UBS: United Bank of Secrecy
There’s an interesting story in the NYT about UBS agreeing to give up the names of it’s customers who for years, have used the bank’s secret accounts to hide money away from tax enforcers. I guess as this economic crunch begins to take hold and as governments keep getting more desperate for cash, they are going to start going after tax cheats.
Although the story focuses mainly on wealthy Americans who have used the bank to hide some of their assets, it may have implications for other people around the world who have relied on Switzerland’s secret banking laws to hide illegal money. You see where i’m going with this, right?
Ever since 9/11, it’s been getting increasingly more difficult to hide money in U.S. and European bank accounts, so if you are a corrupt Kenyan politician, you’ll need to start thinking outside the box in terms of where you can hide you ill gotten wealth. Where would you put it?
I was watching a very interesting documentary last night called “Cocaine Cowboys” and it was about the drug trade in Miami in the 1970′s. Those drug dealers were making millions of dollars a day and they too, had to figure out where to put all the cash. The documentary mentioned that two things happened in Miami with all that drug money:
Now, a lot of these banks went down when the government launched it’s war on drugs and many dealers were forced to give up their properties, but if you live in a country where the rule of law doesn’t exist and you are able to steal and get away with it, where would you hide your money?
I guess, this also brings up a point about where to re-invest your money because whether you make it legally or illegally, you can’t just leave it sitting in a bank — you have to move it around constantly in order to ensure that it is still bringing in some returns.
Had you been in Zimbabwe and put one million dollar Zimbabwean zim in a bank account and left it there, you’d be wiped out today. However, outside of Zimbabwe, look at what his happening to people’s 401K’s? they’re dwindling and if you don’t know how to invest your money (on your own), you will eventually lose it.
That’s the second lesson of this crisis: You have to figure out how to invest your money on your own. You can’t rely exclusively on other people. That would be very dangerous.
So, let’s assume you are Amos Wako (who has money hidden in a UBS account in New York) — where would you advise him to move his money? (because while this investigation is just focusing on Americans right now, it may expand to start including others).
You can’t leave all your money in Kenya anymore. It’s too dangerous and too unpredictable. Even this business of building properties all over Nairobi is in someways foolhardy. You can’t confine yourself to that ‘village’ — well, you could, but would it be wise?
KE,
Only the cowards hide their money abroad… People like James Gichuru and the like…. People who are afraid the Kenya law will catch up with them.. because of their lack of clout..
People like Ruto go to court with six lawyers…. There is nothing to be afraid of here If you are politically correct…. each working on different stages… People like Nyachae once threatened to march the whole Kisii people to Nairobi to counter the allegations that he was a corrupt Public works minister…
As long as you can work you way through the legal framework in Kenya … Like people like Mutula Kilonzo…. For some of these untouchable’s their money is safe in Kenya …. Putting your money in the west is always under threat of being frozen.. Look at people like Madoff and the many others who have had their accounts frozen and made them poor in a flash…
I’ve watched cocaine boys and thats almost the same thing as a Kenyan corrupt politician putting his money in a bank in the united states…. As long as its here it will be investigated under proper rule of laws..
KE,
I’d just like to ask you as simple question … Do you think you’ll ever get as rich as the people who Grabbed land in Kenya in the 80′s and 90′s ?
These people can keep their land Idle for the next twenty years…. and the land will still be appreciating in value….
That means… everyday.. they’re are getting richer…
To be honest with you …. A times i feel like shooting the corrupt and grabbers.. Kenyan’s needs to RECLAIM what has been stolen from them… We need to shoot these people in Broad daylight and treat them with Capital Punishment..
At times when I think of how much land these people have stolen… I get demoralized and cry to tears for my people …. I can give you a list of the biggest land owners in Kenya .. They are all grabbed land.. In fact… Hold on let me get it for you.. I’ll post it next..
Oh I realized you already did a post a post on the land grabbers so I guess you know akina Chief Samuel Ole Koriata and the like…
These are the people who destroyed Kenya… Kenya will not be the same until these people return all this land..
The US government is asking for the names of those who may have evaded taxes.
The Kenya government – as I understand it – will NEVER do so.
kenyatta & cronies stole land (among other stuff)
dan moi let it be. Why?
Coz moi & his cronies started stealing everything under the sun.
kibz came in (2002-7) and blew hot air about corruption. But nothing came of it. Why?
Coz kibz & cronies had their own scams to come.
During the 2007 elections, ODM blew hot & cold about corruption. After getting into government, they have kept relatively quiet. Why?
Well… they have their own scams (recently, the maize scam e.g. kibor).
And in 2012. More of the same…
So unless the Kenya government goes after the stolen wealth… nothing will happen.
The UK’s Serious Crimes Office asked the Kenya government for evidence against anglo-leasing. kibaki has steadfastly REFUSED to adress this matter while making silly statements like:
“There are rogues in every government/country so don’t hassle us about what we have stolen” – When begging for Kes 32 billion days after the KPC-Triton scam.
“Don’t look for people (aka as us) to blame for corruption. Just go work, pay taxes so we can eat more while we can” – During the ‘prayers’ for the Molo tragedy.
More info…
The US government put pressure on UBS to reveal information on US taxpayers.
The German & UK governments are watching what happens but likely to follow the US lead.
Kenya: There is no way in hell that the GoK will pressure anyone to release information coz the thieves are in the GoK. Example is anglo-leasing where the Brits – who are ready to investigate – have not been given an official request to investigate NOR any evidence to help nab the crooks. Did I mention the crooks are IN & part of the GoK.
coldtusker:
You seem very frustrated with the corruption in kenya, but what are you going to do? i.e. how are you going to make your money honestly in that system?
I see three options for you here:
1) Start stealing and swimming with the sharks (or)
2) Leave the country and try to make your money elsewhere in a place that will reward honesty and hard work. (or)
3) Wait for raila to become president so that you can start getting government contract hook-up’s from jaluo’s.
Actually… 1 & 3 are the same…
I am seriously thinking of 2.