Monday, March 28, 2016

Common Reporting Standards: The Structure of the Agreements

In July 2014, the Organisation for Economic Cooperation and Development (“OECD”) published the Standard for Automatic Exchange of Information (“AEoI”) in tax matters (the “Standard”). The goal of the Standard is to improve cooperation between tax administrations, to protect the integrity of tax systems and to clamp down on offshore tax evasion. 

In order to implement the Standard and for the AEoI to become effective a number of steps must be taken. 
  • Translating the reporting and due diligence rules into domestic law; 
  • Agreements between countries as a legal basis for the AEoI between these specific countries; 
  • Putting in place the administrative and IT infrastructure to collect and exchange information under the Standard. 
Singapore has agreed to work towards implementing AEoI Standards by 2018.

For more information, please read out white paper on the topic here.

Thursday, March 3, 2016

IOSCO Opens Office in Malaysia

Malaysia has become the place which the capital markets watchdog, the International Organisation of Securities Commissions (“IOSCO”), will open its first office outside its headquarters in Madrid, Spain.

The office which will serve as an Asia Pacific hub is to open by the end of 2016. The centre will play a key role for IOSCO when it comes to building of regulatory capabilities across developed and emerging markets, according to the regulator.

IOSCO is the international body that brings together the world's securities regulators and is recognized as the global standard setter for the securities sector. Its members regulate more than 95% of the world's securities markets in more than 115 jurisdictions.

Malaysia welcomed as a member to the FATF

The Financial Action Task Force (FATF) granted full membership to Malaysia during its plenary meeting in Paris on 17-19 February.

In its 2015 Mutual Evaluation Report, FATF had recognized that Malaysia had overall “good levels of compliance with the FATF Recommendations”, although improvements were “needed”. Since this evaluation, Malaysia has worked to develop an action plan for addressing the key effectiveness issues identified during the evaluation. FATF said it agreed to grant membership “based on the commitment demonstrated by the action plan and the continuing progress in efforts to improve its Anti-Money Laundering and Countering Financing of Terrorism (“AML/CFT”)”. FATF will continue to monitor Malaysia’s progress through its enhanced follow-up process.