By Patrick Crowley Country Executive, ABN
AMRO Private Bank Jersey
Recognised for its conviction to provide the best in offshore
wealth management services, Jersey is fast becoming the
jurisdiction of choice for global investors –
particularly the resident and non-resident Indian community.
Why? Investors continue to recognise Jersey's robust,
weighty and highly experienced private banking sector, which is
highly accredited by international and European regulatory bodies.
Jersey's wealth structuring models are renowned for being
innovative and nimble to anticipate and embrace changing personal
situations and international regulations. Jersey offers the perfect
infrastructure for resident and non-resident Indians to diversify
their assets and to safeguard their wealth.
The Jersey banking industry has already committed to forming
strong bonds with India, learning to better understand the cultural
value systems that govern the financial decision-making process.
The industry acknowledges that it is vital to take the time to
nurture real relationships with investors and their families before
undertaking any wealth management activity.
ABN AMRO Private Bank Jersey first began to support resident
Indian clients in 2001 and has continued since with a wide variety
of banking and investment management services. Jersey institutions
have provided tailored structuring to provide cross border business
financing, they have structured personal wealth management
solutions and have also provided financing for the acquisition of
property in response to the growing number of wealthy Indian
nationals buying UK property. Many resident Indians, with the help
of Jersey's banks, are making good use of the Indian
Liberalised Remittance Scheme, where residents can legitimately
transfer/invest up to US$200,000 abroad per family member each
Jersey provides the opportunity and expertise to help develop a
truly successful international portfolio.
Banking and investment management in action
To illustrate the extent of local expertise, we worked with a
wealthy resident Indian entrepreneur to help him increase his
ownership (shareholding) in a successful and growing Indian based
Privately Owned Company, despite not having liquid assets to
finance the deal. The client needed help to achieve this via
pledging some of the shares, which, as majority shareholder, he
already owned in the Company. He held these shares via a Mauritian
Company of which he was the sole shareholder.
Due to an innate understanding of India and the presence of the
Bank in Mumbai, it was easy for us to independently agree the value
of the Privately Owned Indian Company shares, such that they could
be used as collateral for the loan. An understanding of the
India-Mauritius double tax treaty meant that it was possible to
design and develop the appropriate facility to support the
The Indian Company continues to expand rapidly and hopes to
float on the Indian Stock Exchange. The client and his family have
since agreed to centralise and house the wider family financial
assets in Jersey.
Jersey: a preferential jurisdiction
Indian entrepreneurs have every reason to move businesses to
Jersey and/or to consider Jersey as a preferential jurisdiction to
reside and accumulate their assets. Many banks in Jersey have
developed a strong understanding of the culture and the banking and
investment needs of resident and non-resident Indians, and they are
putting this at the disposal of an ever-growing client base.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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