OK. Say a friend has some ill gotten (dirty) cash that s/he wouldn’t want the government to seize. This little guide will discuss the formation of corporations and other business entities, which prove invaluable in cleaning cash. Also, I’m going to discuss some basic details of offshore accounts and other odds and ends.
Section 1 – Forming a U.S Corporation
A business entity such as a corporation or LLC (Limited Liability Corporation) is relatively easy to form in the United States. The good thing about a corporation is that it is a separate entity, which exists separately from the individuals on the articles of incorporation in the eyes of the Federal Government. Think of a corporation as a person that has been created by other people. They can own property, have bank accounts, and get loans AS AN INDIVIDUAL ENTITY.
If you’re going to incorporate, from my experience the best state to do so is either your home state , Delaware, or Nevada. Their process goes the smoothest and takes the shortest period of time, also they have favorable business regulations regarding privacy. To actually incorporate is pretty simple. First, you must visit the website of the Secretary of State for the state in which you wish to incorporate. The guidelines you need to follow to get set up are there. The form you’ll need to actually incorporate is there as well. I’m going to use Nevada as an example.
http://nvsos.gov/index.aspx?page=425
Here’s a link to the website, as you can see, there’s a plethora of information regarding the types of corporations you can form. Many people want the S Corporation, to avoid double taxation. But, a C Corporation is the traditional type, pick which is best for you. The documents you want are the Articles of Incorporation and the Initial List of Officers.
http://nvsos.gov/Modules/ShowDocumen…documentid=668
http://nvsos.gov/Modules/ShowDocumen…documentid=665
All you have to do is fill ‘em in! Be smart. Have your friends and acquaintances sign the forms as incorporators, make your deaf, blind Grandma the President. Try to keep your real information and identity off the forms! You’ll need a registered agent. Their job is basically to act as a functionary go between for your corporation and the state. This website has a list of firms in Nevada that act as Registered Agents. If you’re going to clean cash, you MUST make sure that the company you register is cash intensive, or could be expected to deal in a large amount of small denomination bills!
http://www.nevada-registered-agents.com/
In Nevada, you can electronically file the documents, it’ll speed up the process. Be aware that it may not be so in your home state.
After that business is all squared away, you’ll need to apply for an EIN (Employer Identification Number), which will function as your corporation’s Social Security Number, so to speak. It’s necessary to have this because without it, your new firm can’t do ANY financial dealings, such as opening a bank account.
You can apply online on the IRS website.
http://www.irs.gov/businesses/small/…102767,00.html
Section 2 – Opening a Bank Account
Ok, so you’ve got your new corporation set up. Now, before you start thinking about cleaning some ill gotten goods, you’ll need to open a bank account, or several, depending on how many corporations you’ve set up. To open a corporate bank account, you’ll need
- 1.) A copy of your certificate of incorporation
- 2.) Documentation of your EIN.
- 3.) A corporate seal. These can be ordered online, there are a number of reputable vendors out there, this one is my favorite. They usually take around 2 weeks to be delivered. http://www.corpconnect.com/category….FQprKgod8W2itQ This is essentially the signature of the corporation as an entity.
- 4.) Whoever you send to the bank to open the account is going to need a photo ID under the Patriot Act, this is to prevent terrorist financing. Don’t bother trying to open a bank account with a fake ID, it’s a waste of time and cause problems. It’s best to use a real ID that’s been gotten with real PI that is not that of the person that you send in.
- 5.) A corporate resolution that states who is authorized to act for the corporation in banking matters. Here’s a sample template. http://www.mycorporation.com/product…s/opebanac.jsp Just fill in the names. Whoever you send to the bank should be able to carry themselves in a professional, businesslike manner. Dress them up and make sure that they know how to fill out the paperwork. Before choosing a bank, though, it’s advised to fully research the practices of the bank that you deal with. Get info on fees for wire transfers, since when it’s time to clean that cash you’re going to be sending a LOT of those, usually overseas.
Section 3: Incorporating overseas
An offshore corporation will help to lend more of an air of legitimacy to your money cleaning endeavors. The secret to successful washing of cash is to make it “disappear”, so to speak. The easiest and safest way to do this, besides stashing it in a safety deposit box to rot away or throwing it into a safe at home or under your bed, is to open an offshore bank account for an offshore corporation, and “do business” with them to get your money out of the States, Canada, or wherever you are. This isn’t as hard as it seems.
First, you have to consider the financial climate of the country in which you incorporate your business. Countries such as the UK, Germany, France, and other EU countries are assholes in regards to financial privacy, and don’t even make me bring up the taxes! Unstable countries should be avoided, for obvious reasons. The best countries for Western folks to set up shop in are those that have relatively lax business laws and taxation procedures, along with stable banking systems and relatively warm relations with foreigners. Singapore, Vanuatu, Bahrain, Liechtenstein, Andorra, Malaysia, Indonesia, and Hong Kong fit this description. For the purpose of this thread, I’m going to use Singapore as an example. This little island city state is ideal for foreign incorporation for many reasons, among them being:
Sweet tax system. There is no capital gains tax. Also, after tax income can be distributed to shareholders ANYWHERE IN THE WORLD!! In Singapore, there’s a FLAT corporate tax rate of 17%, which beats all hell out of that in the US. Also, there are a shitload of exemptions that can cut your tax rate for profits up to $300,000 to 9%. Also, for taxes paid overseas, you can claim Singapore tax exemptions.
Large English speaking population due to the number of foreign companies that do business there.
Foreigners can be 100% owners of a Singapore LLC.
Perpetual existence for Singapore LLC.
Owners aren’t responsible for the debts of the LLC, sorta like a corporation in the US.
Also, Singapore has a shitload of banks. Along with a stable currency.
To incorporate in Singapore, you can hire a registration agent over there to handle all your forms and dealings with the government, this saves a LOT of strain. Just for reference, you’ll need to submit to the Registrar of Companies over there:
- Memorandum and Articles of Association
- Statutory Declaration of Compliance
- Particulars of Shareholders, Directors, Secretaries, etc.
- Certificate of Identity
- Situation of Registered Office/Office Hrs at Time of Registration
- Consent to Act as Director and Statement of Non-disqualification to Act as Director
- A Consent to Act as Secretary
If you’ve gotten a registration agent, they’ll prepare all these forms for you! All you have to do is receive them in the mail, sign them, and send them back!
You’ll also need a registered address to receive the documents at, this requirement can be met by local address services that you pay to register your LLC as residing at that address. Any mail received will be forwarded to your registered address in the USA, Canada, UK, or wherever.
You DON’T need a phone or fax. You can get a virtual fax and phone service. The gooks assign your company a phone number and fax number which is dedicated SOLELY to your firm. When someone calls that number, they’ll be met by your recorded company greeting and will be forwarded to a number given by you. Or they could leave a message. Any received messages/faxes will be emailed to you. Cool, isn’t it?
All in all, the REGISTERING PROCESS takes about 4 weeks, due to the sheer distance.
Section 4: Opening an offshore bank account for your new entity
OK. So, you’ve incorporated your business overseas. It won’t be much good for cleaning up your filth until you’ve opened a bank account as well. For this part, I’m still going to use Singapore as an example.
Singapore, like I’ve already stated, has a myriad of reputable banking institutions. A few are:
- HSBC
- Standard Chartered
- Citibank
- DBS
- UOB
You may be wondering: “Don’t I have to fly ALL the way to Singapore to open this?” The answer is, for the most part, NO!! Each bank has its own procedures, most banks allow for account opening without anyone’s actual physical presence. You conduct everything through mail and online. On the applications, expect the same things that you would if you were applying for an account with a bank in your home country. Note, however, that certain banks have pretty good due diligence procedures, such as background checks on the company principals, and the stated purpose of the company. If you’re smart, you won’t get in trouble here. If you’re dumb enough to use your own shit when registering, and let them do a background check and skeletons tumble out of your closet, don’t be surprised if they deny you, among other things. Singapore is good in that there’s no restrictions on currency exchange or limits on the amount of cash that can be wired in and out. Also, you can open a multi currency account to facilitate the easy conversion of currencies, which can help immensely in the cleaning of money.
Expect this process to take around 2 weeks, depending on the bank. Everything you need, such as checks, will come to your address claimed on the application, and then it will be sent to you.
Section 5: Getting rid of that stack
Ok. So now, we’ve got a/some corporation (s) in the U.S.A, a/some domestic corporate bank accounts, a company in SE Asia, and a bank account there as well. Also, we’ve got a duffel bags full of ill gotten $5s, $10s, $20s and $1s. We’ve got to get rid of it. To do so, you must deposit that cash in the account of your cash intensive shell company. Don’t think you can just go to the bank and deposit $15,000 in cash and walk out grinning. The bank is required to report transactions of currency in EXCESS OF TEN THOUSAND DOLLARS to the US Government. This is how most sloppy money men get caught, they don’t plan ahead. The solution to this problem is obvious. Break it up. The usual way to do this is to “smurf” it. This means that you deposit the money GRADUALLY into the your accounts registered to your cash intensive company (large scale people usually have registered more than one). To do this, people stagger their daily deposit amounts. If you go and faithfully deposit $6,000 a day, it’s going to look sketchy and draw down some unwanted attention. A smart person staggers their deposits. For example, say Jason has sold some stolen jewelry worth $30,000. He has previously had his junky buddies register and open accounts for DA Corporation and L Corporation, both cash intensive businesses. He also uses a little legit cash to buy some After letting them sit for a while (it’s not good to open an account and immediately start depositing cash, a VERY close friend of mine got caught like this), he begins to slowly deposit that money.
On March 31, he deposits $2,000 in cash in his L account, and $1,500 in his DA account.
On April 1, he deposits $1,200 into his L account, and $2,300 in his DA account.
On April 2, his cousin deposits $ 3,400 into his L account, and $3,500 into his DA account.
On April 3, he has his girlfriend deposit $2,000 into his L account, and $3,000 into his DA account.
So far, our buddy has deposited $18,900 into two totally UNRELATED business accounts. None of his transactions have been reported, because of his forsight and planning. He stayed under the $10,000 limit. Eventually, he will have his entire assload of nasty cash deposited. He’s far from finished, though. He still has to get it overseas.
Section 6: From America, with love
OK. Jason has $30,000 sitting in his two business accounts in the US. He has to get it overseas to make it look like he’s operating a working business. Beforehand, he was smart enough to set up a few firms in Singapore, using different names and information for each company. He’s also set up bank accounts for the companies with a variety of banks in Singapore, making sure to keep copies of all of the paperwork, this shit gets confusing.
To get his money out of the states, he has to “do business with the Singapore firms”. So, he uses his little computer to produce legit investment agreements, etc. He then wires the amount of his “investment” to his Singapore firms. It’s not a good idea to clean out accounts entirely, this is what the Feds look for when they’re investigating. Keep a little “working capital” in the US. At the end of all this, he’s got his money stacked safely away in SE Asia. He’s still not done, if he wants to bring it back and use it, he’s going to have to make the Singapore companies do business with other firms in the states.
Section 7: Bringing it back
To bring the money back to the US, Jason’s decided he’s going to incorporate another firm here, ABC Corporation. He then has his Singapore LLCs “invest” in ABC Corporations. Again, legit paperwork comes into play here. As an alternative, he can have his Singapore LLCs order something from ABC Corporation. Either way, at the end of the day, Jason has his money back in the States, in the account of the corporation (ABC) that is totally unrelated to the initial ones. He can now use his money to buy “corporate cars”, get “corporate property” and spend with his “corporate debit card”.
Discuss
http://www.totse.info/bbs/showthread.php?t=13249
