OFCs turn towards the world's emerging markets due to US clampdown
By OffshoreAlert, April 13, 2010
As a result of aggressive actions against Offshore Financial Centers by the United States Government, more offshore providers are deciding that U. S. taxpayers as clients are more trouble than they're worth.
The key question, however, is: How do you make up for the revenue shortfall?
Three countries that can help plug the gap are among the world's fastest-growing economies are China, India and Russia.
In 2007, India and China had the fastest-growing number of millionaires in the world, while Russia had the tenth biggest increase, according to the 2008 World Wealth Report compiled by the Capgemini consulting group and Merrill Lynch Wealth Management.
In 2008, China overtook the United Kingdom in terms of countries with the most millionaires, with an estimated 413,000 such high net worth individuals, placing it behind the USA, Japan, and Germany. Many consider it to be only a matter of time before China claims the number one spot.
"At this time of general economic contraction, the Chinese, in particular, have the money and are investing, or spending, it overseas in amounts that are mind-boggling," says DC Page, Senior Vice President, Consulting and Investigations with US-based risk mitigation firm Andrews International.
"There is a tremendous opportunity for offshore and onshore financial services providers to tap into this highly lucrative market. Key to a successful relationship, however, is doing business with the right people and refusing to do business with the wrong people.
"Our company has seen a bigger increase in requests for due diligence and investigations on Chinese individuals and companies than any other country. The inquiries range from due diligence checks for financial institutions in order to verify a Chinese national's source of wealth to background screening of applicants for investor visas in the US."
Page will be among risk experts who will show financial service providers how to conduct due diligence and investigations in China, Russia, India and Latin America at The 8th Annual OffshoreAlert Financial Due Diligence Conference, in Association with Grant Thornton, which will take place at The Ritz-Carlton, South Beach on May 2-4, 2010. Our speakers will include investigators and intelligence-gatherers who live in Russia and India.
The conference will focus on Offshore Financial Centers, Fraud & Asset Recovery, Money Laundering & Compliance, and Investigations & Intelligence and will be attended by more than 300 people from over 30 countries.
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