Can you elaborate on the passport sale in CR for a trip to Panama and hide money? How does that work? The money would be traceable, yes?
There are 1000's of ways to hide money. People want money in banks that use dollars, and Panama uses dollars. Money is not traceable, it is the wiring of money that is traceable.
If I wanted to put 10 million dollars in a bank abroad, i first go to collect money, and not put in banks in the USA, normally greedy people want to make money, so they keep putting it in banks to earn interest, so refuse to make it free of being traced. All is greed.
But, I can take 10 million cash, load it onto a boat in Los Angeles, sail down to Panama, and put into a bank.
But, I need a different identity, so I must buy a new name, new passport in a country that is corrupt, like Costa Rica.
I am 100 percent sure I am smart enough to hide any amount of money. Generally, it about being savvy enough to know when people are lying, and not just talking to stupid people.
As for me, if I had a million dollars, I would just put into a bank in the USA, let it sit, and not worry. I would have enough money to live until I died. And, I would go out and do exactly what I am doing today here in Georgia, the country.
If I had 10 million, I would start a cash business in the USA, like a bar, and continually lose money on paper.
All this is assuming, I want to have money the USA, or any government on the planet want to tax, take, or seize. This is what governments do, they try to take money, all of them, and the USA is the least dangerous, Costa Rica is more dangerous, which is the funny to me. But to hide money, is about breaking the law, and for me, I cannot be bothered, money comes and goes, but living free of worry is being rich.
Good answer. Of course physically carrying millions of dollars is not usually too wise a configuration, but you understand the principle of the untraceability of cash and yup, you have laid it out there clearly.
Some FYI stuff . . . the form 1040 question each year asks if you have a foreign bank account. If you lie, it's fraud. That's worse than not paying taxes on whatever interest Panama banks might pay. Fraud would be jail time if you get caught. A way to avoid it is things you don't approve of -- real estate. The question is worded in the form of "financial assets" . . . do you have any financial assets or financial accounts in another country. Real estate is not a financial asset so if you own it elsewhere, you do not have to report it. It obviously has other problems, though, as you have often noted. Other non financial assets might be paintings stored maybe in a Singapore safety deposit box, or . . . gold. If gold went up in price or the real estate or painting did, and you don't pay capital gains tax, it will be real hard to prove failure to pay because there will be no record of your painting purchase price or date. You can declare it to be the same price you sold it for.