b.

Most havens won't release the assets or forfeit them except under the most egregious of circumstances.

E. Finally, laundering offshore eliminates taxes.

4.

An offshore facility is any devise used to facilitate laundering funds.

5. Integral part of offshore facility is the offshore agent, accountant or attorney.

3.

Offshores have phenomenal economic impact on Bahamas, Bermuda and Panama.

4. Antigua, deeply in debt, hopes new offshore business will bail it out.

C

III. Mechanics of the use of offshore facilities cases studies.

A. Offshore banking conjures up images of financial wizardry and international tax lawyers and accountants.

B.

However, most of the illegal activity is just a layering of basics.

C. The crook's objective is simple.

A pays B who sends the money offshore where it is laundered and returned to B's use:

LA could be a dope distributor, a legitimate business, proceeds from a bank robbery or any other SOURCE of money.

2.

3.

B, having the money, wishes to conceal it. If it is in currency when received his job is easier. If it is in paper (checks, etc.) he may have to initially launder it in the U.S. to convert it to currency.

Now offshore system begins.

d. Defendant or his attorney buys cashiers check at bank with haven company as remitter.

D. This case, though very simple, presents severe problems to enforcement.

L

In many cases-particularly financial frauds-tracing the proceeds is key to prosecution.

a.

b.

Defendant in this case received currency so had no need to launder in U.S.

Took the currency to Cayman in a briefcase and was never questioned.