The United States has reached an agreement with France, Germany, Italy, Spain and the United Kingdom to simplify the collection of tax information for Foreign Account Tax Compliance Act (FATCA). One of the key parts of the agreement is to allow foreign financial institutions (FFIs) established in the five European countries to comply with FATCA reporting obligations by reporting information to the authorities in that country rather than directly to the Internal Revenue Service (IRS).
The Liechtenstein Disclosure Facility (LDF) will be extended until 5 April 2016 as the number of disclosures has exceeded the UKs government expectations The tax disclosure programme was introduced in 2009 to help UK citizens to legitimise their past tax affairs and ensure that they are tax-compliant for the future, HM Revenue & Customs (HMRC) said.
UBS has reported strong fourth quarter and 2011 net new money flows in its wealth management businesses, evidence that dealing with its cross-border tax issues with US regulators in 2009 may now be paying off. UBSs combined wealth management and wealth management Americas units added more than CHF50bn ($55bn) in net new assets in 2011, increasing to CHF35.6bn from a CHF18.2bn outflow the previous year.
Pre-tax profit at Julius Baer dropped by 21% to CHF474m in 2011 as the Swiss Bank acknowledged it was in ongoing discussions with US tax authorities on its now closed cross-border services to US clients. In his business update to the 2011 results, CEO Boris Collardi said Julius Baer has taken a pro-active and cooperative approach to resolving the US tax situation and will continue to cooperate fully with the US authorities.
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Socit Gnrale Private Banking (SGPB) has opened three new regional offices in France to improve its wealth management service to entrepreneurs and high net worth individuals SGPB is increasing its presence in Nantes, Nice and Toulouse with three new teams each with two advisers.
US authorities have charged Switzerlands oldest private bank Wegelin with helping US taxpayers hide more than $1.2bn from the Internal Revenue Service (IRS) The indictment by the US Department of Justice (DOJ) is the first time an overseas bank has been charged with facilitating US tax fraud
Socit Gnrale Private Banking (SGPB) will move its Bahrain office to the United Arab Emirates as part of a worldwide strategy to reduce costs. A SGPB spokesman said the Paris-based bank will centralise its Middle East operations around offices in Dubai and Abu Dhabi. The spokesman would not comment on the staff and assets affected by the closure although it is understood that Socit Gnrales branch in Bahrain was small
EFG International has sold its Swiss fund administration business SIF Swiss Investment Funds to Crdit Agricoles Swiss asset servicing division CACEIS for an undisclosed sum. The sale is the latest part of a major strategic review at EFG International that began in October last year to re-focus its business on private banking.
Patricia Bruzio, vice president for International Wealth Management Wealth Advisory Services and general manager and director of BNY Mellon Trust Company, will head the Caymans office. BNY Mellon’s international wealth management division head Peter Moertl said that the bank have embarked on a strategic reorganisation of their international operations.