United Nations Manual for the Negotiation of Bilateral Tax Treaties between Developed and Developing Countries 2019

The United Nations Manual for the Negotiation of Bilateral Tax Treaties between Developed and Developing Countries 2019 seeks to provide practical guidance on all aspects of tax negotiation, including how to prepare for and conduct negotiations. Treaty negotiators in developing countries are encouraged to use this Manual in preparing for tax treaty negotiations in light of their country’s policy framework and the intended outcomes they wish to achieve. Although the Manual provides a description of the Articles of the UN Model and, where there are differences, of those of the OECD Model Tax Convention on Income and on Capital, it is not intended to replace the detailed Commentaries on these two models; these constitute the most authoritative sources on issues of interpretation of the UN and OECD models and should be consulted in parallel with the Manual.

FATF report to G20 Leaders' Summit

The FATF published its report to the G20 Leaders' Summit, which will take place in Osaka, Japan on 28-29 June 2019. The report sets out FATF's ongoing work to fight money laundering and terrorist financing in the following areas: 

• Strengthening the institutional basis, governance and capacity of FATF
• FATF’s Work Programme on Virtual Assets
• Countering the Financing of Terrorism
• Countering the Financing of Proliferation of Weapons of Mass Destruction
• Improving Transparency and the Availability of Beneficial Ownership Information
• Financial Technologies, Regulatory Technologies: Digital Identity
• De-risking by Banks

The report provides an overview of the FATF’s recent and future work in these areas.

FATF: Risk-based Approach for Trust and Company Service Providers (TCSPs)

Trust and company service providers (TCSPs) are involved in a wide range of services and activities for their clients. These services include: acting as a director or secretary of a company or similar position, providing a registered office or business address for a company, acting as trustees of an express trusts, among others. Not all of the persons and professionals active in this sector provide the same services.

Depending on the country in which they operate, TCSPs can also take different forms, from individual firms to subsidiaries of large financial institutions. Criminals may seek TCSP services to help them retain control of proceeds of their crimes, while disguising the origin and ownership of these assets. Through the creation of shell companies or trusts, they can conceal their ownership and create a veneer of legitimacy.

This guidance highlights the need for a sound assessment of the ML/TF risks that trust and company service providers face so that the policies, procedures and initial and ongoing client due diligence measures can mitigate these risks. This risk-based approach is central to the effective implementation of the FATF Recommendations to fight money laundering and terrorist financing.

This guidance is aimed at TCSP practitioners, countries and their competent authorities, including supervisors of TCSPs, as well as practitioners that have TCSPs as customers. The guidance aims to support TCSPs in the design of effective measure to manage their ML/TF risks, when establishing or maintaining business relationships. In particular, it explains the obligation for TCSPs to identify and verify beneficial ownership information and provides examples of simplified, standard and enhanced CDD measures. 

The guidance contains a section for supervisors of TCSPs. It explains the risk-based approach to supervision, as well as the supervision of the risk-based approach. The guidance highlights the importance of supervision of beneficial ownership requirements in relation to a trust or other legal arrangement so that such information is maintained and available in a timely manner.  The FATF developed this non-binding guidance with significant input from the TCSP sector, including through a public consultation in March 2019, to ensure that it reflects their practical expertise and good practices. It replaces the version of 2008 and brings it in line with the current FATF Recommendations.

Offshore Pilot Quarterly (June 2019, Volume 22 Number 2)

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Rising Suns, Evaporating Empires

Crash Landings and Failing

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Raconteur: Future of Tax and Accounting 2019

Amid Brexit uncertainty and with Making Tax Digital (MTD) on the horizon, large enterprises face an unclear future when it comes to tax. The Future of Tax and Accounting special report explores the implications of MTD, the countries leading the way on digital tax, and the issues that an undefined Brexit date presents for tax departments. It asks whether the ‘arm’s length standard’ is still fit for purpose in a digital economy, covers the move for companies to become responsible taxpayers in the face of the reputational backlashes faced by organisations in recent years, and asks whether accounting automation can live up to the hype

Raconteur: Future Cities 2019

What does the city of the future look like? From Porto to Stockholm, New York to London, the Future Cities special report, explores the possibilities, from net-zero carbon buildings to offices which can actually boost productivity and increase engagement. It covers the need for public and private companies to work together in smart city development and how city data is transforming the way we live. Also featured is an infographic looking at the ways urban demographics are changing, and the problems this dramatic shift might cause.

Mauritius: FSC communicates indicative timelines for the processing of applications for funds and advisory services

As a forward-looking regulator, the FSC recognises that the continued success and growth of the funds industry increasingly relies on its ability to adapt and realise synergies. As the jurisdiction continues to position itself as a centre for funds services and wealth management, internal processes are being enhanced to ensure efficiency and timeliness in the processing of applications to deliver on high quality services.

According to Mr Harvesh Seegolam, the Chief Executive of the FSC, “Mauritius is an important financial centre for funds services in the region. As regulator, we have the crucial task of ensuring a sound and robust regulatory approach whilst delivering in line with market expectations and realities. It is in this very spirit that we are adopting a pragmatic stance to ensure more efficiency in the way in which we assess applications. The introduction of the indicative processing times for CIS/CEF, CIS Manager, Investment Dealers and Investment Advisers will further comfort global investors in planning their strategies. I would also remind Management Companies that they have a pivotal role to play in ensuring a timely turnaround by the FSC and maintain the good repute of Mauritius”.

The FSC will henceforth, on a best endeavours basis, process applications for CIS/CEF*, CIS Manager, Investment Dealers and Investment Advisers within 60 working days of receipt of an application, subject to the following:

• Licensing applications must be complete and accompanied by detailed information about the business, such as, but not limited to, all relevant forms, business plan, constitutive documents, offer documents, procedure manuals, agreements and payment of fees, as applicable. Where required, these documents should be properly certified as true copies, dated, signed, aligned and reflective of the application;

* Professional and Expert Funds

Raconteur: Future of Banking 2019

Trust now outranks price as an influencer for customers’ choice of bank, but will this give traditional banks the edge, or are the scales tipping towards newer, more transparent challengers. The Future of Banking special report explores what can be learnt from these digitally-savvy challengers and whether traditional banks and fintechs will ever be able to work together. It covers how edge computing can transform the banking customer experience, examines the huge changes going on in capital markets and asks why banks still aren’t making the most of their data.