The upper house of parliament in Russia has given the go-ahead to new legislation allowing banks to hand information about their foreign clients to the US Treasury, it was reported today.
If the new rules, which still need to be approved by President Putin, come into effect, Russia will join around 70 other countries that have made similar pacts to allow their firms to comply with new US tax laws. Negotiations with Russia were underway earlier this year, but were interrupted by the Ukraine crisis.
The agreement is part of the US Foreign Account Tax Compliance Act (FATCA), developed in response to a tax-dodging scandal whereby Americans used secret Swiss bank accounts to conceal their cash. The Act requires that overseas financial institutions share information about any American-owned accounts containing over $50,000 with the US Internal Revenue Service (IRS).
Risks associated with FATCA are already making some Russian organisations uneasy. VTB, the country’s second-largest bank, said that it will phase out doing business with 2,000 Russia-based US taxpayers, including individuals and corporate clients.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
As the May 25 deadline for Europe’s General Data Protection Regulation (GDPR) inches closer, many treasurers are being lumped with the task of ensuring their wider company is compliant.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
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