Bringing the money out of HK

[pin]

@TheBrit, my understanding is that the Common Reporting Standard and the "Automatic Exchange Of Information" only happens when a country asks a bank for information about an individual, right? Banks don't just tell every government in the world what all of their customers have, right? Similar to what @mrgoodcat writes.

According to Wikipedia, the USA shares information about people, though not automatically, as is done with the CRS (though I don't understand with whom the information is shared).

The way to bypass this is to open a company, you own the shares of the company, and the company invests in the stock market. I believe that this is how billionaires do it. But of course it costs money to open a company, one needs a local resident (except in Hong Kong), and an accountant to do the yearly accounting. So for 1/2 million USD it's not really worth it.

I a surprised that according to wikipedia also BVI, Bermuda, Seychelles, etc. participate in the CRS. I guess they hide their customers' money through setting up companies? But my question is, how safe would that be? I trust that BOCHK or HSBC probably won't go bankrupt or steal my money, but what about a bank in Bermuda or Seychelles?

I can tell you for a fact that you can forget trying to "hide" your money through an offshore company / bank account. The days of walking into a law firm / bank with a bag full of money are long gone.

[shri]

The way to bypass this is to open a company, you own the shares of the company, and the company invests in the stock market.

A lot of personal information about ownership / beneficiaries needs to be declared to the banks and tax authorities.

This applies to all jurisdictions.. and gets tougher depending on how secretive the country where the company has been formed is. For example if you form a company in a jurisdiction which allows for bearer shares - most banks will refuse to deal with you, unless like pin mentioned you have a few billion dollars (or atleast 100s of millions) and can find a dodgy / greedy banker to help you.

BVI etc which are more "regulated" are also problematic in terms of opening bank accounts at top tier banks.

I believe that this is how billionaires do it.

The sooner you accept that some people are more equal than others the better your life will be.

Like others have said ... gold in a safe deposit box is probably your best option.

[TheBrit]

@TheBrit, my understanding is that the Common Reporting Standard and the "Automatic Exchange Of Information" only happens when a country asks a bank for information about an individual, right?

No. The key word is "automatic". Data is shared with the relevant tax authorities automatically. It is not triggered by a request, or an audit on an indivdual. You can find this out with a five second Google, its on the first paragraph of the first hit.

Global Forum on Transparency and Exchange of Information for Tax Purposes - Organisation for Economic Co-operation and Development

"The new global standard on Automatic Exchange of Information (AEOI) reduces the possibility for tax evasion. It provides for the exchange of non-resident financial account information with the tax authorities in the account holders’ country of residence.
Participating jurisdictions that implement AEOI send and receive pre-agreed information each year, without having to send a specific request."

[john_1122]

Thank you.

"the account holders’ country of residence" So I can simply not tell my bank what my country of residence is, and it's all set? I mean, right now it's HK, so when I migrate I can just forget to tell the bank?

No. The key word is "automatic". Data is shared with the relevant tax authorities automatically. It is not triggered by a request, or an audit on an indivdual. You can find this out with a five second Google, its on the first paragraph of the first hit.

Global Forum on Transparency and Exchange of Information for Tax Purposes - Organisation for Economic Co-operation and Development

"The new global standard on Automatic Exchange of Information (AEOI) reduces the possibility for tax evasion. It provides for the exchange of non-resident financial account information with the tax authorities in the account holders’ country of residence.
Participating jurisdictions that implement AEOI send and receive pre-agreed information each year, without having to send a specific request."

[pin]

Thank you.

"the account holders’ country of residence" So I can simply not tell my bank what my country of residence is, and it's all set? I mean, right now it's HK, so when I migrate I can just forget to tell the bank?

Suggest you do this. Go ahead and do it. Report back.

[emx]

"the account holders’ country of residence" So I can simply not tell my bank what my country of residence is, and it's all set? I mean, right now it's HK, so when I migrate I can just forget to tell the bank?

[TheBrit]

"the account holders’ country of residence" So I can simply not tell my bank what my country of residence is, and it's all set? I mean, right now it's HK, so when I migrate I can just forget to tell the bank?

What home address will you register with the bank after you move?

[john_1122]

It's like a HKer opening a bank in Singapore. What are the advantages, apart from keeping the money safe from the long arms of the HK government?

Suggest you do this. Go ahead and do it. Report back.

[john_1122]

My in laws or friends, for example?

What home address will you register with the bank after you move?

[TheBrit]

My in laws or friends, for example?

OK, so committing fraud then. Sounds like an excellent plan.