Blind Offshore Trusts (BOT) and siphoning of monies from Malaysia

 These Blind Offshore Trusts or BOT are apparently not new apparatus in money laundering tactics. It has been used since many years by corrupt businessmen and politicians the world over. 

BOTs are a type of trust structure designed to provide anonymity and confidentiality to the beneficiaries while separating them from the knowledge of the trust's assets and operations. These trusts are established in offshore jurisdictions, which offer favourable tax and legal environments, and they are often used for various legitimate and illegitimate purposes, including estate planning, asset protection, and privacy but more often than not for hiding and laundering illicit income. 

Let me explain how Blind Offshore Trusts typically work. To establish a BOT, you will need a Settlor, a Trustee and the Beneficiary as well as Protector as an option. 

A Settlor is typically the person or entity creating the trust. The settlor transfers assets (such as cash, real estate, stocks, or other investments) into the trust. In this case, Ranjeet’s list of investment companies, personal estate, ownself and his list of companies are the Settlors. 

A Trustee is an independent person or entity responsible for managing the trust and its assets. They have a fiduciary duty to act in the best interests of the beneficiaries and carry out the trust's objectives according to its terms. Ranjeet mostly employs independent lawyers as trustees for his empire of BOTs. 

Beneficiaries are the individuals or groups who will ultimately benefit from the trust's assets. In the case of a Blind Offshore Trust, the beneficiaries' identities are not disclosed or known to the public or, in some cases, even to the trustee. Instead, they are kept confidential. Most of the beneficiaries of the BOTS we discuss above consists of Ranjeet’s and Rashpal’s family members and some very close friends. They have also done the same for some politicians but I don’t have the details. 

Additionally, Ranjeet also appoints a Protector, who is usually an independent party who oversees the trustee's actions and ensures the trust's objectives are met. The protector may have certain powers, such as the ability to replace the trustee or amend the trust deed under specific circumstances. From what VJ had explained, for most of the BOTs, Rashpal has been nominated as co-Protector to safeguard their interests. 

The primary feature of a Blind Offshore Trust is its confidentiality. The trustee is not required to disclose the beneficiaries' identities to anyone except in exceptional circumstances (as required by the law of the trust's jurisdiction). This ensures the beneficiaries' anonymity and shields them from public knowledge or scrutiny. 

BOTs are established in offshore jurisdictions that have strong privacy laws and are typically outside the jurisdiction of the settlor's home country. These jurisdictions often provide tax advantages and offer a higher level of confidentiality compared to onshore jurisdictions. 

It's essential to note that while BOTs have often been associated with facilitating tax evasion, money laundering, and other illegal activities due to their confidentiality and anonymity features.