Kenneth Rijock

Kenneth Rijock

Sunday, April 14, 2013

WILL MONEY LAUNDERERS TARGET AMERICA'S NEWEST TAX HAVEN, PUERTO RICO ?


With all the publicity, in the financial press in the United States, about how a small number of high net-worth Americans are taking advantage of Puerto Rico's favourable status, as a tax haven, one wonders how long it will be before money launderers, acting on behalf of narcotics trafficking kingpins, find a way to serve their clientele through that US territory. Legally known as a Commonwealth, Puerto Rico is self-governing, and has its own tax code, which provides some extremely interesting advantages not available in the fifty states.

With little or no taxation of capital gains, or interest income, Puerto Rico has recently attracted the attention of some well-known wealthy Americans. Whilst one must reside there for half of the tax year, the appearance of new multi-million dollars residences there indicates that this is not a barrier for at least some affluent individuals from the Continental United States.


 Also, though the 90% tax holiday for corporations employing local residents no longer exists, some inventive offshore tax professionals have managed to work their magic there, since the tax holiday went away in 2006.



Bottom line, whenever legitimate wealth moves into new tax havens, money launderers are sure to follow, and since they stay up night and weekends, brainstorming over a problem, trust that they will find a number of ways to take full advantage of Puerto Rico's well-intentioned laws. Therefore, you may want to take a close look at any existing high volume bank clients to develop sudden funds transfers from, relocation to, or new business in, the Commonwealth of Puerto Rico; Watch this one.

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