There is a very good reason why we have chosen and the island nation of Nevis and the Bahamas as the jurisdictions for the organization and domicile for Prudential Trustees, Ltd. With the assistance of our legal advisors in the U.S., Canada and several of the world's tax-haven jurisdictions, we concluded that this pairing provides the most secure assurance of privacy and confidentiality in the world. Our corporate charter has been domiciled in Nevis, a totally independent country that is part of the federation of St. Kitts and Nevis. This island nation was formerly a British protectorate territory but has enjoyed self-government for many years. This little island does not have the resources to compete for the tourist business that goes to the larger and more populace island jurisdictions. In stead, it has made a very deliberate decision to build and maintain a financial services center and tax-haven as the foundation of its national economy. Its ordinances related to trusts and trustee companies are as goes as any in the world.

Our Administrative and Executive offices are located in the Bahamas, from which we deliver our services worldwide. The Bahamas, like Nevis is a nation entirely independent of its former Colonial master, Great Britain. The distinction is more important than most can imagine. While it is estimated that over a trillion U.S. dollars are resident in banks located in the Caymans, we are of the opinion that there is little guaranty of continued privacy or confidentiality there. The same can be said of the British Virgin Islands, the current champion in the incorporation of "foreign" International Business Companies. This is because of fast moving developments in Europe. There are many members of the newly constituted European Union that resent the tax-haven mentality and lack of cooperation from Great Britain's dependent territory nations such as the Caymans, the British Virgin Islands and the Turks & Caicos Islands. Each of these countries has a Governor appointed by the Queen of England and the country ultimately takes its instructions from London. The OECD is an organization formed by the European Union to examine the status of these tax-havens and to make "recommendations" for "reform." The short of it all is that the OECD is going to blackball all dependent territories that fails to provide previously confidential information regarding economic inquiries (including tax inquiries) from not only member nations in the EU but also from nations like Canada and the U.S. that enjoy treaty obligations to share information.

This development leaves The Bahamas, Nevis and Belize and Panama as the safest and most confidential tax havens in the Western Hemisphere. Panama retains close ties to the U.S. and is a Civil Law jurisdiction rather than a Common Law jurisdiction more familiar to most Americans and Canadians. Belize remains independent, but its banking community is immature compared to the Bahamas and its ordinances are not as strong as those in Nevis and the Bahamas.

In the Bahamas, it is a crime to divulge a client's financial information Absent an order from the highest court in the Bahamas. Such orders are rare indeed. No judgment of any court in t the U.S. or Canada has any force or effect in the Bahamas nor do subpoenas issued to obtain records or information. We are not suggesting that any of our clients have anything to hide or that they have engaged in any improper activities. Our point is that our clients are entitled to treat their business as their business. It is interesting that the U.S. Supreme Court found a right of privacy to exist within the U.S. Constitution. They used this "right" as the basis for the famous decision in Roe v. Wade, the decision that legalizes abortions in the U.S. Despite this "find" of a right to privacy, the Congress and the executive branch of the government has stripped away almost every pretense of privacy in the business, financial and personal lives of the citizenry. Many in the U.S and Canada still cherish the idea of freedom and privacy. Sadly, it may be necessary to reorganize your financial affairs in a location like the Bahamas to enjoy the realization of that idea.