MOSSFONREPORT - Mossack Fonseca & Co.

MOSSFONREPORT
Legal and current affairs in The Bahamas, the British Virgin Islands, Panama, Samoa and Seychelles.
THE
PANAMA
In the picture: Chris Zollinger – Shareholder, Axel Gauster – Managing Director/Shareholder, Jurgen
Mossack – Shareholder, Dirk Brauer – Managing Director/Shareholder and Ramón Fonseca –
Shareholder.
Wealth Management as you
deserve it
We are delighted to announce that Mossfon
Asset Management, S.A. (Mossfon AM) has
formally been granted a licence as an
Investment Advisor by the National Stock
Exchange Commission of Panama and
accordingly we are providing services to both
local and international investors.
By means of our activities as investment
advisors and discretional managers of
investment portfolios, we guide our client’s
attention to the ever changing and complex
world of investments in the financial markets.
Our motto: “Wealth Management as you
deserve it” fully describes our business
philosophy. Our clients and their high level of
satisfaction are very important to us. Our
team is composed of experienced staff in the
fields of private banking, investments and
portfolio management.
We are a small flexible company. Nonetheless
our smallness does not mean limited
services. We assist our clients to build
investment portfolios that specifically adapt
to their individual requirements and requests
for alternative and sophisticated products.
In addition to giving professional advice on
traditional investment devices such as
fixed-term deposits, shares, bonds, mutual
funds, we advise our clients on the use of
structured notes and hedge funds as a
solution, as well as the use of a completely
new tool to invest in real estate in Panama.
Because of this and many other advantages,
Mossfon Asset Management, S.A. is an
excellent alternative to take into
consideration. Our team is at your service at
any time to attend to you and we shall be
delighted to assist you at the following
telephone numbers and address:
MOSSFON ASSET MANAGEMENT, S.A.
Arango-Orillac Bldg. 54th Street,
P.O. Box 0831-00284,
Paitilla, Panama, Republic of Panama
Tels.: (507) 263-7704 / 263-8907 /
(507) 205-5888
Fax: (507) 263-9952
Email: mossfonAM@mossfon.com
Panama Has More Economic
Freedom
Panama’s rank of economic freedom has
advanced from position #49 to position #52 in
the annual index published by the Heritage
Foundation and The Wall Street Journal.
The index rates countries on a scale of 1
through 5 with 1 representing the best score,
and 5 the worst. Panama scored 2.7 in the
index, just behind Costa Rica. The index is
established by assessing ten variables relating
to a country’s commercial policy, tax system,
State intervention, monetary policy,
capital flows and foreign investment, banking
system, prices, property rights, regulations
and unregulated market.
Mr. Marc Milles, Director of International Trade
and Economy of the Heritage Foundation
noted that despite the increase in Panama’s
ranking, the country has yet to achieve its full
potential.
BRITISH VIRGIN ISLANDS
More Jurisdictions Recognized
Under BVI Mutual Funds Act
BVI’s Financial Services Commission (FSC)
has issued a revised list of countries and
AUGUST 2006
BVI - More Jurisdictions Recognized
Under BVI Mutual Funds Act
Bahamas - Bahamas Survey
Confirms Leading Position
Seychelles - Qatar Signs DTA
Agreement with Seychelles
Mossfon Group - 2006 Special
Donations
AUGUST 2006
(continued)

BRITISH VIRGIN ISLANDS
(continued)
Funds Act, 1996 to add Australia, Canada,
Germany, Italy, Japan, Sweden, the Bahamas
and the Cayman Islands.
The other recognized countries already on
BVI’s list are: Bermuda, Gibraltar, Hong Kong,
France, Luxembourg, the Isle of Man,
Belgium, Spain, Ireland, Malta, Singapore,
Guernsey, Jersey, Switzerland, the UK and
the US.
In evaluating countries and jurisdictions for
recognition and registration, the FSC
considers the prudence and reputation of
each applying country’s regulatory
environment and its supervision of mutual
fund business, and whether recognition under
the BVI Mutual Funds Act would enhance the
development of BVI’s mutual fund industry. If
approved by BVI’s Registrar of Mutual Funds,
applicants must record a ‘functionary’ (i.e.
manager) from the recognized jurisdiction.
Over 3,000 mutual funds are registered in
BVI with more than $100 billion under
management.
BVI to Seek Economic Diversity
Notwithstanding continued growth in the
country’s key financial services and tourism
sectors, Chief Minister Dr. Orlando Smith
announced during his third annual ‘State of
the Territory Address’ that government are
introducing an initiative called “Future of the
BVI Economy’ to focus now on possibilities
for developing new sources of investment to
preserve the Territory’s future economy.
Dr. Smith said “There are few things harder
than preparing for famine at a time of plenty,
but wise nations know good times rarely last,
and common sense tells us the time to act is
now.” He also said “If either the financial
services or tourism industries were to suffer
a serious setback the consequences for us
MOSSFON REPORT
THE jurisdictions recognized under the BVI Mutual
would be severe” … “That is why I will be
launching an initiative called the Future of the
BVI Economy over the coming year.”
The Chief Minister said the new initiative will
invite productive proposals and creative
solutions from local community leaders and
international experts, and government will
utilize results to determine how to create
employment opportunities in profitable new
professional services fields, independent
from financial services, to stimulate new
investment in BVI’s economy. “And in so
doing, we can ensure that if the worst comes
to pass we will be prepared, and our people
will be protected” Dr. Smith said.
“I want to explore strategies for creating a
more stable flow of visitors by tapping into
new markets such as medical tourism,
sports tourism and eco-tourism in unique
ecosystems such as Anegada,” he said,
adding that “In particular, I want to explore
the viability of attracting multinational
corporations to establish customer service
centres, high-tech research facilities, and
other value-added functions.”
BAHAMAS
Bahamas Survey Confirms
Leading Position
According to Government officials, a survey
conducted by PricewaterhouseCoopers for
the Bahamas Government confirms the
Bahamas position as a leader in the three
core areas of private banking, trusts and
corporate services; and also indicates that
the market is not aware of the jurisdiction’s
strength in many additional core areas that
could lead to new and increased business
opportunities.
Over 220 organizations, mainly from the
private banking sector, responded to the
extensive survey. Survey participants
indicated that great opportunities for growth
also exist through a wide range of additional
local amenities including business continuity,
custody facilities and structured products,
establishment of a commercial court,
bespoke/comprehensive services for
families, capital market facilities, e-business,
intellectual property, back office and call
centers, funds, insurance and establishment
of an international arbitration center.
Forty percent of the respondents would
recommend asset management services,
tax inheritance planning, residency,
investment funds, foundations and family
office services to clients even though these
services are not as widely recognized as the
country’s primary areas of strength.
At a recent BFSB (Bahamas Financial
Services Board) retreat, various Cabinet
Ministers together with members of the
official opposition party, senior public
officers and heads of the regulatory
agencies, met with over 100 representatives
from the private sector for a two day
conference to review the survey results.
Input from these key industry leaders at the
2006 BFSB retreat will be used, together
with the valuable data collected in the
Survey, to construct the nation’s next
five-year strategic plan for financial services
(for years 2007 through 2012).
Both Government and survey participants
recognized that the Bahamas has many
strengths, particularly its political stability
and sovereignty, banking confidentiality,
language, location and time zone, and
Government noted that this unique
combination of strengths, coupled with the
jurisdiction’s competence and scope of
wealth management services were major
reasons why ‘The Banker’ magazine, an
affiliate of the Financial Times Group, named
the Bahamas as the “leading financial centre
in the Hemisphere.”
Strong Investment Propelling
Bahamas Economy
In his recent budget
statement to Parliament,
Bahamas’ Prime Minister and
Finance Minister Perry
Christie said the nation will
maintain strong rates of
economic growth during the
next two years, noting that
his government’s policies
have produced this current economic
success.
The International Monetary Fund (IMF)
predicts that economic growth this fiscal
year in the Bahamas will hit 5.8%, up from
4.7% during 2004/5 and that the
jurisdiction’s future looks bright with GDP
growth expected to continue at rates of
6.5% and 6.7% respectively for fiscal years
2006/7 and 2007/8.
The Prime Minister said the robust economy
is due to “unprecedented” levels of inward
investment, especially in the tourism sector
with nearly every major island of the

Bahamas attracting prolific investment. He
also noted that the international ratings
agencies, including Standard & Poor’s and
Moody’s, continue to give the Bahamas
some of the highest investment ratings in the
region.
In his budget statement, Mr. Christie
reported that recurrent expenditure is
$1.386 billion, with capital expenditure at
$175 million and recurrent revenue at
$1.345 billion. He also reported that
although the budget includes various
changes in taxation measures, including
significant reduction is certain areas, no new
taxes are imminent.
SEYCHELLES
Qatar Signs DTA Agreement with
Seychelles
Qatar has signed a Double Taxation
Avoidance (DTA) agreement with the
Seychelles that allows investments made in
either country to qualify for tax breaks on
dividends and royalty payments.
The agreement was signed on behalf of the
Seychelles by Jacquelin Dugasse, Minister
for Employment and Economic Planning, and
the Qatar signatory was Yousef Hussain
Kamal, Minister for Finance.
Rupert Simeon of the Seychelles Department
of Finance commented that dividends paid on
Qatari investments in the Seychelles would
qualify as tax credits and would reduce the
investing company’s tax liability in Qatar, and
vice versa.
It is hoped that these reciprocal
arrangements for improved conditions for
investment between the two countries will
attract foreign companies interested in
investing in Qatar, to take advantage of
setting up business operations in the
Seychelles offshore sector.
The national airline Qatar Airways is presently
the only Qatari company trading in the
Seychelles.
Cypriot DTA Second Route For EU
Following the very recent signing of a Double
Taxation Avoidance (DTA) agreement between
the Seychelles and Belgium which marked
the Seychelles’ first step towards boosting
EU investments, after months of negotiations
Government representatives from the
Seychelles and Cyprus have now completed
signatures to a DTA agreement which is
perceived as a second step towards
encouraging further European investment in
the Seychelles.
The Seychelles-Cyprus DTA was signed on
behalf of the Seychelles by Mr. Jacquelin
Dugasse, Minister for Employment and
Economic Planning, and the Cypriot signatory
was Mr. Michalis Sarris, Minister for Finance.
Seychelles Minister Dugasse said “The
signing is for us in Seychelles very important
as it provides the framework which will
enable businesses in our two countries to
exploit the business ties and cooperation
which exist.” He added that the agreement
would … “strengthen our cooperation
between Seychelles and Cyprus in the
economic and financial spheres.” While
initially any increased investment resulting
from the DTA is likely to flow from Cyprus to
Seychelles, Mr. Dugasse noted that hopefully
this position will change in the future, stating:
“And why not Seychelles into Cyprus in the
years to come.”
Qatar’s Finance Minister Sarris welcomed the
DTA agreement, noting that the Seychelles’
foreign exchange deficiency does not
necessarily hinder Cypriot investment. He
commented that “These are not
insurmountable problems amongst these
honourable people,” adding that although the
DTA between their small economies may not
make headlines … “but even small projects
go a long way in these small economies.”
Minister Sarris also said that “Cyprus has in
its own way made progress, it has joined the
EU and I think the DTA also opens the door to
the citizens of Seychelles to the markets of
the EU” and he thanked the Seychelles for
their support of Cyprus, calling the DTA… “a
strengthening and an expansion of our
economic and friendship ties.”
MOSSFON GROUP
www.mossfon.com
2006 SPECIAL DONATIONS
This year, on behalf of its valued clients,
Mossack Fonseca & Co. has made a
US$30,000.00 Special Donation, thus
contributing to several charitable causes
and projects in Panama. The beneficiaries
of such donations are:
• Social Pastoral Project “Vírgen del
Camino Training and Education Centre” –
Diocese of David, Province of Chiriqui
• National Scout Association of Panama
• National Symphony Orchestra of Panama
• Science and Arts Centre Foundation
(Explora) for underprivileged children.
• Jesus en los pobres (Jesus through the
poor) – Ecumenical Hostel – Saint Thomas
Hospital
• Foundation for the Support of Social
Development – restoration of three colonial
bridges in Portobelo, Province of Colon.
In this photo we can see, in the usual order,
Ramón Fonseca Mora Esq. of MF & Co., Rev.
Father Adonaí Cortés Elisha of the Saint Felix
Parish, Chiriqui, and Christoph Zollinger, Esq., of
MF & Co.
This photo shows, Mr. Christoph Zollinger Sq.
receiving the “2006 Scout Recognition”. In the
usual order: Christoph Zollinger of MF & Co., Mr.
Víctor N. Wynter, Operations Manager of the
Scout Association and Mr. Ariel Sucre Espino,
Member of the National Court of the Scout
Association.
AUGUST 2006

JURISDICTIONS
BAHAMAS
Suite E-2, Union Court Building,
Elizabeth Avenue and Shirley St.,
Nassau, Bahamas
T (242) 322-7601
F (242) 322-5807
E bahamas@mossfon.com
GLOBAL OFFICES
EUROPE
CYPRUS
T (357) 25 339 280
F (357) 25 339 316
E cyprus@mossfon.com
CZECH REPUBLIC
T (420) 2 2609 1119
F (420) 2 2609 1100
E mossfon@mossfon.cz
GENEVA
T (41-22) 809-5020
F (41-22) 809-5030
E geneva@eu.mossfon.com
ISLE OF MAN
T (44) 1624 679375
F (44) 1624 628436
E IOM@mossfon.com
JERSEY
T (44-1534) 767009
F (44-1534) 780673
E jersey@mossfon.je
LIECHTENSTEIN
T (423) 230-1750
F (423) 230-1751
E liechtenstein@mossfon.com
Mossack Fonseca & Co.
Attorneys at Law
0832 - 0886 W.T.C.
Panama, Rep. of Panama
THE
For further information or advice, please contact:
BRITISH VIRGIN ISLANDS
Akara Building, 24 de Castro Street
Wickhams Cay 1, P. O. Box 3136
Road Town, Tortola
British Virgin Islands
T (284) 494-4840 / 494-4976
F (284) 494-4841 / 494-5884
E General@MossFon-BVI.com
LONDON
T 44 (0) 146 242 7300
F 44 (0) 146 242 7305
E mossfon@mossfon.co.uk
LUGANO
T (41-91) 993-2758
F (41-91) 993-2786
E lugano@mossfon.com
LUXEMBOURG
T (352) 349888-1
F (352) 349889
E luxembourg@mossfon.com
ZUG
T (41) 712-2505/ 712-2506
F (41) 712-2509
E zug@mossfon.com
ZURICH
T (41) 1 213-2080
F (41) 1 213-2090
E zurich@mossfon.com
LATIN AMERICA
BRAZIL
T (55) 11 3284-3143
F (55) 11 3251-4222
E brazil@mossfon.com
MOSSFON REPORT
PANAMA
PANAMA
Arango Orillac Building
54th Street
P. O. Box 0832-0886, W. T. C.
Panama, Rep. of Panama
T (507) 205-5888 / 264-2322
F (507) 263-9218 / 263-7914
(507) 263-7327 Corporations
E MF@mossfon.com
BAHAMAS
BVI
BOQUETE - PANAMA
T (507) 720-2256 / 720-1744
F (507) 720-1422
E boquete@mossfon.com
GUATEMALA
T (502) 2362-1313 / 2383-6000
F (502) 2361-3317
E mossfon@gua.net
PERU
T (51) 1 422-2906
F (51) 1 441-9579
E peru@mossfon.com
URUGUA Y
T (598-2) 916-0588
(598-2) 916-0589
F (598-2) 916-0642
E uruguay@mossfon.com
VENEZUELA
T (58) 212 992-6155
F (58) 212 992-1812
E jalmeida@cantv.net
SAMOA
Level 2, Nia Mall
Vaea Street
P. O. Box 204
Apia, Samoa
T (685) 32684
F (685) 32683
E samoa@mossfon.com
ASIA
HEADQUARTERS
T (852) 2376-1998
/2376-2485
F (852) 2376-0308
E hongkong@mossfon.com.hk
HONG KONG
DA LIAN
CHENGDU
HANGZHOU
NANJING
NINGBO
QINGDAO
SHANGHAI
SHENZHEN
SINGAPORE
T (65) 6 221 0592
F (65) 6 221 0591
E singapore@mossfon.com.sg
SEYCHELLES
SEYCHELLES
Suite 13, First Floor
Oliaji Trade Centre
Francis Rachel Street
Victoria, Mahe, Seychelles
T (248) 324866
F (248) 324867
E seychelles@mossfon.com
THAILAND
T (662) 636-3100
F (662) 636-3110
E thailand@mossfon.com
UNITED ARAB EMIRATES
T (971-4) 352 5303
F (971-4) 351 9877
E mossfon.@hmlc.co.ae
CORRESPONDENT OFFICE
VANCOUVER
T (604) 688-3931
F (604) 688-2921
E vancouver@mossfon.com
© This publication is intended to provide its readers with current information concerning the legal and economic development of
The Bahamas, the British Virgin Islands, Panama, Samoa and Seychelles, and it is not intended to provide legal advice.
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AUGUST 2006
SAMOA