Panama: New Law Offers a Liechtenstein‐Style Foundation

Pages263-264
Published date01 January 1997
Date01 January 1997
DOIhttps://doi.org/10.1108/eb025792
AuthorConrad Oberg
Subject MatterAccounting & finance
Journal of Financial Crime Vol. 4 No. 3 International
Panama: New Law Offers a Liechtenstein-Style
Foundation
Conrad Oberg
There is fierce competition between offshore
financial centres with the effect that new instru-
ments are being developed to keep at the forefront.
Rather unorthodox solutions are sometimes
offered. A good example is Law No. 25.1 This new
juridical entity is structured as a Liechtenstein
Foundation. Panama is a common law country
where trusts are used for more or less the same
purpose. So, why introduce an alien civil law
structure?
The classical purpose for this group of offshore
structures is to separate the assets from the per-
sonal wealth of the founder to achieve certain aims
of asset protection in such a way so the founder is
still effectively the owner and in full control of
these assets. This is to have the cake and still eat it.
Page 263

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