Question:

Why do I need a Consultant to setup a structure?

Answer:

The Consultant will advise a client which structure will best meet his requirements. This is of extreme importance, in order to make sure that the target should be met by the structure. For example, a structure that should lead to an order of succession which is different from the one given by law will be of little use if it can be successfully contested in court. Additionally, a Consultant has a broad network of business partners and agents. Generally he will buy structures in bulk and can thus offer them at prices that are cheaper overall than if a person tries to setup a structure directly on his own. Furthermore, the client will be sure that he has set-up the right structure.

Question:

Does the Consultant have power of control over my assets?

Answer:

Generally yes. It would not make sense if on the one hand, the beneficiary would act by himself and thus be visible, while on the other hand his intention with the structure is to keep his person confidential. A Consultant can only act for the structure legally and binding if he has the power of control over the assets. It is, therefore, of great importance to choose a reputable Consultant.

Question:

How do I find a reputable Consultant?

Answer:

A reputable Consultant works together with different banks and often receives the client mandates from these banks. Always request references if you intend to change to a new Consultant. Furthermore, a reputable Consultant should always be member of one of the well-known associations against money laundering. In this case, the Consultant will be audited annually by this association and clients can request the Consultant to provide them with a copy of the audit report.

Question:

What is money laundering?

Answer:

Money laundering is a criminal offence. This offence is committed as soon as someone tries to bring criminal money into circulation through the use of structures or through his own behaviour and, thus, tries to prevent the identification of the original source of that money.

Question:

What is due diligence (or compliance)?

Answer:

In order to comply with law and thus, prevent money laundering, a Consultant needs to know his clients, as well as the sources of their assets. The Consultant needs to conduct investigations that provide sufficient evidence that a client is trustworthy.

Question:

So what does a Consultant need to know about a client to conduct the due diligence or compliance?

Answer:

First of all, he needs to ascertain the potential client's identity by use of his passport or identity card. Then he needs to get proof that the potential client's domicile is actually at the address that the potential client has indicated to the Consultant. For this purpose, the Consultant will ask the potential client for a recent utility bill (e.g. landline telephone or electricity bill of the potential client's domicile). Furthermore, the potential client must be able to prove the source of his assets. Inherited assets can be proven by a certificate of inheritance, a sale of property by a sales contract or funds received from entrepreneurial activities by the company's financial statements, annual reports, internet records, etc.

Question:

Is the due diligence or compliance a one-off act?

Answer:

No, it is not a one-off act. All large incoming or outgoing transactions on a bank account must be documented and their origin or use must be reviewed. No review is required in case of a regrouping of investments, i.e. if a client invests, for example, his call money into stocks (even if the transaction would take place between different banks).