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On 3 January 2012 three Swiss bankers working for
Switzerland's oldest bank, Wegelin & Company, were charged
with tax evasion by US prosecutors in Manhattan. The bankers are
accused of helping US clients to evade US taxes through secret
Swiss bank accounts. The three bankers allegedly solicited clients
between 2005 and 2010 by using sham companies in Liechtenstein,
Panama and Hong Kong. An amount exceeding USD 1.2 million is said
to be involved. According to the three bankers, their clients did
not need to worry about the US tax authorities because Wegelin
& Company had a long tradition of bank secrecy and no offices
outside Switzerland. If they are convicted, the Swiss bankers each
face a maximum prison term of five years and fines up to USD
250,000.
The US tax authorities have previously pursued tax-evading
Americans in Switzerland and the bankers who have assisted in
evasion schemes. Whereas these cases involved large banks, the
recent charge against Wegelin & Company shows that smaller
financial institutions in Switzerland are being scrutinised as
well.
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The Risk and Regulation Monthly provides a summary of the key International, European and UK regulatory developments and pertinent regulatory activity affecting the Financial Services industry.
Existing funds which no longer invest after July 22, 2013 are not required to comply with the provisions of the KAGB, even if the manager of such funds also manages funds which still make investments.
The purpose of this investment memorandum is to provide an overview of the investment vehicles (i.e. regulated, lightly regulated and unregulated) that Luxembourg offers to (foreign) entrepreneurs and managers.
The FSA has been in discussions with the banks with regard to them providing appropriate redress for affected customers in relation to the mis-selling of payment protection insurance.
The Court of Justice of the European Union has ruled that VAT on investment management fees paid by the trustees of a UK defined benefit pension scheme is irrecoverable under a VAT exemption for special investment contained in two EU Directives.
The draft legislation transposing the European Union’s Alternative Investment Fund Managers Directive into Luxembourg law was submitted to the grand duchy’s Chamber of Deputies by finance minister Luc Frieden on August 24.
Directive 2011/61/EU on Alternative Investment Fund Managers comes into force on 22 July 2013, and aims to provide common requirements across all EU States for the management or sale of Alternative Investment Funds by Alternative Investment Fund Managers within the EU.
A summary of the most recent financial regulatory developments.
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