Corb7 International September 16, 2020 Newsletter

International Business

Feature

Hong Kong Deserves Our Attention!

For the second summer in a row, political unrest dominated the streets of Hong Kong and yet very little of it was covered by the media in the United States and North America.  I have my own personal suspicions as to why there would be little to no coverage of these protests where literally millions of people joined in marches to preserve democracy but for the propose of this column let’s take a brief historical perspective and see if anything can be gleaned.

After more than 150 years of British rule, Hong Kong reverted back to the Chinese on July 1, 1997, causing grave concern even then about its future.  Hundreds of millions of dollars became flight capital and left this location.  Canada became a huge benefactor of this exodus since many investors not only moved their money there but established second citizenships in this North American location.

Hong Kong is also interesting because it is an example of how a nation can change.  Prior to 1841, it was an island with a tiny population of approximately 3,000.  Hong Kong became a textbook case of a nation short on natural resources; where poverty and crime could have easily over run this nation.  Instead, low taxes and a business philosophy of nonintervention became a source of enormous prosperity.  By embracing this “laissez-faire” philosophy, Hong Kong positioned itself for the long-term success it enjoyed.  Its strategic location in the Asian Pacific region resulted in it becoming one of the busiest harbors in the world and the third largest financial center, behind only New York and London.

The Sino-British Joint Declaration, signed by both Great Britain and China in 1984 provided for a policy of “one country, two systems” until 2047.  Of course at this point, it is almost universally agreed upon that China has violated that agreement which has resulted in the current state of political unrest.  The macro lessons to be derived from the Hong Kong issue are self-evident – think twice before trusting the Chinese government etc. But what I find most interesting is the lack of coverage by the US media.  Every time I have traveled to Europe I am struck by the stark difference in news coverage between the major networks in the US and how other nations report daily events.  It would be wonderful if major US media outlets figured out that there is an entire world out there and perhaps a large number of people in the United States would like to hear about it.

International Business

Business Tools

Own a Cayman Bank in 2020

South of Cuba and Northwest of Jamaica, this small island territory is a major international hub and the fifth largest banking center in the world.  It is a location where myth and fact have often been blurred by those willing to buy into what has become known as the “Grisham effect.”  As you may recall, the famous fiction writer John Grisham used the Cayman Islands as a backdrop for several of his books.  Some of his works were turned into movies with the most celebrated one being, “The Firm,” which starred Tom Cruise and was released in 1993.  For many years, the Cayman Islands suffered from the “Grisham effect,” as it was painted within his books as location where money can be stashed away by criminals.  The beauty of the location added a certain romance to the idea of ill-gotten funds being placed in illicit Cayman banks. The reality, however, is far more boring.  The Cayman Islands is a highly regulated and full compliant jurisdiction and as such not exactly an ideal location for drug dealers or anyone else to launder their funds.

It is possible to become an owner of a Cayman Island bank and previous banking experience is not necessary needed.   Although, in reality, it greatly improves your chances of approval, and odds are good that your directors will need a stellar CV demonstrating financial experience.  There are three types of licenses: Class A, Class B unrestricted and a Class B restricted.  Class A allows for doing business with the locals and will not be part of our discussion since it has little practical application for our needs.  The other two classes is where we will concentrate.

Please note these are not tax shelter vehicles.

 CLASS B Licenses: 
* Class B Unrestricted License – unrestricted to the number of clients which it can service.
* Class B Restricted License- restricted in the number of clients which it can service, which will be stipulated in the permit.

Overview:
As of December 31, 2013 there were 199 category B banks authorized. A Category B bank permits the holder to undertake full banking services from within the Islands or elsewhere, but prohibits the taking of deposits from any person resident in the Islands, other than another Licensee, or an exempted or an ordinary non-resident company that is not carrying on business in the Islands.

Fees:
The initial application must be accompanied by a fee of US$2439.02 payable to the Cayman Islands Monetary Authority.  If the application is successful, a fee of US$85,365 will be payable upon the granting of the Category B license. The fees for the licensing process can range from US$45,000 and upwards, however, before we can give a better estimate on fees, we would need to understand the full nature of your client’s proposed business operations.  Thereafter, the Annual Fees will be dependent on the amount of assets the bank holds:

* Assets less than US$100 million – US $73,170.73
* Assets between US$100 million and US$500 million – US$85,365.85
* Assets between US$500 million and US$1.0 billion – US$97,560.98
* Assets between US$1.0 billion and US$5.0 billion – US$109,756.10
* Assets greater than US$5.0 billion – US$121,951.22

Paid-in -Capital:
Under the Bank and Trust Companies Law (2013 Revision) all locally incorporated banks are required to maintain (on a paid-up basis) a minimum net worth of CI$400,000 or its equivalent in other currencies except for licensees that hold Restricted Banking Licenses. Restricted Category B Licensees are required to maintain a minimum net worth of CI$20,000 or its equivalent in other currencies. The Cayman Islands Monetary Authority adopts the guidelines set by the Basel Committee for Bank Regulation and Supervisory Practices for the calculation of the capital adequacy ratio (risk asset ratio). The Basel Committee recommends a minimum risk asset ratio of 8%. However, the Cayman Islands Monetary Authority requires subsidiaries to maintain a minimum risk asset ratio of 12% and privately owned banks are required to maintain a minimum of 15%.

International Business

  Business Psychology

COVID-19 and Mental Health

Suicide is a significant issue across the globe. According to SAVE (Suicide Awareness Voices of Education), nearly 800,000 people die by suicide across the globe each year, and suicide is the second leading cause of death in the world for people between the ages of 15 and 24.

Suicide poses a significant threat every year, but that threat might be even greater in 2020. The global pandemic that resulted from the outbreak of the novel coronavirus COVID-19 in the winter of 2019-20 led many governments to encourage their citizens to isolate to help prevent the spread of the virus. While such restrictions were necessary, a study published in the medical journal JAMA Psychiatry in April 2020 noted that the secondary consequences of social distancing may include an increased risk of suicide.

The researchers behind the study noted that social connections play a key role in suicide prevention, which is why social distancing concerns so many mental health professionals. However, the researchers also emphasized that social distancing requires physical space between people, not social distance. By staying six feet apart and wearing masks when around friends and loved ones, individuals at risk for suicide can maintain the social connections that are so vital to their mental health.

SAVE notes that a lack of social support and a sense of isolation are a risk factor for suicide. But other factors also can increase suicide risk, and learning to recognize those risks can be especially important at a time when social distancing may be putting more people in jeopardy.

SAVE notes that risk factors do not cause or predict suicide. However, the presence of the following factors can increase the likelihood a person will consider, attempt or die by suicide.

· Mental disorders, particularly mood disorders, schizophrenia, anxiety disorders and certain personality disorders

· Alcohol and other substance use disorders

· Hopelessness

· Impulsive and/or aggressive tendencies

· History of trauma or abuse

· Major physical or chronic illnesses

· Previous suicide attempt

· Family history of suicide

· Recent job or financial loss

· Recent loss of relationship

· Easy access to lethal means

· Local clusters of suicide

· Stigma associated with asking for help

· Lack of health care, especially mental health and substance abuse treatment

· Cultural and religious beliefs, such as the belief that suicide is a noble resolution of a personal dilemma

· Exposure to others who have died by suicide (in real life or via the media and Internet)

People concerned about themselves or a loved one in crisis can call the National Suicide Prevention Lifeline at 1.800.273.8255 in the United States or contact Crisis Services Canada at 1.833.456.4566.

Lifestyle

Executive Fitness

What Do You Do as Gyms Reopen?

As gyms start to slowly open amid the COVID-19 Pandemic,  fitness enthusiasts will have a very important decision to make.  Should they go back to the gym or continue to workout at home?  Here are some points to consider when making that decision.

First of all , we all pretty much understand that routine exercise benefits minds and bodies in various ways. Studies have shown that physical activity can improve mood and lower people’s risk for various diseases, including heart disease and diabetes.

As beneficial as exercise can be, many people simply don’t make physical activity part of their regular routines. Recent studies and reports from the United States’ National Center for Health Statistics and Statistics Canada, conducted separately from each other, found that roughly 80 percent of adults in both the U.S. and Canada are not meeting the minimum physical activity requirements recommended by their respective governments. While a host of factors can influence a person’s decisions on physical activity, where to exercise is one factor that could go a long way toward determining just how much adults exercise.

Basements, attics, spare bedrooms, or two-car garages may seem like the perfect places to create home gyms. However, the benefits of working out at a gym may outweigh the convenience of working out at home.

· Workout partners and/or other gym members may improve your chances of losing weight. People who exercise at home tend to work out alone. In so doing, they may be removing a potentially strong motivator that could keep them exercising. A 2019 study published in the research journal Obesity found that increasing contacts and interactions with thinner individuals, and declining contacts and interactions with heavier individuals, were linked to actual weight loss. In other words, working out with a fit friend or simply interacting with fellow gym members who maintain healthy weights can benefit people who are trying to lose weight through exercise.

· Gym memberships have a way of paying for themselves. The cost of a gym membership is one factor many people cite as a reason for not exercising more. However, many health insurance plans now offer sweat equity rebates that reward policy holders for working out. Such rebates can greatly reduce the cost of a gym membership, if not remove it entirely. For example, a sweat equity program that offers a $200 rebate every six months for policy holders who exercise 50 times during that period can make a $30 monthly gym membership free. In that example, gym members would pay $180 for six months but get all of that money back if they work out 50 times in a six-month period.

· Gyms can make it easier to diversify your workouts. Exercise boredom is something even the most ardent fitness enthusiast can relate to. Exercise boredom refers to the disinterest that can develop over time as people do the same workouts for weeks, months or years at a time. A home gym may not be spacious enough to include too many machines, whereas gyms typically include enough machines and classes to allow people to diversify their workouts as often as they’d like.

Working out at home may be convenient, but people looking to make exercise part of their daily routines may get better results by exercising at a nearby gym.

Lifestyle

Spirits & Cuisine

Outdoor Kitchen Ideas!

The summer of 2020 is officially over but many will still want to entertain and barbecue outside while socially distancing.  After reviewing a lot of content, we came across the above video which provides many cool ideas of what can be accomplished.  Enjoy!

Lifestyle

 Lifestyle & Travel

Must Have Road-trip Smartphone Apps!

Many of us will be hitting the Road between now and the end of the year to relieve the travel itch that has no doubt built up during the COVID-19 Pandemic.  With that in mind, we thought it a good idea to review some apps which can make the trip easier and more fun.

Certain smartphone applications and features can make road trips and other excursions easier, safer and more enjoyable – provided these apps are used before getting in the car, when safely pulled over, or in the hands of a passenger.

It is never a good idea to use smartphones or other devices while behind the wheel. In fact, distracted driving is a key risk factor for automotive accidents. However, certain smartphone applications and features can make road trips and other excursions easier, safer and more enjoyable – provided these apps are used before getting in the car, when safely pulled over, or in the hands of a passenger.

Make a pitstop

Drivers may not know where to pull off the highway when they need a mid-trip snack or a restroom run. iExit enables you to see all upcoming exits on a particular roadway (when location services are turned on) and which amenities are accessible at each exit. The app also tells drivers which way to go if they need to find gas stations or restaurants. Icons indicating food, fuel, hospitals, and even banks/ATM machines are included to indicate what’s available at the exit.

Popular sights

Field Trip by Google will pull from categories you have selected and your location to indicate potential sites of interest around you. The app works off of recommendations from travel and lifestyle sources, and will provide Bluetooth-enabled alerts when you’re close by.

Fill ‘er up

Exclusively for locating fuel stations, GasBuddy also helps drivers compare gas prices so they can save money if they so desire. When fuel costs can make or break a trip, this app will keep your tank and wallet full.

Gain performance data

To keep track of vehicle performance, use Dynolicious Classic. While this app’s not free, it’s less expensive than a visit to a service station. Dynolicious relies on an iPhone’s built-in accelerometers to gauge lateral and longitudinal acceleration and horsepower.

Get trusted repairs

It is important to find a trusted mechanic who will fix a problem for a reasonable price. Repair Pal is an app that has already culled quotes and reviews from nearby mechanics to simplify comparison shopping.

Navigation made easy

Smartphones already feature built-in map apps that offer navigation and directions, such as those offered by Google and Apple. But Waze is a community-driven app that provides real-time updates to traffic situations, gas prices, law enforcement sightings, and alternative routes to avoid delays.

No more lost cars

Finding that elusive parking spot can be challenging. When you finally grab a space in a parking garage or on city streets, you want to make sure you can find your way back there easily. Enter Honk, an app that can mark your vehicle’s location with a GPS pin. You can also make text or verbal notes indicating position or how much time you have on a parking meter, as well as use the app to find businesses nearby.

Various apps can be assets to drivers, helping them to save both money and time.

Business Services

Business Acquisitions

 SWISS TRUST COMPANIES!

A Swiss Trust Company is a Non-Banking Financial Business Model that will operate for you as a holding entity and a flagship structure adding prestige and operational authority to any venture.  This totally unique corporate structure perpetuates the legacy and tradition of the Swiss financial industry and transitions smartly into any business undertaking that you may embark on.

Swiss Trust Companies are not banks but come as close as you can get without actually being a licensed Swiss bank. Thus, many of the authorities and advantages a bank provides become available to ownership without a large capital requirement and with much lower ongoing costs. Vintage Swiss Trust Companies bestow enormous advantages upon its owner due to its history and date of incorporation, which include the opportunity for profit & asset protection.

* Free E- Book:  “The Complete Guide to Swiss Trust Company Ownership”

Click Here for Your Free Copy

Move investment capital faster
Take advantage of growth opportunities resulting in increased profit.

Exercise more control over capital transactions
Reduce third party fees thus creating savings.

Establish a major European beachhead
Protect funds from political instability and consolidate global business interest.

Alternative to captive bank ownership
which can be a very long and expensive process to successfully complete.

Because of success in their respective fields, our client’s business interests and personal interests are often intertwined.  To that end, owning a Swiss Trust Company also offers the additional individual benefits of asset protection and estate planning possibilities.

Swiss-friendly approach on Crypto regulations
Switzerland is ranked number one of top ten European countries for starting a blockchain company due to its friendly regulation environment and supportive startup ecosystem with world-class service providers. It is rapidly emerging as a crypto paradise, supported by its banking skills, low-tax-system, elite universities and Switzerland as brand itself which has attracted a large variety of foreign cryptocurrency and blockchain startups. In Switzerland cryptocurrencies and exchanges are legal, and the country has adopted a remarkably progressive stance towards cryptocurrency regulations. The long-term policy regarding crypto-currencies on the part of the Swiss Financial Market Authority and its clarification of many aspects related to their business makes Switzerland one of the best places worldwide to launch an ICO.

Crypto Valley in Zug
The Swiss city Zug in central Switzerland, also known as Crypto valley, is one of the most crypto-friendly cities in the world. Perfectly positioned to get the most out of the decentralized, stable and predictable Swiss political system and its unique business environment, Zug is incomparable for an uncomplicated and pragmatic implementation of business ideas with world-class infrastructure. Zug offers a solid basis for global growth due to its business-friendly philosophy and the openness and easy accessibility of its authorities with short communication channels. With its low-tax-system, pro-business environment and fantastic quality of life Zug has attracted numerous multinationals, creating an international and cosmopolitan culture with an easy access to powerful global networks.

Swiss Trust company as perfect support for US-investors in engaging in business activities related to Crypto
The Swiss Trust company is one of the best known and respected vehicles in the business world. Swiss Trust companies can easily function as a holding entity and a flagship structure for any company and investment. They provide administrators with an excellent level of discretion and security and maintain a great number of types of assets, including shares, commodities, real estate properties, fixed income assets and cash. This flexibility combined with discretion, privacy and prestige makes the Swiss Trust company the perfect business vehicle for US-investors in engaging in business activities related to Crypto, such as ICO, participation and investing in ICO or crypto assets, acting as escrow agent or fiduciary in crypt assets related transactions.