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The Daily

Is Reno, Nev., the New Switzerland?

Chris Gaetano
Published Date:
Jan 28, 2016
2006_NV_ProofSince the 2008 financial crisis, authorities in both the U.S. and Europe have worked vigorously to keep wealthy individuals and clients from circumventing tax laws.
How ironic, then, that the U.S. itself is now seen as an attractive destination for those looking to hide their money from prying eyes, according to Bloomberg. Financial institutions that once held sway in Switzerland, the Principality of Lichtenstein, and the Cayman Islands are now finding fertile soil in places like Nevada, South Dakota and Wyoming -- all states with no corporate or personal income tax. Much of this, said Bloomberg, is due to the U.S. opting not to follow new OECD disclosure standards followed by all member states save Bahrain, Nauru, Vanuatu and the U.S. 
By contrast, Europe has become less and less hospitable to tax avoidance measures. On top of numerous efforts on the part of individual countries, regulators are also working on EU-wide information-sharing rules that would enable nations to levy taxes even if assets are shifted across borders, said CNN Money

On a similar note, the U.S. has also become a popular destination for money laundering as well, with real estate purchase rules allowing for a degree of anonymity that enables people from all over the world to park their assets in luxury condos and beach houses. In contrast, however, the U.S. government is seeking to crack down on this: FinCEN recently announced a temporary program that would force title insurance companies to identify buyers in New York City and Miami-Dade County, Fla.