Recent News

Commerzbank AG became the first bank to receive a license to store cryptocurrency in Germany. The purchase of a cryptocurrency license from Germany's financial markets regulator BaFin is notable given the regulatory caution in the industry. Commerzbank plans to use the license to create a secure depository platform for digital assets. The bank sees this achievement as a significant step, emphasizing its commitment to the integration of advanced technologies and innovations. In an official press release, representatives of Commerzbank AG emphasized that the license is the main element of customer support in the field of digital...

Last week, the European Union published a valuable document containing a list of senior public functions in EU member states and institutions. This publication is an important resource for identifying PEPs in the EU. It describes public positions in detail. This is key to PEP work, as understanding who the public person is helps in monitoring transactions and activities that may pose increased risks of money laundering, sanctions evasion and other financial crimes. Key aspects: detailed lists of public positions in EU member states, information on public positions in EU institutions, explanations of what constitutes a “Public Person” in various...

CARF will become the cryptocurrency reporting standard in Singapore. This was announced by the Singapore Revenue Authority on November 15, 2023. The CARF standard is expected to come into effect in 2027, giving all stakeholders time to prepare. Singapore not only agreed to the provisions of CARF, but also actively participated in the development of the system. The CARF system is one of the most successful attempts to formalize the rules for reporting and accounting for crypto...

In October, the Italian Parliament passed Law No. 136. The provisions of the law affect the rules for applying the tax on windfall income. The document came into force on October 10. According to Article 26(1) of the Law, taxable persons are Italian banks and Italian branches of foreign banking institutions licensed to carry out banking activities in the Republic, as defined in Article 1 of the Consolidated Banking and Credit Law. Other financial intermediaries (such as asset management companies or brokerage firms) will not be liable for taxes on excess profits. Windfall tax will not be deducted from Italian direct taxes, including corporate income tax (IRES) and regional corporate tax (IRAP). The upper limit is 0.26% of total assets. As an alternative to paying the windfall tax, banks may choose to defer an amount equal to or greater than 2.5 times the windfall tax to the retained earnings reserve instead of paying the tax in...

Starting in 2027, 48 countries have agreed to introduce a new tax transparency standard to eliminate tax evasion associated with cryptocurrency. The agreement integrates the OECD's CARF crypto asset reporting system into the Common Reporting Standard (CRS), an information standard for the automatic exchange of financial account data between tax authorities. Countries intend to transpose CARF into domestic legislation and activate sharing agreements in time for data sharing to begin, in accordance with national legislative procedures. The list of jurisdictions committed to implementing CARF in accordance with the joint statement includes: Armenia, Australia, Austria, Barbados, Belgium, Belize, Brazil, Bulgaria, United Kingdom, Denmark, Germany, Greece, Hungary, Iceland, Ireland, Spain, Italy, Canada , Cyprus, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Netherlands, Norway, Portugal, Romania, Singapore, Slovakia, Slovenia, USA, Finland, France, Croatia, Switzerland, Sweden, Czech Republic, Chile, Japan, South Africa, South Korea , Estonia; Crown dependencies of Guernsey, Jersey and the Isle of Man; and the overseas territories of the United Kingdom, the Cayman...

Carousel fraud is illegal VAT transactions. Related companies use intra-EU cross-border trade to illegally make VAT refund claims to the government. Now the Luxembourg government has decided to submit a bill to parliament amending the law of February 12, 1979. The purpose of the bill is to expand the range of transactions covered by the reverse charge mechanism. Therefore, from 1 January 2024, taxable persons purchasing the following goods will be subject to VAT in Luxembourg. The list includes supplies of mobile phones, tablet computers, laptops, game consoles, integrated circuits, raw metals or semi-finished products defined in Appendix F by their nomenclature code. Tax is payable by the taxpayer making supplies of the goods mentioned above if the remuneration within the meaning of Article 29 of the VAT Code corresponding to those supplies, invoiced in accordance with Article 63, does not exceed €10,000 excluding...

European payment infrastructure company Mangopay has received an e-money license from the UK Financial Conduct Authority. With the new licence, Mangopay can issue electronic money, facilitate digital payments and provide payment solutions to new and existing UK customers. Payment system already has a very strong presence in Europe. The FCA license is critical to growth in the UK as the company expands its business. In March of this year, the company acquired Irish Paytech WhenThen to accelerate its expansion in Europe. And in April 2022, Mangopay acquired Advent...

A bill aimed at preventing abuse by shell companies for tax evasion was introduced in December 2021. We are talking about the EU Directive ATAD3 (the Anti-Tax Avoidance Directive). The final adoption of this regulation was planned for July 2023. However, a number of EU member states oppose its current version. They could not reach a consensus regarding the criteria for presence or substance, the tax consequences of recognizing an organization as a shell, the obligations of companies to provide information reporting, and the list of information for exchange between EU states. During 2023, the text of the ATAD was periodically discussed in the EU Council. The European Parliament's proposed amendments to ATAD3 would extend the scope of the Directive to more...

Alert is intended for financial institutions that need to monitor export control risks. Among the risks, in particular, the following stand out: Purchases under a letter of credit that are transferred to the issuing bank rather than to the actual end user. Transactions involving entities with little or no online presence, including websites and emails. Customer does not provide or refuses to provide detailed information to banks, shippers or third parties, including information about end users, intended end use or company ownership. Transactions involving customers with telephone numbers whose codes do not correspond to the destination country. The Alert also reminds that all financial institutions that are required to file a SAR may also file a SAR regardless of the amount (if any) and regardless of whether the transaction has been completed or...