The world of offshore banking and offshore company incorporation is changing constantly with places that were seemingly safe and secure one minute bending over and capitulating to pressures from other governments to crack down on money laundering, drug trafficking and tax evasion offenses.

That begs the question:

"Are there any tools left for financial privacy?"

The short answer is yes, although nothing is fully private in the post 9/11 offshore financial spectrum.  The best financial instrument this author has heard about that offers close to complete anonymity is the  "Anonymous Bearer Share Corporation".

There are very few places left in the world where you can get a  "bearer share corporation" with the only truly "anonymous" version being available in Panama. 

What is an Anonymous Panama Bearer Share Corporation?

A Panama corporation that is incorporated in bearer share form allows for the person who holds the physical share certificates to own the company.  Shares are issued for this type of company with the name area blank.  If the corporation is set up by a Panama law firm they will use a set of nominee directors when registering the company.  These directors will appear in the public registry in Panama but the true owner's name will not.

The directors never meet the person who set up the bearer share corporation and supply undated resignation letters to the law firm so there is no issue of the directors trying to take control of the company illicitly.

Costs Associated With Incorporating a Bearer Share Corporation

Incorporating a bearer share corporation in Panama is not an expensive exercise. There is an annual registration fee of $300 US that is required to keep the corporation in good standing with the government of Panama.

If you used nominee directors (of course you did right?) typically they will collect $100 - $150 per year as part of the agreement to use their names on your corporation.  A panama corporation requires 3 directors bringing the total annual cost to maintain directors to $450 US.

Add to this an initial cost of about $1000 US in legal fees to get the corporation and a bank account in the corporation's name created.

Total cost to incorporate: approximately $1800 US the first year, with annual fees of $600 - $750 to keep the company in good standing.

Notes:  Be careful when utilizing online website "Offshore Corporation Mills".  Panama is all about connections and if you use the wrong website / law firm to incorporate your panama corporation you may run into trouble trying to get a bank account.  Not all lawyers have the same reputation with the banks in Panama. While they may have no problem registering your corporation this does NOT mean they will be able to get a bank account opened on your behalf.  Make sure to try and find a referral.

A good place to look:  http://www.panamaforum.com/