Thirty years ago the 1st W.G. Hill PT book came up with a unique idea :
Obtaining a 2nd Passport well in advance of any problems would provide an insurance policy for escape – a get out of jail key – in the event things became too hot or if it was for any reason difficult to stay in one’s home country. Using the 2nd passport to open offshore bank accounts was a guaranty of secrecy and privacy.
We called this home country “Big Brother Land.” It could be any country, but the USA ( the only one that taxed their overseas citizens) provided 2nd passport providers with many an interested customer. At the time the USA was the main Big Brother Bogeyman . With the financial crisis in Europe, the E.U. is now also in the same camp.
SECOND PASSPORTS – BEFORE AND AFTER
If 2nd Passports were obtained legally by “naturalization,” but in a variant name, we previously assumed they were legal for all purposes, including travel to countries where no visa was required. They also provided good cover/title for holding secret assets offshore, i.e. a “banking passport.”
THINGS HAVE CHANGED
A Swiss bank is currently paying a fine of a Billion Dollars for knowingly dealing with Americans who sought to conceal their holdings with a 2nd passport ploy or by other means. The individuals (if still USA citizens who never renounced) face huge fines—and drastic criminal penalties. Note: These can be enforced only against Americans who still live in the USA or those whose whereabouts are known. There is real danger to those who never return to the USA only if they are worth kidnapping. Once one’s ass and assets are totally out of the jurisdiction, and unknown to authorities, the subject is safely off the radar.
BEFORE
A 2nd Passport was a good idea at the time–1970 to 2000. But in the ensuing years, some 35,000 passport providers, scammers, and others have peddled thousands of good, bad and fake 2nd passports to most of the rich people of the USA, Germany and other Big Brother countries.
— They were sold for serious money to the wealthier people of most developed countries of the world.
Another category of 2nd passport buyers are economic refugees from countries whose passports were not good for visa-free travel. These included Taiwan, China, Russia, India, Brazil, Africa & etc.
The perceived international problem of illegal aliens and people smuggling of job seekers and prostitutes is a different issue — not for this short report.
AFTER?
THE COVER STORY FOR THE USA’s DRASTIC REPORTING REQUIREMENTS & RESTRICTION OF PERSONAL FREEDOMS WAS STOPPING TERRORISTS BUT IT WAS ALWAYS TAXPAYERS THEY WERE AFTER…
One cannot expect that a government going down the drain financially will pay no attention to the fact that a substantial percentage of their most productive business owners and best taxpayers were/are hiding their assets offshore and/or leaving the country—taking their skills and assets with them. Many vulnerable, wealthy citizens already have their legally issued 2nd passports. They use these documents successfully for escaping taxation and regulation.
What regulations?
Laws like you can’t bribe a corrupt cop in a foreign country. A Mexican cop can and will throw you in jail on a false drug charge if he doesn’t get $20. So using common sense anyone would pay the requested bribe.
Yet, after returning home to the Land of the Free, if the facts about the bribe come out, the briber faces 5 years in an American prison.
BANKING PASSPORTS
Citizens without second passports could not have a private, secret, financial account offshore.
In the past, getting a 2nd passport with a changed name or a variant was an excellent ploy.
Now it seems that 2nd Passport option is closing. Banks can’t accept client’s whose documentation shows an American birthplace.
Many Americans have secondary physical and legal residences outside their home countries to use in case of emergency. Some American expats are totally moved out already. They are safer. Many wealthy and productive Americans individuals are currently standing in long lines at Consulates–waiting six months or more to renounce their USA citizenship -thereby to escape regulatory and tax burdens that no other countries levy…
GOVERNMENT PEOPLE HAVE REACTED TO STEM THE TIDE & THE RELOCATION OF ASSETS & TAXPAYERS.
The USA government has created “toxic Americans.”. In 2010 many holders of legal 2nd passports with foreign bank accounts were told in Switzerland and Europe generally that if they were born in the USA, they would still be considered Americans, and their foreign accounts would be closed . Why? Because there are now all sorts of new fines and criminal penalties against banks, brokers and others who dealt with past, present or possible “toxic” Americans. Same story for Brits, Germans, Greeks and Spaniards. Soviet style controls over immigration and financial matters are becoming the norm.
BUT HERE IS THE WORST NEWS–NEWS THAT HAS NOT BEEN REPORTED ELSEWHERE.
In recent years, certain small countries came up with investor passport deals established by law, and perfectly legal in their own countries. Where? In places like Belize, Latvia, Estonia, Austria, Ireland, Macedonia, St. Kitts, Dominica, and most Central & South American countries. There are currently schemes whereby, a foreigner can invest or donate substantial funds , typically in the $50,000 to $1,000,000 range . When this is done, they get more or less instant citizenship & passports. Maybe a short personal visit is required, maybe not.
Now, Big Brother is reacting as might be expected: One way is by quietly exerting pressure on border control officers. “Look carefully at any people transiting or entering your country. Nail them if they don’t seem to fit the profile of “real” citizens of that country whose passport they are using…”
Then what? Border guards are asked to confiscate all papers, PCs, personal communication devices & memory storage sticks to carefully ascertain where they are really from and what assets are available for confiscation. They may arrest them for traveling on false documents. These “criminals” are then tossed in jail on remand. We are reliably informed that these arrests are currently happening in Europe today in 2012 and 2013!
We have just learned of several people are currently in European jails for exactly this.
A brand new Big Brother tactic to discourage expatriation.
They confiscate all passports the traveler is holding, declaring them “false.”
Legality of the passport in the country of issue is no defense. The holder will be detained, brought to trial, and fined—Then probably deported to his “real” country: Big Brother Land. He will be regarded as a co-conspirator with a foreign “rogue government” that is knowingly aiding and abetting tax evasion.
Big Brother countries have already interlocking treaties and laws that criminalize and make any tax avoidance measures null and void. Activities legal in the past are now criminalized. Any financial activity if not provable tax evasion or tax avoidance can be categorized as “money laundering.” This is a vague, catch-all crime.With any sums or assets over $10,000 now reportable on several sets of forms to several places, there are few people who are not guilty of a criminal offense subject to “prosecutorial discretion” about their financial “crimes.”
Tax havens are under severe pressure to “harmonize” – that is to gave up facilitating paperwork (residence, etc.) for new would be tax exiles. They are being blacklisted as “criminal regimes” until they sign treaties and agree to the demands of Big Brother states. One of the newest demands is that bank & brokerage accounts anywhere must only be available to long term bona-fide physical and legal residents. Obtaining bank accounts, legal residence and later, citizenship and a new passport anywhere has already been made infinitely more difficult and expensive.
Americans and others — it seems — can and will now be prosecuted if they paid serious money for a foreign passport. Legal program or otherwise—it makes no difference.
In Europe, the holder of an investor passport or for example, a new Paraguayan who doesn’t know at least a few words of the official Guarani language could now, in the E.U. or USA be sentenced to 5 years in prison for the crime of traveling on false documents. The Big Brother country where they are detained has the right to declare any passport false and invalid . Current policy is to detain anyone from a country with a 2nd passport program on “suspicion.” Suspicion of what? Facilitating illicit travel! Money laundering. Not being a bona-fide resident of the passport country.
Arrests and detention can be for any reason – or no reason at all.
[See discussion & Reader Comments Below- NOTE: Legal Passports from major countries issued after long residences and civics test will NOT normally be questioned]. But as to the small country investor passports without actual residence, Beware!
To understand this new policy hark back to the days of Hitler and Stalin. Could a German or Russian escape his obligations to the Fatherland/Motherland by simply leaving his country of origin and acquiring the passport of say, El Salvador ? Of course not. Once Russian or German, they and their personal wealth were always assets and property of the State. They were subject to their home country regulations–forever. If they didn’t give up speaking out against their former country, show up for military service, surrender their property or do exactly as they were told, they could be kidnapped, brought back home, or in some cases — like that of Stalin’s personal enemy, Trotsky in Mexico – assassinated with an icepick.
Countries friendly to Nazi Germany or USSR Russia in the bad old days co-operated . They sent back citizens for torture, death or forced military service. America co-operated in this more than once by often deporting Jews seeking asylum in the USA. They were sent back to Nazi Germany to be murdered in concentration camps
After World War 2, the USA returned to Russia about 100,000 liberated Russian (USSR) prisoners of the Nazis in American hands. They were returned to Stalin’s tender mercies . He had them all tortured to death for 1) the “crime” of seeking asylum, 2) surrendering or 3) being captured alive.
“Friends of the USA” –we predict–will now do the same with American expats who are taken into in their custody. The new euphemism is “Rendition” or “involuntary repatriation.” This has not happened in bulk yet, but it will happen.
2013! Destined to be “Not a lucky year” for some. Wealthy people instead of being able to buy their way out of trouble, are now primary targets.
ADVICE?
Travel low profile as “Mr Poverty Personified.”
Never travel on a document that doesn’t fit your race, language, or looks.
THE NEW REALITY
It has come to pass, that the USA has become a police state with the new policy of “once American, always an American Asset.” With every single American man , woman and child indebted to the tune of several million dollars in national debt, Big Brother tries not want to let any more assets leak out. On new passport applications, the question is asked under penalty of perjury: “List all foreign passports you hold!” Americans with 2nd Passports are automatically tax evasion suspects. It will not matter how or what foreign passport was acquired. If a former American is nominally a legal resident in a foreign country, but doesn’t really live there, that will spell trouble.
People with previously considered legitimate “investor passports” are already being arrested in Europe . They are held for traveling with what is now defined as fraudulent documents.The USA is seeking deportation or simple rendition.
NEW POLICY
The USA and its EU allies feel that any passport acquired for money i.e. “investment” is a fraudulent passport. Without what they regard as a “real-bona fide” foreign residence in a tax compliant treaty country and a real bona fide citizenship obtained after many years of physically living there, the American state will no longer accept renunciations of citizenship. And if they did already, — the renunciation can & will later be canceled. Why? For any reason that the Americans will cook up – that is, if & when they want to go after any specific individual.
High Net Worth people will be special targets.
IT IS GRANDPA’S ADVICE, AND OUR OPINION:
A) In the near future, a foreign marriage, residence, or anything else that could lead to obtaining a legal 2nd passport can & will be disregarded by the American State and other Big Brother states at their sole option. Only wealthy people will be affected.
B) Any passports, legal or otherwise obtained from a foreign country can be disregarded as false and fraudulent.
In our opinion, holders of all such documents are advised to never use them for traveling or crossing borders .
FURTHER ADVICE? HOW TO DO IT RIGHT IN THE FUTURE?
“Expatriation 101” – If one legally
1) Gains a foreign Citizenship and then
2) Actually and physically leaves the original home country, and learns the language, laws and customs of his new country, and then
3) KEEPS A VERY LOW PROFILE and
4) Develops substantial ties in his new adopted homeland, and then
5. Never engages in Anti-Big Brother rhetoric or protest, and
6. Never has any further contact with any Americans & then above all,
7. –>NEVER RETURNS TO THE HOME COUNTRY <–
Only then—and only for the foreseeable future until even stronger measures are devised– will there be no substantial risk that the ex- American or ex-citizen of Big Brother states will be harassed , kidnapped, brought home to face charges for offenses committed abroad, or challenged about financial non-reporting, tax-avoidance, etc.
We have not heard of any assassinations yet, but who can say if the government will deem “termination with extreme prejudice” a necessary future element of deterrence. The measures detailed above were also quite unthinkable a few years ago.
The bottom line as we see it: Any American or other Big Brother subject, living the PT life and/or traveling the world on a 3rd World passport like that of Belize or Honduras can now be stopped and arrested anywhere. If he does not fit the profile & live permanently in the country of the passport he carries, his goose may be cooked.
In the future it is likely that a traveler who doesn’t snugly fit his documents will be jailed for a few months and then be deported or “rendered” to his “real” country of origin. Once there he will be “punished” again for what will be called traveling on a false document and plus, something like a “treasonable attempt to evade national obligations.”
AND THUS, OUR TITLE:
NO ESCAPE?- BLEAK FUTURE FOR SECOND PASSPORT HOLDERS
Your thoughts and comments?
Comment byLief Simon:
St. Kitts Passport holders now will have fewer visa-free travel options, making this passport less useful than the competition…for the time being. Other Citizenships/Passports By Investment will also be much less valuable than the holders want to believe.
Got A St. Kitts Passport? Canada Revokes Visa Free Entry.
Dec. 22, 2014
Baltimore, Maryland
From the Offshore Living Letter …..
If you invested in a St. Kitts’ passport, you need to send it back. Quick.
St. Kitts’ economic citizenship program is under fire. Canada has removed the country from its visa-free travel list. St. Kittitians who want to travel to Canada now have to apply for a tourist visa requiring a security check.
Canada’s change in policy was implemented as a result of concern that unwelcome characters could be entering Canada using a passport issued under St. Kitts’ economic citizenship program. In addition, St. Kitts has also suffered through scandals over diplomatic passports the country has issued.
In an effort to reverse or at least reduce the scrutiny the country has come under for its passport program, St. Kitts is recalling all economic passports issued from January 2012 through July 2014. Passports issued during that period didn’t include place-of-birth information or any details of name changes. Omitting the place of birth helped to hide the origin of the passport-holder, a security concern for Canada and the United States.
Investing in an economic citizenship program is a way for anyone with enough money to enjoy the benefits of a second passport if he doesn’t qualify for one through genealogy or doesn’t want to put in the time to qualify through residency. In the case of the St. Kitts program, the result has been a passport that has allowed for visa-free travel to more than 120 countries. Canada’s change of policy makes that list one country shorter, and concern is that other countries might follow suit.
The United States, for example, is also scrutinizing passports from countries with economic citizenship programs under the belief that people are using those passports to evade financial and immigration sanctions. While that may be a legitimate concern, the United States has an underlying dislike for economic citizenship. They see it as a way for wealthy Americans to get a quickie divorce from the United States. It’s possible to obtain economic citizenship and the passport that goes along with it within six months. That new passport in hand, an American can renounce U.S. citizenship and walk away from Uncle Sam.
Back to St. Kitts’ now less than useful passport…
The country is recalling all passports issued from January 2012 through July 2014 so it can make and issue new passports for all those economic citizens (that will include information to do with place of birth and name changes). Still, it is very possible that {even after that} other countries could take Canada’s lead and also begin to require St. Kitts passport holders to apply for visas to cross their borders. Should that occur, St. Kitts could see a reduction in revenue from its economic citizenship program, which, according to some sources, accounts for as much as 25% of the country’s GDP.
And the president of St. Kitts has recently inaugurated embassies in Nigeria and Dubai, one presumes with the intention of promoting and facilitating increased sales of his economic citizenship program. [Grandpa says that Nigerians and Arabs are easily recognizable and with their Caribbean passports, they are obvious candidates for refusal of entry!]
Economic citizenship in St. Kitts costs either US$250,000, if you make a donation to the Sugar Industry Diversification Foundation, or US$400,000, if you choose to make an investment in property. This country’s economic citizens aren’t going to be happy about any lost visa-free travel options. St. Kitts might better spend its time and resources cleaning up its passport application process rather than opening retail shops (embassies) in locations that produce the kinds of new citizens Canada and the United States are concerned about.
St. Kitts’ isn’t the only economic citizenship program out there. Antigua and Barbuda has a program modeled after the one in St. Kitts. It hasn’t been around long enough to produce the number of sketchy citizens who seem to be running around with St. Kitts passports. Grenada relaunched a similar program last year, and Dominica offers a program that is cheaper than the other three. Its citizens, though, have fewer visa-free travel options, making this passport less useful than the competition…for the time being.
Lief Simon Dec 2014
Simon Black, another Newsletter writer tells this story:
Dec 2014
On October 9, 1939, Friedrich Nottebohm applied to become a naturalized citizen of Liechtenstein.
Nottebohm had been living in Guatemala since 1905, and as World War II started heating up, he became concerned that his German nationality might cause problems for him down the road.
After attempting to enter Guatemala in 1943, he was denied entry as an enemy alien and later sent to an internment camp in the US. The Guatemalan authorities did not recognize his Liechtenstein naturalization and still regarded him as German.
After he was detained, the government of Liechtenstein petitioned the International Court of Justice on Nottebohm’s behalf against unjust treatment by the government of Guatemala.
In court, the government of Guatemala argued that Nottebohm was not a citizen of Liechtenstein for the purposes of international law since his ties to the country were tenuous at best.
He had been living in Guatemala for 34 years and maintained strong ties to Germany, whereas he had spent only enough time in Liechtenstein to get his papers and showed no intention of building further ties to the country.
The court sided with Guatemala, assessing that there was not a genuine link between Nottebohm and Liechtenstein and that he would be treated as German for the purposes of international law.
That’s one of the risks in obtaining a second citizenship through an expedited, usually investment related process. Things can change quickly.
For example, St. Kitts and Nevis, another Antilles island nation close by to where I am right now, probably has the most well-known and popular “citizenship by investment” program.
You can become citizen of St. Kitts in as little as six months by investing as little as $250,000 in the country’s Sugar Industry Diversification Fund.
The program is very popular with people from all over the world—US citizens who want to divorce themselves from Uncle Sam, Russians, Middle Easterners, and Chinese.
Why? Because a St. Kitts passport has traditionally been a solid travel document, offering visa-free access to Europe, Canada, and much of Asia.
I wrote earlier this year that the US government had put St. Kitts in crosshairs because of this citizenship program. They accused St. Kitts of “lax controls” and saying that “illicit actors” are using the program to obtain St. Kitts passports.
I warned that the program’s days may be numbered, and that many of the benefits may soon be curtailed.
Sure enough, it’s already happening.
A few weeks ago, Canada became the first major destination to revoke visa-free access for St. Kitts passport holders with immediate effect.
As you can imagine, they cited ‘security concerns’ for doing so.
In light of such absurd doublethink, having a second passport makes more sense than ever.
A second passport means that you’ll always have a place to go– to live, travel, do business, invest, bank etc.
If your home country ever becomes another historical statistic and engages in all the old favorites of bankrupt nations– war, capital controls, price controls, etc., you won’t be trapped.
It’s one of the best insurance policies you could ever have. And if planned properly, you can ensure that there’s absolutely zero downside.
But these “citizenship by investment” programs are under intense scrutiny right now. Aside from St. Kitts, the economic citizenship program in Malta has also taken a lot of fire.
In light of this trend, it may not be worth forking out hundreds of thousands of dollars on a second passport. Yet there are still a number of options to obtain one.
First, instead of trading money for a passport, you can much more easily trade time.
In countries like Panama or Belgium, for example you can apply to become a naturalized citizen after a few years of residency, and you don’t have to spend any meaningful time in the country to qualify.
Or you could do so in Chile where it’s still incredibly easy to establish residency for just about anyone, and the requirements for permanent residency and subsequent naturalization are very lenient. [By Simon Black]
Reader Discussion –
Question: Grandpa! Did you just say in effect that all 2nd PP docs are soon to be either useless or very risky to use, & every gulager (USA Citizen) is forever ever going to be under BB’s thumb with no escape possible?
Grandpa’s Answer: Not exactly—–> see the following detailed explanation:::::
Example: An ex USA citizens who returns to USA or to a possession of the USA on a passport they purchased, as an “investor”
I am sure THEY will get the 3rd degree .
They are now already often being “detained” at USA airports for questioning
If the IRS can then squeeze any taxes out of them by finding they “purchased” another pp, and did it to escape from the USA tax net, they will be squeezed for back taxes, possibly charged with non filing, and so on.
The IRS can & will say in a court hearing—>
“you were born a gringo, and you are still a gringo even & especially if you renounced for tax evasion purposes….”
Obviously, the BB Government cant do anything like arresting you
if the person never returns to USA and especially
if he has really established a legal residence somewhere else and really lives there and stays there…
I don’t see Big Brother resorting to kidnapping for tax matters.
they might do it (some day) for stuff like a military draft.
So far the only other country besides USA that acts this way re its citizens is Germany. Communist Russia used to act that way (Stalin even had Trotsky assassinated in Mexico!) but modern Russia doesn’t go after or murder its expat citizens any more unless there is a political reason to do so…
But bad stuff could happen to rich French guys like the actor Depardeau who said he wud renounce French citizenship – Probably not a good idea for him if he continues to try and live and work in France.
IMO if he didn’t pay all his French taxes & was caught in France by the fiscal police with his Russian pp in hand , he wud be in deep doo doo.
U listed some 2nd Passports that were now not good…or less good than they were . . .
U laid out rules to survive in this new environment, e.g. don’t communicate with any gringo embassies, etc.
Do U still believe that? YES-see aboveMy main warning is only don’t use a 2nd SET OF TRAVEL DOCS even if legally purchased, that don’t fit you as the holder.
If a gringo has a Bulgarian P and doesn’t speak a word of Bulgy & his name is O’Malley, (i.e. no birthright thru ancestry) then,
of course there probably will be border questions IN any country he visits –especially in countries near Bulgaria where they know what a Bulgarian looks & talks like…
I foresee no problem for a gringo or anyone else who gets a respectable pp from a 1st class country (like UK or Canada) via residence & naturalization. There are always work-arounds but knowing the language, and passing the usual tests on language, history-geography– all the facts of “your” country pretty much guarantees that you will be considered a bona-fide citizen of that country.
Problems will come up when someone acquires a travel document, and obviously doesn’t fit.
Especially if he admits at border controls to having never lived there …
In My Opinion: At minimum You must speak the language and be able to name the capital city, president, etc.
Example_— A Russian or Indian from Bangla Desh who buys A BELIZE, DOMINICAN, or St Kitts, PP for instance,
He doesn’t know a word of English, and can theoretically enter the EU now because he doesn’t need a visa,
Upon questioning entering Heathrow or Amsterdam says to the border guard:
” I bought this instant PP for $500,000. and never set foot in St Kitts”
What will happen?
He will probably be arrested & deported by a lot of countries that don’t like “his kind” coming in without visas, —
This wud be USA Australia, UK, Swiss, and others.
He cud probably get into Cyprus or anywhere that allows visa free entrance to Russians because he wud also have his non-conflicting Russian PP with him!!
Otherwise they cud be found as if traveling on a false pp and he will likely be sent back to his place of origin.
A girl we know was detained while traveling on a South American passport.
She was obviously a Filipino and couldn’t speak Spanish or answer any questions about her pp country. Then at the border, she stupidly said she had never even been to her passport country and her boyfriend had purchased the document for her……
This she did in spite of an extensive briefing to keep her mouth shut.
Life is tough. Tougher if you are stupid.
Her new 2nd pp was legally issued and could be checked out on the computer I.d. system of the issuing country.
That story is what inspired me to further research & write the above article. I stand by it
I know that as soon as USA and other countries think that too many 2nd pps are being sold to help rich people so they can bank or travel to places where they are now required to have a visa, or to save on taxes, there will be a further tightening up.
Till now, those investor passports have been so few and far between that the questions asked at most borders have been very light.
You can be sure that starting soon, with the greater proliferation of these instant 2nd pps, sold for serious money, there will be a lot more questions.
As to EU residence permits issued to people who buy houses or establish themselves as legal residents in places like M.C. or Swiss (and even Latvia!) once they are in the Schengen area,
they no longer need to show ID or pps to travel to other EU countries. So technically, even if mere residence documents are not valid travel documents, they ma well get you by as the most serious punishment would be deportation to your country of actual residence.
For mere residence, you don’t need to know language or history. So the EU residence programs in many of the smaller member countries are reasonably safe as long as the person really goes there physically and really has a place to get mail and call “home.”
Obviously if you get a rotten, corrupt little non- EU country –like a Paraguay residence and if you actually stay there, nobody from your home country can bother you unless there is an Interpol warrant. You can even travel in their common market called”Mercasur.”
ISRAEL
Note: Israel will deport anyone the USA wants – even for tax reasons.
Further, their instant “Law of Return” passports for Jews
will not be renewed if the new citizen moves out of
Israel and applies for renewal from abroad.
“Return means returning to stay permanently” says Israel.
=====Typical offering 24 Dec 2014– Definitely
not recommended by Grandpa
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