Tag Archives: money laundering

Economist Martin Armstrong Warns Of Storing Assets In U.S. Bank Safe Deposit Boxes

We’re back after a short break. And to jump start the continued discussion about asset protection outside the United States, I’d like to point out a February 25 blog post by economist Martin Armstrong on his company’s website. Regular readers of Offshore Safe Deposit Boxes know that Armstrong brings up bank safe deposit boxes from time to time, and the head of Armstrong Economics penned the following while I was away:

Keep in mind the government can close all banks for there is precedent. Whatever you have in a safe deposit box can also be seized and inspected.

There is no precise law against storing metal or cash in a safe deposit box. But law is malleable in the hands of any judge. He can seize the money or gold under the pretense of money laundering hiding it from the government. Under Civil Asset Forfeiture, they can assume the money is guilty of a crime being even tax evasion. It then is your burden to fight in court to get it back if you can hire a lawyer…

(Editor’s note: Bold added for emphasis)

Keep in mind that Armstrong is referring to safe deposit boxes in U.S. financial institutions here, not secured storage containers located in private vaults outside the American banking system.

That being said, the economist sees a “global trend” in the seizure of assets through claims of money laundering and tax evasion. I blogged back on June 6, 2016:

Martin Armstrong… has chimed in on the new HSBC safe deposit box regulations in Hong Kong. He issued this warning on his company’s blog Friday:

Governments are targeting safe-deposit boxes to look for cash that is hiding from taxation. HSBC, a U.K. bank, is now moving against claimed financial crimes by altering conditions for safe-deposit boxes. This is becoming a global trend. Anything of value that is stored in a safe-deposit box is now considered money laundering. Governments want their taxes and all the laws are changing to ensure they get their money.

(Editor’s note: Bold added for emphasis)

“Anything of value that is stored in a safe-deposit box is now considered money laundering”

Does that include legally-purchased and owned precious metals (with receipts to boot also showing taxes paid when applicable)?

Once again, these are bank safe deposit boxes Armstrong is talking about.

To date, I haven’t encountered anything by Mr. Armstrong about boxes in private, non-bank vaults.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Source:

Armstrong, Martin. “Is it Safe to Store Gold in a Safe Deposit Box?” Armstrong Economics Blog. 25 Feb. 2017. (https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/is-it-safe-to-store-gold-in-a-safe-deposit-box/). 7 Mar. 2017.

Share

Thoughts On Safe Deposit Box Article By The Straits Times

Yesterday I came across an article on The Straits Times (Singapore) website entitled “Time to part ways with safe deposit boxes.” Business editor Lee Su Shyan wrote Sunday:

Growing up, having a safe deposit box symbolised financial adulthood, even more than scoring that exclusive credit card.

But that’s not a view shared by many nowadays. I did a casual check among friends and colleagues whom I met over the Chinese New Year period and only a couple owned up to having a box. Others said: “I don’t, but my mother has one.”

It’s probably the hassle that has contributed to the decline in popularity. Access is only at limited times, although the hours are certainly longer at non-bank locations such as that of Certis Cisco.

Then there is the issue of the rental rate. Even if it’s not a large sum, it’s still a few hundred dollars annually.

Banks, too, are apparently none too keen on encouraging customers to have one. They take up precious space and offer a poor return on capital.

A couple of years ago, a report by the Swiss authorities highlighted the growth of non-bank safe deposit box companies, with some quarters questioning their rapid expansion. Apparently, many customers were using them for stashing gold and valuables. Since the contents are known only to their owners, these boxes could pose a money-laundering risk…

Some thoughts about the piece:

1. Longer operating hours are indeed often found at private safe deposit box facilities. Certis Cisco in Singapore, for example, is open 365 days a year and up to 12 hours a day according to their website.

2. “Banks, too, are apparently none too keen on encouraging customers to have one.” The Times’ Rachel Boon reported on April 22, 2015, that “banks cut back on safe deposit box services in land-scarce Singapore,” with HSBC and DBS Bank closing a number of safety deposit boxes on the island nation.

3. The article stated:

A couple of years ago, a report by the Swiss authorities highlighted the growth of non-bank safe deposit box companies, with some quarters questioning their rapid expansion. Apparently, many customers were using them for stashing gold and valuables. Since the contents are known only to their owners, these boxes could pose a money-laundering risk

(Editor’s note: Bold added for emphasis)

I believe the report being referred to here was produced by Switzerland’s Federal Department of Finance (FDF) and released to the public on December 14, 2015 (blogged about here). From the accompanying media release:

The report also explains the money laundering and terrorist financing statutory framework in terms of safe-deposit box rental and the relevant rules of professional conduct. Moreover, it sheds light on the potential risks and actual abuses.

Although a potential risk of abuse does exist for certain categories of safe-deposit box, there is little evidence of actual abuse and thus of a real danger according to the report

(Editor’s note: Bold added for emphasis)

4. The Times’ business editor concluded the piece with:

At this rate, it looks like I will have to part ways with that box. The money I save from the rental of the box won’t get me a fancy piece of jewellery – but it will go some way to buying a sturdy safe.

(Editor’s note: Bold added for emphasis)

I don’t know how it is for Singapore, but the Spartanburg Journal-Herald (South Carolina) just noted in a February 11 article on their website:

A residence is almost 20 times more likely to be robbed than a safe deposit box in a bank.

(Editor’s note: Bold added for emphasis)

I believe the source of this U.S. statistic is Elgin, Illinois-based Safe Deposit Box Insurance Coverage (SDBIC), a provider of safe deposit box insurance.

You can read that entire Straits Times article on the paper’s website here.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

Source:

“Money Talk: Security for a safe deposit box in an insecure world.” Spartanburg Herald-Journal. 11 Feb. 2017. (http://www.goupstate.com/news/20170211/money-talk-security-for-safe-deposit-box-in-insecure-world). 13 Feb. 2017.

Share

Related Reading: Martin Armstrong Post On Problems With Bank Safe Deposit Boxes

Earlier this month I brought up a blog post by Martin Armstrong, economist at Armstrong Economics and the subject of the 2014 documentary The Forecaster, in which he warned:

Governments are targeting safe-deposit boxes to look for cash that is hiding from taxation… Anything of value that is stored in a safe-deposit box is now considered money laundering

(Editor’s note: Bold added for emphasis)

Last Thursday, Armstrong blogged again about safe deposit boxes on his company’s website. Specifically, boxes in financial institutions and the “problems” associated with them. The post consisted of a “comment” submitted by a Texas attorney:

We have been advising clients NOT to use safe deposit boxes for years…

In the 1930s, boxes were systematically drilled by government officials looking for illegal gold. No warrants, as we understand them. Countless claims of government agent looted boxes were ignored…

We tell our clients not to use storage controlled by government regulated financial institutions and instead to find private, secure, fireproof and waterproof means of storing things of value. This is probably the same story as the buried Roman coin stories. Every government becomes organized crime, eventually, if they didn’t start that way in the first place

(Editor’s note: Bold added for emphasis)

“Private, secure, fireproof and waterproof means of storing things of value”

Like a well-constructed private vault outside the banking system?

An interesting read from Armstrong (or rather, this attorney), which you can view in its entirety on his company website here.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Share

Martin Armstrong: ‘Anything Of Value That Is Stored In A Safe-Deposit Box Is Now Considered Money Laundering’

Martin Armstrong, economist at Armstrong Economics and the subject of the 2014 documentary The Forecaster, has chimed in on the new HSBC safe deposit box regulations in Hong Kong. He issued this warning on his company’s blog Friday:

Governments are targeting safe-deposit boxes to look for cash that is hiding from taxation. HSBC, a U.K. bank, is now moving against claimed financial crimes by altering conditions for safe-deposit boxes. This is becoming a global trend. Anything of value that is stored in a safe-deposit box is now considered money laundering. Governments want their taxes and all the laws are changing to ensure they get their money.

(Editor’s note: Bold added for emphasis)

“Anything of value that is stored in a safe-deposit box is now considered money laundering”

Does that include legally-purchased and owned precious metals (with receipts to boot also showing taxes paid when applicable)?

Armstrong didn’t elaborate in his June 3 post, but back on March 29 I discussed how he thinks government will deal with precious metals. From that post:

On March 14, Armstrong talked more on this subject. He blogged:

Government will make transactions in gold or silver illegal and equivalent to money laundering. These people are not about to let anything circumvent their dreams…

The likelihood that you will be able to travel with gold is about zero. The likelihood that you will be able to go to the local grocery store and buy food with silver or gold coins is also zero. The more probable outcome is that this will provide a hedge against government to make the transition to the next monetary system. These people are fighting for dominance over society. Do you really think it will be that easy that everyone will be using gold and silver coins? They will not go down without a fight and the first blood draw will be on our side — not theirs.

(Editor’s note: Bold added for emphasis)

I added:

If events unfold like Mr. Armstrong predicts they will, geographical diversification of precious metals in the physical form- particularly gold- in an offshore safe deposit box could prove to be a wise financial decision.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Source:

Armstrong, Martin. “Hunt for Taxes: Safe-Deposit Boxes Under Attack.” ArmstrongEconomics.com. 3 June 2016. (https://www.armstrongeconomics.com/world-news/taxes/safe-deposit-boxes-under-attack-hunting-for-money/). 6 June 2016.

Share

Martin Armstrong Warns Again Of Future U.S. Clampdown On Gold, Silver

Back on February 25, I shared a warning about gold confiscation by Martin Armstrong, economist at Armstrong Economics and the subject of the 2014 documentary The Forecaster, that was published on his company’s website the week prior. I wrote:

So in a nutshell, while an “official” gold confiscation program might not be announced/implemented, Armstrong predicts the federal government will slap restrictions on traveling at home/abroad with gold and may go so far as to make precious metals transactions in the U.S. illegal, opening the door to confiscation.

(Editor’s note: Bold added for emphasis)

On March 14, Armstrong talked more on this subject. He blogged:

Government will make transactions in gold or silver illegal and equivalent to money laundering. These people are not about to let anything circumvent their dreams…

The likelihood that you will be able to travel with gold is about zero. The likelihood that you will be able to go to the local grocery store and buy food with silver or gold coins is also zero. The more probable outcome is that this will provide a hedge against government to make the transition to the next monetary system. These people are fighting for dominance over society. Do you really think it will be that easy that everyone will be using gold and silver coins? They will not go down without a fight and the first blood draw will be on our side — not theirs.

If events unfold like Mr. Armstrong predicts they will, geographical diversification of precious metals in the physical form- particularly gold- in an offshore safe deposit box could prove to be a wise financial decision.

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on information found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. Christopher E. Hill, the creator/Editor of this blog, is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented on the site.)

Source:

Armstrong, Martin. “Will They Confiscate Gold Again?” ArmstrongEconomics.com. 18 Feb. 2016. (https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/will-they-confiscate-gold-again/). 24 Mar. 2016.

Share