SINGAPORE UPDATE

WHIPPING BOY
April 1994 was a controversial year for Singapore.

It was the time when an 18 year old American was convicted in the Singapore courts and sentenced under some of Singapore's harshest laws.

Michael Fay was arrested because he was charged with a ten-day spree of vandalism during which time, he had vandalised, spray painted and threw eggs at 18 cars. He was sentenced to four months in jail, a $1,400 fine, and six lashes of caning.

The controversy and worldwide outcry that ensued put Singapore under severe pressure, including attempts at intervention from the then President Bill Clinton. The Republic stood her ground and the punishment was meted out. The world was warned - Vandalism in Singapore is a garguantan NO NO! Under the law in Singapore, caning - of between three and eight strokes - is mandatory for convicted vandals.

It appears that oftentimes, lessons (no matter how painful) are not learnt.

In another high profile vandalism case, the court in Singapore had to deal 2 friends, a Swiss and a Briton. This time, the case involved break-in and entry.  This time, the vandalism involved trains from the Singapore MRT ( Mass Rapid Transit).

The pair had hatched the plot to break into an MRT train depot and spray graffiti on a train appears to have been hatched several months before, even before the Briton had come to visit his friend who was working in Singapore.

Two days before his arrival, the Briton e-mailed a Singapore supplier to order 11 cans of spray paint for $95. After collecting the paint on May 16, they conducted a recce on their intended target - the SMRT train depot in Changi.

Later that night,  the pair returned to the target, surveyed the depot from different angles for a while. Eventually, they picked a spot along the perimeter fence which was dimly lit. Using a wire cutter, they cut their way through and headed straight for the nearest train parked in the depot.

The Swiss chose the left side of the train, spraying the word 'McKoy' while the Briton worked on the right and used the word 'Banos'( left-hand and right-hand drive?).

As the par would have it, artistic works should not go unrecorded. After the deed, they took the time to snap several photographs of their handiwork, which the men admired after they returned to the Swiss' apartment in Singapore. In total, more than 50 photographs and a video file of their act were later found by the investigators.

The masterpiece was exposed by a young commuter, who posted the graffiti on the train on YouTube. The Swiss was arrested a few days later.

At the hearing of his case recently, the Swiss pleaded guilty to both charges against him and was sentenced to three months' jail and the minimum three strokes of the cane for vandalism, and two months' jail for entering a protected place. The sentences are to run consecutively. The Swiss had chosen to plead guilty at the earliest instance to avoid any increased sentencing arising from delays caused by him. He even undertook to make full restitution for the damage caused by his action.
The Judge for the case opined that the crimes were 'not impulsive displays of youthful bravado', but were 'planned and carefully executed'.

It also surfaced at the hearing that the spraying of such marks with paint - also known as tagging in graffiti sub-culture - gave perpetrators a certain degree of street credibility and glory among members of graffiti sub-culture around the world.

Earlier, Deputy Public Prosecutor Sharon Lim had asked the court to impose appropriate and consecutive jail sentences as Fricker had not only committed vandalism, but had intentionally broken through the fence of a protected place.

The incident had caused public disquiet about the security and safety of the public transport network, she added.

DPP Lim said the spraying of such marks with paint - also known as tagging in graffiti sub-culture - gave perpetrators a certain degree of street credibility and glory among members of graffiti sub-culture around the world. A deterrent sentence was urged by the Prosecutor send a strong message 'to all would-be offenders that such unauthorised break-in and entry into a protected place to commit a crime is viewed very seriously by the authorities and will be punished accordingly.' After all, the offences were not committed by an impressionable and rash young person who was unaware of Singapore's strict stance against vandalism.

In total, 15 SMRT maintenance officers had to take 11/2 hours to remove the graffiti, and even then, there was still pink paint on one carriage – all costing a total of $13,800!

To date, the Briton remains at large as he had left Singapore before the arrests. A Warrant of Arrest has been issued against him.

The entire incident has also caused some concern which touches national security. That the security of the public metro which moves more than a million people a day can be so easily compromised raises pretty grave concerns.

Contributed by Lawrence Fong, Managing Director, GCSL Singapore
Lawrence's email address is lawrence@gcsl.info

INTERNATIONAL UPDATE

USA CURRENCY CONTROLS
For those who fear US currency controls, fear no more. Currency controls in the US are now a reality.  While there is no one specific law restricting the free movement of currency across US borders, America has “de facto” currency controls restricting Americans from conducting legitimate global business across their borders.

In America, currency controls began with the 1970 Bank Secrecy Act. Then came the Patriots Act and other federal banking laws that created stringent bank reporting requirements against customer activities.

It may shock you to know the number of times in just one year that US banks reported their customers to the IRS…..it’s very significant. In 2008 alone, the most recent IRS filings reported, there were 15,449,549 Currency Transaction Reports, 733,543 Suspicious Activity Reports, and another 716,270 reports by other money service businesses.

On average, ever single banking day, over 72,000 suspicious activity reports and currency transactions were filed by money service businesses in America against Americans….72,000 each and every day.

What’s worse, a bank employee is prohibited from disclosing to the customer that a report was filed with the IRS. Violation of the non-disclosure reporting requirement may lead to civil and criminal penalties, including fines as great as US$250,000, and five years imprisonment.

Already under specific existing tax laws, investing in foreign mutual funds creates a tax trap that can well exceed the dividends for Americans. And the compliance burdens when investing offshore, or owning property or a business entity offshore, can be stifling for those uninformed.

In the US, the Federal Treasury already requires reporting of foreign bank accounts, which is burdensome enough (349,667 were filed in 2008), but now under a new 2010 law US citizens are also required to report annually all other types of foreign owned assets above US$50,000 on their personal tax returns.

The early laws were designed to hinder money launderers - and later, terrorism - but ultimately acted as a disincentive to law-abiding citizens looking to legitimately invest offshore.

But now it gets much worse.
Now, the IRS has acquired indirect and discretionary control over offshore banks under the 2010 HIRE Act, which integrates the provisions of the Foreign Account Tax Compliance Act. These far reaching burdens will all but cut off any and all offshore banking and investment opportunities for Americans.

The newly adopted financial and compliance burdens and expenses impacting foreign banks dealing with Americans are very dramatic and will be so great, that US citizens will certainly be cut off from financial markets outside the US boundaries.
For Americans, the certain spillover to non-financial investments will likely follow, since investing in real estate, stocks, bonds, and intangible assets offshore involves US citizens using a foreign bank to complete the transaction, unless traveling with a suitcase full of cash across borders – which obviously creates its own set of problems.

Today, a US citizen’s money is only a signed Executive Order away from absolute prohibition against transferring money outside the US, or mandating the repatriation of all offshore assets.

Going forward, only the most determined and forward looking individuals will be able to withdraw their assets from the US system, and protect their property – and themselves - somewhere else.

At a minimum, the above should be strong motivation to take personal action now before the door is closed. Exits get crowded when everyone panics at the same time, and then it’s usually too late. Already a noticeable number of US citizens living overseas are turning in their US passports.

But for forwarding thinking individuals, there are still opportunities to live as free, sovereign individuals, if you plan ahead.

Contributed by David Tanzer, international lawyer and author of
How to Legally Protect Your Assets and Offshore Living & Investing
David’s email address is Datlegal@aol.com

OFFSHORE UPDATE

ANGUILLA:   Financial Services Commission announces the appointment of Ms. Tina Bannister to the post of Head, AML/CFT Compliance and Legal Services
Tina is the holder of a Bachelor of Laws from the University of Wolverhampton in England in 2005. She also holds a Postgraduate Diploma in Professional Legal Services from City University in England in 2007 and a Certificate of Legal Education from the Sir Hugh Wooding Law School in Trinidad, West Indies in 2009. Prior to joining the Financial Services Commission Tina was an Associate Attorney at Dancia Penn & Co. in the British Virgin Islands. Tina is called to the Bar in England and Wales (non-practicing), Anguilla, British Virgin Islands and Trinidad.  Tina also has 14 years banking experience having worked as a Credit Manager of the Caribbean Commercial Bank (Anguilla) Ltd. She is also the holder of a Bachelor of Arts in Business Administration and a Master of Business Administration from universities in the United States Virgin Islands and Halifax, Nova Scotia.

GCSL Anguilla looks forward to working with Ms. Bannister in her new role.

Contributed by Carlyle Rogers, Managing Director, GCSL Anguilla
Carlyle's email address is carlyle@gcsl.info

BELIZE:  The Independence of the Executive and the Judiciary
As we sit here, me writing, you reading, we in Belize are experiencing what is known as an “impasse”, that great French contribution to the English language. You see, the Chief Justice of Belize attains his 65th birthday on the 5th day of August 2010 and, according to the Belize Constitution, Section 98(2), he can only hold the office of Chief Justice until he reaches that age and, unless the Governor General allows for an extension, he continues in office for longer only for the purpose of completing the matters already before him.

This, as you can imagine, creates in my mind, an administrative nightmare. Essentially then, for a smooth transition to retirement to occur for the Chief Justice, he really would need to stop hearing any new matters from at least one year prior to his 65th birthday. It is not hard to imagine though that this would be possible.

In the present instance, the Chief Justice is not to be given any extension, and will be gone as soon as pending matters before him are completed. For whatever reasons, certainly not shared with the rank and file of the Bar Association, the Prime Minister, who himself is Senior Counsel, has seen it fit to abruptly close the Conteh Chapter of Belizean judicial history (the Chief Justice is Dr. Abdulai Osman Conteh, who was at one time the Vice President of Sierra Leone. He is also presently a member of the Cayman Islands Court of Appeal, so he is no judicial slouch).

The procedure for the appointment of the Chief Justice in Belize is the Governor-General making that appointment "in accordance with the advice of the Prime Minister given after consultation with the Leader of the Opposition. (pursuant to Section 97(1) of the Constitution of Belize, Cap. 4 of the Laws of Belize, Revised Edition 2000). That may be a difficult thing to do in Belize, where the political tradition seems to be that there is almost personal animosity between Prime Minister and the Leader of the Opposition (it is like a soap opera sometimes on a Friday in the National Assembly, no need to watch "Days of our Lives"). The Bar Association has sought involvement in the process, in an effort to achieve more judicial independence from the executive. Those efforts have been summarily rebuffed, of late, by the Prime Minister, and the Bar is up in arms about it.

It might be an instance of too little too late on the part of the Bar. A practice of consistent silence on key issues affecting society has effectively rendered it "toothless tiger" status, thereby making it almost laughable that it would seek to have involvement in the decision making process concerning the appointment of the Chief Justice.

Do I think that what the Bar Association is trying to do is laughable? Certainly not. Do I think it laudable? Most definitely. Will anything positive for them come out of it? I truly doubt it. The Constitution stipulates the procedure for the CJ's appointment, and it does not include any input from the Bar. Certainly if their opinion is sought openly, it leaves the Prime Minister open to attacks by the Opposition of allegation of impropriety and unconstitutional operation. The PM will not leave himself open to ridicule like that. I am happy this is all happening, because it means that the sleeping giant which is called the Bar Association, is slowly waking up to the reality of its responsibility to society. Many offshore practitioners are also members of this Association, and there will be an impact on our industry. Perhaps in the near future the Bar will become more of the watchdog that people hoped it would be. If that is the case, then the Belize Offshore Practitioners Association is bound to become even more vocal. After all, any horn that can be tooted will be tooted, to get the message across. Otherwise, it will be like a wise man once told me: "there's no justice, there's just us."

Contributed by Carlo Mason, Managing Director, GCSL Belize
Carlo's email address is carlo@gcsl.info

COOK ISLANDS:  COOK ISLANDS REMINDED NOT TO BE COMPLACENT OF HIGH QUALITY JUDCIARY
The people of the Cook Islands were reminded this month just how lucky they were to have such a strong and independent judicial system – and told that they all have a responsibility to keep it that way.  There was a special sitting of the High Court to announce three new judicial appointments; Justice Tom Weston as the new Chief Justice, current Chief Justice David Williams will become a judge on the Court of Appeal, and Sir Ian Barker was confirmed as the President of the Court of Appeal.

In announcing the appointments, Attorney General Wilkie Rasmussen said our judicial system was the “envy of our Pacific neighbours”.  This view was repeated by Law Society president Lloyd Miles who said the country’s judicial system was “robust and capable” and “committed to excellence” and indeed the envy of our regional neighbours.
Chief Justice designate Weston said the Cook Islands is a jurisdiction where the rule of law is respected.  “That, regrettably, is not something that can be said for some of our Pacific neighbours. Here, though, we take for granted the existence of an independent and highly skilled judiciary and a judiciary that is allowed to get on with its job without political interference.  But he warned that “The Cook islands should not be complacent about this.”
Justice Weston said he inherits a judiciary that is working extremely well. “It has judges of the highest calibre.”  Rasmussen said he was saddened that he had to take CJ Williams’ resignation to Cabinet but heartened that he was staying on as a Court of Appeal Judge.

Justice Williams said he was pleased that Justice Weston had accepted the appointment, as it would help level out the age gap in the judiciary with “an aging population on the bench”.

He also paid a special tribute to Sir Ian Barker, who was not at the ceremony, and the “extraordinary contribution he had made to the Cook Islands”.

Justice Weston said while it was time to look forward, it was also the time to acknowledge the huge contribution made by Chief Justice Williams, who has been in the position since 2005, and overall a judge in the country for 10 years.  Prior to his appointment in the Cook Islands Justice Williams was a High Court judge in New Zealand for three years and he has been a Queens Counsel for over 23 years.  Justice Weston said that when Justice Williams was not acting as a Chief Justice in Cook Islands court, he conducts a practice as an international arbitrator.
“These arbitrations take place in exotic locations such as London or Paris or even further afield. Generally they involve colossal sums of money and high powered international lawyers acting for the various parties,” Justice Weston told those gathered at the special court hearing.  “In this world, the Chief Justice is regarded as one of the top arbitrators. His sense of fairness and scrupulous attendance to the arguments before him marks him out.   “Consequently, he is highly sought after and has many active files.”

The gathering also heard that CJ Williams has been appointed to the Court of Dubai International Finance centre.  

“It is this sort of experience and expertise, that the Chief Justice has brought to his role in the Cook Islands.”

Justice Weston said the Cook Islands will continue to have access to this experience as Justice Williams has consented to remain involved as a Judge in the Court of Appeal.

He said when Sir Ian Barker retires, it is highly likely that Justice Williams will become president of that court.

Article printed by permission of Cook Islands News. www.cookislandsnews.com
Contributed by Puai Wichman, Managing Director, GCSL Cook Islands
Puai's email address is puai@gcsl.info

Talofa from Samoa!                        
We have finally settled into our new premises after many challenges in trying to organize the usual transfer of telephone lines, broadband, and our computer network.  It’s a wonderful new office complex and we, the “Global Girls” are excited and committed to providing our usual same day service for all your IBC’s and attending to all other requests as quickly as possible.

It’s a busy time in Samoa with various sporting activities happening, all receiving the generous sponsor of Samoa International Finance Authority (SIFA).  There was the Pacific National Cup where Samoa, Fiji, Tonga and Japan battled on the rugby field for this annual event.  Samoa marginally won against Tonga, was beaten by Japan and won against Fiji in the finals, scoring extra points to win the overall tournament. 

In the weekend, there was a Pacific Region Swimming competition at the Chinese-built Sports Complex where countries like Fiji, Papua New Guinea, Hawaii, New Caledonia, Australia and New Zealand participated.  There was open water competition as well as Synchronize Swimming exhibition (a first on our island).

Last weekend, there was the Netball competition where Samoa played South Africa, and although beaten on both occasions, proved a challenging and wonderful experience for the local girls to prove themselves worthy of competing with one of the toughest teams on the international circuit.

On this coming weekend is the SIFA-sponsored Samoa Golf Masters where 30 or so professional golfers from Australia, New Zealand and Samoa are competing at the new “Le Penina Golf Course” located at Aggie Grey’s Resort at Faleolo.

Lastly, it has just been announced that there will be a high level Samoan Government delegation heading to Hong Kong, Beijing and lastly to the Shanghai Expo from  the 14th July 2010.  The delegation will include the Minister of Finance, the Chairman of the SIFA Board/Governor of the Central Bank of Samoa, the Attorney General, SIFA’s CEO and Assistant CEO, plus the Marketing Manager.  The delegation will be staying in Hong Kong from the 19th-25th July 2010.

If you have any questions or need more details on this, please do not hesitate to email us on samoa@gcsl.info or laura@gcsl.info.

Contributed by Laura Fepuleai, Manager, GCSL Samoa
Laura's email address is laura@gcsl.info

TIDBITS

OUR MONTHLY QUOTE THAT MADE US SMILE
"A diplomat is a man who always remembers a woman's birthday but never remembers her age."
– Robert Frost

CALL TO ARMS?
We read with fear about the local yocal in Wuhan, China who built a home made canon and rockets with fireworks to fend off eviction attempts pursuant to government confiscation of low income housing for luxury properties.  A frightening trend…we hope China does not enact something similar to the USA Constitution’s Second Amendment allowing for citizens to keep and bear arms….yucky-pooh!

THE STRAIGHT FACE TEST
We…and no doubt the judge…could not keep a straight face when reading about the Kiwi fella who explained in Court his reason for tax evasion was "You may have been confused by forms provided to you by my company which contained impressive numbers preceded by a '$' symbol," but "I am unaware of the meaning of this symbol."  This fella wins the award for failing the straight face test!

I DO….DIVORCE YOU
Innovators to the end, a clever entrepreneur recently started a company that assists couples to celebrate the end of an unhappy marriage by saying "I do" for a final time at a divorce ceremony before friends and family.   During the first year of operations, the firm has assisted 25 couples paying 55,000 yen (US$606) to hold a ceremony with all the pomp and grandeur of a wedding that publicly ends their relationship prior to their official divorce.  A whole new twist on “I do”…

.XXX
We knew it had to happen…the board of net overseer Icann gave initial approval for the creation of the .xxx domain for porn-only Websites.  The rationale is a .xxx domain will make it easier to filter out inappropriate content.  Uh, well, we wonder if the real reason might be easier marketing for purveyors of adult content.  Call us crazy…