Recent News

On December 17, 2024, the rating agency Moody’s announced a downgrade of the credit ratings of leading French banks BNP Paribas and Credit Agricole. This decision followed a general downgrade of France’s sovereign credit rating, reflecting the country’s growing economic and financial risks. Reasons for the downgrade Economic challenges in France: Rising public debt and slowing economic growth increase financial pressure on the country. Impact on the banking sector: French banks are closely tied to the national economy, and the downgrade of the sovereign rating directly affects their creditworthiness. Consequences for BNP Paribas and Credit Agricole Increase in borrowing costs: A lower rating may lead to higher interest rates on loans, affecting the banks’ profitability. Decline in investor confidence: Investors may become more cautious about investing in French financial institutions, impacting their liquidity. Need to strengthen capital: Banks may be forced to increase capital reserves to maintain financial stability. Impact on clients and the market Potential rise in loan interest rates: Banks might...

10 Trends That Will Influence the Payment Sector by the End of 2025 MasterCard, one of the world’s leading payment companies, has outlined key trends that are transforming the approach to transactions, particularly regarding their security, speed, and convenience. 1. AI in Fighting Fraud By 2025, artificial intelligence will become a powerful tool in combating financial threats. By analyzing vast amounts of data, models will predict threats and respond instantly. This approach could triple the level of security for financial operations. 2. New Opportunities for Small Businesses Small enterprises will gain access to new platforms that automate routine processes, help create marketing strategies, and make data-driven decisions. 3. Integration of Local Digital Wallets The ability to link cards to local digital wallets will simplify international transactions, eliminating the need to top up accounts. 4. Biometric Authentication Passwords and one-time codes will gradually become obsolete. They will be replaced by biometric technologies and machine learning algorithms, making authentication faster and more...

Coinbase is introducing a new feature that allows purchasing cryptocurrency through Apple Pay in third-party applications. Yesterday, the cryptocurrency exchange announced its integration with Apple Pay, enabling app developers to embed cryptocurrency purchase functionality directly into their products. This was made possible by the Coinbase Onramp program, which facilitates the seamless conversion of traditional currencies, such as US dollars, into cryptocurrency. Previously, this process was quite complicated: Users had to pay additional fees. Switch between multiple apps or websites. The integration with Apple Pay significantly simplifies this process, making cryptocurrency transactions more accessible to regular users. This move is also aimed at expanding Coinbase's audience by easing access to cryptocurrencies. Interestingly, the integration of Coinbase with Apple Pay may indicate a shift in Apple's approach to cryptocurrencies. In the past, the tech giant demonstrated caution towards this sector: In 2019, Apple launched its own credit card but prohibited its use for purchasing cryptocurrency. The company removed apps...

Chinese banks are tightening control over legal entities in response to global sanctions. This new measure focuses on enhanced client checks, particularly for companies whose registered addresses match those of sanctioned organizations.Key aspects of the new regulations:Major banks, such as Chouzhou Commercial Bank and Bank of China, are forming "blacklists" of addresses.Restrictions apply even to companies not directly linked to sanctions but sharing similar registered addresses.Banks are strengthening compliance mechanisms to avoid violations of international sanctions.This creates risks for international companies cooperating with Chinese banks.For businesses, this means the need for careful monitoring of their data, legal addresses, and partners. Regular screening for sanction risks and compliance with requirements becomes critically important.If you operate in international markets and collaborate with Chinese banks, our company is ready to assist with legal support, risk monitoring, and the implementation of effective compliance solutions.Contact us to learn more about how to protect your business in the current...

Starting in 2025, Estonia introduces significant changes to its tax legislation. These changes will affect individuals, businesses, and vehicle owners. Key changes include: Tax on mechanical vehicles: From January 1, 2025, owners of mechanical vehicles will be required to pay a new tax. An online calculator is available to calculate the tax amount. The law is available in Estonian and English on the Tax and Customs Board website. Changes to income tax rates: The rate for individuals will increase from 20% to 22%. The corporate tax system will change from 20/80 to 22/78. The reduced dividend tax rate (14/86) will be abolished. The 7% withholding tax on dividends will also be removed. Temporary defense tax: Introduced on July 1, 2025, and will remain in effect until December 31, 2028. Main components include: From July 1, 2025, the VAT rate will increase by 2% to reach 24%. From January 1, 2026,...

In October 2024, the Philippines passed a new law aimed at taxing digital services. The goal is to ensure a level playing field for both local and foreign companies and increase tax revenue from the digital economy. Key provisions of the law: Filing and VAT payment: Non-residents providing digital services in the Philippines must register as VAT payers. A 12% VAT applies to digital services consumed in the Philippines, including: Cloud services; Online advertising; Sale of digital goods (books, music, movies); Activities on marketplaces. Taxation mechanism: In cases where VAT-registered buyers consume services in the Philippines, a reverse charge mechanism is applied, where the VAT is withheld by the buyer. Requirements for foreign companies: Registration as a VAT payer is mandatory for non-residents whose revenue exceeds a certain threshold. They must submit tax returns...

In 2019, the United States enacted the Corporate Transparency Act, requiring most legal entities registered in the U.S. to disclose information about their beneficial owners. This measure aims to enhance business transparency and combat financial crimes. What Does the Law Require? Filing reports with FinCEN – the U.S. Financial Crimes Enforcement Network. Creating a non-public database accessible only to authorized entities. Reporting deadlines: 1. For companies registered before 2024, reports must be submitted by January 1, 2025. 2. For companies established in 2024, reports are due within 90 days of registration. Who Must File a Report? The law applies to most legal entities, but certain categories are exempt. These include: Banks, insurance companies, accounting firms. Nonprofit organizations with tax-exempt status. Inactive companies that meet specific criteria. A full list of exemptions is available in the FAQ FinCEN. Penalties for Non-Compliance Fines: $500 per day of delay (up to $10,000 total). Criminal liability: Intentional non-compliance may lead to imprisonment. How to File a Report? Reports can be...

The Central Bank of Turkey (CBT) has kept its key interest rate at 50% per annum for the eighth consecutive time—a 20-year high. This decision aims to curb inflation, which reached 48.58% in October The CBT emphasizes that such a high rate is a crucial tool for controlling price growth. The regulator's goal is to reduce inflation to 5% in the medium term, though achieving this amidst current economic instability and external pressures is a significant challenge. Why is the rate so high? Inflationary pressure: Turkey is experiencing one of the most challenging economic periods in its history. Rapidly rising prices for food, energy, and services necessitate a strict monetary policy. Support for the national currency: A high interest rate makes the Turkish lira more attractive to investors, helping to stabilize its exchange rate. Control over lending: The 50% rate limits excessive loan growth and helps curb consumer demand, which is essential for reducing inflation. What’s next? Experts believe that while this monetary policy helps slow inflation, it imposes significant strain on businesses and households. The high cost of loans restricts economic...

Starting December 1, 2024, China will cancel its 13% export tax rebate on aluminum and copper, a move that is expected to significantly impact the global market. Chinese companies, including Aluminum Corp. of China Ltd. and China Hongqiao Group Ltd., saw their stock prices fall by 5-10%, while international competitors saw an increase in their stock values. Experts believe that this decision is part of China’s strategy to reduce excess production capacity in the metallurgical sector, which could help decrease the global surplus of aluminum. Specifically, the removal of the tax break will make Chinese aluminum more expensive on international markets, potentially reducing its exports and creating demand for products from other producers. So far, the response to the copper market has been less significant, as China is not as dominant a supplier of copper as it is of aluminum. However, the increase in copper exports abroad this year suggests that we may see changes in the...