Friday, May 2, 2014

Cross-Border Financial Services


In 2009, UBS paid a fine of USD 780 million and entered into a deferred prosecution agreement with the US government. Although the charges focussed on tax offences, various aspects were under investigation how UBS provided financial services in the USA and to US clients. A number of other Swiss banks are still facing similar charges.

When financial institutions provide services to another jurisdiction, they must understand the respective local regulations. Most often the regulation of financial services focuses on domestic institutions, adding to the challenge. Once financial institutions realize the regulatory risks of their activities in other jurisdictions, they usually apply heavy restrictions in order to stay compliant and avoid investigations and fines by the local or even their home regulator. Potential activities become blocked. Expertise on the local regulations is required to analyse what activities may be performed and thus continue providing services.

In order to get the necessary detailed guidance, the financial institution must either perform onerous analysis itself or establish a network of local experts. Both approaches are costly and challenging. Maroon is proud to announce its co-operation with BRP Bizzozero & Partners SA (‘BRP SA’), a leading consultancy on cross-border financial services. Based on its network of local experts, BRP SA provides country manuals with detailed guidance on financial activities in more than 100 countries.

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