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The BIS, United Nations and International Legal System
kencraggs
The privately owned Bank for International Settlements (BIS) is the world's oldest international financial organisation and was established in 1930 by three commercial banks, J.P. Morgan & Co of New York, the First National Bank of New York, the First National Bank of Chicago, and the privately owned Central Banks of Belgium, France, Germany, Great Britain, Italy, and Japan (p.445). Section 3 here informs us that "In common with many of its founding central banks in 1930, the BIS was given the legal structure of a limited company with an issued share capital." The BIS is the hub of the global financial system and owns the central banks of countries that together make up about 95% of world GDP.

Located in Basel, Switzerland, the BIS has legal immunities from any kind of financial regulation and/or judicial action in a court of law. The BIS legal immunities can also be made applicable to any banks, bankers, corporations or individuals of any country that are acting on behalf of the BIS. All legal disputes involving the BIS are dealt with through the Permanent Court of Arbitration (PCA) that has no sitting Judges, the parties themselves select the arbitrators, and sessions are held in private and are confidential.

Article 1 of the Protocol regarding the immunities of the Bank for International Settlements informs us that, on the instructions of the Bank for International Settlements the property and assets held by any third party institution or person acting on behalf of the Bank for International Settlements shall be considered as entrusted to the Bank for International Settlements and shall enjoy the same immunities as the property and assets held by the Bank for International Settlements. (Also see Article 10). The host country agreement for the representative office of the BIS in Hong Kong (Article 3) and Mexico (Article 6) state that, "The Bank shall not be subject to any form of financial or banking supervision or obliged to implement any form of accounting standard".

Article 21(g) tells us that the BIS may buy and sell negotiable securities other than shares. Negotiable securities include certificates of interest in gas, oil, or other mineral rights. Corporations such as the Rothschild and/or Rockefeller controlled Royal Dutch Shell, British Petroleum, Rio Tinto Group, Glencore, BHP Billiton, and Exxon Mobil can be given the immunities of the BIS which has the role of intermediary for loan repayments to the World Bank Group (WBG) and International Monetary Fund (IMF). When a country receives a loan from the WBG or IMF, the terms for repaying the loan often include allowing corporations in the extractive industries to undertake oil & gas drilling and mineral mining. To give an example, the Ecuadorian government is obliged, under the terms of loan agreements with the WBG & IMF, to divide the Ecuadorian Amazon into rectangles, or blocks, for concession to oil companies.

By using the Mauritian International Arbitration Act 2008, global corporations, such as the BIS, can have disputes settled by the Secretary-General of the PCA whose decisions are final and are not subject to appeal or review. The PCA enables disputes to be settled outside of the international legal system where corporations (and states) can fall foul of national and international laws. The United Nations insist that the PCA is not a United Nations agency, but the PCA does work very closely (pp.9 & 28) with the United Nations Commission on International Trade Law (UNCITRAL) and other United Nations agencies. Miguel de Serpa Soares of Portugal is the current United Nations Under-Secretary General for Legal Affairs, a member of the United Nations Senior Management Group, and a member of the Permanent Court of Arbitration (p.32).

At the Peace Palace in The Hague, the PCA is located in the same building as the United Nations International Court of Justice (ICJ). The ICJ lacks automatic international compulsory jurisdiction, but, throughout its history, has misleadingly defined its role as "the judicial organ of the legal order of the international community as a whole."

The United Nations and the ICJ (World Court) were established by the same charter in 1945, under the direction of Baron Robert Rothschild and Paul Henri Spaak. The latter was a founding member (p.8) of the Bank for International Settlements, the 1st President of the United Nations, the 1st Chairman of the Council of Europe, and Secretary-General of NATO. Emma Rothschild is a founding member of the United Nations Foundation and remains a board member.

To end this blog-post on some notes about tax havens. Many accounting firms, law firms, investment banks, and commercial banks operate as a Professional Services Network whereby each outlet is not a branch of the firm, but is a separate legal and independent entity. Even if government's genuinely wanted to ban tax havens, it seems that at present they couldn't because of the legal immunities that have been given to the Rothschild's and their organisations the BIS, World Bank, IMF, OECD, and United Nations.

Posted by Ken Craggs

@BetweenMyths

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