How to prove the origin of resources with Monero

[Tiberius Green]

I live in South America. I am a citizen here. I have a totally legal website for online services in my country.
On the website, I receive for services in common fiat currency. I intend to internationalize my operation taking my company to an Offshore zone. My intention is to get rid of the heavy taxes paid to my thief and corrupt socialist government.

For that, I have a plan for which I would like your evaluation.

In my country, the law allows me to make my final tax exit. I just need to inform the IRS that I want to leave and after that I no longer need to give satisfaction to the IRS. I remain a citizen, but without tax obligations. This is so that citizens who are abroad do not have to pay income taxes in two different countries at the same time. It is a gap in my country's own legislation that benefits and protects citizens abroad from double taxation.

I have the impression that political thieves have created this legal loophole so that they can stay out of the radar of the IRS, when they retire abroad, after having stolen a lot.

In any case, they do not check whether you are actually abroad or have returned. Benefits of being born in the third world, here the state is not very efficient. In those moments I give thanks to God for not being a citizen of the European Union or the United States of America.

After I pay off my situation with the IRS and get rid of them, I intend to buy the citizenship and passport of an island in the Caribbean. Santa Lucia, for now, seems like a good option. In Saint Lucia, the purchase of citizenship is completely anonymous. They do not inform your country of origin that you have become a citizen there. Taxes are zero and you don't have to live on the island, either. (literally paradise)
This scheme will ensure that I have complete legality and freedom to open and operate my offshore company in a neutral and peaceful place.

Once this is resolved, I move on to phase two of the plan. That it would be to open the company in an offshore jurisdiction other than Santa Lucia and an account or more in other offshore banks in different jurisdictions to give more solidity and security to my operation and to reduce the political economic risk.

The organization would be more or less this:
1. I request my exclusion from my country's federal revenue,
2. I buy citizenship in Santa Lucia or elsewhere,
3. I open / register my Offshore company in some different jurisdiction under this new passport and identity,
4. I open one or more accounts at different offshore banks in different places on behalf of my company.

(The idea here is to reduce political / economic risk and shield the assets)

My problem starts here:

I intend to receive for the services of my website from my clients in cryptocurrencies with a focus on anonymity. There are countless reasons why I chose this option, but one of them is to offer my clients more secure, anonymous and private options.
The currency I will accept will be Monero, completely anonymous, private and secure. So far not traceable!

My question is: The moment I start to move large quantities of cryptocurrencies in exchanges and brokers, to sell Monero for fiat currency, I may have a problem, since my clients are anonymous and, in theory, I cannot fully prove the origin of coins? And here I am talking about a major operation. I have a few tens of thousands of customers paying monthly fees, which generates a few million monthly revenue.

How should I proceed with the offshore bank and the broker itself regarding the origin of the funds? I know that the company Binance, for example, asks for identity verification and certain things so that I can move large amounts, that won't be a problem.

However, do you think I will have a problem proving the origin of the funds? How would I go about proving the origin of the funds without compromising the clients' identity and privacy if the offshore bank or broker asks questions about the origin of the cryptocurrency?

In general, what is your opinion about my project?

 

[tsu458]

Depending on how your monero payment processing is set up, you got a lot of view-keys to share but I think even then the sender wallet is redacted. The problem is, that you could easliy pass around your own illict funds to match this kind of transactions to then tell the same story. There is no proof of funds at all. I think it's next to impossible to deposit these funds to a bank account. I guess Binance won't care with a good story. But the banks won't accept it. It could be the worst money ever!

 

[CaptK]

The exchange is not the issue the bank is. So you need to talk to a bank who are crypto friendly like Bitwala.

Or spread it over various exchanges convert to fiat and deliver it as trading profits. If you are in a tax free country then they won't really look into it.

 

[Tiberius Green]

The exchange is not the issue the bank is. So you need to talk to a bank who are crypto friendly like Bitwala.

Or spread it over various exchanges convert to fiat and deliver it as trading profits. If you are in a tax free country then they won't really look into it.

Considering the second option: spread over several exchanges and deliver as commercial profit. Would it be possible to transfer from the exchange (after the sale and conversion into fiat currency) to the offshore account? Or would the bank cause problems? I believe that this changes from one bank to another, but would I have to hand over some balance sheet or invoice to the bank to prove the origin of the money that comes out of the broker? What is your point of view and what kind of evidence could they ask for based on their experience?

 

[JustAnotherNomad]

What do you need the passport for?

 

[Tiberius Green]

Para que você precisa do passaporte?

As an extra contingency plan, if my government changes the law overnight. My government is not to be trusted!

A few years ago, they created a law that forgave all those who had undeclared assets abroad, which included offshore bank accounts.

People would be able to declare assets and repatriate them without having to prove their origin and without punishment. They would pay only a small tax. They passed the law in Congress.

Those who trusted the government did poorly, because a few years later the IRS changed the rule and understanding and started to demand proof of the origin of the repatriated goods and many other absurd nonsense, applying heavy sanctions and punishments to those who did not give this information. . Those who trusted the government did very poorly, fools! Many had undeclared accounts in Switzerland, and Switzerland became an untrustworthy country because it started collaborating with my country's tax authorities, providing information on accounts and balances. They opened their legs for the American government and for the partners of the USA, which included my country. And there was also that leak from Mossack Fonseca and the newspapers in Panama that put many citizens in the sights of the Federal Police.

So I intend to buy another citizenship, because of the legal uncertainty. My country is hungry / thirsty / desperate for money. I want to stay out of the radar and your insane thirst. I don't want any ballast or bureaucratic connection with my country. So, I'm going to buy a passport from a neutral place. Because where I plan to buy, they do not charge taxes on my revenue and my operations. I will be able to operate smoothly without becoming an outlaw. I ask for the final departure from my country and the Federal Revenue Service to stop observing me - local law today allows this. I need citizenship to operate within some minimal legality.

If by chance, one day the understanding of the law changes - as they always do - I will be protected, safe and established abroad in several different jurisdictions and with a friendly, safe and zero tax citizenship. Legally I will not have to give satisfactions to the IRS or the Federal Police ever again in my country of origin.

I know that I can open both accounts and offshore companies with my own current citizenship through anonymous arrangements, and that new citizenship is unnecessary, because my country would never discover my operations abroad. They have no jurisdiction there.

However, I want to operate within some legal framework and I also intend to open personal accounts with trusted banks, perhaps in the USA or Europe, as the final destination for my resources. I have a little fear of keeping my money in offshore banks. I intend to use the offshore jurisdictions just to move my money, but to save I prefer a solid country with a robust and reliable legal system. I'm afraid the bank will go bankrupt or take my money. It may be my exaggeration, or ignorance, I am still researching. Of course, I can also minimize the risk by spreading my money across multiple accounts in several different jurisdictions.

The passport is an extra guarantee. I intend to be legally protected and shielded in a way that not even a legal process is capable of causing me problems.

 

[JustAnotherNomad]

As an extra contingency plan, if my government changes the law overnight. My government is not to be trusted!

Ok, I understand. But I think that is not very likely because only the USA and some other African country tax you because of your citizenship. It would be extremely unusual for South Africa to introduce such a rule. Besides, South Africa has signed tax treaties, which would override any such new law.
Just considering how much such a second passport costs, you might want to think about if it’s really needed. If you decide you really want it and you have the money, I would probably also look at passports from other countries, which I would assume would be more useful for traveling. Malta/Cyprus, Paraguay, ... I’m sure there are others.

 

[Untangle]

Why not moving to Panama? 0% tax on foreign income...
De registering you from local tax as being not a resident but still residing in the country, might get you in very hot water if they find out. They have many tools, I do not buy the "they do not check"

 

[khinkali]

only the USA and some other African country tax you because of your citizenship

It has been unusual in the past but there is a trajectory about tax scope in high tax jurisdictions.

I bet you five dollars that the EU start taxing citizenship by 2035.

 

[Tiberius Green]

When converting Monero into cash, I will have some problems:

1. The foreign exchange broker (Kraken for example) will ask the origin. I can declare this as commercial profit, but I'm not sure what types of papers they would accept. They call this proof of origin of funds (POSOF). Does anyone have experience with this? Would you know how to inform me?

https://support.kraken.com/hc/en-us/articles/360000383383-What-is-proof-of-sources-of-funds-POSOF-
2. The offshore bank would be another problem. I don't know if they accept fiat money from an account with a foreign exchange broker (Kraken for example). Does anyone know an offshore bank that does not create problems?

3. I think about the following solution: I create the company in an offshore zone, I receive payments from my clients via Monero anonymously, and I generate income statements in my offshore company. With this income statement, I use it to legally sell and convert Monero into fiduciary money and make the move between foreign exchange broker and offshore bank. Does it work? What do you think?

 

[CaptK]

When converting Monero into cash, I will have some problems:

1. The foreign exchange broker (Kraken for example) will ask the origin. I can declare this as commercial profit, but I'm not sure what types of papers they would accept. They call this proof of origin of funds (POSOF). Does anyone have experience with this? Would you know how to inform me?

https://support.kraken.com/hc/en-us/articles/360000383383-What-is-proof-of-sources-of-funds-POSOF-
2. The offshore bank would be another problem. I don't know if they accept fiat money from an account with a foreign exchange broker (Kraken for example). Does anyone know an offshore bank that does not create problems?

3. I think about the following solution: I create the company in an offshore zone, I receive payments from my clients via Monero anonymously, and I generate income statements in my offshore company. With this income statement, I use it to legally sell and convert Monero into fiduciary money and make the move between foreign exchange broker and offshore bank. Does it work? What do you think?

All this speculation is irrelevant if we don't know your circumstances.
Nationality and residency is what we require to give you a solution.

 

[Tiberius Green]

Toda essa especulação é irrelevante se não conhecermos suas circunstâncias.
Nacionalidade e residência é o que exigimos para lhe dar uma solução.

First of all, thank you very much for answering me.

My circumstances are as follows:

1. I am a technology entrepreneur in Brazil. I'm brazilian. I have customers who pay for my services worldwide with encryption.

2. I need to sell / convert my encryption in large quantities - without compromising my business philosophy, which is Anonymity and Freedom. That is, I cannot compromise the identity of my clients. (The government has put pressure on foreign exchange brokers in my country to reveal details of the transactions.)

3. For this I intend to set up an offshore company abroad, to escape government scrutiny and absurd taxes. I also intend to ask for a definitive fiscal exit from my country. As I already mentioned in another comment, I intend to buy the citizenship of some friendly nation.

4. Once established abroad, I have no problem generating income statements and all the necessary paperwork to declare the origin of the funds.

5. My question is: Whether the foreign exchange broker will accept these offshore papers and whether the bank will accept fiduciary money from the foreign exchange broker - the result of the sale of crypto.

6. I am looking for an offshore jurisdiction that is not disturbing or asking too many questions.

7. Declaring cryptocurrency funds as commercial profit, without compromising customers' identity, does it work?

Has anyone here tested this?

Thanks in advance for your help.

 

[CaptK]

Do you want to access the funds in Brazil?
Do you want to pay other companies and people in Brazil?
The bank either accept it or not, unfortunately you are at their mercy.

Your offshore structure will pay your onshore structure therefore you cut the question of source. This will be done by invoice and an appropriate contract.

 

[Praetorian]

You should never mention monero to your banking partners/government regardless of how legit your money is. That will raise even more suspicions and that honesty will attract you unnecessary attention. I know banks that won't hesitate to file a suspicious activity report on you the moment you mention privacy coins with them and that gets sent directly to the government.

If you're dealing with anonymous buyers and your business is not crystal clear you're going to need a way to legitimize those funds before playing the legit card. Like some users above mentioned, using 2 companies and some invoicing to break the original source of funds should be enough to help you. Or simply disburse the crypto to fiat in an offshore entity, and declare the fiat earnings to the government without mentioning crypto.

For offshore avenues, don't use banana republics because you'll be one step closer to being treated like Pablo Escobar the moment the government starts looking at your finances (Monero, anonymous clients, belize IBC lol) and the problems won't end anytime soon for you. Use more respected offshore centers, Malta (Still attracts sketchy money but EU is better than nothing)/Cyprus/Any other country with a double tax treaty that won't ask too much questions and have a solid banking sector. Don't overly complicate your legal setup, the simpler it is, the better it's going to be.

 

[jim0thy]

I'm very interested on this matter, going through a similar situation and also live in south america. I'm looking for a solution to convert my crypto to fiat and keep it in an off-shore business (that can be in my name, the problem would be source of the crypto, which I can't fully provide), then from there invest the money through the company, and pay myself here with a small salary.

OP, have you found local legal advice on this matter? Would you mind having a little private chat about this issue?