Banking Secrecy in Chile

     Chile is not usually considered among the elite banking places in the world. Banking is neither cheap nor lightly regulated for the benefit of account holders like Hong Kong, Singapore, Isle of Man, Liechtenstein, Mauritius, Jersey, etc. However, Chile does offer some benefits (as I have covered in earlier posts): (1) it is a good place to store assets in safe deposit boxes (like gold) for those who are residents or citizens, (2) it is a good place to by tax-advantaged, over-funded life insurance policies and (3) it provides a good means to hold Chilean pesos or accounts denominated in inflation-proof UF units.
     Chile also offers one other important benefit: banking secrecy. Not even the local tax authorities are allowed to pry into bank accounts and examine deposits or withdrawals to verify income issues or asset activities. The central bank does require that recipients of foreign wire transfers declare the origin or source of funds. But all in-country transactions are completely private. Here is a translation of the gist of what the Chilean legislation states:
     "According to the General Banking Act, information on deposits [held in Chilean bank accounts], and deposits received by banks, must be kept secret and can only be disclosed to the account holders or those whom they have authorized. If this information is disclosed, the law will punish an offender with sentences that include the possibility of jail time, although the law allows judges to request information when it is relevant in a legal case under investigation wherein it is necessary to know the banking operations which have been made by the owners of such deposits."
     I am sure that if a court were to issue an order during a criminal investigation a bank would be forced to divulge account information. But such doings are uncommon. I am also sure that even requests from friendly nations like the United States will not result in immediate divulging of information, other than perhaps (in extreme cases) that an account exists. In Chile, people can bank in secret without fear of invasion of financial privacy. It is just another of the long list of reasons why Chile tops the list of preferred choices for expatriates.


     Sovereign Man is launching its resilient community in Chile in February. Do you want to be a part of it? If Chile is on your radar screen, perhaps you should check out the residency program which I offer. Go to www.chile-consulting.cl and view the entries at bottom center or send an email to jcobin@offshoreadvisorygroup.com and I will send the program links directly to you. 
     Dr. Cobin’s book, Life in Chile: A Former American’s Guide for Newcomers, is the most comprehensive treatise on Chilean life ever written, designed to help newcomers get settled in Chile. He covers almost ever topic imaginable for immigrants. This knowledge is applied in his valet consulting service, where he guides expatriates through the process of finding a place to live and settle in Chile, helping them glide over the speed bumps that they would otherwise face in getting their visas, setting up businesses, buying real estate, investing in Chilean stocks or gold coins, etc. The cost is $49.
     Dr. Cobin’s sequel book, Expatriates to Chile: Topics for Living, adds even further depth on important topics to expatriates who either live in Chile already or who have Chile on the short list of countries where they hope to immigrate. The book deals with crucial issues pertaining to urban and rural real estate transactions, natural disasters, issues pertaining to emigration and its urgency, money and the quality of life, medical care and insurance, business opportunities, social manifestations (including welfare state and divorce policy concerns), Chile in the freedom indices, social maladies (lying, cheating, stealing and murder), as well as discussion of a few places worth visiting and some further comments about Santiago. Note: If the link to buy the book at SovereignMan.com does not appear, just send US$39 by PayPal to jcobin@policyofliberty.net and send an email or PayPal notice that you have completed your order.     

Buy Dr. Cobin’s Public Policy books at Amazon.com:
Christian Theology of Public Policy: Highlighting the American Experience (2006)Bible and Government: Public Policy from a Christian Perspective (2003)A Primer on Modern Themes in Free Market Economics and Policy (2009)