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Best and worst jurisdictions for effectively handling trustee fraud?
Posted: Saturday, August 2, 2014
Joined: 8/2/2014
Posts: 1

Let's say I set-up a bank account in the name of a Trust on an offshore island in the Pacific. As is often the case, the Trustees of the Trust are nominees based in the offshore jurisdiction, for security. Therefore the bank account is in their control.

There are always bad eggs in this world and what's to stop a nominee Trustee from transfer my money, in the Trust's bank account, to his own account? The bank account login details etc. go to him, as he's the Trustee on the papers.

Do jurisdictions like the Cook Islands, Nevis and others have examples of having promptly and effectively dealt with such scenarios?

The reason I am asking is because, in my experience, the more 'exotic' countries have laws to protect people's rights, but in most cases they are rarely enforced and there is a lot of corruption (people often know each other in these circles in such countries). I was defrauded by somebody based in Mauritius and the legal system and police did nothing about it, even though he had clearly broken the laws in Mauritius.

Which offshore legislations have robust and easily enforceable legislation to protect Settlors and Beneficiaries from fraudulent Trustees and which ones don't? Case studies and examples would be most welcome, as all these jurisdictions talk the talk, but walking the walk is another matter, as the Editor of this very website has commented previously.

Would you suggest this is a reason to go with more of a 'mid-shore' jurisdiction, where it is easier to deal with a rogue individual or trust provider being fraudulent?

Many thanks. 


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