Authors: Haggai Carmon
"What's your name?"
"Bhamini," she answered shyly.
"Is it Indian?" While driving through the streets on my way from the airport, I could see that many of the island's residents were of Indian descent.
She nodded.
"What does it mean?"
"A beautiful, short-tempered lady," she answered, laughing timidly.
"And -" I paused, searching for the right word. "- are you? Shorttempered? About the beauty I can see for myself."
"That depends," she said with an enigmatic smile.
"How old are you?"
"Twenty-one."
"Went to school here?"
She nodded.
"Will you be serving all my meals?" I didn't know whether the apartment included meal service.
"Yes, if you wish."
"I have to go into town soon, and I don't know today's schedule yet, so
I don't know if I'll be back for dinner."
"Mr. Sunil will call me," she said. "He always does."
At that moment there was a knock on the door and Sunil walked in. "I
see you have already met my niece."
"Yes," I confirmed. "Bhamini served me a delicious breakfast."
After getting ready, we went to Sunil's car and drove downtown. He
parked the car near a four-story building on Revolution Avenue.
"No building can be taller than the coconut trees," said Sunil as we entered
the elevator. "It's an old local law" We went directly to the penthouse floor.
The brass plate on the door read TRANSCONTINENTAL MONEY SOLUTIONS, LIMITED. The office suite had six fully furnished offices, but only
three employees were present. Sunil led me to a vacant corner office with
huge windows overlooking the ocean, and said he would come back after
returning a few phone calls.
I sat behind the mahogany desk. Other than the desk, there was only a
wall unit with a few books and - much to my surprise - another photo
of me and my "adopted" family, Pat, Marc, and Christian. A computer
stood on the desk extension. I turned it on and surfed the Internet until
Sunil returned.
"I see that you've made yourself comfortable. That's good." He shut the
door and sat across the desk. "Don't take any notes. If you don't understand
or find it hard to remember, ask me, either now or later. The staff here know
nothing about us, other than the fact that we provide financial services to
customers from outside the islands. If you can, try to politely avoid all questions concerning your past. Some of the locals can be very nosy."
"Sure. Where do I come in?"
"We establish you as an expert on asset protection with exquisite qualifications, having years of experience in the ins and outs of this business.
We have added your name to our Web site as a leading expert on asset
protection. \Ve also instructed our asset specialists to mention your name
in their communications with third parties."
"Something like `Our expert Mr. Neil McMillan believes this is the
best approach'?"
"Exactly. News of that sort travels fast. You'd be surprised how small
this industry is."
"Don't I know it."
As much as I knew about the trade, I still had a lot to learn. My expertise
was gained from the hunter's point of view. Now I needed to view it from
the deer's perspective. How could he hide from predators and hunters?
Sunil continued. "The legend is that you are a financial consultant who
lived on the islands in the distant past and are now returning for a second
term of office with a different local company. Your old company went out
of business, you moved away, and now you are hired by us."
"What was the name of the now defunct company?"
"World Trusts and Investments Limited. It was managed by an
American lawyer who moved here from the British Virgin Islands."
"What was his name?"
"He appeared here as John Walker, but I suspect he adopted that name
because he liked the liquor so much. Drinking brought him down, and
following a few shady failed deals he just took off. Maybe he found a new
location, or maybe his creditors or disgruntled clients finally got him. You
were his unsuspecting employee who managed to stay on for only four
months before leaving for a better job with a Dutch company in the
Netherlands Antilles."
"Okay, I'll need to rehearse my past," I said.
Days went by and the routine repeated itself. I called my children several times through a satellite telephone that showed a U.S. number as the
origin of the call. Sunil watched me filling out one-page forms of incorporation, making the clients believe we were working hard. After a week,
I'd become used to these lazy days of doing nothing but answering a few
phone calls and making myself visible to the bank managers and
employees of the Registrar of Companies.
I thought of Laura. I looked at my watch. It was 3:0o P.M. local time,
7:00 A.M. in New York. Time to wake her up. I used the satellite phone
to call her home number.
"Hello," came her sleepy voice.
"Laura? It's Dan, did I wake you up?"
"No, I've been up for a while, it's just that I haven't talked to anyone
today. How are you?"
"I'm fine, getting some sun for a change."
"Are you still in Virginia?"
"No, actually I'm in the Seychelles."
"The Seychelles? And I thought we'd go there together."
"Maybe one day," I said. "How are things at your end? Still working on
the case?"
"Just moving paper from one end of my desk to the other. Since you left,
most of the action was moved to other departments. Are you working
there on the task force's case?"
"Yes."
"When will you be back?" There was a personal tone to her question.
"I have no idea, but I know I'll go someplace else, probably in Europe,
before I return."
"How come you have the fun and I have the paperwork?" she asked
with a feigned note of complaint.
"I got lucky, I guess."
"So tell me what you do."
"I can't, not just yet. Maybe when I return."
"I'm curious, give me a hint."
"Remember my presentation and my findings?"
"Sure."
"Then think in that direction."
"Dan you're killing me. Give me more."
"Laura, you know I can't."
"Dan, I need to leave, is there a number where I can call you later on?
I need to consult with you on something."
"Personal or business?"
"Personal." She paused. "But it has to do with my work."
"We can't take calls here," I said. "Is it urgent?"
"Kind of."
"I can call you again later at the office."
"No, no," she said abruptly. That answer was firm, and left me wondering why. "Give me your number, I'll call you later."
"I need to go," I said, "talk to you later."
I looked through the window and saw the ocean and coconut trees
slowly moving their palm fronds in the wind. The conversation with
Laura bothered me: She was withholding something. Of course, I'd
refused to tell her what I was doing or to give her my phone number, and
I didn't know how she would interpret my conduct. But there was something else.
Sunil came to my office. "Do you feel you are ready yet?"
"I already feel sleazy," I said with a smile. "Does that qualify me?"
"The industry does have a bad reputation," he agreed. "It's full of sleazy
people using sleazy methods. But the purpose of `asset protection' is legitimate: protecting assets against anyone other than their owner."
"The concept may be benign, but most of the people who use it are suspect. That's particularly true with respect to the offshore industry," I said.
"I know from more than a decade of chasing these guys."
Sunil chuckled. "I know your reputation."
"Maybe I'll get a different view while assuming, albeit temporarily, my
position on the other side of the fence."
"You should familiarize yourself with the terminology used here," Sunil
advised.
"I came here to learn," I said in earnest, "and I have gained a lot from
working here already. However, there is a question I need to ask you. Do
we screen our clients? Or do we provide these services to anyone?" I
found it odd that the U.S. government was actually complicit in laundering dirty money.
"Only to a select few," he said with a grin. "Don't forget, we do it as part
of law enforcement. A sting, if you will. It is fully authorized by the
attorney general."
I smiled in amusement. What a great idea this front company was.
Help launderers whitewash their money through us. We get info and
control, we discover newly developed tactics and resources, and, best of
all, they pay us for the privilege. Brilliant. And just as with a family
doctor, the "patients" are financially naked; nothing is withheld.
"I think you're ready to handle the next client who calls in for asset protection," he informed me. He gave me some final technical explanations and instructions then, as if on cue, the receptionist interrupted on the
intercom.
"A potential client on line one."
"Take it," said Sunil. "I'll be right here if you need me."
I picked up the phone. "Good afternoon, this is Neil McMillan. How
can I help you?"
The voice was of a man perhaps in his sixties, speaking English with a
slight German accent. "I need asset-protection information," he said
briefly.
"Sure, I'll be happy to help you. May I ask if you need the information
for yourself, or maybe you are acting for a third party?"
"For myself, and I need absolute confidentiality."
"You have come to the right place," I said. "Secrecy is our motto. I can
guarantee that the information you will provide us shall be treated only
by me, and it will be regarded as top secret. We run our operation so as
to guarantee that no creditor or government ever penetrates our shields."
"That sounds good," he said.
"Tell me what you want to achieve."
"I have a little argument with the tax authorities of my government,
and until I settle it I want to make sure they will not find and seize my
assets."
"Fair enough," I said. "Most of our clients need that kind of protection."
"Before we go any farther," said the man, "I need to know the cost of
your services."
"We are really very competitive. The fees we charge are more or less the
industry standard. This isn't cheap, though. I know some irresponsible
companies are offering cheaper services. But we know that people want
the best for their money. It must be pampered, and we are the leaders in
professional service." I went on to offer a condensed version of the fee
schedule Sunil had discussed with me.
The man seemed agreeable. "How do you do it, then?" he asked. "I
mean, the actual protection?"
"We help moving the money around until it lands in the legal structure
we design - a trust, or an international business company."
"Before calling you, I spoke with a few other competing companies. Is
there a compelling reason why should I choose the Seychelles? There are
more than thirty similar offshore locations."
"Well, we have similar operations elsewhere. But those who come here
do so due to the special benefits the Seychelles government offers. For
example, income from international business companies or international
trusts is completely exempt from business tax. The Seychelles have a territorial basis for taxation; profits are taxed only if they are derived from a
source in the Seychelles. There is no capital gains tax; interest, dividends,
and other payments received from abroad are likewise not taxed. Finally,
there is no taxation of individual income. Resident, nonresident corporate, and noncorporate businesses are liable to pay business tax only on
income derived from the Seychelles. But a company is considered resident only if it is incorporated in the Seychelles, and even then the tax is
minimal." I paused and added nonchalantly, "I'm sure most companies
avoid even that."
"I see," he said. "Okay, so we start a company or create a trust? Then
what? Is the money transferred to the Seychelles?"
"It depends on the level of our involvement. It's your call. Some clients
only want incorporation of a Seychelles company, and once incorporated,
we never hear from them again."
"Not even for annual reporting?"
"No. Many times the incorporation is made for a onetime transaction,
and once completed, the owners abandon the company. We know that
because they never answer our letters concerning annual fees. We simply
never hear from them again. If you want us to provide you with nominee
directors, then we'd continue to be involved. Many clients want to open
a bank account locally and ask us to make the arrangements. It's all up
to you."
"I need a company as soon as possible."
"We have ready-made shelf corporations. You can have control immediately."
The concept of "shelf" corporations is just another ploy of the sleazy
asset protectors that give the industry a bad name. They inform their potential clients that they have a ready-made corporation on the shelf,
available for immediate use. What they fail to disclose is that all they have
is a computer-generated form, which still needs to be filed with the local
Registrar of Companies to make the firm viable.
"Okay, let's move on," said the man, apparently satisfied with my
answers. "If I order a shelf company, do you mail out the incorporation
papers immediately upon registration?"
"Almost immediately. The shelf company has an open configuration -
meaning that it does not yet have any directors appointed and shares allocated. You have to tell us if you'll appoint them or if we should assist you
there as well."
"For an additional fee?"
"Yes, but nominal. We charge only one hundred dollars a year for each
director." I saw Sunil smiling. Since we handled hundreds of such companies, it was easy to see how we were making money.
"If you would like to open a bank account outside the Seychelles, you'd
need the documents to be certified by a notary or legalized by an official
stamp, like an official court certification, known as an Apostille."