04 | Fighting tax evasion challenges: A 2023 look-back
As we collectively wound down 2023 and considered our progress, we asked ourselves questions; one of many was, 'How did the industry perform'?
We often hear the expression, 'do more for less,' as a driver for compliance investment. This has been true for years as the business side of financial institutions pushes back against a twenty-year crush of regulatory requirements and reviews. At the same time, the risk and the creativity of persons and entities trying to use the institutions to advance their ends are increasing.
Trans World Compliance has to not only compete against our competitors but also compete for priority for investment for financial institutions' risk. We focus on addressing tax evasion. Is this effort as compelling as other forms of risk for a financial institution? I say Yes; it is corruption and a cost to society, just like proceeds of crime from narco-trafficking, human trafficking, arms dealing, fraud, and other societal costs.
The other significant point to consider, by comparison, is that tax avoidance is an easy crime to correct. Our solution is easy to put in place, and, done correctly, it's a solution that can run effectively open-ended. Fix it once; it is simpler than other efforts to detect risk —ask the right questions, screen the investor data, consider the indicia for reporting, hit the button, and repeat in the subsequent year—.
We hear that a roadblock to investing in our solution is fraught with issues such as 'dirty' or incomplete data. But isn't that true for addressing any aspect of risk for an institution? We should politely not accept this as an excuse.
To address the initial question more narrowly, 2023 was broadly a challenging year for companies providing services and solutions to manage financial institutions' risk. Think how often we had prospects delay projects because this initiative was below the cut line for priority and investment. Sadly, we have that in common with other companies and a general dissatisfaction with 2023 results compared to expectations. By the way, if we look at the 2023 financial results for the largest US banks, they had a great year. So...
My point is, if our prospects keep putting off implementing our solution, they will look forward to the recurring nightmare of filing something with great difficulty while knowing the submission is incomplete and inaccurate —hoping regulators also have other priorities so they can fly under the radar again, and the recurring agony is now a year off into their future—.
We will fix it for you.
Daniel Peak, Chairman
TWC's Spotlight
Blog | 2024 CRS and FATCA Reporting Season: Insights and Strategies
The onset of the 2024 reporting season marks a critical period for financial institutions worldwide as they navigate the complexities of complying with the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). These regulations, designed to combat tax evasion and promote transparency in financial dealings, impose stringent reporting requirements.
As international financial regulations evolve, staying up-to-date on these changes is not just a matter of legal compliance but also of strategic importance for financial institutions.
Learn about the updates and changes, common challenges, and the pivotal role of technology in simplifying compliance.
Podcast | Beneficial Ownership and PEPs in Jamaica with Fabian Sanchez
In today's financial landscape, the concepts of Beneficial Ownership and Politically Exposed Persons (PEPs) have become critical focal points in the global fight against money laundering and terrorist financing.
Jamaica, like many nations, has faced challenges in aligning its Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) measures with international standards, particularly those set by the Financial Action Task Force (FATF). The country's recent listing for increased monitoring underscores the urgency of addressing these deficiencies.
Discover the importance of Beneficial Ownership and Politically Exposed Persons (PEPs) in Jamaica's fight against money laundering and terrorist financing.
Our solutions
We are proud to announce the launch of the French version of our flagship product, CRS/FATCA One. This expansion underscores our commitment to delivering comprehensive compliance solutions tailored to the needs of global financial institutions and tax authorities.
By offering a French version of this innovative tool, Trans World Compliance aims to serve French-speaking clients better and facilitate compliance efforts in French-speaking jurisdictions.
Contact us now to start complying in French!
Upcoming Events
STEP Benelux Conference 2024
We are proud to sponsor this year's STEP Conference in Amsterdam, Netherlands, on March 14 and 15.
Being a part of this significant event in the financial sector is an honor, especially as a sponsor. I'm excited to meet leading speakers from the Benelux countries, hear about the new challenges facing wealth management and estate planning, and learn how Tax Authorities are exchanging and communicating information. (Daniela Peña, Lead Executive Generator at TWC)
Let Nicolás Londoño, Daniela Peña, or Eugenie Meijer know you're going; they would love to chat with you there.
Industry News
Changes in the FATF 'grey list'
The latest Financial Action Task Force FATF Plenary occurred in Paris from February 21 to 23, resulting in changes in the 'grey list'.
Barbados, Gibraltar, Uganda, and the United Arab Emirates are no longer subject to increased monitoring by the FATF. However, two African countries, Kenya and Namibia, are now subject to increased monitoring.
For more information click here.
Reporting Deadlines
March
By March 31, Curaçao and Belize must report CRS and FATCA, and Turks and Caicos must exchange CRS. Additionally, all model 2 IGA and non-IGA countries must report FATCA.
April
Aruba and Japan have their CRS deadlines on April 30, while Malta must report CRS and FATCA by the same date.
A final thought
At TWC, we are committed to helping you navigate the ever-changing landscape of compliance and regulations. Whether you have questions, require assistance, or seek innovative solutions, we support you.
Don't hesitate to Contact Us for all your compliance needs. Our team of experts is ready to assist you.
Thank you for being a part of our compliance community. Together, we can stay fully compliant and drive excellence in regulatory technology.
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