Ever encountered some terms that seem alien to you while trying to close offshore transactions?  It is also possible that you are new in the game and understand very little about how each term is used and where each term applies.  Here is a guide on understanding these words and phrases to be able to come up with a good deal for you.

Basic Terms

A bank is a financial institution which processes bank transactions such as deposits and loans.

Corporate agents are non-lawyer individuals who can put up corporations and companies in offshore jurisdictions.

Heir is a person who receives properties or assets from a deceased person while beneficiary is a person assigned as a recipient of benefits through channels such as foundations.  In Panama, beneficiaries can be made anonymous.

Natural person refers to a living human being instead of an unnatural person, which can mean a corporation.

Terms Preceded by Anonymous

In general, anonymous means unknown.  So, a corporate structure which shows no recorded ownership on any registry or files making the owner anonymous is called anonymous bearer share corporation.  Ownership of the corporation can only be claimed by the individual or company who can present the physical stock shares.  Panama is the last place on earth which offers them with tight bank rules and laws.  In Panama, this is specifically called Sociedad Anonyma, which is placed at the end of the company name as S.A.

There are also terms such as anonymous foundation, offshore ATM card, real estate ownership.  All of these mask the identities of individuals associated with each such that beneficiaries are unknown for anonymous foundation.  ATM cards will show no name on the card.  Ownership of real estate is made anonymous with an anonymous bearer share corporation or foundation.

Offshore Banking

Internet banking offshore is where a client can do bank transactions online.  Bahamas offshore banking used to be popular and private which offers offshore banking as well as incorporation jurisdiction.  The same also applies to the Grand Cayman offshore banking.

Court terms

Jurisdiction refers to the court’s authority to take on and decide on a case filed while judgment refers to the court decision after going through all necessary court proceedings.  In general, judgments on offshore asset protection are not enforced such as in Panama.

Garnishment allows a creditor to take possession of a borrower’s properties in case of debt.  Offshore garnishment is not recognized in Panama.

Guillotine clause is ordered when someone starts asking around about a certain bank account.  The whole amount of money in that said bank account will then be transferred to another offshore bank and then to another.  In a sense, the money constantly moves around.  This is no longer applicable.

Bearer shares, etc.

Bearer bond allows a person to carry a bond for $100,000 without any need for identification to negotiate with it, which was the case then in 1980’s.

Bearer share corporation is a company with bearer shares where the basis of ownership depends on who owns the stock certificates.