Money and Exchange Control
See also: Fixed exchange rate, Dollarization, and Money launderingMost tax havens have a double monetary control system which distinguish residents from non-resident as well as foreign currency from the domestic one. In general, residents are subject to monetary controls but not non-residents. A company, belonging to a non-resident, when trading overseas is seen as non-resident in terms of exchange control.
It is possible for a foreigner to create a company in a tax haven to trade internationally; the company’s operations will not be subject to exchange controls as long as it uses foreign currency to trade outside the tax haven.
Tax havens usually have currency easily convertible or linked to an easily convertible currency. Most are convertible to US dollars, euro or to pounds sterling.
Read more about this topic: Tax Haven
Famous quotes containing the words money, exchange and/or control:
“Bernstein: “Girls delightful in Cuba stop. Could send you prose poems about scenery but don’t feel right spending your money stop. There is no war in Cuba. Signed Wheeler.” Any answer?
Charles Foster Kane: Yes—Dear Wheeler, You provide the prose poems, I’ll provide the war.”
—Orson Welles (1915–1985)
“So long as the law considers all these human beings, with beating hearts and living affections, only as so many things belonging to the master—so long as the failure, or misfortune, or imprudence, or death of the kindest owner, may cause them any day to exchange a life of kind protection and indulgence for one of hopeless misery and toil—so long it is impossible to make anything beautiful or desirable in the best-regulated administration of slavery.”
—Harriet Beecher Stowe (1811–1896)
“Physical nature lies at our feet shackled with a hundred chains. What of the control of human nature? Do not point to the triumphs of psychiatry, social services or the war against crime. Domination of human nature can only mean the domination of every man by himself.”
—Johan Huizinga (1872–1945)