MOSSFONREPORT - Mossack Fonseca & Co.
MOSSFONREPORT - Mossack Fonseca & Co.
MOSSFONREPORT - Mossack Fonseca & Co.
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<strong>MOSSFONREPORT</strong><br />
Legal and current affairs in The Bahamas, the British Virgin Islands, Panama, Samoa and Seychelles.<br />
THE<br />
PANAMA<br />
In the picture: Chris Zollinger – Shareholder, Axel Gauster – Managing Director/Shareholder, Jurgen<br />
<strong>Mossack</strong> – Shareholder, Dirk Brauer – Managing Director/Shareholder and Ramón <strong>Fonseca</strong> –<br />
Shareholder.<br />
Wealth Management as you<br />
deserve it<br />
We are delighted to announce that Mossfon<br />
Asset Management, S.A. (Mossfon AM) has<br />
formally been granted a licence as an<br />
Investment Advisor by the National Stock<br />
Exchange <strong>Co</strong>mmission of Panama and<br />
accordingly we are providing services to both<br />
local and international investors.<br />
By means of our activities as investment<br />
advisors and discretional managers of<br />
investment portfolios, we guide our client’s<br />
attention to the ever changing and complex<br />
world of investments in the financial markets.<br />
Our motto: “Wealth Management as you<br />
deserve it” fully describes our business<br />
philosophy. Our clients and their high level of<br />
satisfaction are very important to us. Our<br />
team is composed of experienced staff in the<br />
fields of private banking, investments and<br />
portfolio management.<br />
We are a small flexible company. Nonetheless<br />
our smallness does not mean limited<br />
services. We assist our clients to build<br />
investment portfolios that specifically adapt<br />
to their individual requirements and requests<br />
for alternative and sophisticated products.<br />
In addition to giving professional advice on<br />
traditional investment devices such as<br />
fixed-term deposits, shares, bonds, mutual<br />
funds, we advise our clients on the use of<br />
structured notes and hedge funds as a<br />
solution, as well as the use of a completely<br />
new tool to invest in real estate in Panama.<br />
Because of this and many other advantages,<br />
Mossfon Asset Management, S.A. is an<br />
excellent alternative to take into<br />
consideration. Our team is at your service at<br />
any time to attend to you and we shall be<br />
delighted to assist you at the following<br />
telephone numbers and address:<br />
MOSSFON ASSET MANAGEMENT, S.A.<br />
Arango-Orillac Bldg. 54th Street,<br />
P.O. Box 0831-00284,<br />
Paitilla, Panama, Republic of Panama<br />
Tels.: (507) 263-7704 / 263-8907 /<br />
(507) 205-5888<br />
Fax: (507) 263-9952<br />
Email: mossfonAM@mossfon.com<br />
Panama Has More Economic<br />
Freedom<br />
Panama’s rank of economic freedom has<br />
advanced from position #49 to position #52 in<br />
the annual index published by the Heritage<br />
Foundation and The Wall Street Journal.<br />
The index rates countries on a scale of 1<br />
through 5 with 1 representing the best score,<br />
and 5 the worst. Panama scored 2.7 in the<br />
index, just behind <strong>Co</strong>sta Rica. The index is<br />
established by assessing ten variables relating<br />
to a country’s commercial policy, tax system,<br />
State intervention, monetary policy,<br />
capital flows and foreign investment, banking<br />
system, prices, property rights, regulations<br />
and unregulated market.<br />
Mr. Marc Milles, Director of International Trade<br />
and Economy of the Heritage Foundation<br />
noted that despite the increase in Panama’s<br />
ranking, the country has yet to achieve its full<br />
potential.<br />
BRITISH VIRGIN ISLANDS<br />
More Jurisdictions Recognized<br />
Under BVI Mutual Funds Act<br />
BVI’s Financial Services <strong>Co</strong>mmission (FSC)<br />
has issued a revised list of countries and<br />
AUGUST 2006<br />
BVI - More Jurisdictions Recognized<br />
Under BVI Mutual Funds Act<br />
Bahamas - Bahamas Survey<br />
<strong>Co</strong>nfirms Leading Position<br />
Seychelles - Qatar Signs DTA<br />
Agreement with Seychelles<br />
Mossfon Group - 2006 Special<br />
Donations<br />
AUGUST 2006<br />
(continued)
BRITISH VIRGIN ISLANDS<br />
(continued)<br />
Funds Act, 1996 to add Australia, Canada,<br />
Germany, Italy, Japan, Sweden, the Bahamas<br />
and the Cayman Islands.<br />
The other recognized countries already on<br />
BVI’s list are: Bermuda, Gibraltar, Hong Kong,<br />
France, Luxembourg, the Isle of Man,<br />
Belgium, Spain, Ireland, Malta, Singapore,<br />
Guernsey, Jersey, Switzerland, the UK and<br />
the US.<br />
In evaluating countries and jurisdictions for<br />
recognition and registration, the FSC<br />
considers the prudence and reputation of<br />
each applying country’s regulatory<br />
environment and its supervision of mutual<br />
fund business, and whether recognition under<br />
the BVI Mutual Funds Act would enhance the<br />
development of BVI’s mutual fund industry. If<br />
approved by BVI’s Registrar of Mutual Funds,<br />
applicants must record a ‘functionary’ (i.e.<br />
manager) from the recognized jurisdiction.<br />
Over 3,000 mutual funds are registered in<br />
BVI with more than $100 billion under<br />
management.<br />
BVI to Seek Economic Diversity<br />
Notwithstanding continued growth in the<br />
country’s key financial services and tourism<br />
sectors, Chief Minister Dr. Orlando Smith<br />
announced during his third annual ‘State of<br />
the Territory Address’ that government are<br />
introducing an initiative called “Future of the<br />
BVI Economy’ to focus now on possibilities<br />
for developing new sources of investment to<br />
preserve the Territory’s future economy.<br />
Dr. Smith said “There are few things harder<br />
than preparing for famine at a time of plenty,<br />
but wise nations know good times rarely last,<br />
and common sense tells us the time to act is<br />
now.” He also said “If either the financial<br />
services or tourism industries were to suffer<br />
a serious setback the consequences for us<br />
MOSSFON REPORT<br />
THE jurisdictions recognized under the BVI Mutual<br />
would be severe” … “That is why I will be<br />
launching an initiative called the Future of the<br />
BVI Economy over the coming year.”<br />
The Chief Minister said the new initiative will<br />
invite productive proposals and creative<br />
solutions from local community leaders and<br />
international experts, and government will<br />
utilize results to determine how to create<br />
employment opportunities in profitable new<br />
professional services fields, independent<br />
from financial services, to stimulate new<br />
investment in BVI’s economy. “And in so<br />
doing, we can ensure that if the worst comes<br />
to pass we will be prepared, and our people<br />
will be protected” Dr. Smith said.<br />
“I want to explore strategies for creating a<br />
more stable flow of visitors by tapping into<br />
new markets such as medical tourism,<br />
sports tourism and eco-tourism in unique<br />
ecosystems such as Anegada,” he said,<br />
adding that “In particular, I want to explore<br />
the viability of attracting multinational<br />
corporations to establish customer service<br />
centres, high-tech research facilities, and<br />
other value-added functions.”<br />
BAHAMAS<br />
Bahamas Survey <strong>Co</strong>nfirms<br />
Leading Position<br />
According to Government officials, a survey<br />
conducted by Pricewaterhouse<strong>Co</strong>opers for<br />
the Bahamas Government confirms the<br />
Bahamas position as a leader in the three<br />
core areas of private banking, trusts and<br />
corporate services; and also indicates that<br />
the market is not aware of the jurisdiction’s<br />
strength in many additional core areas that<br />
could lead to new and increased business<br />
opportunities.<br />
Over 220 organizations, mainly from the<br />
private banking sector, responded to the<br />
extensive survey. Survey participants<br />
indicated that great opportunities for growth<br />
also exist through a wide range of additional<br />
local amenities including business continuity,<br />
custody facilities and structured products,<br />
establishment of a commercial court,<br />
bespoke/comprehensive services for<br />
families, capital market facilities, e-business,<br />
intellectual property, back office and call<br />
centers, funds, insurance and establishment<br />
of an international arbitration center.<br />
Forty percent of the respondents would<br />
recommend asset management services,<br />
tax inheritance planning, residency,<br />
investment funds, foundations and family<br />
office services to clients even though these<br />
services are not as widely recognized as the<br />
country’s primary areas of strength.<br />
At a recent BFSB (Bahamas Financial<br />
Services Board) retreat, various Cabinet<br />
Ministers together with members of the<br />
official opposition party, senior public<br />
officers and heads of the regulatory<br />
agencies, met with over 100 representatives<br />
from the private sector for a two day<br />
conference to review the survey results.<br />
Input from these key industry leaders at the<br />
2006 BFSB retreat will be used, together<br />
with the valuable data collected in the<br />
Survey, to construct the nation’s next<br />
five-year strategic plan for financial services<br />
(for years 2007 through 2012).<br />
Both Government and survey participants<br />
recognized that the Bahamas has many<br />
strengths, particularly its political stability<br />
and sovereignty, banking confidentiality,<br />
language, location and time zone, and<br />
Government noted that this unique<br />
combination of strengths, coupled with the<br />
jurisdiction’s competence and scope of<br />
wealth management services were major<br />
reasons why ‘The Banker’ magazine, an<br />
affiliate of the Financial Times Group, named<br />
the Bahamas as the “leading financial centre<br />
in the Hemisphere.”<br />
Strong Investment Propelling<br />
Bahamas Economy<br />
In his recent budget<br />
statement to Parliament,<br />
Bahamas’ Prime Minister and<br />
Finance Minister Perry<br />
Christie said the nation will<br />
maintain strong rates of<br />
economic growth during the<br />
next two years, noting that<br />
his government’s policies<br />
have produced this current economic<br />
success.<br />
The International Monetary Fund (IMF)<br />
predicts that economic growth this fiscal<br />
year in the Bahamas will hit 5.8%, up from<br />
4.7% during 2004/5 and that the<br />
jurisdiction’s future looks bright with GDP<br />
growth expected to continue at rates of<br />
6.5% and 6.7% respectively for fiscal years<br />
2006/7 and 2007/8.<br />
The Prime Minister said the robust economy<br />
is due to “unprecedented” levels of inward<br />
investment, especially in the tourism sector<br />
with nearly every major island of the
Bahamas attracting prolific investment. He<br />
also noted that the international ratings<br />
agencies, including Standard & Poor’s and<br />
Moody’s, continue to give the Bahamas<br />
some of the highest investment ratings in the<br />
region.<br />
In his budget statement, Mr. Christie<br />
reported that recurrent expenditure is<br />
$1.386 billion, with capital expenditure at<br />
$175 million and recurrent revenue at<br />
$1.345 billion. He also reported that<br />
although the budget includes various<br />
changes in taxation measures, including<br />
significant reduction is certain areas, no new<br />
taxes are imminent.<br />
SEYCHELLES<br />
Qatar Signs DTA Agreement with<br />
Seychelles<br />
Qatar has signed a Double Taxation<br />
Avoidance (DTA) agreement with the<br />
Seychelles that allows investments made in<br />
either country to qualify for tax breaks on<br />
dividends and royalty payments.<br />
The agreement was signed on behalf of the<br />
Seychelles by Jacquelin Dugasse, Minister<br />
for Employment and Economic Planning, and<br />
the Qatar signatory was Yousef Hussain<br />
Kamal, Minister for Finance.<br />
Rupert Simeon of the Seychelles Department<br />
of Finance commented that dividends paid on<br />
Qatari investments in the Seychelles would<br />
qualify as tax credits and would reduce the<br />
investing company’s tax liability in Qatar, and<br />
vice versa.<br />
It is hoped that these reciprocal<br />
arrangements for improved conditions for<br />
investment between the two countries will<br />
attract foreign companies interested in<br />
investing in Qatar, to take advantage of<br />
setting up business operations in the<br />
Seychelles offshore sector.<br />
The national airline Qatar Airways is presently<br />
the only Qatari company trading in the<br />
Seychelles.<br />
Cypriot DTA Second Route For EU<br />
Following the very recent signing of a Double<br />
Taxation Avoidance (DTA) agreement between<br />
the Seychelles and Belgium which marked<br />
the Seychelles’ first step towards boosting<br />
EU investments, after months of negotiations<br />
Government representatives from the<br />
Seychelles and Cyprus have now completed<br />
signatures to a DTA agreement which is<br />
perceived as a second step towards<br />
encouraging further European investment in<br />
the Seychelles.<br />
The Seychelles-Cyprus DTA was signed on<br />
behalf of the Seychelles by Mr. Jacquelin<br />
Dugasse, Minister for Employment and<br />
Economic Planning, and the Cypriot signatory<br />
was Mr. Michalis Sarris, Minister for Finance.<br />
Seychelles Minister Dugasse said “The<br />
signing is for us in Seychelles very important<br />
as it provides the framework which will<br />
enable businesses in our two countries to<br />
exploit the business ties and cooperation<br />
which exist.” He added that the agreement<br />
would … “strengthen our cooperation<br />
between Seychelles and Cyprus in the<br />
economic and financial spheres.” While<br />
initially any increased investment resulting<br />
from the DTA is likely to flow from Cyprus to<br />
Seychelles, Mr. Dugasse noted that hopefully<br />
this position will change in the future, stating:<br />
“And why not Seychelles into Cyprus in the<br />
years to come.”<br />
Qatar’s Finance Minister Sarris welcomed the<br />
DTA agreement, noting that the Seychelles’<br />
foreign exchange deficiency does not<br />
necessarily hinder Cypriot investment. He<br />
commented that “These are not<br />
insurmountable problems amongst these<br />
honourable people,” adding that although the<br />
DTA between their small economies may not<br />
make headlines … “but even small projects<br />
go a long way in these small economies.”<br />
Minister Sarris also said that “Cyprus has in<br />
its own way made progress, it has joined the<br />
EU and I think the DTA also opens the door to<br />
the citizens of Seychelles to the markets of<br />
the EU” and he thanked the Seychelles for<br />
their support of Cyprus, calling the DTA… “a<br />
strengthening and an expansion of our<br />
economic and friendship ties.”<br />
MOSSFON GROUP<br />
www.mossfon.com<br />
2006 SPECIAL DONATIONS<br />
This year, on behalf of its valued clients,<br />
<strong>Mossack</strong> <strong>Fonseca</strong> & <strong>Co</strong>. has made a<br />
US$30,000.00 Special Donation, thus<br />
contributing to several charitable causes<br />
and projects in Panama. The beneficiaries<br />
of such donations are:<br />
• Social Pastoral Project “Vírgen del<br />
Camino Training and Education Centre” –<br />
Diocese of David, Province of Chiriqui<br />
• National Scout Association of Panama<br />
• National Symphony Orchestra of Panama<br />
• Science and Arts Centre Foundation<br />
(Explora) for underprivileged children.<br />
• Jesus en los pobres (Jesus through the<br />
poor) – Ecumenical Hostel – Saint Thomas<br />
Hospital<br />
• Foundation for the Support of Social<br />
Development – restoration of three colonial<br />
bridges in Portobelo, Province of <strong>Co</strong>lon.<br />
In this photo we can see, in the usual order,<br />
Ramón <strong>Fonseca</strong> Mora Esq. of MF & <strong>Co</strong>., Rev.<br />
Father Adonaí <strong>Co</strong>rtés Elisha of the Saint Felix<br />
Parish, Chiriqui, and Christoph Zollinger, Esq., of<br />
MF & <strong>Co</strong>.<br />
This photo shows, Mr. Christoph Zollinger Sq.<br />
receiving the “2006 Scout Recognition”. In the<br />
usual order: Christoph Zollinger of MF & <strong>Co</strong>., Mr.<br />
Víctor N. Wynter, Operations Manager of the<br />
Scout Association and Mr. Ariel Sucre Espino,<br />
Member of the National <strong>Co</strong>urt of the Scout<br />
Association.<br />
AUGUST 2006
JURISDICTIONS<br />
BAHAMAS<br />
Suite E-2, Union <strong>Co</strong>urt Building,<br />
Elizabeth Avenue and Shirley St.,<br />
Nassau, Bahamas<br />
T (242) 322-7601<br />
F (242) 322-5807<br />
E bahamas@mossfon.com<br />
GLOBAL OFFICES<br />
EUROPE<br />
CYPRUS<br />
T (357) 25 339 280<br />
F (357) 25 339 316<br />
E cyprus@mossfon.com<br />
CZECH REPUBLIC<br />
T (420) 2 2609 1119<br />
F (420) 2 2609 1100<br />
E mossfon@mossfon.cz<br />
GENEVA<br />
T (41-22) 809-5020<br />
F (41-22) 809-5030<br />
E geneva@eu.mossfon.com<br />
ISLE OF MAN<br />
T (44) 1624 679375<br />
F (44) 1624 628436<br />
E IOM@mossfon.com<br />
JERSEY<br />
T (44-1534) 767009<br />
F (44-1534) 780673<br />
E jersey@mossfon.je<br />
LIECHTENSTEIN<br />
T (423) 230-1750<br />
F (423) 230-1751<br />
E liechtenstein@mossfon.com<br />
<strong>Mossack</strong> <strong>Fonseca</strong> & <strong>Co</strong>.<br />
Attorneys at Law<br />
0832 - 0886 W.T.C.<br />
Panama, Rep. of Panama<br />
THE<br />
For further information or advice, please contact:<br />
BRITISH VIRGIN ISLANDS<br />
Akara Building, 24 de Castro Street<br />
Wickhams Cay 1, P. O. Box 3136<br />
Road Town, Tortola<br />
British Virgin Islands<br />
T (284) 494-4840 / 494-4976<br />
F (284) 494-4841 / 494-5884<br />
E General@MossFon-BVI.com<br />
LONDON<br />
T 44 (0) 146 242 7300<br />
F 44 (0) 146 242 7305<br />
E mossfon@mossfon.co.uk<br />
LUGANO<br />
T (41-91) 993-2758<br />
F (41-91) 993-2786<br />
E lugano@mossfon.com<br />
LUXEMBOURG<br />
T (352) 349888-1<br />
F (352) 349889<br />
E luxembourg@mossfon.com<br />
ZUG<br />
T (41) 712-2505/ 712-2506<br />
F (41) 712-2509<br />
E zug@mossfon.com<br />
ZURICH<br />
T (41) 1 213-2080<br />
F (41) 1 213-2090<br />
E zurich@mossfon.com<br />
LATIN AMERICA<br />
BRAZIL<br />
T (55) 11 3284-3143<br />
F (55) 11 3251-4222<br />
E brazil@mossfon.com<br />
MOSSFON REPORT<br />
PANAMA<br />
PANAMA<br />
Arango Orillac Building<br />
54th Street<br />
P. O. Box 0832-0886, W. T. C.<br />
Panama, Rep. of Panama<br />
T (507) 205-5888 / 264-2322<br />
F (507) 263-9218 / 263-7914<br />
(507) 263-7327 <strong>Co</strong>rporations<br />
E MF@mossfon.com<br />
BAHAMAS<br />
BVI<br />
BOQUETE - PANAMA<br />
T (507) 720-2256 / 720-1744<br />
F (507) 720-1422<br />
E boquete@mossfon.com<br />
GUATEMALA<br />
T (502) 2362-1313 / 2383-6000<br />
F (502) 2361-3317<br />
E mossfon@gua.net<br />
PERU<br />
T (51) 1 422-2906<br />
F (51) 1 441-9579<br />
E peru@mossfon.com<br />
URUGUA Y<br />
T (598-2) 916-0588<br />
(598-2) 916-0589<br />
F (598-2) 916-0642<br />
E uruguay@mossfon.com<br />
VENEZUELA<br />
T (58) 212 992-6155<br />
F (58) 212 992-1812<br />
E jalmeida@cantv.net<br />
SAMOA<br />
Level 2, Nia Mall<br />
Vaea Street<br />
P. O. Box 204<br />
Apia, Samoa<br />
T (685) 32684<br />
F (685) 32683<br />
E samoa@mossfon.com<br />
ASIA<br />
HEADQUARTERS<br />
T (852) 2376-1998<br />
/2376-2485<br />
F (852) 2376-0308<br />
E hongkong@mossfon.com.hk<br />
HONG KONG<br />
DA LIAN<br />
CHENGDU<br />
HANGZHOU<br />
NANJING<br />
NINGBO<br />
QINGDAO<br />
SHANGHAI<br />
SHENZHEN<br />
SINGAPORE<br />
T (65) 6 221 0592<br />
F (65) 6 221 0591<br />
E singapore@mossfon.com.sg<br />
SEYCHELLES<br />
SEYCHELLES<br />
Suite 13, First Floor<br />
Oliaji Trade Centre<br />
Francis Rachel Street<br />
Victoria, Mahe, Seychelles<br />
T (248) 324866<br />
F (248) 324867<br />
E seychelles@mossfon.com<br />
THAILAND<br />
T (662) 636-3100<br />
F (662) 636-3110<br />
E thailand@mossfon.com<br />
UNITED ARAB EMIRATES<br />
T (971-4) 352 5303<br />
F (971-4) 351 9877<br />
E mossfon.@hmlc.co.ae<br />
CORRESPONDENT OFFICE<br />
VANCOUVER<br />
T (604) 688-3931<br />
F (604) 688-2921<br />
E vancouver@mossfon.com<br />
© This publication is intended to provide its readers with current information concerning the legal and economic development of<br />
The Bahamas, the British Virgin Islands, Panama, Samoa and Seychelles, and it is not intended to provide legal advice.<br />
Air Mail<br />
<strong>Co</strong>rreo Aéreo<br />
VISIT OUR WEBSITE AT:<br />
www.mossfon.com<br />
AUGUST 2006<br />
SAMOA