to clients, or specialise in private banking with a focus on rich clientele.
There are several types of banking licenses, often divided as follows:
- A class – the license allows carrying out unrestricted offshore banking services
- B class – the license allows carrying out banking services only among predefined entities, and prohibits the taking of deposits from the public and other companies than those predefined.
In some jurisdictions there is a more detailed breakdown of banking licenses, for example into Category A, Category B and Category C. This more detailed breakdown of licenses divides the provision of banking services into full banking services everywhere in the world (including the home country and abroad), and the granting of licenses under for international clientele only, with the prohibition to offer banking services in the home country. The time required to establish a bank, obtain a license, and become a SWIFT member is several months, and the process requires thorough preparation.
Establishment of a regulated company
Obtaining a license to operate licensed and regulated activities, such as bookmakers, online casinos or brokerage companies tends to be a complex and lengthy process. In some countries it is almost impossible to obtain this type of license. WAM can help find appropriate solutions in some of the offshore jurisdictions where the conditions are more convenient, and ensure territorial control through nominee services.
The establishment of a trust or foundation
Owning a trust or foundation is very popular for common law jurisdictions. However, transfer of property located in a jurisdiction that does not know trusts or does not recognise them, is often very problematic, so it is useful to proceed in accordance with applicable legislation and real practice when establishing a trust or a foundation. Transfer of a part of the assets into a trust or foundation is appropriate for certain types of companies and for the ownership of assets located in common law jurisdictions.
When forming a trust, Settlor transfers some assets to a trust and the trust then manages the assets through Trustee, based on Settlor’s letter of wishes. Recipient of the trust revenues can be any person, firm or organisation designated by Settlor.
Trust can be significantly helpful in avoiding inheritance matters (succession), for example, Settlor may designate illegitimate children or other persons as the recipients of benefits from the management of the trust.
Similar situation is with foundations that are used in countries with civil law. Foundations were first used in Liechtenstein some 100 years ago. Foundation is a unique legal entity that does not have shareholders or other members; it is established based on the wish of the founder, who may be a person or company. According to the wish of the founder, the assets and the revenues of the foundation can be used for charitable, commercial or family purposes. Foundations find significant application in those jurisdictions, where trusts are not commonly recognised.
Obtaining a second passport or permanent residency
Many people are dissatisfied with the economic situation development in the home country and the constant curtailing of rights and freedoms. Erosion of civil rights in favour of the growing influence of the state and its insatiable authorities is a new trend with no prospects for changing that direction. If you are thinking of getting a second passport (citizenship), there are several options of essentially exchanging the passport for an investment in a country that offers a second passport. Programmes of the countries offering a second passport are constantly changing and are generally limited by the number of issued passports or by period. The usual number of economic citizenship is limited to approximately 5,000 passports issued, and the offering period tends to be a few months or years. The programmes tend to be expensive, and the necessary procedural steps must be completed before obtaining a passport.
Another option that is not costly is the possibility of obtaining residency in another country. Countries with suitable residency are those that have low to zero income tax. Such countries are often sought after by athletes and other high income individuals whose income is taxed at a high rate in the home country and subject to compulsory insurance payments. Popular countries with the possibility of obtaining residency include the United Arab Emirates (Dubai) and some of the smaller European states.
Patents and licenses
Investing in gold, silver and diamonds
Investing in physical gold and silver is a basic defensive tactics in protecting one’s property. It is rather a safeguard than investment, because the actual value of precious metals is manifested only at a sharp economic downturn or collapse. You can invest in precious metals either through listed “paper” instruments, “paper” gold stored for the client by an entity under contract to disburse the gold to the client upon, or through the purchase of real physical coins or bars made of precious metals. All three methods have their pros and cons. The ideal way of investing in “paper” gold and silver is through ETF in the stock market, for example holding leveraged ETF or share in any ETF derived from the physical metal. Real metal storage under contract is recommended as part of the offshore protective strategy. Clients may hold physical gold or silver through companies dedicated to the storage of these metals – we recommend especially those outside the banking sector. Personally held physical precious metals are again liquid funds outside the banking sector, which can easily be transferred abroad and exchanged for any currency required.
Diamonds are among the easiest ways to transfer great-value funds across borders because of their small size. However, diamonds are less liquid and their spread (difference between buying and selling prices) is usually larger.
Investing in strategic metals
Investing in precious metals is a way of protecting one’s resources against any contingencies, while investing in strategic metals involves a certain leverage factor.
Precious strategic metals, such as indium, gallium, hafnium, bismuth, tantalum, tellurium, cobalt, molybdenum, chromium, zirconium or tungsten, are getting increasing usage in the manufacture of products that we use more and more widely. They entail the powerful potential as their mining and extraction is very limited in geographic and quantitative terms. Only a small increase in demand for these metals can cause a rapid rise in prices and their interesting valuation.
Another advantage is the fact that their price is determined not based on the supply and demand for some paper underlying asset on the stock exchange, but directly on the basis of demand between the final consumer and mining companies with their distribution companies. The metals are stored in a duty free zone in Switzerland in a secure underground bunker and can be personally seen and checked. Investment in strategic metals has special status because it is not a financial asset (unlike gold) and can be used in the offshore structure.
Managed trading accounts and funds
We cooperate with several professional finance managers who achieve attractive valuation of entrusted funds, with the valuation usually reaching from 1% to 3% per month. This is a risky investment valuation in the short and mid-term trading of certain instruments, e.g. currency pairs (forex), shares or commodities. There are several ways to get your funds valuated: buying interests in a fund, buying corporate bonds or opening a managed account with a broker, where the client’s account is administered as well under exactly agreed conditions. There is obviously a risk of loss and failure, therefore when choosing a suitable partner to entrust funds it is necessary to consider whether this is a long-term successful fund or company. A company with many years of demonstrable results and elaborate strategy of funds management is certainly less risky than a cluttering company without history, promising large revenues. We work with only a small group of carefully selected companies with well-known background and results.