I
n a landmark decision
asserting Belize's sovereignty as an offshore financial jurisdiction, the Supreme Court
of Belize upheld the country's confidentiality laws by revoking a previous court order set
in motion by the Securities and Exchange Commission of the United States requesting that
confidential documents, belonging to Swiss Trade and Commerce Trust, Ltd., be handed over
to them.
In the case, Securities
and Exchange Commission (SEC) vs. Swiss Trade and
Commerce Trust, Ltd., Banner Fund International, Lloyd Winburn et al, Supreme Court
Justice Troadio Gonzalez ruled that documents held by the Belize court belonging to Swiss
Trade and sought by the SEC, be immediately returned to Swiss Trade and Commerce Trust,
Ltd.
Lawyers for Swiss Trade said that what this means for
Belize is that this aspect of confidentiality, which is an important feature of the
offshore industry, has been upheld. "What this means is that any party who seeks to
destroy the concept of confidentiality would have to contend with our system, which has
demonstrated its ability to uphold the relevant laws," Attorney Oscar Sabido said.
The decision is expected to have major international
repercussions as the world financial community looks to Belize and its new offshore
services industry. "It is certainly a shot in the arm of the offshore industry
because of the fact that it is an industry which is just beginning," Sabido said. A
country's ability to assert its sovereignty without the interference of outside forces is
a major deciding factor in choosing a place to invest and protect personal property.
When asked for his comment related to the decision,
Lloyd Winburn, Director of Swiss Trade & Commerce Trust, Ltd., in Belize, stated,
"The Court's decision confirms our reasons for establishing our company in Belize
originally. The Law related to confidentiality has been tested and found to be not lacking
clarity and strength. Any other ruling by the Court would have sent a signal throughout
the financial world that Belize could not be trusted to protect assets, provide
confidentiality of transactions or otherwise serve the needs of those who seek to do
business away "From their home jurisdiction."
The decision clearly shows that the SEC stepped out
of bounds in trying to obtain confidential information, the matter having been urged on
both sides by learned Queen's Council.
The case arose after the SEC [bureaucrats] appeared
at Swiss Trade's office on March 3, 1994 with the expectation that they would be able to
just take the files and leave the country with them, with no regard whatever to Belizean
law. The quick reaction of company employees prevented any further disregard for the law
on the part of the SEC [terrocrats] and their Belizean lawyer, Eamon Courtenay, who
previously had been the lawyer for Swiss Trade.
