Total EU-wide surveillance: protection through non-EU bank accounts

Introduction

With the establishment of the EU Anti Money Laundering Authority (AMLA) on June 26, 2024 in Frankfurt am Main, the European Union has taken a significant step towards comprehensive monitoring of the financial sector. This super authority has far-reaching powers to monitor financial flows within the EU, including the ability to block accounts and prevent transactions. In this article, we explain how you can protect yourself by opening a bank account in a non-EU country and setting up a LLC in the USA from this surveillance.

The power of AMLA

The AMLA was established with the aim of effectively combating money laundering and terrorist financing within the EU. This authority will take over control of the entire EU financial system from 2026, with the European Banking Authority (EBA) continuing to perform these tasks until the end of 2025. With the introduction of a single rulebook, the EU is creating a central set of rules that is binding for all member states and establishes the AMLA as the central supervisory authority.

The central bank account register

One of the main measures of the AMLA is the introduction of a central bank account register. This register will contain all bank data from the last five years from 2027 or 2029. This means that all financial transactions of EU citizens will be recorded and monitored retroactively from July 10, 2024. Authorities in every EU member state will have access to this data, resulting in unprecedented transparency and control.

Examples of possible problems

Example 1: Suspicion on return to the home country

Let's assume you have worked in Dubai for several years and have transferred your salary to an EU account. On your return to Germany reports to the tax office and starts to check your last few years. Although all your actions were legal, you could come under suspicion that you were liable to pay tax in Germany. Investigation proceedings could be initiated, which can lead to considerable stress and financial burdens.

Example 2: Monitoring after relocation

Imagine you earn very well in Germany and then move to Spain to recover from a burnout. Despite a modest income in Spain, the local tax office could become suspicious as to why someone with your qualifications is earning less. You could be suspected of concealing income, leading to further checks and possible sanctions.

Example 3: Political donations

If you are a member of a political organization in an EU country or a Association and later move to another EU country where this organization is not recognized or even viewed with suspicion, you could get into trouble. Your previous donations could be seen as problematic, leading to checks and possible legal consequences.

Example 4: Business relationships in risk areas

Suppose you have business relations with a company in a country classified as a risk area, such as Turkey or Georgia. Despite legal business activities, your transactions could be investigated more closely and classified as suspicious, which can lead to legal problems and possible confiscation of assets.

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Example 5: Acquisition of real estate abroad

If you purchase a property in a non-EU country such as Georgia or the United Arab Emirates, these transactions could also be considered suspicious. On your return to the EU, these investments could be investigated, leading to legal disputes and possible losses.

Protective measures through bank accounts in non-EU countries

An effective way to protect yourself from this surveillance is to open a bank account in a non-EU country. Countries such as Switzerland, Liechtenstein, Singapore and Georgia offer safe and legal alternatives to manage your finances outside the EU's sphere of influence. These accounts are not covered by the central EU bank account register, giving you greater privacy and protection from unauthorized access.

Advantages of an LLC in the USA

In addition to opening a bank account in a non-EU country, setting up a Limited Liability Company (LLC) in the USA can offer further advantages. The USA does not participate in the automatic exchange of information This means that the German and EU authorities do not have direct access to your account information. This allows you to process your financial transactions securely and privately.

Legal framework and transparency

It's important to emphasize that opening bank accounts abroad and forming an LLC is completely legal as long as you properly report all income and profits on your tax return. The Exchange of information mainly concerns account balances, but not detailed transactions, which largely preserves your financial privacy.

Conclusion

The establishment of the AMLA and the introduction of a central bank account register mark a significant step towards comprehensive supervision of the financial sector in the EU. To protect your financial privacy and guard against possible abuse of power, it is advisable to take action in good time. Opening a bank account in a non-EU country and setting up a LLCs in the USA offer effective and legal options here.