Archive for June, 2010

Qatar’s new legislation curbs money laundering

Friday, June 18th, 2010

The rules and regulations regarding anti-money laundering and counter-terrorist financing that were followed by the Qatar’s 3 financial sector regulatory bodies have now been aligned with the jutrisdiction’s new law on this aspect. This was announced by the National Anti Money-Laundering and Combating Terrorism Committee (NAMLC).

On June 17, the NAMLC issued a statement to praise the collective efforts of those who deal with developing a regulatory infrastructure in line with the NAMLC’s AML/CFT national vision and strategy and the highest demands of AML/CFT international best practice.

It should be noted that an 18-month intensive review of legislative framework on anti-money laundering and combating financing of terrorism (AML/CFT) was recently completed in Qatar. As a result, Qatar’s new Law No. (4) of 2010 on Anti-Money Laundering and Combating the Financing of Terrorism (Law) was enacted, which commenced on April 30.

It is worth noting that before the enactment a tripartite committee of financial sector regulatory bodies, formed by the Qatar Central Bank, Qatar Financial Markets Authority and the Qatar Financial Centre Regulatory Authority were involved in a highly collaborative exercise aimed at coordinating and harmonising their respective AML/CFT rules and regulations.

NAMLC said: “Each body’s AML/CFT rules and regulations have now been brought into force and have been designed to ensure alignment both with the new law and their compliance with Financial Action Task Force (FATF) recommendations and standards”.

AML Partners identifies Money-Laundering Risk for different countries

Wednesday, June 9th, 2010

On June 8, AML Partners released the latest version of Country Evaluator, a list that rates countries as they pertain to Anti Money Laundering and Sanctions risk.

AML Partners is a consulting company that helps financial institutions comply with the Bank Secrecy Act.

The Country Evaluator can be utilized by financial institutions to conduct risk assessments of their customer base. It can also be used for determining the level of monitoring needed for customer transactions depending on the level of anti-money laundering risk the country possesses.

US tables new Anti-Tax Haven Legislation

Tuesday, June 1st, 2010

A new piece of anti-tax haven legislation has been introduced into the US House of Representatives by Lloyd Doggett (D-Texas).

HR 5328, The International Tax Competitiveness Act, includes many clauses previously included in similar pieces of legislation that did not make it to the statute book due to Republican resistance. Doggett was one of the sponsors of the Stop Tax Haven Abuse Act. That law was not passed, however, much of it was incorporated in the Foreign Account Tax Compliance Act of 2009 (HR 3933, S 1934), which became law as part of the Hiring Incentives to Restore Employment (HIRE) Act, changing the system of withholding on payments made to non-US persons.

Key points of the new legislation would be as follows:
– to tighten corporate residency rules to prevent corporations with a preponderance of US officers from basing themselves overseas;
– to make it much more difficult for corporations to receive income from IP assets in foreign (low-tax) jurisdictions;
– to repeal the 80% ‘active income’ provision;
– to repeal the ‘boot-within-gain’ rule which allows favorable tax treatment of dividends paid during corporate reorganizations.

It should be noted that previous attempts to pass clauses like the above-mentioned have met resistance from major business organizations and from Republicans in general.