Archive for the ‘Anti-Money Laundering News’ Category

US Offshore Disclosure Revenue above USD 10 billion

Wednesday, October 26th, 2016

With 55,800 taxpayers participating in the US Offshore Voluntary Disclosure Program (OVDP) since 2009, the Internal Revenue Service (IRS) announced that it has collected more than USD 9.9 billion in taxes, interest, and penalties from the initiative to date.

The IRS added that another 48,000 taxpayers have used the streamlined filing compliance procedures to correct prior non-willful omissions and meet their federal tax obligations, paying approximately USD 450 million in taxes, interest, and penalties.

Both the Offshore Voluntary Disclosure Program and the streamlined procedures allow taxpayers with undisclosed income from foreign financial accounts and assets to correct and regularize their affairs while mitigating penalties.

IRS Commissioner John Koskinen said: “The IRS has passed several major milestones in our offshore efforts, collecting a combined USD 10 billion with 100,000 taxpayers coming back into compliance. He noted that, when receiving more information on foreign accounts, people’s ability to avoid detection becomes harder and harder. So, the IRS urges those people with international tax issues to come forward to meet their tax obligations.

Besides the OVDP and the streamlined procedures, the IRS noted that, under the Foreign Account Tax Compliance Act and the network of inter-governmental agreements between the US and partner jurisdictions, automatic third-party account reporting has entered its 2nd year.

EU signs agreement with IOTA to fight Tax Evasion

Friday, July 29th, 2016

An Agreement for Cooperation has been signed by the Intra-European Organisation of Tax Administrations (IOTA) with the European Commission to allow them to work more effectively towards the common goals of the two bodies – particularly, cracking down on tax evasion.

According to an announcement made by IOTA on July 26, the main areas of collaboration under the agreement include cooperating in the fight against tax fraud, information exchange, providing mutual assistance, supporting tax authorities to improve taxpayer compliance rates, and supporting capacity building.

The agreement between IOTA and the Taxation and Customs Union Directorate General (DG TAXUD) of the European Commission was signed during IOTA’s General Assembly on July 7 in Bucharest by IOTA’s President, Octavian Deaconu, and Caroline Edery, Head of Unit, Tax Administration and Fight Against Tax Fraud, DG TAXUD.

IOTA is a non-profit intergovernmental organization based in Budapest that is aimed at promoting best practices in tax administration and more effective cooperation between its 46 member tax authorities.

Singapore Authority sets up AML department

Monday, June 13th, 2016

The Monetary Authority of Singapore (MAS) has announced establishing a dedicated anti-money laundering department aimed to combat illicit financial activities.

The regulator will set up a dedicated supervisory team in order to monitor illicit financing risks as well as carry out onsite supervision of how financial institutions manage these risks.

Before, these functions were carried out by different departments in MAS. Now, the new structure is to enhance supervisory focus.

Ravi Menon, Managing Director of MAS, said: “We will strengthen our supervision of financial institutions’ controls to combat money laundering and illicit financing. And we will enhance our enforcement capability to deter poor controls or criminal behaviour in the industry”.

FATF grants Israel observer status

Friday, February 26th, 2016

The Financial Action Task Force (FATF) has announced that Israel will join the organization as an observer starting June 2016.

The admission is a significant step in the application process for joining the prestigious group, which sets the global rules for combating money laundering and terror financing. Joining the authority will allow Israel to participate in shaping global policy and position it as one of the leading countries in the international fight against money laundering and terror financing. Also, the announcement is to support the Israeli economy by providing the country an unofficial stamp of approval for its financial sector.

Israel’s Money Laundering and Terror Financing Prohibition Authority chief Dr. Shlomit Wagman-Ratner said: “The decision to accept Israel into the FATF – an important, prestigious, and influential group – reflects the contribution of Israel to the global fight against money laundering and terror financing and signals that Israel is a leading country with expertise in the sector.”

Angola removed from Money Laundering Blacklist

Saturday, February 20th, 2016

The Financial Action Task Force (FATF) has removed Angola from its blacklist of jurisdictions that fail to meet international standards.

The FATF added this southern African country to the list in 2010. The Angolan central bank said the FATF’s decision came after the country implemented reforms that included licensing of banks and setting up a Financial Intelligence Unit, which collects information on suspicious or unusual financial activity.

The removal is expected to improve the credit quality and financial institutions of Angola.

Last year, the risk of financial crime and difficulty in monitoring clients forced Standard Chartered to announce it had ended its dollar-clearing operations with commercial banks in Angola. Bank of America also stopped selling Angolan banks the greenback from the beginning of December 2015.

Australia considers tighter AML rules for real estate and gems

Monday, January 25th, 2016

Australia is considering tightening its anti-money laundering regulations to include real estate agents and precious stone dealers, following red flags from a global watchdog over potential illicit cash entering the country.

While tighter regulations would not be aimed at inflows from any one country, Australian authorities are reacting following a surge of cash from wealthy Chinese buyers looking for a safe haven away from the market turmoil of their home markets. Purchases of pink diamonds by Chinese have increased. About 70% of Chinese real estate buyers pay in cash.

According to the Financial Action Task Force (FATF), a lack of scrutiny by Australian authorities in the property and precious stones sectors was “an increasing high risk” in the global fight against money laundering and financing of extremists.

Australia’s Attorney General’s Department, responsible for the country’s law and justice framework, is reviewing its rules to address those concerns, people familiar with the plans said. The rules already cover banking, remittance and gaming.

Swiss Government Adopts New Anti-money Laundering Rules

Wednesday, November 11th, 2015

On November 11, 2015, the government of Switzerland adopted new rules aimed to clamp down on money laundering as the country seeks to cast off its reputation as a haven for hidden cash.

The new rules, which follow recommendations by the Financial Action Task Force (FATF) last year, establish fresh due diligence requirements for traders when they accept cash payments of more than 100,000 Swiss francs (USD 99,500).

According to the statement made by the Swiss government, they also change the way in which religious foundations are registered in Switzerland and will come into force at the start of the year 2016.

Switzerland was reminded of its reputation as a place for the wealthy to hide assets this year when media outlets published leaked documents suggesting HSBC’s Swiss private bank helped customers dodge taxes.

In June, the Swiss banking association had said that the country’s banks would beef up anti-money laundering measures through transparency rules due to come into force next year.

Money laundering to become difficult in next 1-2 years, Indian Finance Minister says

Thursday, November 5th, 2015

According to Arun Jaitley, Minister for Finance, Corporate Affairs, Information, and Broadcasting in the Government of India, tax evasion and money laundering will become extremely difficult in the future. He warned lawbreakers that real-time global automatic exchange of information system will come into effect.

Indian finance minister said: “I am quite certain that the activity is going on in that direction and the next 1-2 years are also going to bring significant results because with almost real-time exchange of information, lives are going to become extremely difficult as far as lawbreakers in that regard are concerned,” the minister said in his inaugural speech at international conference on ‘Networking the Networks’.

Jaitley noted that tax evasion and stashing away illegal money anywhere in the world is becoming increasingly difficult after a G20 initiative that is being taken up by various international institutions.

The initiative, firmed at the Australia summit of G20 last November, is a new global arrangement under which countries will begin automatic exchange of tax information in stages beginning April 1, 2017. India, one of the early adopters, will begin sharing from the first date. Also, the OECD has recently announced the rules for the Base Erosion and Profit Shifting (BEPS) framework, which seeks to ensure that trans-nationals pay tax at least at some place.

Swiss banks to harden AML measures

Tuesday, June 30th, 2015

According to the Swiss banking association, Switzerland’s banks will beef up anti-money laundering measures. This was announced weeks after a report by a government-appointed group found the Alpine nation was still vulnerable to financial crime.

More transparent rules are to come into force in 2016 to make it harder for criminals to hide their money in companies or schemes with obscure ownership structures.

The measures were announced as Switzerland investigates alleged corruption at Zurich-based FIFA, world soccer’s governing body, in connection with World Cup bids. United States’ prosecutors are also investigating alleged money laundering schemes by soccer officials.

The Swiss Bankers Association said in a statement that fighting against money laundering and terrorist financing are central issues for the Swiss financial centre. It announced that from 2016, bank would face a new requirement to identify the controlling owner of legal entities and private companies. This would mean any individual with a stake of more than 25% or exercising effective control. If no one who meets these criteria, banks must instead identify the highest-ranking employee.

The announcement follows a report this month from a Swiss interdepartmental group on combating money laundering and terrorism financing, in which it recommended measures to improve rules tackling financial crime.

AML/CFT Workshop to be held in Seychelles

Friday, August 1st, 2014

The Centre for Legal Business Studies (CLBS) with the support of the Seychelles’ Financial Services Authority (FSA), will be hosting an Advanced Workshop on Anti-Money Laundering and Counter Terrorist Financing. The event will be held on August 11-12, 2014 at the Le Meridien Fishermen’s Cove Hotel, Bel Ombre, Seychelles.

As Anti-money Laundering & Counter Financing (AML/CFT) compliance has become increasingly complex, level of examiner expectations has become corresponding. AS a result, there is a need for seasoned compliance personnel to learn and to know how to put in practice.

The workshop will provide an up to date, current regulatory information, particularly in the areas of risk assessments, suspicious activity surveillance, customer due diligence, impact from emerging products/services, vendor management, and increasing Anti-money Laundering and Counter Financing program expectations.