| Vol.18 No. 521 | Published Monday, May 21, 2018 |
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Constitutional Chamber halts again law that would reactivate trawling |
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 By AM Costa Rica staff
The magistrates of the Constitutional Chamber of the Supreme Court found procedural flaws in the approval of the law that reactivated trawling, a legislative bill that was approved by lawmakers March 20. According to the judges, in the legislative process the proposal was discussed without technical studies or scientific evidence to support the positions for and against the idea, despite the warning issued by the chamber itself in the past. The chamber emphasized the need for adequate studies to determine that the bill meets, "a significant reduction of bycatch in the trawl fishery that is compatible with democratic sustainable development." This resolution had the support from five out of the seven magistrates of the Constitutional Chamber. Nancy Hernández and Fernando Castillo abstained from the vote after claiming that there are technical and scientific studies that allow trawling. At the end of November, the board of directors of the Costa Rican Institute of Fisheries and Aquaculture approved the establishment of new licenses for sustainable shrimp fishing, despite the fact that the same constitutional vote established that this type of procedure could only be carried out through a legal reform. Former president Luis Guillermo Solís published on his official website a statement in which he made public more than 20 amendments that he said met the requirements of the constitutional chamber, although he omitted reference to the legal reform required. |
 A.M. Costa Rica wire services
photo
The Carlos Alvarado
government has made it clear it will not
support trawling in any way.
The vote of the chamber matched the position of the current environment minister, Carlos Rodríguez, who said that there is no possibility of achieving sustainable trawling. The bill was approved in the first vote in the legislature after a group of fishermen pressured on the lawmakers, arguing the lack of employment opportunities in the areas as the main factor to authorize trawling. |
| Local referendum takes place to fire Paraíso mayor | |
By AM Costa Rica staff
Residents from the Paraíso canton in the province of Cartago voted Sunday to determine whether Mayor Marvin Solano should continue to be in charge of the municipality. The Municipality of Paraíso itself organized the elections, which started at 6 a.m. and closed at 6 p.m. The Supreme Electoral Tribunal was responsible for supervising the process. "Very few people attended. We visited the biggest polling centers, and it was very quiet," said the director of the tribunal Electoral Registry, Héctor Hernández. A total of 46,754 people were registered to vote in 86 polling stations. Mayor Solano has been linked to alleged irregularities in private project works and remodeling of public works. For that reason he faces four complaints before the prosecutor's office. The Municipal Council of Paraíso called the inhabitants of the canton to the referendum on Jan. 16, when two thirds of the city councils approved the request to carry out the public vote. |
 A.M. Costa Rica wire services
photo
Marvin Solano, mayor of the
Paraíso Canton.
Results should be ready today, said a tribunal official. |
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| 400
new
transit police officers will be appointed by this government, says official |
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By A.M. Costa Rica staff
Rodolfo Méndez Mata, head of the Ministry of Public Works and Transportation has assured the public that he will hire 400 new transit police officers before 2022. During his career, Mata has worked with the transit authorities three times and he is a former legislator. "We appointed 400 of them 40 years ago when I was a minister, we named 400 20 years ago when I was minister. I would like to appoint another 400 in this, my third time as minister," Mata said. The goal of the minister is to increase the force by more than half. The transit police force currently has 763 people on its payroll, according to figures from the Ministry of Public Works and Transport. "Every year, 450-500 Costa Ricans die on the roads. The number of accidents leaves enormous consequences for people, families, social and economic. We have to give the same priority to road security as we give to public security," Mata added. According to the minister, the new hires are necessary to ensure compliance with a series of low-cost works that seek to improve road traffic conditions. These, in turn, will act as the basis for the first stage of a sectorization project in which priority will be given to the collective public transport system. |
 A.M. Costa Rica
wire services
photo
The minister's goals are in conflict with fiscal
reform that seeks to limit hiring of public employees
to 1 percent maximum.Méndez Mata appointed German Marín as director of the Traffic Police, a position he had held in the administrations of Laura Chinchilla and Óscar Arias. |
| Government
suspends
guidelines on when and how roads can be closed |
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By A.M. Costa Rica staff
The Carlos Alvarado government issued a decree suspending regulation for the closure and use of public roads, which entered into force last December for two months. The regulation dictates the procedures and requirements for the partial or total closure of public roads for the purpose of sports, recreational or cultural activities. Different sports and cultural organizations are unhappy with the law because it makes it really hard to organize those activities. For example, a women’s cycling event became impossible under the new rules, according to the Costa Rican Federation of Cycling. Due to that situation, the government decided to suspend the application of the decree for two months. During this period, a work team made of members of the Ministry of Public Works and Transportation and the Ministry of Sports will review and suggest the necessary technical adjustments, taking into consideration the feedback from the organizations. The decree, signed by Alvarado and the Minister of Public Works and Transportation, Rodolfo Méndez Mata, established the suspension until Aug. 1. "There is a series of observations from federation leaders and sports committees about the decree, arguing that the regulation establishes requirements that complicate too much getting the permits to carry out this type of activities," said Hernán Solano, minister of Sports and Recreation. |
 A.M. Costa Rica
wire services
photo
Apparently, the decree made it impossible to carry
out an female cycling tour."In coordination with the MOPT, we will review these comments, always taking care of the integrity of the people and guaranteeing, at the same time, that the procedures do not prevent or hinder the realization of this type of sports activity so important for the country," Solano said, using the Spanish acronym for the transport ministry. |
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Agents detained three men and two women linked to the disappearance of an Italian man |
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By A.M. Costa Rica
staff
Judicial police details three men, 20, 22 and 38, and two women, 19 and 24, Saturday on suspicion of involvement in the disappearance of 51-year-old Italian man. Arrests took place in in the provinces of Limón, Heredia and Alajuela. According to a preliminary report, the detainees would have been the last people with whom the man had contact. Saturday the agents followed a man who came out with plastic bags from a San Joaquín de Flores house and drove to Río Segundo in Alajuela, where he threw the bags on the road. The agents collected the bags and discovered clothing with apparent traces of blood. The clothing was sent to the forensic sciences complex to be analyzed. The man was followed and stopped on the road when he arrived at his home in San Rafael de Alajuela. The house was then searched, but nothing of interest was found, judicial police said. Another group of agents followed the owner of the house to Limón and arrested him. Agents also arrested one more woman and two men who left from the same house. |
 Judicial Police photo
The detainees were sent to the
prosecutor's office for further questioning.
The judicial agents
received a tip from a source who said the man they were
looking for could be in the Zurqui sector, where several
searches where conducted, according to the a judicial
police press release.
The investigations into the whereabouts of the missing Italian continue. |
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| Hammerhead fishing should be immediately
banned, says legal group |
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By A.M. Costa Rica staff The group
Energy Law Firm has asked the Second
Judicial Circuit of San José for a
precautionary measure and applied to the
National System of Conservation Areas and
the Costa Rican Institute of Fisheries and
Aquaculture for the, immediate suspension
of hammerhead shark fishing.
According to the group, the fishing should be stopped until the institutions determine the real situation of the shark population in Costa Rican waters, which consists of three species of hammerhead shark, grouped taxonomically under the genus Sphyrna. In their request, the group demanded that the appropriate governmental agencies carry out research programs and monitoring studies to determine with certainty the real status of these threatened species. "The state has the obligation to develop, plan and execute administrative actions and measures aimed at the protection of endangered wild species, especially when they are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora," said the judicial request. Since June the Wildlife Conservation Law no longer applies to sharks, said Randall Arauz, a biologist who supports the request. He blamed the former minister of Environment, Édgar Gutiérrez for the current hammerhead fishing. Until now, Costa Rica has sought to avoid any policy aimed at improving the protection of sharks, said the biologist. The request for a precautionary measure was filed by Walter Brenes, a lawyer for the Energy Law Firm, and backed by the Costa Rican organization Endangered Marine Species Rescue Center and Jorge Serendero, representative of the Sea Shepherd organization in Costa Rica. |
 A.M. Costa Rica
wire services photo
There are three types of
hammerhead sharks in the country.
“The request for the suspension of fishing for hammerhead sharks is based, among other legal grounds, on Law No. 8059, which declares that in the absence of biological data on the abundance of a species in question and in order to determine the impact of artisanal and industrial fishing, a decision must be made in favor of their protection," said Arauz. In 2016, former president Lis Guillermo Solís received the title Enemy of the sharks, granted by the German organization SharkProject. On March 1, 2015, the export of hammerhead shark fins was prohibited by the Ministry of Environment and Energy through a resolution issued by the National System of Conservation Areas. The shark's fin trade is fueled by Asian consumers who consider it a delicacy. |
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Food |
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| For
Beach Dwellers |
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 Oh dear, oh my. Once again I seem to have neglected part of my readership – people who live on the coast. I know Barbara is feeling neglected as I had an email from her asking about plants that will survive in salt air. There are well over a hundred in my reference books and probably more. The problem? They are all listed by their Latin names. Latin names – genus and species or binomial nomenclature – were first proposed in the 18th century by a Swede named Linnaeus who found the old way of naming plants cumbersome. He was correct because a plant’s “legal” name could run to half a page and involved all kinds of things like leaf shape – and whether or not the leaf had stipules and what kind of stipules – leaf organization on the stem, type of bark, color and formation of flowers…..it went on and on. And, just like today, the same plant could have a different common name as it wandered over national or even county borders. It was a long fight, but Linnaeus won out. The problem today is that my poor reader is getting a long list of Latin names and is going to have to do some research to find out that common name. Sigh. So, here are a few down to Earth suggestions for those of you living in salty air. Ground covers: Aloe – great for burns. Madagascar periwinkle – lots of color, just pick one you like. Hinahina of the Borage family – this one grows in sand and doesn’t mind salt spray. Beach morning glory – also grows in sand. Mondo grass – slow growing but likes the beach. Shrubs: Bougainvillea – lovely colors and moderately tolerant of salt and wind. Jade plant – slow growing to 6 feet high and tolerates wind, salt, drought and heat. Snake plant (mother-in-law’s tongue) – upright variegated growth. Agave – tolerates just about everything. Euryops – lots of yellow flowers. Lantana – lots of different colors and aromatic leaves. Natal plum – fragrant and tolerates sand and salt. Red powderpuff – large blooms and good near the ocean. |
Trees: Palms – lots of palms. Beach almond – lovely for shade. Pony tail agave – grows to 30 feet, great accent plant. Neem tree - fragrant flowers grows to 50 feet. Colvillea – bright orange flowers. Buttercup tree – bright yellow flowers, grows to 40 feet. Vines: Confederate jasmine – moderate salt tolerance and fragrant flowers. Madagascar rubber vine: purple flowers, can reach 60 feet and can be invasive. Golden flame honeysuckle – moderate salt tolerance and great tolerance to wind. Mexican flame vine – moderate salt tolerance, blooms most of the year, bright orange. Yellow mandevilla – great flowers. Sandpaper or queen’s wreath vine - long inflorescence with purple flowers, great for arbors. If you go to Arenal Gardeners on Facebook, I will be publishing Latin names for over a hundred beach friendly plants over the next week or two. Plant for the Day  Victoria Torley
photo
Sadly, I have no real
beach plants so here is the Madagascar periwinkle a
great lover of sun and moist soil. In very hot
climates, it should be protected from afternoon sun.
Periwinkle is fairly easy to propagate and will bloom
for most of the year.
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Business For Sale
(paid category) |
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| US brokerage firms
closing accounts for American expats |
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By
Tom Zachystal
President International Asset Management Many American citizens living abroad have recently been contacted by their US brokerage firms to inform them that their accounts have either been frozen such that they can no longer change their investments or that they need to close their accounts entirely. Fidelity, Wells-Fargo, Merrill Lynch, and others in many instances no longer want to deal with non-US resident clients through their US offices. Often there is little in the way of explanation, just a letter in the mail or a phone call from a broker who is following instructions and really doesn’t understand the issue. At the same time, non-US offices of these firms often do not have the knowledge or cannot accommodate accounts such as IRAs or 401ks, or do not offer good investment options or adequate investor protection for regular brokerage accounts. There are two regulations that govern US brokerage firms’ and banks’ reporting and due diligence responsibilities with respect to dealing with non-US residents: The “Know Your Customer“(KYC) rule and FATCA (Foreign Account Tax Compliance Act) regulations. Each is intended to make financial institutions responsible for ensuring that their clients do not partake in money laundering or tax evasion activities. Unfortunately, the vast majority of Americans living abroad who are simply trying to maintain US bank or brokerage accounts are also affected since in many instances, rather than comply with the additional reporting and surveillance burden imposed by these regulations, their financial institution will simply close their account. If the client has many millions of dollars to invest then it is worthwhile for the US financial institution to undertake the additional due diligence and reporting but, even in the case of a several million dollar account, for large institutions the relationship may not be valuable enough to bother with the extra reporting and oversight. The Know Your Customer rule mandates, among other things, that a financial institution know the identity and tax status of the account owner and anyone with power of attorney on the account. Furthermore, the transactions within the account need to be monitored for signs of money-laundering activity – which involves deciding what types of transactions are “normal” based on the profile of the account owner and questioning any transactions that do not fall within this criteria. As you can imagine, this is a somewhat arbitrary standard and this is where the difficulty lies for the financial institutions. In addition, it is not just the US that has KYC rules, other countries have them as well and they may differ from the US rules. So the financial institution also has to worry about the KYC rules in the expat’s country of residence whereas for US-based clients it is only the US rules that apply – an additional burden when dealing with non-US residents. Then there is FATCA. These regulations, which started phasing in at the beginning of 2013, but have really fully been put into effect in just the last year, are intended to assist IRS efforts regarding tax compliance for US taxpayers with financial accounts outside the USA. In effect, FATCA seeks to turn non-US financial institutions into reporting agencies for the IRS and compels participating institutions to report to the IRS on their US taxpayer-owned accounts or on any account where the owner might be a US person. While FATCA was intended to help the IRS catch US tax evaders it has actually turned into a global tax compliance effort by many participating countries. In order for FATCA to work there has to be agreement from the government of another country to make available information regarding owners of financial accounts in their jurisdiction to the United States government (specifically the IRS). You may ask how this affects the non-US resident with a US-based account. The answer is that in many cases the agreement that countries have insisted on with respect to FATCA is reciprocal. In other words, a country will say that yes they are willing to exchange information on financial accounts with the USA but the key word is “exchange” – that is, in return, US financial institutions must also agree to provide information regarding their clients who are citizens or residents of the country entering into the FATCA agreement with the USA. This reciprocity is the crux of the whole issue: US banks and brokerage firms have to report to foreign governments on their accounts for residents of these other countries, and in many instances they would rather shut down the account instead of doing the reporting. |
 A.M.
Costa Rica archive image
Merrill Lynch and Morgan Stanley have recently been sending letters to many of their US citizen clients living outside the USA saying that their accounts will be closed as of a certain date in the very near future. The letter typically states something like the following: We have conducted an extensive review of our non-US resident client business to determine whether we had the ability to continue to effectively serve your wealth and investment needs under increasing business requirements and regulatory restrictions. Having completed this analysis, we believe you would be better served by a firm or firms that can meet your comprehensive wealth and investment management needs. Therefore we will no longer be servicing your Merrill Lynch Wealth Management account(s) and/or credit facilities effective. The letter goes on to offer two options: - Have the assets distributed to you. The two options in the letter are easier said than done. The second option may not be very attractive if it is a tax-deferred account like an IRA because there may be substantial tax and possibly early withdrawal penalties should the money simply be distributed. The first option may not be so easy either because there are fewer and fewer US brokerage firms willing to deal with American expats. So what can you do if you have received this letter or a similar one from another brokerage firm? The best solution is the first option that because if you can find a US brokerage firm or investment advisor who will work with you then the accounts can simply be transferred electronically without tax consequences and without having to sell the underlying investments. The key though is to find a broker or advisor that specializes in US expatriate clients because otherwise you risk having to go through the process again at some point in the future when maybe there will be even fewer options available. At International Asset Management we have been specializing in investment management and financial planning for Americans living abroad since 2002. Please contact Peter Brahm at peterb@iamadvisors.com if you need help with these issues. Editor's note: Tom Zachystal, CFA, CFP™ Tom Zachystal is President of International Asset Management (IAM), a U.S. Registered Investment Advisor specializing in investment management and financial planning for Americans living abroad and is a past President of the Financial Planning Association of San Francisco. This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation. |
U.S. Income
Tax Services 
