Hong Kong, Kim DotCom and the MegaUpload Mess
Many offshore providers (I Included) are promoting Hong Kong as one of the safest place to do business because of its free economy and good tradition in bank secrecy. Now some people may have second thought about opening a Hong Kong Bank account in view of the Megaupload mess and especially the fact that Hong Kong Government has been actively assisting the US authorities raiding offices of MegaUpload in Hong Kong and seizing up to USD 42 million in assets.
What to think of MegaUpload Hong Kong Asset Seizure?
But the thing is that the USD 42 million seized is suspected crime proceeds. The message sent yesterday is not that Hong Kong is not a safe offshore haven anymore but simply that less and less offshore haven will give protection to those engaging in criminal activities especially when they are high profile one like the MegaUpload case. Kim DotCom must wish he has done his banking in Belize.
Why Hong Kong is still the Best Place to Be?
This being said I will still continue to promote Hong Kong as one of the best jurisdiction to do your offshore banking because Hong Kong is still
- the freest economy in the world,
- has the most efficient business community in the world,
- the most efficient government in the world (IMG world competitiveness survey 2011)
- ranks second in Ease of Doing Business (World Bank 2011 Ease of Doing Business)
- ranks third as a world foreign direct investments destination with US$69 billion during 2010, which is the third highest figure in the world, after the US and China, and finally because
- 88% of world banks and finances firm and 68% of the world 268 largest companies have office in Hong Kong according to a CBRE study.
All more reason to promote Hong Kong as one of the best place to do business.
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