Recent News

At the end of 2022, Law No. 2571-IX entered into force, which amended the legislation on the submission of information on the final beneficial owners (BPOs) of legal entities. Interestingly, there is an opportunity to submit information about the UBO and the ownership structure in electronic form, and about the main changes below: 1. Changes in the terms of submission of information about UBO The law stipulates that the Ministry of Finance will develop a Methodology for determining the UBO of a legal entity and, accordingly, legal entities will be obliged to disclose or submit corrected information about the beneficiary within six months from the date of approval of the Methodology, but not earlier than three months (90 days) from the date termination of martial law in Ukraine. 2. The requirement for annual reporting on the UBO has been cancelled The law retained the obligation to maintain up-to-date information on the UBO and the ownership structure of a legal entity, but canceled the requirement to annually submit information on the beneficiary and the ownership structure. Therefore, the message will need to be sent in the following cases: within 30 working days from...

On Friday, February 24, Financial Action Task Force (FATF) suspended Russia's membership, saying that Russia's war in Ukraine violates the organization's principles. Source:https://www.reuters.com/world/europe/financial-crime-watchdog-fatf-suspends-russias-membership-over-ukraine-war-2023-02-24/ FATF is an inter-governmental organisation set up to combat money laundering and terrorism financing by setting global standards and checking if countries respect them. "This is the first time a member of FATF is suspended," FATF President Raja Kumar told a news conference. "Russia is effectively sidelined from the organisation." FATF strongly condemns the aggressive war of the Russian Federation against Ukraine and recognizes the UN General Assembly Resolution ES-11/1, which requires the Russian Federation to immediately, completely and unconditionally withdraw all its military forces from the territory of Ukraine within its internationally recognized borders. The actions of the Russian Federation are unacceptably inconsistent with the FATF's core principles aimed at promoting the safety and integrity of the global financial system. They are a gross violation of the obligations of...

The Swiss bank Credit Suisse, Switzerland’s second-largest bank, has blocked Russian assets worth more than 19 billion dollars (17.6 billion Swiss francs), which is a third of all declared Russian assets in Switzerland. Source:https://www.tagesanzeiger.ch/17-6-milliarden-franken-russen-gelder-793972606992?idp=OneLog&new_user=yes Of the amount blocked by the bank, only 4.32 billion belong to persons previously included in the sanctions list by the Swiss authorities. The remaining 14.7 billion dollars concern persons who have been sanctioned in other countries. In addition, Credit Suisse froze the funds of the Russian Central Bank. It is noted that earlier the State Secretariat of the Economy of Switzerland announced the blocking of Russian assets in the amount of 8.1 billion dollars and 15 real estate objects. The blocking of Russian assets took place within the framework of sanctions imposed on the Russian Federation due to a full-scale invasion of...

Israel’s Banking Supervision Department has fined three banks in the country for violating the norms of debt collection from customers. Source:https://www.retailbankerinternational.com/news/israel-supervisor-fines-three-banks/ Israel Discount Bank, Bank Hapoalim, and Mizrahi-Tefahot Bank are facing fines of NIS1.2m, ($349,202.65), NIS850,000($247,351.88), and NIS700,000 ($203,701.55), respectively. The central bank imposed financial sanctions on all three banks for failing to report the monies received that were paid against the debt. As Israel Discount Bank failed to promptly notify the authorities of the debt restructuring agreements agreed upon between the bank and the customer, the bank was subject to an additional financial penalty. The banking regulator said that the banks had informed the receipts were recorded on their books and taken into account throughout the closing process and therefore no financial harm was caused to consumers. Supervisor of Banks Yair Avidan said: “The Banking Supervision Department sees importance in enhancing consumer enforcement and will continue to act to carry out controls with information received from the public. We see in this...

The Italian Parliament has approved amendments to the 2023 budget, which include the introduction of a 26% tax on capital gains resulting from the trading of digital assets. Source:https://cointelegraph.com/news/italy-approves-26-capital-gains-tax-on-cryptocurrencies Digital coins and tokens have until now been treated by Italian tax authorities as foreign currency, which meant lower taxation. The law, put forward by Prime Minister Georgia Maloney's government and passed by Parliament, also gives taxpayers the option to declare the value of assets as of January 1, 2023, paying a tax of 14%. The aim is to encourage Italians to declare their digital assets in their tax returns. Italy's tougher stance comes after Portugal, one of Europe's most cryptocurrency-friendly countries, unveiled its plan to tax short-term gains from digital assets at 28% in...

The Financial Conduct Authority (FCA) has appointed seven advisors to a new Innovation Advisory Group (IAG) which will meet for the first time this month. Source:https://www.finextra.com/newsarticle/41739/fca-sets-up-innovation-advisory-group/retail The group’s experience spans artificial intelligence and other emerging technologies, competition, digital markets, financial inclusion, and sustainability. It will help to support the FCA’s current plans and initiatives for 2023 and shape its innovation pathway to better serve businesses and consumers. The advisory group will consist of the following rotating members for a minimum one-year term: Pinar Akman, Professor of Law & Director at Jean Monnet Centre of Excellence on Digital Governance - University of Leeds Esra Kasapoglu, Director of AI and Data Economy - Innovate UK Etay Katz, Senior Partner, Financial Regulation - Ashurst LLP Massimo Preziuso, Lecturer in Sustainable Financial Technology - University of Salford Ghela Boskovich, Founder of FemTechGlobal & Head of Europe - Financial Data and Technology Association (FDATA) Alastair Reed, Principal Policy Adviser, Money - Which? ...