The old alternative was setting up a corporation, foundation or trust. You create a separate “legal entity”. Perhaps it is “offshore”, which just means not in your native country. The corporate treasurer (not you) signs checks; you are supposed to control things behind the scenes. It works, sometimes. But what if you create another person with another nationality, and a full set of identification? Will this serve the same purpose more cheaply and effectively? Can this be done legally? For the person with “passive” investments, the answer is “Yes!” So let us now return to Mr Smith.
Assume that a foreign country, The Grand Duchy of Freedomia will accept any (rich) person as a citizen and issue them a passport. Assume further that Freedomia (like most English-speaking countries) permits its citizens to use any name they like on their passports. Presto! Shazam! You have created something like a corporation or holding company or foundation, but the difference is that you have complete control. The new person you have created is the only completely reliable and trustworthy person in the whole world. Why? Because it is YOU, yourself!
Thus Mr “MDX” Smith, instead of telling his lawyer “set me up with an offshore holding company”, now says “set me up with a new passport” from a truly free country, or if none is available, then at least a country that does not care about its offshore citizens. That way, 1 won’t have to serve in any army to kill people. I won’t spend half of my time filling out silly forms, about whom I went to lunch with and why. I won’t pay any more income taxes or inheritance taxes, etc, nor allow myself to be treated like a ‘resource’, always exploited to pay for things I don’t even believe in. Give me a new name and a new passport!” For a fee, that is exactly what many lawyers can do, If Mr Smith read the The Passport Report he might do it himself, for free! Either way, Mr Smith, now, whenever he leaves Arrestia stops at his safe deposit box, just across the border. He deposits his A passport. Then, like Superman, he switches passports, thus changing identity to (for instance) “Sherlock Homes Acourt, Earl of Freedomia”. The noble title is of course an optional extra, and for low profile purposes is definitely not recommended!
If Sherlock Homes Acourt, also known as Mr Smith of Arrestia is a PT, he probably never visits either Arrestia or Freedomia with his new Freedomia passport. He keeps the two identities completely separate. When back in Arrestia for rare visits, Sherlock Holmes Acourt doesn’t exist, at least not on any Arrestian computer. If any Arrestian spy should ever learn that someone named Sherlock has an account at the Terribly Secret Bank and Trust Company of Liechtenstein, the Arrestian investigator will ignore it. What does he care if some citizen of Freedomia has a secret account. Everyone knows that the Freedomia government is a bunch of anarchists who don’t tie up their citizens with the heavy Arrestian ball and chain of taxes on worldwide income, currency restrictions, and long jail sentences for almost everything. (For those readers who haven’t figured it out, Freedomia is every country in the world except the Union of Socialist Arrestia – USA).
Getting back to Smith and his new passport, what has he accomplished? Smith has a new identity. With it he can judgment-proof his assets and do things that have no connection with Mr Smith of Arrestia. He can even do things that are legal everywhere else, but might be slightly illegal in the eyes of the despots of Arrestia. Even if those dastardly secret snooper agents of Arrestia (planted in Swiss banks etc) should intercept a communication or letter regarding “Sherlock Holmes Acourt” there would be no connection between Sherlock and Smith – unless Smith sent out a communication direct from Arrestia in his alias; or blabbed about his new arrangements.
As a dual Arrestian-Freedomian, it is possible that many countries would accept Smith as a tourist (without requiring a visa) or resident just because he was a citizen (and/or noble) of Freedomia. In any event, with two passports to choose from, he can usually travel or immigrate more easily in an emergency than most people. If you read PT or The Passport Report you know why having a second passport is such a good idea. The concept of a Banking Passport is simply that for a one-time expense and/or effort, one can become a “new person”. This separates one from activities or assets best kept confidential.