FIU Mauritius: Guidelines for Law Firms (Law firm, foreign law firm, joint law venture, foreign lawyer)

Law Firms provide a wide range of services, including preparing for or carry out transactions for their clients. Characterized as ‘gatekeepers’ by the FATF, because they “protect the gates to the financial system,” used for certain transactions by their clients., Law Firms can therefore play a key role in the detection of money laundering and financing of terrorism schemes.

This Guideline has been issued pursuant to section 10(2) (ba) of the Financial Intelligence and Anti Money Laundering Act (FIAMLA) 2002, as amended by the Economic and Financial Measures (Miscellaneous Provisions) Act 2013. They are intended to assist Law Firms in complying with their obligations in relation to the prevention, detection and reporting of money laundering, financing of terrorism and proliferation. In the process, the legal profession will not be misused by money launderers or those involved in dubious transactions. 

FIU Mauritius: Guidelines for Law Practitioners (Barristers, Attorneys, Notaries)

Law practitioners provide a wide range of services, including preparing for or carry out transactions for their clients. Characterized as ‘gatekeepers’ by the FATF, because they “protect the gates to the financial system,” used for certain transactions by their clients., Law Practitioners can therefore play a key role in the detection of money laundering and financing of terrorism schemes.

The document has been issued pursuant to section 10(2) (ba) of the Financial Intelligence and Anti Money Laundering Act (FIAMLA) 2002, as amended by the Economic and Financial Measures (Miscellaneous Provisions) Act 2013. They are intended to assist law practitioners in complying with their obligations in relation to the prevention, detection and reporting of money laundering, financing of terrorism and proliferation. In the process, the legal profession will not be misused by money launderers or those involved in dubious transactions.

AIMA publishes ‘The Case for Hedge Funds’

The Alternative Investment Management Association (AIMA), the global hedge fund industry body, has published “The Case for Hedge Funds”, a compilation of AIMA’s thought-leadership research since the global financial crisis.

The 28-page booklet summarises the themes that AIMA has explored since 2008 as it sought to demonstrate the value of the world’s hedge fund industry to investors, financial markets and the broader economy.

It includes excerpts from AIMA’s key research papers, including the “Roadmap to Hedge Funds”, the first guide about hedge funds to be produced collaboratively by the industry and investors; “The Cost of Compliance”, a global survey of managers that revealed the significant investments they are making in order to comply with the new regulatory requirements; “Beyond 60/40”, which demonstrated the different roles that hedge funds play in institutional investors’ portfolios; and “Apples and Apples”, an educational guide to understanding hedge fund performance.

There are also extracts from many of AIMA’s white papers and articles on a range of topics including the industry’s social utility, the impact of institutionalisation, shadow banking, short selling and the industry’s reputation.

AIMA CEO Jack Inglis said: “Ever since the onset of the financial crisis, AIMA has worked tirelessly to demonstrate the case for hedge funds to policymakers, regulators, investors and the media. We have now pulled these various arguments and pieces of research together into a major compendium of our work. This work of course continues. We have more research in the pipeline which will enable us to continue to demonstrate the value of the hedge fund industry to the broader economy.”

HMRC strikes tax deal with the Seychelles

The Seychelles is the 46th country to commit to sharing tax information with the UK, France, Germany, Italy and Spain as part of a G5 initiative.

Launch Of AfrAsia Bank Mauritius Open

The AfrAsia Bank Mauritius Open was launched today, 28th of August 2014, at the C Beach Club at Heritage Resorts on Domaine de Bel Ombre, becoming the first ever tri-sanctioned golf tournament endorsed by the Sunshine, European and Asian Tours.

The tournament, which is expected to draw top performing golfers from each of the three Tours, will be played at the Heritage Golf Club from 7 – 10 May, 2015. The golf club, recently ranked amongst the top-10 golf courses in Africa by global news broadcaster CNN, was chosen as the perfect venue for the three Tours to come together. The total prize fund of €1-million available to the professional golfers is the highest prize purse ever to be paid out for a tournament held in Mauritius.

Selwyn Nathan, Executive Director of the Sunshine Tour, said: "We are delighted to be joining the Asian and European Tours in staging the first-ever tri-sanctioned event in Mauritius. We enjoy excellent relationships with both Tours, and are proud to already be a vital 'swing' on the European Tour, during the Northern Hemisphere's winter months. This ground-breaking tournament in Mauritius will bring the three Tours ever closer and, importantly for us, offer our members another opportunity to compete at the highest levels on the world stage."

Heritage Golf Club is an enterprise of the Rogers Group, a listed company on the Stock Exchange of Mauritius with more than 4000 employees and serving clients in various business domains. Rogers has been actively involved in the development of the tourism industry, and as such attractive travel packages will be available at Heritage Resorts for fans and golfers alike, to enjoy the splendour of Mauritius.

The 136-man field, made up of at least 40 professionals from each of the participating Tours plus qualifiers and local invitees, will compete in a 72-hole stroke play championship over four days. The results from this tournament count towards the individual Tours’ Orders of Merit and Official World Ranking points, Race to Dubai and Chase to the Investec Cup.

Keith Waters, The European Tour’s Chief Operating Officer and Director of International Policy, said: “We enjoy a strong relationship with both the Asian Tour and the Sunshine Tour, and we are delighted to bring these two partnerships together for the first time in Mauritius for this premiere tri-sanctioned event. The players will all enjoy playing the Heritage Golf Club course and visiting Mauritius, sampling the island’s renowned hospitality. Golf is a major part of Mauritius’ tourism strategy and through the support of AfrAsia Bank, Air Mauritius, Rogers, Villas Valriche, Anahita Mauritius and the Mauritius Tourism Promotion Authority amongst others, the tournament will showcase the island to a worldwide television audience as part of The 2015 Race to Dubai.”

Mike Kerr, CEO of the Asian Tour, added: “The Asian Tour is delighted to break new ground with the launch of the AfrAsia Bank Mauritius Open, which will be a milestone in the history of the Asian Tour as it will be the first time that the Asian Tour, European Tour and Sunshine Tour are joining forces to sanction what is poised to be a truly exciting and historic golf tournament. It will be tremendous for Mauritius to play host to the finest golf stars from the three continents and through the Asian Tour to further promote the island and all of the partners to golf fans in Asia. On behalf of our talented players, I wish to thank all the sponsors for their support of the AfrAsia Bank Mauritius Open.”

Commenting on the tournament, Christophe Curé, the President of the Mauritius Golf Federation said: “It is with great honour that the Mauritius Golf Federation is hosting the three Tours, and playing a key role in organising this one-of-a-kind tournament. Together with the sponsors of this exciting new tournament, the Open will play a pivotal role in helping us to grow the game of golf on the island, and draw the world’s attention to our outstanding courses. This tournament promises to be a world class golfing event, and we look forward to welcoming the golfers, and fans alike to the AfrAsia Bank Mauritius Open in May next year.”

“We are honoured to be the official sponsor of this first of its kind tri-sanctioned tournament in Mauritius and promoting golf as a key passion point. As a private and corporate bank, our aim is to be in line with supporting a sports partnership strategy that is aligned with business diversity and international presence, and the AfrAsia Bank Mauritius Open provides us with the unique opportunity to build on our sporting heritage while providing priceless experiences to our clients, and at the same time mapping Mauritius as a lifestyle, financial and logistics hub”, says James Benoit, CEO of AfrAsia Bank

“We are very grateful for the support we have received from our sponsors. We believe that these partnerships will only grow from here to deliver one of the very best golfing events in the world,” said Ryan Dodds the Heritage Golf Club Director.

Sponsors for the event include the AfrAsia Bank, Heritage Resorts, Rogers, Air Mauritius, Anahita Mauritius, Villas Valriche and Mauritius Tourism Promotion Authority.

Karl Mootoosamy the Director of the Mauritius Tourism Promotion Authority said in conclusion, “I believe I speak on behalf of all Mauritians when I say we are delighted to be the hosts of this tournament. It will not only contribute to the development of the sport in Mauritius, but it will also showcase the beauty of our country. From our famous white sand beaches, and clear blue waters, coupled with the warm tropical weather, Mauritius is the perfect destination for the visitors. We can’t wait to treat all the golfers and fans, to our famous Mauritius hospitality.”

The AfrAsia Bank Mauritius Open looks set to attract not only top professional golfers, but also golfing fans from around the world, for this exciting four-day tournament.

Allen & Overy - Unbundling a market: The appetite for new legal services models

For both buyers and providers of legal services, this is an exciting time to be involved in the legal market. The industry faces unprecedented change. In response, companies are seeking out innovations in the way they procure, use and interact with providers of legal services.

To deepen our understanding of the critical issues, Allen & Overy commissioned independent research into how the delivery of legal services is changing around the world. The result is this report, based on the views of almost 200 senior buyers of legal services at companies with a collective annual legal budget of nearly GBP3.5 billion.

The findings will help organisations benchmark their use of legal providers and illuminates some of the innovative, hybrid and collaborative approaches that are being adopted across the world as legal services are increasingly unbundled.

Mauritius: Career Opportunities in the Financial Services Sector

Vacancies now available at Mauritius International Trust Company Limited (MITCO)

The Cayman Edge: How To Set Up a Cayman Fund

The Cayman Edge is the ideal guide to funds in the Cayman Islands. Whether you are an emerging manager, a family office, a service provider or a curious student of global finance, this book is the clearest introduction to this industry currently available.

Isle of Man: Jurisdictional Comparison Tool

The Department of Economic Development has recently developed an online tool comparing key jurisdictional information, which has now gone live.

The Jurisdictional Comparison includes data for 19 jurisdictions and comprises details of a jurisdiction's sectors, economy, legal and political system and demographics.

It has been created with the aim of allowing those interested in the Isle of Man as a place to do business or live to compare it to other locations. 

The Jurisdictional Comparison can be found here

BBC Radio 4: A Law Unto Themselves - Eva Joly

Helena Kennedy talks to the internationally renowned investigative judge Eva Joly who has devoted much of her life to fighting corruption in the upper echelons of French business and political life - relentlessly investigating and prosecuting people whom she believes consider themselves above the law.

The Norwegian-born judge talks about her seven year long investigation into a multi-billion euro fraud involving the state-owned Elf oil company. Thirty people were eventually convicted and senior members of former President Francois Mitterand's government implicated after Eva Joly revealed that company directors had siphoned off billions of francs to pay for bribes and luxurious lifestyles.

She tells Helena Kennedy about how she received death threats and was placed under 24 hour police protection, placing intolerable pressure on her family - eventually resulting in the break-up of her marriage.

The pressures of the investigation only re-enforced her determination to continue with the case, and bring the guilty to justice. She believes the conviction sent out a sign that power and wealth does not bring impunity from the law.

More recently she has switched careers and entered politics, becoming an MEP for the Green Party....but the fight against corruption, not just in France but throughout the world, remains her driving cause. She believes the crimes she has uncovered are merely the tip of an iceberg.

Appleby reports offshore incorporation activity for the second half of 2013

New company registrations increased in most offshore jurisdictions in the second half of 2013, according to Appleby, one of the world’s largest providers of offshore legal, fiduciary and administration services.

In total, there were 44,615 new offshore company incorporations in the second half of 2013, and the total number of active companies rose to 671,000, according to the firm’s latest On the Register report, which provides insight and data on company incorporations in offshore financial centres and is focused primarily on the second half of 2013.

“As the global economy follows a path to recovery, offshore company registration data reveals that levels of new company registrations are up in most jurisdictions during the second half of 2013, with an increase of between 5% and 10%,” said Farah Ballands, Partner and Global Head of Fiduciary & Administration Services at Appleby.

Overall, the combined total of new offshore incorporations in the second half of 2013 represents a slow-down compared to the preceding six months, the report found. Appleby attributed much of the pull-back to a decline in incorporations in the British Virgin Islands (BVI) — which is the offshore jurisdiction that attracts the most company registrations. Though it maintained a two-fold lead over its nearest comparator, the Seychelles, the number of new companies joining the BVI register shrank by 17% when compared to the first half of the year.

The story of company incorporations is largely positive with the Cayman Islands being the only other offshore jurisdiction to report a decrease in new registrations in the second half of 2013 when compared to the first half of the year. However, the report attributed the decrease to a seasonal decline in company registrations and, when looking at 2013 as a whole, Cayman experienced a healthy 5% growth.

During the second half of 2013, the Crown Dependency jurisdictions of the Isle of Man and Guernsey revealed the largest increases in new companies joining the registers at 10% and 9%, respectively, over the previous half. The number of new companies added to the register in Mauritius, meanwhile, was up 8% on the previous period.

The largest year-on-year increase was seen in the Seychelles (29%), followed by Bermuda (16%), which saw a recent high in new incorporations — more than 1,000 annually for the first time since 2008.

Other findings in the report include:

• BVI continues to dominate offshore new company registration activity by volume, and maintained a two-fold lead ahead of its nearest comparator, the Seychelles.
• Newly registered companies in Mauritius and the BVI each make up 12% of their local registry total, ahead of all the other offshore jurisdictions.
• Mauritius is the offshore jurisdiction witnessing the fastest growth in the number of companies on its local register, with a 13% increase on 2012 to 18,560. The next biggest growth (3%) came from Bermuda.

Download the On The Register offshore incorporations report

CDP - International co-operation in cross-border insolvencies: smoothing the path for foreign liquidators in Hong Kong

A recent decision of the High Court of the Hong Kong Special Administrative Region (SAR) should make the task of liquidators of the British Virgin Islands (BVI), Cayman Islands and other foreign companies more straightforward in the region.

The application, which came before Hon Harris J in July 2014, concerned a company incorporated in the Cayman Islands that was wound up by order of the Cayman Grand Court. The liquidators applied to the Hong Kong court for recognition of the Cayman liquidation and for an order that the respondents produce certain documents to the liquidators. The application was made by means of a letter of request by which the Cayman court requested the Hong Kong court to make the orders described.

As Harris J observed, under principles of private international law, the authority of a liquidator whose appointment is recognised by the laws of the place of incorporation should be recognised in Hong Kong without the need for an application to the court…

To continue reading full article in PDF format, click below to view:

International co-operation in cross-border insolvencies: smoothing the path for foreign liquidators in Hong Kong

HMRC - Tackling offshore tax evasion: Strengthening civil deterrents

HMRC published an update to its offshore evasion strategy on 14 April 2014. This consultation is intended to explore the design of tailored sanctions to more effectively deter tax non-compliance linked to income and gains arising and assets held offshore.

HMRC welcome views on the design of the proposed options. This supports and builds on the regime for increased penalties for non-compliance involving offshore matters.

This consultation takes forward HMRC’s strategy for tackling offshore evasion, No Safe Havens. An update on this strategy was published in April 2014.

HMRC - Tackling offshore tax evasion: A new criminal offence

The Government has announced its intention to introduce a new strict liability criminal offence. This consultation seeks views on the design of this offence.

HMRC would be interested to hear from tax and legal professionals, and those involved in offshore investments, including taxpayers who may be affected by the new offence.

This consultation takes forward HMRC’s strategy for tackling offshore evasion, No Safe Havens. An update on this strategy was published in April 2014.

UK Financial Conduct Authority - Financial crime: high risk jurisdictions

We categorise jurisdictions in accordance with the current level of risk posed by firms and other actors operating in these jurisdictions and the impact they may have on the FCA’s financial crime objectives. In particular, these objectives are linked to tackling money laundering, sanctions systems and controls, terrorist financing, and bribery and corruption. These responsibilities are an integral element of our statutory duties as a financial regulator. Our risk also considers the size of a country’s economy (GDP) and the financial markets within the jurisdictions concerned.

The list is one of a number of tools used by our Authorisations Division to help inform the effective assessment and processing of applications from firms seeking to conduct regulated financial service activities in the UK. As with the other tools used internally by our Authorisations Division, the list aims to ensure that appropriate consideration is given to all of the different facets of the applicant firm. It does not serve to exclude firms from operating from, or being active in, the jurisdictions featured on the list. Moreover, it does not impose any new requirements on firms as we expect firms to conduct their own thorough risk assessments and apply proportionate systems and controls.

Jurisdictions are assessed using a broad range of publicly available information and indices. These include: HM Treasury Sanctions publications, the Financial Action Taskforce high-risk and non-cooperative jurisdictions list in relation to anti-money laundering (AML) and the financing of terrorism, MoneyVal evaluations, Transparency International Corruption Perception Index, the Foreign & Commonwealth Office (FCO) Human Rights Report, the UK Government’s Overseas Business Risk webpages the US Department of State International Narcotics Control Strategy Report and other public information about financial crime issues affecting each jurisdiction.  

During supervisory visits to assess firms’ AML controls, we tend to focus on business relationships which have higher risk factors. The factors we take into account include, but are not limited to: country risk, company structures, political connections, the customer’s or beneficial owner’s reputation, source of wealth, source of funds, expected account activity, sector risk, and involvement in public contracts.This is consistent with the guidance we have issued to firms on AML risk assessment in our document Financial Crime: A Guide for Firms.

Transparency is at the heart of the FCA’s approach to regulation and we are committed to disclosing information in a way that can be clearly understood by all market participants. The list will be reviewed on a quarterly basis to take account of legislative and regulatory developments within the jurisdictions concerned.  The FCA will also continue, on an ongoing basis, to monitor and identify additional jurisdictions which should feature on the list.  

The list is currently undergoing its quarterly review and an updated list will be published in due course. 

High risk country list: previous edition

• Afghanistan
• Algeria
• Angola
• Argentina
• Azerbaijan
• Bahrain
• Bangladesh
• Belarus
• Benin
• Bolivia
• Bosnia and Herzegovina
• Brazil
• Bulgaria
• Burundi
• Cambodia
• Cayman Islands
• China
• Colombia
• Republic of the Congo
• Democratic Republic of Congo
• Cuba
• Djibouti
• Dominican Republic
• Ecuador
• Egypt
• Equatorial Guinea
• Eritrea
• Ethiopia
• Fiji
• Gabon
• Guatemala
• Guinea
• Guinea-Bissau
• Haiti
• Honduras
• India
• Indonesia
• Iran
• Iraq
• Israel
• Ivory Coast (Cote d'Ivoire)
• Jamaica
• Kazakhstan
• Kenya
• Korea (North)
• Kosovo
• Kuwait
• Kyrgyzstan
• Laos
• Latvia
• Lebanon
• Liberia
• Libya
• Malaysia
• Mali
• Mexico
• Montenegro
• Morocco
• Myanmar
• Nauru
• Nepal
• Nicaragua
• Niger
• Nigeria
• Pakistan
• Palestine
• Panama
• Romania
• Russia
• Saudi Arabia
• Serbia
• Seychelles
• Sierra Leone
• Somalia
• South Africa
• Sri Lanka
• Sudan (North)
• Sudan (South)
• Suriname
• Swaziland
• Syria
• Tajikistan
• Tanzania
• Thailand
• Tunisia
• Turkey
• Turkmenistan
• UAE
• Ukraine
• Uzbekistan
• Vatican City
• Venezuela
• Yemen
• Zambia
• Zimbabwe

IMF Working Paper No. 14/149 - Islamic Finance in Sub-Saharan Africa: Status and Prospects

Islamic finance is a fast growing activity in world markets. This paper provides a survey on Islamic Finance in SSA. Ongoing activities include Islamic banking, sukuk issuances (to finance infrastructure projects), Takaful (insurance), and microfinance. While not yet significant in most Sub-Saharan countries, several features make Islamic finance instruments relevant to the region, in particular the ability to foster SMEs and micro-credit activtities. As a first step, policy makers could introduce Islamic financing windows within the conventional system and facilitate sukuk issuance to tap foreign investors. The entrance of full-fleged Islamic banks require addressing systemic issues, and adapting the crisis management and resolution frameworks. The IMF can play a role by sharing international experiences and providing advice on supervisory and regulatory frameworks as needed.

Enhancing Business Opportunities in Africa: The Role, Reality and Future of Africa-Related Arbitration

• Doing Deals in Africa: What is Different and What is Not
• Africa Rising? Prospects for the Emerging African Arbitral Venues
• Balancing Legitimacy and Sovereignty in International Investment Treaties and Arbitration: 
• Perspectives from and regarding Africa 
• Compensation, Damages and Valuation in International Investment Law and Arbitration
• Diversity and Inclusion in International Arbitration Appointments
• Asia and Africa: Trends in the Developing East-South Dispute Resolution Axis
• Arbitrating with the State 
• Resolving Disputes in the Energy and Natural Resources Sectors
• Dispute Prevention, Management and Resolution of Infrastructure and Construction Projects
• Diversity and Inclusion in International Arbitration Appointments

Registration

Mauritius: ICT - Over 170 Free WIFI Zones to be launched

Over 170 Free WIFI Zones will be launched across the country in the days to come, representing a defining step in the ICT landscape in Mauritius. The first launch is scheduled for 19 August 2014 on the site of the Victoria Bus Terminal in Port Louis.

This was announced by the Minister of Information and Communication Technology, Mr Tassarajen Pillay Chedumbrum, yesterday at Ebène Cyber-city. The Minister was speaking at the unveiling ceremony of the logo of the Intelligent Mauritius Partnership Programme (IMPP), a programme aiming at converging efforts in collaboration with private sector operators to facilitate the uptake of ICT adoption by a larger number of citizens.

A logo competition was organised for the programme under the theme Wireless Internet Fidelity (WIFI). The logo, representative of innovation, will be used to showcase and brand the IMPP and bring awareness of free WIFI zones to the citizens.

In his address, Minister Pillay Chedumbrum said that Government is aware that knowledge provides powerful means to create wealth and improve the quality of life of people. Future economic progress will be driven by innovation, invention and application to new technologies and this can only be possible if we have accessibility and connectivity, he stressed.

According to the Minister in line with its vision to make of ICT an important engine of economic growth, Government has set the necessary and required infrastructure in terms of policies and strategies as well as legal frameworks, to move towards I-Mauritius (Intelligent Mauritius concept).

Over the recent years, said the Minister, the ICT sector has experienced a rapid and sustained growth and is gradually emerging. An increasing number of foreign companies from some 300 in 2008 to more than 600 today are also setting up their bases in Mauritius which generate some 19,000 jobs to which our highly educated youth aspire to, he pointed out.

The IMPP initiative

The IMPP, while helping to bridge the digital divide through an integrated approach, will also assist towards shaping the I-Mauritius concept. As such, ICT technology through a wider adoption in daily life will become a fundamental driver for spurring innovation and creating economic opportunities for Mauritian citizens.

In this context several Free WIFI Zones have been carpeted around the island. The University of Mauritius and the University of Technology, Mauritius have also been provided with free WIFI access. More than 250 Computer clubs are already operational and the Mauritius Post Ltd is also providing free Internet facilities to the public.

USDOJ: Former Associate Dean of MIT Sloan School and His Harvard MBA Son Agree to Plead Guilty in Hedge Fund Scam

Two Boston-area hedge fund managers were charged today with conspiracy to commit securities fraud, wire fraud and obstruction of justice.

Gabriel Bitran, 69, of Newton, a former professor and associate dean of the Massachusetts Institute of Technology ("MIT") Sloan School of Business, and his son Marco Bitran, 39, of Brookline, a Harvard Business School graduate and money manager, were charged with conspiracy to commit securities fraud, wire fraud and obstruction of justice in connection with their hedge fund businesses, GMB Capital Management and GMB Capital Partners. Both Gabriel and Marco Bitran have agreed to plead guilty to the charge.

It is alleged that from 2005 through 2011, Gabriel and Marco Bitran solicited and maintained investors in their hedge fund and investment advisory businesses with false claims that, for eight or more years, they had managed friends and family funds, delivering average annual returns between 16 and 23%, with no down years. The Bitrans falsely told investors that the money in GMB hedge funds would be invested according to a complex mathematical trading model developed by Gabriel Bitran and based upon his MIT research on optimal pricing theory. The Bitrans also routinely concealed from investors that certain of their hedge funds were simply “funds of funds,” that is, hedge funds in which values of investments are determined by the value of investments in other independently managed hedge funds, some of which were themselves broad-based funds of funds.

By means of their fraudulent representations, the Bitrans induced investors to entrust over $500 million to their businesses. From this money, the Bitrans paid themselves millions of dollars in management fees for managing the funds in which they had fraudulently induced people to invest.

In the fall of 2008, several of the Bitrans’ hedge funds had disastrous losses, resulting in investors losing 50–75% of their principal in many instances. Nonetheless, in the fall of 2008, as their funds were experiencing these losses, Gabriel and Marco Bitran redeemed approximately $12 million of their own money from these hedge funds, while deferring other investors’ requests for redemption. The Bitrans thereby extracted much of the value of their own investments while leaving other investors to suffer more losses as the funds’ values declined precipitously.

In January 2009, while investigating potential victims of the Madoff fraud, the United States Securities and Exchange Commission (“SEC”) examiners learned of the Bitrans’ performance claims and asked for supporting documentation. In response, the Bitrans allegedly made false statements to the SEC examiners and provided fabricated records purporting to support their claimed actual trading performance.

As they did so, Gabriel and Marco Bitran acknowledged to each other that they had made false statements to investors and owed them restitution. In July 2009, Gabriel Bitran emailed Marco Bitran and discussed the fact that they had misled investors:

“We have mislead [sic] a lot of people with a range of statements that were incorrect simply to increase our income. . . . A person with the experience and knowledge of the financial sector and a veteran professor of MIT should not have engaged in this type of behavior. . . . I certainly do not blame you for everything that happened; we both share responsibility. . . . With [several named individuals] and probably a few others . . . we told them a story that was not true! . . . In my view you are discarding their anger as bad losers. This is not the whole story. They are not idiots, they know that they were mislead [sic]. The penalty for this type of action is Full [sic] restitution, which obviously we cannot afford.”

Similarly, in a September 1, 2009 email, Marco Bitran acknowledged to his father that he had not acted honestly. He stated:

“We are certainly sharing equally in this dad. . . . Lots of our problems were caused by my good intentions but very poor actions when it came to true honesty.”

Still, from early 2009 through 2010, the Bitrans took steps to shield their assets by transferring them out of GMB businesses and into entities with less obvious affiliations to Gabriel and Marco Bitran. To effect some of these transfers, they used the identity of a family member without that person’s knowledge, obtaining falsely notarized signatures in that person’s name, to shield millions of dollars that they had preferentially transferred out of the GMB hedge funds.

In total, the Bitrans lost more than $140 million of GMB investors’ principal.

If the plea agreements are accepted by the Court, the Bitrans will be sentenced to no more than five years in jail but no less than two years, as well as a period of up to three years of supervised release and more than $10 million in forfeiture.

Evasion fiscale : un groupe de Dubaï fait les yeux doux aux riches particuliers

A grand renfort de publicité, la société Emirates Pacific Group offre des services sur mesure aux investisseurs français : compte offshore, achat d'or, etc. Une aubaine pour ceux qui voudraient frauder le fisc?

Lire la suite de l'article sur Le Parisien.fr

Insurance Linked Securities (ILS)

Offshore jurisdictions such as Bermuda, Cayman and Guernsey are at the heart of the growth in the Insurance Linked Securities (ILS) market, while onshore locations including Dublin, Malta and more recently Gibraltar are increasingly looking to the potential of the asset class.

ILS have become popular with investors as an alternative asset class, and with insurers as a means of accessing greater quantities of affordable risk transfer capacity. ILS enable an insurer to purchase additional protection for low frequency high severity losses, including natural and non-natural perils, operating in the traditional insurance market, typically in the form of catastrophe (CAT) bonds, collateralised reinsurance or industry loss warrants.

Investors are attracted to ILS because returns are non-correlated with the general financial markets. Although specialist cat funds remain the largest investors in ILS, mutual funds including pension funds and institutional investors have increased their participation in this asset class significantly.

Producer owned (re)insurance companies

As an alternative to earning just commission for placing client insurance policies with the commercial insurance market, the use of a producer or broker owned insurance or reinsurance vehicle can allow brokers to participate in the underwriting profits usually retained solely by the insurer. 

A broker, as a producer of business, can sponsor and establish their own (re)insurance company where a proportion, or even all, of their client risks can be insured. In certain circumstances the company can be used to insure on a direct basis or via quota share reinsurance arrangements with the existing insurer. 

Protected Cell Companies (PCCs) can provide the optimal structure to insure or reinsure the risks of several different clients by underwriting their respective exposures into separate cells. These structures offer the following advantages to brokers:

• The potential to earn underwriting revenue in addition to commission
• Enhanced risk management control
• The ability to identify and therefore benefit from good quality business with a low claims ratio
• Provide a hedge against hardening market rates and reduced commissions
• Pricing and cover flexibility
• Access to reinsurance markets
• Enables the broker to provide an enhanced service to their clients which generates even more value from existing profitable business

Jersey Foundation structure shows strength in its fifth anniversary

High standards of regulation and quality of governance oversight are the key drivers behind a marked rise in the number of Foundation structures being formed in Jersey as the structure marked its fifth anniversary last month, according to Jersey Finance.

Figures collated by Jersey Finance show that the number of Jersey Foundations established in the first six months of this year (33) is almost the same as the number formed in the whole of last year (36).

July marked the fifth anniversary of the Jersey Foundation and, despite the Isle of Man having introduced its version of a Foundation in 2012 and Guernsey in 2013, the monthly formation rate of Jersey Foundations has increased in 2014 to reach its highest level since 2011 (5.5), to outstrip both that of the Isle of Man (1.3) and Guernsey (0.7).

The figures also show that, as at June 2014, a total of 264 Jersey Foundations have been formed since their introduction in 2009, more than four times the total number of Foundation structures in the other Crown Dependencies combined.

Around a third of Jersey Foundations are estimated to have a charitable or philanthropic objective, whilst the structure is finding particular favour with clients from EU countries, Switzerland, Russia, South America and the Middle East.

This year also sees the 30th anniversary of Jersey's pioneering trust law, which remains a model framework for jurisdictions around the world and which continues to be the regime of choice for High Net Worth Individuals who are looking for a flexible wealth management structure that benefits from a solid body of case law and a robust disclosure framework.

Geoff Cook, CEO of Jersey Finance, commented:

“As it marks its fifth anniversary this month, the Jersey Foundation continues to prove itself to be a flexible and attractive proposition, equally suited to charitable administration as to orphan structuring and private wealth management. We have welcomed the introduction of competitor Foundations by our fellow Crown Dependencies over the past couple of years as an opportunity to test the parameters of the distinct Jersey offering and are delighted that the appeal of the Jersey Foundation has continued to rise.

“We now have clear evidence that the flexibility offered and governance required by the Jersey Foundation offers the right balance of potency and proportionality, and accords with the expectations of both individual and institutional clients. The strength of the Foundation, combined with its trust and company vehicles, means that Jersey provides a good platform that can cater for a broad range of bespoke family, philanthropic and commercial needs.”

Thomson Reuters Launches Web-Based Portal for Accelus Org ID KYC Managed Service

Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, today delivered a critical milestone in its end-to-end KYC Managed Service for the industry, with the launch of its secure, web-based portal for Accelus Org ID. The new online portal facilitates client on-boarding, identity collection, and verification, in a secure environment which allows financial institutions and their clients to increase efficiency, as well as reduce operating and remediation costs associated with complying with increasingly rigorous Know Your Customer (KYC) requirements.

Following the launch in March 2014, the portal is now active with an intuitive user interface that allows clients of Accelus Org ID to easily complete the KYC process, accelerate on-boarding, and share identity documents effectively. The portal is delivered free of charge to clients of financial institutions, including asset managers, hedge funds, corporations, and correspondent banks, who can sign up to access the portal at Accelus Org ID.

"With increased attention being placed on complying with complex KYC requirements, so too is the compelling need to identify and work with trusted industry partners to ensure the collection and maintenance of accurate KYC information," said Damian Glendinning, Treasurer at Lenovo. "Having a centralized solution in the Thomson Reuters web-based portal of Accelus Org ID KYC Managed Service, will certainly help to increase efficiency and reduce costs related to repeatedly providing KYC information to multiple firms."

Accelus Org ID acts as a neutral 'central clearing house' by building an accurate identity record, which works as a globally-recognized KYC 'passport', and provides the ability to screen for money laundering risk characteristics, negative news flow and/or sanctions issues. All record processing on the Accelus Org ID portal is in accordance with a global standard policy. The clients of financial institutions submit a single set of identity documents to Accelus Org ID and can authorize their financial institutions to access this information.

"We are delighted to have reached this critical point in pioneering KYC managed services, working with end-clients and financial institutions alike to develop a complete end-to-end user interface to facilitate the KYC on-boarding and remediation process," said Anna Mazzone, head of KYC at Thomson Reuters. "Our live Accelus Org ID portal is a testament to our commitment to support the industry and help our clients, financial institutions and trading partners to systematically and effectively meet KYC requirements."

Earlier this year, Thomson Reuters launched Accelus Org ID with the participation of a working group of financial services professionals that have been assisting in defining and validating the requirements for the management and on-going distribution of identity data and documents collected as part of the Thomson Reuters service. Thomson Reuters Transaction Services Ltd., an FCA-regulated global provider of electronic FX brokerage services, went live in March, participated in a beta trial of the portal and will be leveraging the user interface to complete KYC requirements. Tradeweb Markets, an affiliate of Thomson Reuters and a leading global provider of electronic fixed income and derivatives marketplaces, has also engaged with Thomson Reuters regarding the KYC service

Accelus Org ID is fully secure and easily integrates with financial institutions' existing internal systems. The service is centrally updated as new regulations come into effect and covers rules and regulations surrounding the AML, FATCA, Dodd-Frank, EMIR and MiFID, supporting KYC compliance in the US, Europe, Asia and the emerging markets.

Financial Services Authority Seychelles: Fire Incident

The Financial Services Authority (“FSA”) wishes to inform all its licensees, regulated entities and public in general that as a result of a fire on its premises there be may be certain disruptions in some of the services offered by the FSA.

The FSA reassures all stakeholders that its business continuity plan has been activated and that its normal services are expected to resume shortly.

In the interim, the following persons may be contacted for information relating to;

• General Information: (00248) 4380800
• Corporate Services: (00248) 4380803
• Insurance Services: (00248) 4380806
• Fiduciary Services: (00248) 4380887
• Funds & Investment Services: (00248) 4380841
• ITZ Services: (00248) 4380817
• Supervision & Market Surveillance: (00248) 4380811

Global Forum releases new compliance ratings on tax transparency for 10 jurisdictions

The Global Forum on Transparency and Exchange of Information for Tax Purposes published today 13 new peer review reports demonstrating progress toward implementation of the international standard for exchange of information on request. The Global Forum also issued compliance ratings for 10 jurisdictions.

A Phase 1 report for Georgia assessed the country’s legal and regulatory framework for transparency and exchange of information. Georgia qualifies for the next stage of the review process, which will assess its exchange of information practices, during the second half of 2014.

The Global Forum reviewed exchange of information practices through Phase 2 peer review reports in ten jurisdictions and allocated ratings for compliance with the individual elements of the international standard, as well as an overall rating. Five jurisdictions – Andorra, Anquilla, Antiqua and Barbuda, Indonesia and Saint Lucia - received an overall rating of “Partially Compliant.”Four others – Chile, the Former Yugoslav Republic of Macedonia, Montserrat and St. Kitts and Nevis - received an overall rating of “Largely Compliant.” Mexico was rated as Compliant with Global Forum standards.

Jurisdictions continue requesting supplementary reviews that assess steps taken to address gaps in their legal frameworks and exchange of information practices identified in previous reviews. Niue has been blocked from moving to Phase 2 of its review process due to significant gaps in its legal framework. A supplementary review concluded that key changes to its legislation allow Niue to move to Phase 2 of the review process.

Jersey was rated as “Largely Compliant”  in November 2013, when the compliance ratings for an initial batch of 50 jurisdictions were assigned. It has since implemented several recommendations made by the Global Forum, leading to an upgrade of ratings for individual elements of the evaluation process, but its overall rating remains “Largely Compliant.”

With the release of the latest batch of reviews, the Global Forum has now completed 143 peer reviews and assigned compliance ratings to 64 jurisdictions that have undergone Phase 2 reviews. Four jurisdictions are rated as Non-Compliant, while eight are now rated Partially Compliant. There are still 12 jurisdictions which remain blocked from moving to a Phase 2 review. Of these, the supplementary review of Switzerland has been launched in July to assess changes made since its 2011 review in its legal framework to comply with the international standard.  

Additional peer reviews will be completed by the next plenary meeting of the Global Forum, in Berlin, Germany, on 28-29 October 2014. That meeting is expected to add to the growing momentum towards a much higher level of tax transparency worldwide.

An important milestone was achieved earlier this year with the release of a new international standard for the automatic exchange of tax information. The Global Forum will monitor and review the implementation of this standard, and its members are working together to achieve this goal. Simultaneously, the Global Forum will continue building on progress to date in the area of exchange of tax information on request.  The Global Forum is also working on revision of its Terms of Reference, in preparation for a new round of reviews, in particular to include new transparency requirements on beneficial ownership of legal entities.

FSC Mauritius issues Circular Letter on submission of Financial Summaries by GBC2s

The FSC Mauritius issued a Circular Letter on Submission of Financial Summaries by Category 2 Global Business Companies.

Circular Letter (CL310714)

GBC2s Financial Summaries Template (Excel Template to be used by GBC2s for submitting their Financial Summaries)

ALB: The evolution of offshore

Offshore law firms are changing with the times, evolving to meet the needs of global businesses and the flow of capital that is both easier but also much more regulated. And although they still differentiate themselves from their onshore peers... 

Full Article

Bradley Hackford Rankings: Mauritius Ranks 6th Worldwide among the least taxed countries

Mauritius is ranked 6th and is placed among the top ten countries worldwide where it is interesting to establish a physical and tax residence according to the 2014 rankings on the least taxed countries across the world published by the firm Bradley Hackford.

According to the report, these countries impose neutral or low tax rates on individuals thereby making it the ideal choice for establishing physical and fiscal residence. Among the top ten countries are: Bahamas, Andorra, Monaco, Bulgaria, Panama, Mauritius, United Arab Emirates, Guernsey, The Cayman Islands and Switzerland.

The report justifies Mauritius’ ranking by the fact that the country has low tax rates with a personal income tax rate of 15%. It further states that international investors also appreciate Mauritius because of the simple residency process and the tax benefits related to residency with the main procedure for obtaining Mauritian residency being the purchase of real estate on the island, approved by the local program called Integrated Resort Scheme, with a minimum value of $500,000 US.

The firm Bradley Hackford operates in several jurisdictions worldwide and specialises in international relocation procedures mainly in countries with attractive tax policies. It also helps out with nationality acquisition procedures.

The firm ranks countries based on five criteria namely: the rate of tax burden for individuals residing in the country; the country’s quality of life; the country’s legal and physical security; the quality of the economic investment program developed by the local government to encourage new residents in the country to invest; and the country’s geographical location, its accessibility, and its recreational opportunities.