Category: FATF

Govt tightens noose around offshore tax evaders

The federal government has decided to go after offshore tax evaders, laying out a number of propositions that would effectively criminalise the process and introduce heavy punishments for tax evasion. The proposed tightening of income tax laws would mean that anyone found guilty of evading taxation through foreign banks accounts… – Continue reading

Wolfsberg Group Publishes Guidance on Customer Tax Evasion

Financial institutions should be able to leverage existing financial crime compliance, conduct and tax (including tax transparency regimes) procedures and controls, to address the risks of customer tax evasion. The Wolfsberg Group has published new guidance on customer tax evasion, designed to help financial institutions in developing, implementing and maintaining… – Continue reading

Around 152,518 financial information of Pakistan tax residents received so far

Islamabad Around 152,518 financial information of Pakistan tax residents have been received through Common Reporting Standard Exchange (CRSE) on various dates – from October-2018 onwards. This data is being analyzed from taxation point of view and it has been shifted to identify in first instance, cases which are of a… – Continue reading

Guam, other US territories in European Union’s dirty-money blacklist again

Guam, American Samoa, Puerto Rico and the U.S. Virgin Islands are included in the European Nation’s updated list of areas that are deemed hot spots for money laundering and terrorism financing. The U.S. Department of Treasury rejected the inclusion of U.S. territories, calling into question the substance of the EU… – Continue reading

Guernsey: Investment Funds: Why Choose Guernsey?

The benefits of Guernsey as a fund domicile. Guernsey is one of the world’s largest offshore finance centres, with a thriving funds industry. Almost 1,000 investment funds, and well over 2,000 sub-funds, are currently administered in the island. The current value of funds under management and administration in Guernsey is… – Continue reading

Caribbean Banks support passage of tax bill amendments

THE Caribbean Association of Banks (CAB) has joined the growing list of advocates for the expedited passage of urgent legislation to strengthen this country’s international tax compliance. “Non-compliance with Global Forum Standards and Financial Action Task Force (FATF) recommendations increases the sovereign risk profile of not only the jurisdiction (TT)… – Continue reading

Pakistan to finalise new anti-money laundering law

ISLAMABAD: Pakistan is fine-tuning a new law to join forces with the international community to combat money laundering and terrorist financing in line with a recommendation of a global financial watchdog, a top official said on Thursday. Khalida Habib, head of the Securities and Exchange Commission of Pakistan (SECP) said… – Continue reading

FATF recommendations: Pakistan told to track transactions of $3,000 and above

ISLAMABAD: The Asia Pacific Group (APG) on Financial Action Task Force (FATF) has asked Pakistan for tracking down all financial transaction ranging from 3000 to 15,000 US dollars/Euro in cash through real estate agents, dealers in precious metals and stones, lawyers, notaries, other independent legal professional and accountants as well… – Continue reading

Minister of Economic Development names factors that will make companies move to Russian offshores

The first companies to enter Russian offshores are those that face pressure on the part of foreign authorities, the Head of the Ministry of Economic Development believes. Also, the first residents of the Special Administrative Region (SAR) will be those that will not entail significant costs. The first residents of… – Continue reading

FATF delegation urges Pakistan to toughen anti-terror financing laws

ISLAMABAD: A delegation of the global financial watchdog Financial Action Task Force (FATF) has urged Pakistan to toughen its laws and implementation against terror financing and money laundering, media reports said. The Asia Pacific Group (APG) on Money Laundering, which is currently in Pakistan, will submit a report to the… – Continue reading

Tax evasion seen a hurdle to FATF compliance

THE Anti-Money Laundering Council (AMLC) said the legal treatment of tax evasion and loopholes involving real estate brokers are keeping the country from achieving full compliance with international standards for money laundering regulation. AMLC Secretariat Executive Director Mel Georgie B. Racela made the remarks to BusinessWorld on the sidelines of… – Continue reading

Restriction on non-filer forex accountholders : SBP’s rules to clean up untaxed money from banking system

KARACHI: The central bank’s rules to restrict access of the non-filers to foreign currency accounts would gradually clean up untaxed money from the banking system, although it may hurt much-needed forex inflows in the short run, analysts and bankers said. Analysts said foreign currency accountholders have been facing intensifying scrutiny… – Continue reading

Ottawa Implementing New Reporting Rules For Trust Funds

The federal government has introduced sweeping new reporting rules for private trust funds, which have been accused of hiding wealthy Canadians’ money from tax collectors. Going forward, trusts that fail to file a tax return will face fines equalling 5% of its total value. The Canadian government still has no… – Continue reading

Switzerland set to amend anti-money laundering law

Stepping up efforts to curb illicit fund flows, Switzerland plans to amend its anti-money laundering law wherein financial intermediaries will be required to verify information on beneficial owners. The Alpine nation, known for its banking secrecy practices, has been taking various measures in the fight against black money amid intense… – Continue reading

Dpm Pledges ‘Most Stringent Controls’ On Ownership Registry

THE Deputy Prime Minister yesterday promised that the proposed Beneficial Ownership registry will have “the most stringent controls”, amid industry concerns over the lack of prior consultation. K P Turnquest told Tribune Business that it was “not an unreasonable guess” to suggest that the Bahamas would follow the Cayman Islands’… – Continue reading

President Mamnoon issues ordinance approving tax amnesty scheme

ISLAMABAD: President Mamnoon Hussain on Sunday issued the Foreign Assets (Declaration and Repatriation) Ordinance bringing into effect a tax amnesty scheme announced by the prime minister earlier this week. The ordinance encompasses assets obtained on installments, declaration of property as per the “fair market value” and its confiscation by the… – Continue reading

European Parliament Blocks EC Money Laundering Blacklist

The European Commission will be forced to draw up a new blacklist of countries that facilitate money laundering after the European Parliament overwhelmingly rejected the latest effort that failed to consider countries that enable tax evasion. EU lawmakers voted 392-80, with 207 abstentions, to reject the list that includes 11… – Continue reading

‘Ball In Bahamas Court’ Over Tax Exchange Pledges

“The ball is in the Bahamas’ court” to meet its automatic tax information exchange commitments, a senior industry executive yesterday saying there is “no alarm” about this nation having to alter its approach. #Tanya McCartney, the Bahamas Financial Services Board’s (BFSB) chief executive, told Tribune Business that the private sector… – Continue reading

Thailand Increases Penalties For Tax Fraud, Evasion

The Thai Revenue Department announced earlier this month that new legislation effective from April 2 increases penalties for those taxpayers committing tax fraud or evading their tax liability. In a statement accompanying the enactment of the Revenue Code Amendment Act (No.45) B.E. 2560, the Department revealed that such fraudulent activity… – Continue reading

More objections to A&B being listed as tax haven

Antigua & Barbuda, on Wednesday, launched what government said was a strong objection with the US State of Illinois, which has introduced legislation, listing the twin island state and 10 Caricom countries as tax havens. In letters to the Speaker of the House of Represen-tatives of the Illinois General Assembly,… – Continue reading

Time to tackle the shell companies

Hyderabad: Shell companies are becoming a common phenomenon globally and even in India. These companies are posing several challenges to governments and regulators for various reasons had been probing their involvement in large scale money laundering and tax avoidance cases. A shell company is a non-trading organisation that does not… – Continue reading

Is a register of beneficial ownership of companies coming?

As part of the global transparency push, the G20 has committed to implement rules requiring the disclosure of beneficial ownership of legal entities (in addition to automatic exchange of financial account information and the BEPS related transparency measures). On 13 February 2017, Treasury released a consultation paper dealing with part… – Continue reading

Tax amnesty in line with global efforts to fight BEPS: Minister

Finance Minister Sri Mulyani Indrawati has said the ongoing tax amnesty program was in line with global efforts to prevent and combat tax base erosion and profit shifting (BEPS) and would not accommodate any money laundering efforts. Tax amnesty programs have brought benefits to the many countries that have implemented… – Continue reading

New Zealand extends anti-money laundering rules to capture property agents

New Zealand will extend its anti-money laundering laws to cover real estate agents and other professions amid fears the country has become a soft target for illegal fund flows that have also helped inflate the property market. Soaring property prices have become a hot issue among the New Zealand public… – Continue reading

Would the real tax havens please stand

“It is tantamount to an economic blockade”. That’s how Antigua and Barbuda’s Prime Minister, Gaston Browne, described the current withdrawal from Caribbean indigenous and offshore banks of correspondent relationships by US banks. His sentiments were echoed by Dean Barrow and Freundel Stuart, the prime ministers of Belize and Barbados respectively…. – Continue reading

Dispelling offshore myths

Although the British Virgin Islands is often seen as an offshore tax haven, a closer look shows such opinions may be overstated There is a stereotypical image of the so-called ‘tax haven’ for ‘shady people to put their money’. While it is true that BVI Finance enjoys warm, sunny weather… – Continue reading

Raising revenue off Caribbean backs

THE COUNCIL OF THE DISTRICT OF COLUMBIA (DC) recently enacted, as part of its budget, provisions that force entities doing business in any of 39 arbitrarily designated “tax havens” to report their income on worldwide combined reporting. Eighteen are Caribbean jurisdictions. A tax haven is defined by the DC code… – Continue reading

The deal between Turkey and FATCA

Turkey’s ruling Justice and Development Party (AKP) government, in power for 13 years, has been notoriously lax and often late when it comes to implementing stringent rules controlling money in order to ensure better transparency in financial movements, halt tax evasion, prevent illicit funding and disrupt money laundering activities. That… – Continue reading

The UK’s Registry of Beneficial Ownership

According to Baroness Neville-Rolfe, Parliamentary Under Secretary of State at the Department for Business, Innovation and Skills, the United Kingdom “is at the forefront of a dramatic increase in transparency about company ownership” in developed countries. However, it is the UK which is going to provide the testing ground for… – Continue reading

British Virgin Islands: Proposed Amendments To BVI Business Companies Legislation

The BVI Business Companies Act 2004 (“BCA“) is shortly due to be amended by the BVI Business Companies (Amendment) Act 2015 (the “Amendment Act”). As well as keeping the British Virgin Islands (“BVI“) corporate regime at the forefront of compliance with international standards, the Amendment Act is intended to provide… – Continue reading

Countering terrorism financing through anti-money laundering measures

It is time for re-regulation; Europe is strengthening its AML/CFT measures in order to lower current terrorist financing (TF) risks. “Money is the lifeblood of terrorist operations,” declared George Bush after the 9/11 attacks. French finance minister Michel Sapin has beaten the same drum when he recently claimed that “the… – Continue reading

SA ranks higher than Nigeria in illicit outflows

SOUTH Africa ranks seventh among developing countries in terms of illicit financial outflows, a Washington-based research organisation has found. Illicit outflows from the country are of great concern to the Treasury, which has introduced a number of measures to curb it, particularly the outflows achieved through profit shifting by large… – Continue reading

Illicit money flow from developing world surged to $1.1 tn in 2013, says GFI

WASHINGTON Illicit financial flows or black money from developing and emerging economies surged to US$1.1 trillion or a staggering 4 percent of the developing world’s GDP in 2013, according to a study released Wednesday by Global Financial Integrity (GFI), a Washington, DC-based research and advisory organization. The cumulative illicit outflows… – Continue reading

2015- The end of tax neutral jurisdictions

On 18 June 2013, the Progressive led government issued a press release titled, “Cayman’s Action Plan Includes Beneficial Ownership”. The press statement came on the heels of the UK taking over the Presidency of G8, at the 17-18 June 2013 G8 Summit in Northern Ireland. The most interesting part of… – Continue reading

Park calls for careful adjustment of monetary policy

President Park Geun-hye called Monday for a careful adjustment of monetary policies of advanced countries amid lingering worries over a potential Fed rate hike. Last month, the U.S. Federal Reserve kept interest rates at near zero due to global headwinds but suggested that it could raise rates by the end… – Continue reading

Cayman Islands: Urgent! CRM Considerations On The CRS

The “heads up” for Reporting Financial Institutions on foreign investors’ limited voluntary disclosure opportunities Nearly one hundred jurisdictions (Participating Jurisdictions) have already committed to participate in the CRS promulgated by the Organisation for Economic Cooperation and Development (OECD). Most of them have committed to be “early adopters” of the CRS… – Continue reading

Federal Council adopts Anti-Money Laundering Ordinance

Bern, 11.11.2015 – During its meeting today, the Federal Council adopted the Anti-Money Laundering Ordinance (AMLO). It will enter into force on 1 January 2016. In February 2012, the Financial Action Task Force (FATF) published the revised international standards concerning the combating of money laundering and terrorist financing (FATF recommendations)…. – Continue reading

New Zealand: Foreign Trusts and Cross-Border Planning for Individuals

The New Zealand foreign trust regime – its use in international wealth planning The New Zealand “foreign trust” regime came into being over 25 years ago. It arose from a domestic initiative to make the use of offshore trusts for tax minimisation more difficult for New Zealand residents, by imposing… – Continue reading

The Ministry of Finance proposed to soften the terms of the Amnesty

Moscow. November 10. The Finance Ministry has prepared proposals aimed to strengthen Amnesty of capital, which is now actually fails, reports the newspaper “Kommersant”. The law on the voluntary Declaration by individuals of assets and accounts, is known as the law on the legalization or Amnesty of capital, earned from… – Continue reading

Implementation problems in connection with the FATCA Agreement

The BMF has application letter sent to the chief financial authorities of the countries associated with the between the Federal Republic of Germany and the United States of America concluded by 31.5.2013 FATCA Agreement. Background Background of extensive, comprehensive 71 pages, application letter from the Federal Ministry of Finance on… – Continue reading

Commentary: In face of ‘tax haven’ attack, CARICOM must unite

No member state of the Caribbean Community (CARICOM) ranks among the top 20 jurisdictions worldwide for financial secrecy. The United States of America (at number 3), Germany (8), Japan (12) and Britain (15), all rate as bigger tax havens than any CARICOM jurisdiction, according to the Tax Justice Network (TJN),… – Continue reading

In face of ‘tax haven’ attack, CARICOM must unite | Sir Ronald Sanders

ST. JOHN’S, Antigua, Friday November 6, 2015 – No member state of the Caribbean Community (CARICOM) ranks among the top 20 jurisdictions worldwide for financial secrecy. The United States of America (at number 3), Germany (8), Japan (12) and Britain (15), all rate as bigger tax havens than any CARICOM… – Continue reading

Changes to the BVI Anti-Money Laundering Regime

The BVI has announced amendments to its Anti-Money Laundering (AML) regime in order to ensure continued compliance with developing international standards on transparency and AML regimes. Amendments to the legislation have recently been published (Code of Practice and Regulations) and the proposed changes are to take effect on 1 January… – Continue reading

NZ needs to act on cash laundering

New Zealand would do worse than Australia if it was audited right now by the body that sets standards for combating money laundering and the financing of terrorism, says the organisation’s former boss. Roger Wilkins, immediate past-president of the Financial Action Task Force (FATF), said criticisms of Australia after an… – Continue reading

FATF Declaration on Removing Sudan from its List a Step towards Lifting Sanctions

Khartoum – Ministry of Justice Undersecretary and Chairman of the National Committee of Money Laundering Combating, Ahmed Abbas affirmed that the declaration of the Financial Action Task Force (FATF) according to which Sudan was removed for list of countries whose systems are in neglect of combating money-laundering and financing terrorism… – Continue reading

Israel looks to join int’l anti-money laundering task force

A Financial Action Task Force (FATF) delegation visits Israel this week to consider Israel’s application for membership. “Israel is working tirelessly to upgrade its standing as a regional leader in the struggle against money laundering and financing of terrorism through persistent regulatory changes and a more effective regime. Up until… – Continue reading