International Privacy and Security
for 21st Century Global Citizens
by the Investors Offshore Editorial Team, October 2008

IMPORTANT WARNING: The contents of this article have been compiled in good faith by Investorsoffshore.com to provide assistance to investors, but do not constitute investment advice or recommendations. Investors should not rely upon the information given in order to choose types or routes of investment but should make their own independent enquiries before making choices. Investorsoffshore.com has taken reasonable care in researching and presenting the information herein but makes no representations as to its accuracy and accepts no liability for actions taken or not taken as a result.

Privacy And Security For Expats

In a world in which privacy and security, whether personal or financial, are under ever greater threat, expatriates and globetrotters face major challenges in the 21st century. Although international mobility brings unique opportunities, it can also sometimes bring unique problems, and in this month's special feature we will be looking at services which can help you to protect your privacy both online and off, and measures that you can take to protect yourself against the multiplicity of threats to your security.

No more than fifteen years ago, it was still possible to have a numbered bank account, a clam-tight offshore trust, and multiple passports, making yourself and your financial dealings effectively invisible to tax authorities, creditors and vengeful ex-spouses. Although many people used such techniques to maintain their privacy in all innocence, it has to be admitted that many others were attempting - often successfully - to escape legitimate claims on their wealth.

How times have changed! First of all, in the early years of the century, in response to what they saw as a mountain of tax evasion, the world's larger high-tax countries, grouped together in the OECD and its counterpart the Financial Action Task Force (FATF), attacked the free-wheeling world of offshore for its lack of transparency and low tax rates. In parallel, the emergent threats of drug-dealing and terrorism were met with a battery of regulatory controls directed against 'money-laundering' and 'terrorist financing', both from individual countries (eg the Patriot Act in the USA) and from the multilaterals: the UN, the IMF, the EU, the OECD and the FATF among others. International associations of countries such as the Egmont Group have sprung up to police the cleaned-up world that is resulting.

As of the end of 2008, in response to growing pressures on the tax-take during the current economic downturn, the OECD is about to have another crack at 'offshore', and if there is a Democratic US president next year, with lots of support from Congress. The US Senate is already straining at the leash to bring in a raft of offshore-unfriendly legislation; earlier this year a team of Senate investigators conducted a faintly ludicrous investigation of Ugland House, one of the more prominent Cayman Islands company registries.

Although the privacy of individuals was not the overt target of all this activity, the reality is, at least at a financial level, that privacy has gone and will never come back, unless you are an out-and-out criminal prepared to conduct your whole existence outside the law. Numbered bank accounts have gone; banks everywhere now work under very strict rules requiring them to 'know their customers' and to monitor movement of any significant amount of money; similar rules apply to other types of business which handle cash such as estate agents and jewellers; Tax Information Exchange Agreements (TIEAs) which allow for swapping of previously secret financial information in a wide range of circumstances are becoming the norm between countries (especially between high-tax and low-tax countries); courts in the USA and the UK have forced the banks and credit card companies to divulge the names of their offshore customers; and the EU's Savings Tax Directive has introduced a continent-wide system of income reporting.

Proposals from the EU to tighten up and extend the Savings Tax Directive were published in October, 2008, and while they are not going to have a free ride, with fierce opposition expected from Switzerland and other remaining semi-secret jurisdictions, there will no doubt eventually be a tighter regime for banking and savings instruments in Europe, 'tighter' meaning more transparent and less easily escaped.

It used to be that people could carry large amounts of cash when travelling, but that loophole is rapidly being plugged as well. A new European Union law obliging travellers to declare cash came into force in 2007. It was introduced to help combat money laundering, says the UK's HMRC. Since 15 June 2007, people who are either entering the EU from a non-EU country, or are travelling from an EU to a non-EU country and are carrying 10,000 Euros or more (or the equivalent in other currencies) are required to declare the cash at the place of their departure from, or arrival in, the EU. In the case of the UK, the rules are enforced by HMRC.

Forms on which to make the declaration are available at ports or airports and will also be downloadable from the HMRC internet site. Travellers face a penalty of up to GBP5,000 if they fail to comply with the obligation to declare, or provide incorrect or incomplete information. Dave Humphries, Head of Criminal and Enforcement Policy (HMRC) said: "The declaration system is one means of providing information to assist HMRC in targeting movements of criminal cash more effectively."

The EU cash declaration scheme derives from European Parliament and Council Regulation No. 1889/2005 and came into effect in all EU Member States on 15 June 2007. "Cash" not only means currency notes and coins but also bankers' drafts and cheques of any kind (including travellers' cheques).

The declaration form is produced with a carbon backed top copy so as to allow travellers to have a duplicate, which officers of HMRC may ask them to produce as evidence of having made a declaration. HMRC officers do not detain properly declared cash if they have no reason to doubt its legitimacy. However, cash may be seized under the Proceeds of Crime Act 2002 if an officer has reasonable grounds to suspect that it is either the proceeds of, or is intended for use in, unlawful conduct.

So what is left for an honest traveller who just doesn't like being snooped on and doesn't trust the police, the customs officials or the bank manager not to give or sell their personal details to a criminal? It doesn't even require evil intent on the part of a bent official or a jealous mistress: the newspapers are full of stories of bank computer records being found in dustbins or on the backseats of taxis or nuclear button codes left on restaurant tables. How can you protect yourself? After a disaffected member of staff stole customer records from a prominent Liechtenstein bank this year, the tax authorities in Germany, France, the UK and the USA have had a field day chasing down their errant citizens with illicit accounts in Liechtenstein. 'Receiving stolen goods', you will say, and indeed it was - but you can't put a country in prison!

Although it is getting more and more difficult, in this feature we will look at some options that are still on the table for someone who still wants to preserve their privacy.

Banking Secrecy And Asset Protection

Although, as we have seen above, banking privacy has been severely dented, and the situation is getting worse all the time, there are still jurisdictions which are holding out against the massed tax inspectors of the Western World. Banking secrecy and asset protection remain worthwhile both to domestic and internationally mobile citizens for a number of reasons, which could include:

• Protection of your assets against frivolous litigation, particularly if you work in a high-risk occupation such as consultancy, the legal or medical profession, or if you are a landlord or company director.
  
• Protection of assets against punitive taxation levels in your country of residence or domicile.
  
• Estate tax planning purposes. Banks and professional international organisations in offshore jurisdictions (see the Services Directories in our jurisdiction sites on www.lowtax.net) can help you tailor an asset protection plan to your personal needs.

For those expatriates merely looking to protect their assets and preserve their financial privacy as far as is legally possible, the new kyc and reporting regimes are an annoyance, and can be seen as an infringement of privacy, but in actual fact, are not as much of an obstacle as has been previously suggested. It is important here to draw a distinction between 'tax evasion' and 'tax avoidance' in order to explain this. For the vast majority of the world's population, the action of moving assets offshore, or of setting up an offshore bank account, is not illegal. It becomes illegal, however, when assets which clearly belong to, or originate from, a resident in a high tax country are not declared for taxation purposes in their country of residence. Any assets over which you have control, whether domestically, or in an offshore jurisdiction, are usually liable for taxation.

However, utilising the different structures available in various offshore jurisdictions, it is often possible to establish a structure whereby at least a portion of your international assets and earnings are not taxable at the same punitive rate. However, proceed with caution…There are a great many structures on offer, both in high tax countries and offshore which have proven ineffective in sheltering income and assets against tax and other threats. It is therefore essential that before you establish any kind of offshore banking or asset protection arrangement, you take advice from a qualified and independent financial advisor with experience in international financial affairs.

Although as previously stated, some offshore jurisdictions have been obliged to amend their banking secrecy legislation in order to avoid recriminations from international agencies (mainly composed of Western industrialised high tax nations, unsurprisingly enough), changes (such as the widespread introduction of 'Know Your Customer' rules) have principally been made in the area of information exchange in the case of clearly proven money laundering or tax evasion activities, while the basic tenet of privacy and protection for legitimate clients has been maintained in the vast majority of cases.

Second Passports - Why You Need One…

There are a multitude of reasons why obtaining a second passport may be the best move that you ever make. When talking about passports, what you are essentially discussing is citizenship and this something which should ideally be discussed with internationally qualified consultants, such as Henley & Partners for example. Many people live quite happily their whole lives as citizens of the country in which they were born. Others build up 'passport portfolios' which allow them to travel, invest, and minimise taxes to their best advantage. Which lifestyle you choose is up to you. However, if any or all (you poor thing!) of the following apply, you might want to consider obtaining a second citizenship as a very real possibility:

• Political instability in your country makes obtaining visas for travel difficult or impossible
  
• Your assets are at risk of litigation
  
• The tax burden in your 'home' country is unnecessarily high
  
• Your present passport may put you at risk from hijackers and terrorists while travelling
  
• You are subjected to punitive currency controls
  
• Your freedom to work, invest, and purchase property where you choose is restricted by your current citizenship

As you can see from the above list, not only could a second passport prove useful in terms of making your life easier and protecting your assets, but if you come from a high-risk country, it could even save your life. But how do you go about getting one?

There are several legitimate ways of obtaining a second passport (and some not quite so legitimate, about which more later). Front door programmes, sometimes also known as 'white glove' programmes, offer immigration and second citizenship through recognised and established channels and legislation which can be checked and verified. The advantages of obtaining a passport in this way are that you can be sure you will receive the genuine article (and with it all the benefits of citizenship in the country). However, the process can be long-winded, bureaucratic and expensive, and some of the 'white glove' countries may not permit you to retain dual citizenship.

The second possibility for those interested in a slightly more flexible way of obtaining a second passport is the discretionary route. Several countries have recognised and established programmes whereby those who invest a set amount in the local economy become eligible for economic citizenship, other factors notwithstanding. However, this is an area in which you must proceed with extreme caution, as although some of the programmes to be found on the internet and via other mediums are 100% genuine, the legitimacy of others is not assured.

If you are caught travelling, trying to open a bank account, or something similarly naughty, with a fake, stolen, or 'under the table' passport, you are likely to find yourself in a great deal of trouble, whether you were aware of the fact or not.

As previously stated there are a great many fraudulent 'instant citizenship' schemes available, which are neither legal, nor official, and are worth less than the paper that they are printed on.

Surprisingly few countries (the Commonwealth of Dominica and St Kitts and Nevis, Belize until 2003, and Ireland until 1996) actually have a clearly defined statutory economic citizenship programme currently in operation that issues second passports to qualifying investors. Austria also issues passports in return for substantial investment, but this is not a statutory programme as such. This is not to say that it is not possible to obtain a second passport countries other than those mentioned, but except in exceptional circumstances, you will be forced to go down the longer-winded, front door route.

So before you part with any money, or become otherwise involved in a second passport scheme, you need to make sure that the government of the country to which you are applying to become a citizen knows and approves of it, and is prepared to offer all the benefits of citizenship to participants in the scheme. Otherwise, it may just end up as a costly and possibly legally damaging waste of time.

Electronic Money

There are two problems about having money: you have to keep it somewhere, and you have to move it in order to spend or invest it. Once upon a time, you could keep it securely and privately in a bank; and you could move it by putting it in a suitcase and getting on a plane. As we have seen, the physical transport of cash is rapidly becoming a no-go area, in addition to the security risk; and the banks can no longer be trusted to keep your affairs private. In addition, banks are extremely bad and horrendously slow and expensive at making international money transfers. Why this should be in an electronic age is one of nature's mysteries (surely it can't be that the lovely, cuddly banks are just trying to hang onto your money for as long as possible?)

At least in theory, and at least for a while (until 'they' catch up with technology), electronic movement of money can bypass the current regulatory apparatus, and if combined with storage of cash in fungible form (dollar bills, bearer shares, bonds or certificates, precious metals, diamonds etc) can maintain your privacy. Of course, you have to trust the organization that is holding your assets, not only to remain solvent and not to steal your money, but to avoid being swept up by the authorities into the surveillance net. The problem is that any organization big enough to be publicly trustworthy is big enough to be noticed, or even bought by a bigger organization which is already in the network. This is what happened to PayPal, previously under the radar, when it was bought by E-Bay. An additional problem is that your incoming money probably comes from a known-about source (unless you are a drug dealer, and this article is not for you) so that there is little point in taking elaborate precautions to veil your future use of money that is already somehow 'in the system'.

Sadly, therefore, the best advice by now is to give in, pay your taxes and resign yourself to being known about. Still, for those who get some grim satisfaction out of hoodwinking the authorities (strictly legally, and just for fun, of course), electronic money transfer holds out some remaining hope of being able to make transactions that are not within the network operated by banks and other financial organizations that are subject to the existing regulatory and reporting network. The unofficial 'hawala' international money transferring network fell within this definition for a time, but has now been 'noticed' and hawala operators are rapidly being caught up in the regulatory embrace.

E-money comes in two flavours, identified e-money and anonymous e-money. Identified e-money carries information about its source, while anonymous e-money is just that. Whether identified or not, e-money is known either as 'on-line' or 'off-line'. Online e-money involves using a bank or other intermediary in order to conduct a transaction with a third party. Offline e-money can be used without an intermediary, eg through the use of a card with an embedded chip (although someone has to put the money in the chip in the first place).

The Holy Grail of e-money would be a secure system in which financial transactions took place between parties who were known to each other, with no chance of deception or of interception by an outside party. (See below for a discussion of secure identity on the Internet.) Thus, I would take money electronically from my store of it, wherever that was, and forward it to you. Despite the seeming simplicity of such a system, the security difficulties (and no doubt the vested interests of the banks) have prevented it from happening so far. While we wait for a secure solution, electronic gold offers an interesting alternative.

Electronic gold is essentially an electronic currency backed by gold bullion, and because payments are backed by a physical commodity, the degree of financial risk involved in holding it is greatly decreased. The payment system allows account holders to send specified weights of gold to other account holders, although in actual fact only the ownership changes - the gold in the treasury vault stays put. (As a matter of interest, there are other metals issued electronically; silver, platinum, and palladium. However, according to brokers, the original product, gold, remains by far and away the most popular choice). E-gold is the longest established provider of electronic gold accounts, and remains one of the largest at this time.

In order to acquire e-gold with which to open your account, you will need to engage the services of a 'cambio' or exchange, such as Gold Now. These provide the service of exchanging national currencies for electronic gold, silver or platinum. The range of national currencies accepted by the exchange varies according to its location, so it is worth shopping around if your requirements extend beyond the normally accepted hard currencies. Each cambio sets its own fee structure, so research also needs to be done here.

Although the online gold market is small at the moment, the increase of globalisation has led to the need for an effectively borderless currency, and the number of expatriates and international businesses using the electronic currency is steadily increasing, with a growing number of businesses accepting it as a valid payment form. Here are just some of the reasons why:

• Electronic gold is one of the only truly international currencies. As previously mentioned, the need for a borderless currency has become more pressing with the rise of globalisation, a more mobile world population, and the advent of e-commerce. Electronic gold is accounted by the weight of the gold as opposed to by any international currency unit, and weight has an internationally recognised definition. However, spends can usually be expressed in up to eight major currencies, so you know how much you are paying. Another advantage is that online gold as payment can be transferred to any other account anywhere in the world.
  
• Payments are instantaneous. Although the internet has the communications capability to allow for real time settlements online, this is rarely, if ever, the case, as noted above.
  
• There is no limitation (upper or lower) on the size of the payments that can be made, although the charge per spend does usually vary according to size.

As you can see, then, all of these factors combined make e-gold an attractive proposition for expats. However, a factor which is often overlooked in the discussion of the risk free nature of e-gold is that although it is always backed by a physical commodity, and is therefore free from the financial risk factors inherent in national currencies since the abandonment of the 'gold standard', it is not free from exchange rate risk. As with any currency, electronic or otherwise, the value of e-gold relative to other currencies can (and does) rise and fall. The overwhelming majority of websites dealing with the issue of e-gold (for example service providers, exchanges, brokers, and directories) provide up to date exchange rate information so that you can monitor this.

One of the major pluses with online gold is that payment is secure and private. Electronic gold account providers, brokers and exchanges have mostly chosen to locate themselves in offshore jurisdictions in order to afford their customers greater financial privacy. This factor, combined with the newness of the technology, has led to concerns that e-gold could be used for purposes such as money laundering and tax evasion. However, at both ends of the process, e-gold brokers and the custodians of the bullion have tried to ensure that this is not possible. Gold money is simply a payment system for bullion already within the system, which comes from banks and bullion houses already regulated in terms of 'Know Your Customer' and anti-money laundering requirements, which ensures that any gold which comes into the system is by definition 'clean'.

At the other end of the process, the vast majority of e-gold brokers will require basic information such as name, address, telephone number, e-mail address, etc. Given the inherent nature of the internet, strong security and privacy, and sometimes 'pseudonymity' are possible, but total anonymity is not, as transactions will almost always be recorded, keeping an audit trail which could be retrieved if evidence of criminal activity was presented.

Considered simply as a store of value, and a means of making payments, an e-gold provider is not different from a bank. The difference however stems from the fact that this is a relatively new, and so far fairly small financial sector, so that it has not attracted the regulators' attention in the way that mainstream financial institutions have.

The relative smallness of the e-gold sector also means that any given counter-party is not likely to be on the e-gold network. The industry therefore has a critical mass problem, and has not so far been able to solve it. If you want to have transactions with a limited number of counter-parties, and you can persuade them to open e-gold accounts, then it could be a worthwhile solution for you.

Online Security - Sensible Measures…

The whole subject of safe electronic communication is one of course one of particular interest and importance for expats and other frequent international travellers, who are by definition separated from their families, colleagues and friends for long periods at a time.

As virus attacks and the resultant panic when computer users realised that personal documents were being attached to infected e-mails demonstrated, security and privacy are issues of growing concern in the 21st century, with a particular focus on online security. Many people assume that their online activities and personal information will be safe while they are surfing the web or sending e-mail. However, sadly, this is not the case.

Sending e-mails, for example, is a hotbed of risks and unwanted intrusions for the privacy minded surfer. All electronic messages are sent through a system of routers and servers, are logged at various points along this path, and may even be stored on back-up systems. It is these storage points that are the weak links in the chain, as it is here that personal messages, business transactions, and credit card details can potentially be retrieved by someone other than the intended recipient.

One possible way around this is encryption, using a service such as Hushmail, which is a method of scrambling an e-mail message so that it is incomprehensible to anyone without the key to unlock the code. It uses mathematical formulae and the computing power available on your computer desktop to scramble or code information. At present, the state of the art is 128-bit encryption, which has been judged by experts as likely to remain unbreakable for the foreseeable future.

Having said that, however, 64 bit encryption, which was used until just a few years ago for important international transactions is now judged as vulnerable to the focussed efforts of organised crime and unscrupulous hackers. So these things move on. (As does the US government, which has recently moved on to even higher levels of encryption for high security traffic). However, for individuals- assuming here that you are not a secret agent - various encryption programmes which are strong by today's standards are available on the internet, and there are several designated providers of encrypted e-mail services.

However, because encryption services prevent unauthorised access to e-mail correspondence law enforcement agencies, particularly in the United States have expressed concerns about their use, and have asked that legislation be enacted to force programmers to create a 'back door', whereby encrypted e-mail can be deciphered. The legal status of this technology is still unsettled.

Other online concerns include the widespread use of 'cookies' which are deposited by many websites on your hard drive, and store information about your visit so that when you return to the site, the cookie data will reveal that you've been there before. These can also collect records of your browsing patterns, indicating your interests, which may create the potential for junk e-mail, or other unwanted marketing intrusions. Alarmingly, some web browsers are also programmed to transmit the user's e-mail address to each site visited. So what can you do to protect your privacy online?

Although there are obviously no guarantees, it may well be worth investigating in encryption software such as Pretty Good Privacy (PGP), or encrypted e-mail services if you are concerned about the security of your e-mail communications. There is also software available for download or purchase on the internet that can reduce your vulnerability to prying eyes. However, here are a few tips that could help you protect your privacy online in the interim:

• Sounds obvious, but never keep your password (whether for your online bank account or your e-mail account) near your computer or stored on your hard drive. And don't make it easy to guess…
  
• Before using any online service, check its privacy policy. In response to pressure from consumers and government agencies, the vast majority of commercial websites now post their information collecting policies on site.
  
• Assume that your communications are not private unless you are using powerful encryption software.

Longer term, the solution to maintaining privacy on the Internet and the integrity of your identity is, perversely, to be more open, but only to a selected group of your friends, family or colleagues. The early signs of this trend can be seen in 'white lists' and 'private' social networking sites on which the technology used in virtual internet communities is applied to only a small, protected group of like-minded individuals. Communication therefore becomes deeper and safer at the same time.

Online Security - Just Plain Loopy…

There are a number of sensible precautionary measures, such as those mentioned in the last section, which are justified and justifiable in the name of protecting your personal and financial privacy online.

However, a level of paranoia unseen outside of the secret services sometimes pervades online security websites, and there are a number of tools on offer which are just plain scary. These include software programmes which encrypt your history files, and browser 'washers', which delete history files, cookies, and cached temporary internet files, and overwrite deleted files until they are unrecoverable, as well as a multitude of other unsavoury tools. Probably best left alone unless you are a) conducting industrial or international espionage, b) terminally paranoid!

Offshore Credit Cards

Offshore credit cards can be obtained either as an additional service when you open an offshore bank account, as part of an offshore incorporation package, or as a standalone service, depending on your needs and circumstances. There are traditionally three different types of offshore card:

• Offshore Debit Card. With an offshore debit card, as with its onshore equivalent, you may spend only the money which is in your account.
  
• Secured Offshore Credit Card. With a secured card, there are actually two separate accounts established- one which holds the security deposit which guarantees the card, and the actual credit card account. The amount of the required security deposit will vary from institution to institution, and will also of course, depend on your required credit line. This is by far and away the most common type of offshore credit card.
  
• Unsecured Offshore Credit Card. This type of card (in theory at least) works in a similar way to its onshore counterpart. You spend the money on credit, the credit card company trusts you to pay it back. There are countless websites and unscrupulous providers on the internet, purporting to offshore unsecured offshore credit cards for a relatively small amount. However, in reality, you are unlikely to be offered an unsecured card by a legitimate offshore institution unless you are an old, valued, and wealthy customer. Although there may be some legitimate opportunities for expats to obtain unsecured cards legitimately and cheaply, it is certainly true that the majority of such offers are scams, designed to part you from between $150-$500 for a card which never arrives.

Offshore credit and debit cards can offer added financial privacy and security for an expat or international traveller, and can be obtained from numerous organisations, such as The Sovereign Group. In some cases the identification requirements to open an account are less stringent (although this varies between providers, and even between products, so shop around). It is also as in some cases the identification requirements to open an account are less stringent (although this varies between providers, and even between products, so shop around). It is sometimes possible to obtain a numbered card (which will leave your financial actions less open to prying eyes), or to open an account via an offshore company, or even as part of the offshore incorporation procedure.

Offshore credit cards, in common with their onshore counterparts, offer convenience of use, as they are widely accepted, and you can often access any funds kept offshore via an international network of ATM machines. Although you will rarely (if ever) obtain vastly inflated returns on money held in an offshore credit card account, you can sometimes find providers who offer interest rates slightly above the onshore level.

However, obtaining an offshore bank account and/or credit card does not mean that you can get away with evading taxes, as a number of US citizens found to their cost in 2002 when the IRS obtained permission to request American Express and MasterCard transaction details from the offshore bank accounts of US citizens whom they suspected of practising tax evasion. Funds held or controlled by a resident in a high tax country will usually be liable for taxation there.

Are There Any Disadvantages?

Not disadvantages, more factors to bear in mind if you decide that an offshore credit card is for you. Offshore credit cards, like so many offshore services, can be slightly more expensive to obtain and use than their onshore equivalents, due to the more labour intensive (on the part of the issuing institution) and protective nature of the service. Therefore, if you are in one location for any length of time, for example for work purposes, it may be worthwhile opening a domestic bank account or obtaining an onshore credit card for day to day expenses and remittances.

Another important point to remember is that although in the interests of financial privacy it is desirable to give as few personal details as possible, this lays you open to the danger that if lost, someone else could use your card. This is especially the case with numbered offshore credit cards, so if you decide that this is the way to go, keep a tight hold on your wallet if you don't want someone else to go on a spending spree at your expense!

Virtual Offices And Mail-drops

If you are self-employed, travel a lot for work purposes, and/or are concerned about your personal and financial privacy, then a virtual office or maildrop service, such as those listed at http://www.buildfreedom.com/portal/category.php/34 may prove very useful to you. Some clients prefer to deal with an organisation or company with a professional presence, and although virtual offices and maildrop services do not often provide you with a physical presence, they can sometimes act as reassurance.

There are many service providers in this area, and they usually offer one or a combination of the services detailed below:

• Mail reception. If you are unsure of your movements at a given time, or would rather that your correspondence address was in a prestige location, many companies will either receive mail on your behalf and forward it on to you, or will hold it in safekeeping until you collect it personally.
  
• Remailing. Useful if, for whatever reason, you would rather that your actual location not be revealed. You address and send your correspondence in a large envelope to the operator of your mail-drop, who then stamps it locally and mails it on individually to the intended recipients.
  
• Telephone and fax answering services. There are plenty of mail-drop providers who offer a telephone answering service and fax number as part of their packages, and there are also services known as 'unified messaging services' whereby incoming telephone messages are forwarded to you via e-mail, although this is a relatively new service, and therefore less common. Whether you choose the high tech or low tech route, the advantages remain the same- a reassuringly professional image presented to clients and colleagues, privacy protection, and a reliable way to receive your messages, wherever you happen to be.
  
• E-mail services. Nowadays, many maildrop providers will also provide you with an e-mail address in order to receive secure electronic correspondence.

Prices for these services vary according to the provider and location of the mail-drop service, so as with the majority of privacy protection services mentioned in this article, it is best to shop around. Although details of the basic service are usually available on the website of the provider, the majority of companies pride themselves on being very client-orientated, so if you have any special circumstances or needs, it is always worth asking if these can be taken into account.

Disadvantages and Inappropriate Uses For Mail-drops

Maildrop and virtual offices services are an invaluable tool for protecting your financial and personal privacy, presenting a professional and efficient face to clients, and ensuring that your mail and messages are passed on to you regularly, no matter where you happen to be in the world. .

However, due to the nature of the services offered, there are those who have tried to use maildrops for inappropriate purposes such as tax evasion, fraudulent business schemes, and defrauding legitimate creditors. Reputable providers never allow the service to be abused in this way, and although it is possible to use a name other than your own for the maildrop, they will obviously need a contact address or telephone number in order to pass on your messages, which could constitute a paper trail in the event of proven criminal activity or wrong-doing.

Protecting Yourself

As you can see by now, there are a wide variety of privacy protection services available for expatriates, globe trotters, international professionals and privacy minded domestic citizens, and the rise of the internet has greatly facilitated the provision of these kinds of services.

However, in the area of online and financial security, as with everything else, there are plenty of scams and disreputable schemes lying in wait to trap the unwary privacy seeking expat. Although it is desirable and necessary to protect yourself and your financial transactions from unwanted intrusions, don't allow this desire to cloud your judgement, leading you into doing business with unsatisfactory or fraudulent enterprises, or establishing offshore vehicles without first checking their legal status in your country of residence. You should always perform due diligence on any organisation which will be handling your affairs, or to which you intend to hand over money, and if at all possible, obtain professional advice before making a decision.

Other Interesting Privacy Related Links:

www.sovereignsociety.com - Extensive and useful privacy related links section

www.ptclub.com - Links of interest to expats and PTs, and some non-privacy related but still interesting ideas.