Although criminal enterprises have historically bought goods with so-called “dirty” money and then sold those goods to “launder” the money, the rise of online and electronic banking has led to the use of offshore accounts to achieve the same result. The countries where the offshore accounts are located will have strict privacy laws on bank accounts, or lax regulations that allow the actions necessary to launder money to take place. Countries that host offshore accounts will also have low taxes and bank secrecy laws that protect clients and prevent scrutiny by tax authorities.
Regulations on offshore banking have increased dramatically in the past decade, primarily aimed at preventing money laundering by terrorist organizations. Such provisions are located in the Patriot Act, which allows the government to seize assets for banks that cooperate with offshore bank fraud and money laundering.
Banking offshore has its share of advantages, but will also inevitably bring scrutiny on your finances in the event of an audit, or alleged participation in a fraudulent scheme.
If you are under scrutiny for offshore banking, seeking the legal advice of a New York financial crimes lawyer will be essential at limiting your liability and cooperating with an investigation.
To set up a consultation, call us today at 212 577 6677.