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Occasionally advertisments for off-shore (out of country) trusts state
that you can get a credit card (Visa� or MasterCard�) in any name you
want.  However getting and using a credit card in anything but your legal
name may land you in jail.

Often promoters of these off-shore accounts extol the virtues of
confidentiality in countries in which the banks which hold these trusts
are located.  In addition to setting up a trust account (sometimes with a
money-making opportunity), a credit card may be made available to you
secured by the money in your trust account.  And sometimes the promoter
will tell you that this credit card can be in any name you want.

WHY YOU CANNOT GET A CREDIT CARD IN ANY NAME YOU WANT
Firstly both Visa� and MasterCard� prohibit  banks from issuing credit
cards in anything but the legal name of the card holder.  This is to
prevent fraudulent and illegal use of these credit cards and to comply
with all rules and regulations regarding their legal use.  In general a
person can only use a credit card if a) the person is the card holder; b)
an additional card holder(wife, children etc.) added at the express wish
of the original card holder c) has the express permission of the card
holder to use the credit card.

Secondly upon presentation of identification at the request of the
merchant, you may be asked to justify why you are using a credit card that
is not in your legal name.  If none of the reasons stated previously
applies, the merchant will likely summon the police.  The police will then
ask that you explain why the card is in a different name than your legal
name.  If you explain that the reason is for confidentiality of your
account in an off-shore account, then they will likely charge you with
fraud.  In many countries the use of a credit card that is not in your
legal name (and does not meet specific requirements as stated above) will
be considered prima facie evidence of fraud.  While you are busy
explaining this to a judge no doubt the authorities will examine your tax
and bank records concerning the movement of money to this off shore
account.

WHAT ABOUT CORPORATE CREDIT CARDS?  
These special class of credit cards are issued to corporations which have
the same legal standing as persons in most countries.  A corporation or
business that decides to get a credit card for use by employees must
submit a credit application and meet the standards of the issuing bank. 
Specific employees are usually designated to use these cards.

 HEY BUT MERCHANTS DO NOT HAVE TO CHECK MY ID?  I THINK IT IS ILLEGAL TO
DO SO IS IT NOT?
No. A merchant may refuse to accept your credit card for any reason short
of violating any discrimination laws in existence.  Merchant agreements do
not prohibit the verification of identity of the person presenting the
credit card.  Many jurisdictions limit the verification of identity
request to solely checking to ensure you are the card holder.  Information
from checking identification cannot be stored in any form in many
jurisdictions so as to avoid unwanted sales calls or misuse.

CAN THESE CREDIT CARDS BE ISSUED IN THE NAME OF THE TRUST WITH ME AS AN
AUTHORIZED USER?
Possibly depending upon the whether the bank will allow this under the
banking law of that particular country.  However credit cards issued in
these programs may have limited use, may be debit cards (which are
technically not credit cards as the deduction is made at point of sale),
and usually are secured by the money in the trust account.  Most credit
cards issued through many off-shore trust programs are secured and the
credit limit tied to the money in your trust.  In cases where no credit
check is done, this is the method often employed.  

WHAT SHOULD I DO IF I AM OFFERED A CREDIT CARD IN ONE OF THESE OFF-SHORE
TRUST PROGRAMS THAT ADVERTISE I CAN GET THE CARD IN ANY NAME THAT I WANT?
Avoid it!  Reputable banks will always ask and request verification of
your identity prior to issuance of a credit card.   Getting an account in
any name simply does not make sense and will ultimately get you into
trouble if you are questioned concerning the use of the card.

Previous promoters of these credit card schemes often know very little
about the trusts they are trying to sell you or the laws concerning the
use of credit cards.  They are interested in one thing: to make a sale. 
Often they try to dupe you by assuring you as to the confidentiality of
these programs and that little or no paperwork will exist for your credit
cards.  Ignore this poor advice and get a credit card from a reputable
bank or program rather than these questionable schemes.  Anyone who
promotes getting a credit card in any name may themselves have to answer
questions from the police who are keenly interested in those providing
these services.

�1996 by Mark Edward Taylor.  All Rights Reserved.  Distribution or
reproduction of this article without the express written consent of the
copyright holder is forbidden.

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