Banking and Finance Law Articles
Articles written by attorneys and experts worldwide
discussing legal aspects related to Banking and Finance.
Ukraine is a democratic country with European values. Many foreign investors have considered Ukraine as a growth market in different business fields. Although on the world stage Ukraine is positioned as a high risk country, there are many possibilities of high returns on investments.
Protecting foreign investors’ rights in a country is a significant problem both for investee country and investor. In order to solve this, an international mechanism has been brought which is called ICSID Convention (International Centre for Settlement of Investment Disputes) so that disputes between the contracting state of ICSID Convention and foreign investor can be settled before a special tribunal established according to Convention provisions or conciliation commission of ICSID.
Why Swiss Bank Clients Who Can’t Stand the Heat Are Getting Out of the Kitchen.
By Loeb Smith
In response to feedback from its consultation with stakeholders in the Cayman Islands financial services industry (including feedback on a draft Statement of Guidance on Corporate Governance for Regulated Mutual Funds), the Cayman Islands Monetary Authority (“CIMA”) has formally issued, on 13 January 2014, a final Statement of Guidance on Corporate Governance for Regulated Mutual Funds (the “Statement of Guidance”).
Nary a day goes by that a client doesn’t ask me the question, “Why am I being charged criminally with failing to file my tax returns? Lots of people get behind on their taxes and fail to file their returns for a few years, but they are not prosecuted. Why me?”
Recently, I received a panicked call from a client being detained at a major metropolitan airport. The client, a nonresident U.S. taxpayer, owed money to the Internal Revenue Service. Upon investigation, I learned who was responsible for detaining him: none other than the IRS. Under what authority? A two-year-old program designed to target nonresident delinquent taxpayers who travel to and from the United States.
New Jersey Notice of Federal Tax Change Requirements
The Regulatory Landscape: Whilst the Maltese Companies Act (Chapter 386, Laws of Malta) (the “Act”) provides the general legal framework for the creation and operation of public companies, listed companies are also subject to the Listing Rules (the “Listing Rules”) issued by the Listing Authority in virtue of powers granted by Articles 11 and 13 of the Financial Markets Act (Cap.345 of the Laws of Malta).
Buy-outs of family/private firms represent a significant part of the overall buy-out market in Turkey.
Financial system is wide range of new alternative instrument for developing countries and Turkey heads toward new financial system in this regard.
Congress enacted section 6050I to attack and unearth the underground economy. As enforced, however, section 6050I has been used as a weapon in the IRS’s criminal arsenal.
After two years of negotiations, on 14th January 2014 a high-level agreement was reached between the European Parliament, the Council and the Commission on the updated rules for markets in financial instruments which are designed to address certain shortcomings of the first Directive.
Turkey is emerging market’s dynamism and is a suitable area for future factors in the traditional market.
The global economic uncertainties surrounding the apprehensive expectations of Fed’s future monetary policies have already coalesced with the ongoing political crisis in Turkey.
It is not a secret that in different countries the cost, availability and profitability of financial resources placement are vary considerably. This situation allows not to have large, but stable and guaranteed profit to any entrepreneur.
The purpose of the personal income tax is to make Hungarian tax residents liable to tax on all their personal income irrespective of where the income is sourced and in which form it is realized. The personal income tax laws, therefore, create a net around the individuals and any item of income can only get through the net if it has been taxed.
The latest corruption claims in banking sector of Turkey may show considerable effects which have already started to spread several areas of the Turkish economy. With the arrestment of general manager of a state bank, all attentions draw to Turkish anti-corruption law and concerns increasing among government officials and investigators.
Asset Backed Securities- Securitization is the transformation of receivables and cash flow created from a collection of financial assets into securities which are backed by these assets.
Private equity encompasses investors and funds which make investment directly into private companies or conduct buy out of public companies that end up with in a delisting of public equity.
It is no surprise that in times of global and local economic uncertainties, people are more tend to look for a safe haven to wait for the fluctuations to come to an end.
Factoring refers a financial transaction where a business sells their account receivable to a third party which is called a factor at a discount in exchange for immediate money with finance continued business.
Turkish credit card market is a growing market which also carries a high potential and there is the accelerating role of credit card debt problems, so the most issue is that consumers should be conscious while making expenditures with their credit cards.
Turkey provides substantial opportunities for private equities with rapidly developing sectors, liberalization policies in state-owned areas and corporate tax benefits.
Last week, the CEO of one of the best know Turkish Banks finally went out publicly to declare that the year 2014 will probably be the toughest one of the last ten years for the Turkish Banking sector.
When the AIFMD was adopted, no harmonised definition of “closed-ended” Alternative Investment Funds (“AIFs”) was provided within the Directive’s text.
Turbo certificate ("Turbo") is a derivative product that reacts with respect to an underlying asset is determined in advance.
Turkish banking system becomes to adapt new conditions and this impacts to increase competition in terms of new services and products.
A rather detailed introduction of the legal aspects of outbound investment from China to foreign countries based upon the legal reality of China before 2012, which is undergoing further major changes in China at the moment.
Bitcoin has become increasingly popular as an alternative form of currency over the last several years. The digital currency offers interesting new options for secure and private transactions, for earning money through “Bitcoin mining,” and, unfortunately, for money laundering. What is the threat of Bitcoin and money laundering and what is being done to stop it?
We have all heard about how interest rates might be going up when the economy is improving or how interest rates fall as the economy suffers. But how are these rates set? Who determines what the rates should be? What keeps interest rates from continuing to climb while the economy declines?
There are the advocates of tailor-made agreements in Project Finance which, they argue, properly incorporate the specific points unique to each individual BOT project, to each sector of activity and to each country,
In BOT project financing, it is generally the contractor, which takes full liability for the construction risks according to the commonly accepted rule that risks, should be borne by the party best able to take responsibility for them or manage them.
Mostly, EPC Contracts will not provide for the handover of the facility to the project company until all commissioning and reliability trialing has been successfully completed.
Business world firstly threw master funds opinion into the pot in 2011. After two years, this attempt currently came into climax with government support.
Following the finalisation of the consultation process which commenced on the 18th September 2013, the MFSA has revised the Investment Services rules for Investment Services Providers in order to introduce the Depositary Lite regime.
Foreign direct investment has an extraordinary role in the international sectors since it can contribute to remain the rate of global business.
Global financial crisis prompts Turkish government to resettle apropos of economy since many countries confront financial problems and their economies become to economic recession.
Bitcoin is a form of digital currency, created and held electronically. In other words, it is an open source peer-to-peer electronic money and payment network introduced in 2009 by a software developer called Satoshi Nakamoto.
In the last 5 or 6 years some projects have had the benefit of insurance which is designed to pick up the risk after the contractor's liability has been exhausted.
The overriding concern behind the new Turkish incentive scheme is the resumption of the macro-economic stability of the Turkish economy.
Primarily, the attractions of project finance lie in its features. Project finance packages risks associated with the project into discrete "bundles".
Long term contracts with output purchasers are the source of cash flow by which the lenders may be paid.
A common question among small business owners is who will be responsible for debts and other obligations if a business entity folds or reorganizes. Many things can happen in the life of a business entity, whether a corporation, LLC, partnership, or sole proprietorship, and this can lead to questions about who will be left holding the bag.
In 2014, essentially all the financial institutions operating in Panama will be required to submit information to the United States (IRS) authorities, concerning “American citizen” in Panama.
The hard situation in the market affecting market demand. Projects, which are ideal for project financing, are those with predictable and stable cash flow patterns. Highway projects, power generation plants and high-speed rail fall into this category.
Using credit card is controversial issue in Turkey because rising rate of using credit card can arise problems in terms of financial woes such as consumer borrowing and also high rate of using credit card has concerned government.
Perhaps you are one of the fortunate few who has achieved a level of wealth where you are legitimately concerned that the ebb and flow of the U.S. economy could have a dramatic effect on your personal finances. Or, perhaps, you have heard that there are ways to avoid certain taxes if you keep your money offshore.
Has someone close ever asked you for a loan? A lot of feelings and thoughts probably hit you all at once: an urge to be helpful to someone you care about, concern about getting repaid, wondering if you can afford to help this person, questions about why they are in need of a loan in the first place, and possibly even questions about the laws regarding the loan. So, what does the law say about loaning money to friends and relatives?
By Loeb Smith
The primary legislation regulating hedge funds in the Cayman Islands is the Mutual Funds Law (As Revised) (the “Funds Law”) and accompanying regulations, including the Retail Mutual Funds (Japan) Regulations (2007 Revision, as amended) which generally apply to investment funds licensed under the Funds Law (licensed funds) where the securities are marketed to the public in Japan.
According to the Federal Supreme Court (BGH), founding limited partners are liable for incomplete or wrong information given by the brokers they use.
The prestigious Hedge Funds Review Service Provider Rankings (HFR SP) 2013, has ranked Malta as Europe’s top hedge fund domicile, marking another achievement for Malta’s ever growing financial services sector and reaffirming its position as a leading financial jurisdiction.
Project finance means the term applied to a variety of financing structures that have a few features in common. There are lots of participants take place in Project financing, namely; project sponsor, suppliers, contractors, bondholders and the other parties.
No More Individual Application Will Be Allowed to Become "Angel Investor" in Turkey as of 01.01.2014
Turkey, as one of the pioneering countries that has particular regulation and tax reliefs for angel investment, has almost TRY 10 million volume of angel investment which is remarkably less when compared with Europe and U.S. markets.
A Message from Uncle Sam to Taxpayers Who Have Undisclosed Foreign Bank Accounts: the Clock Is Ticking
OVDI: Is the IRS playing unfair? Read on...
When starting up a business, one thing virtually every business owner runs into is a need for funding. There are a few ways one can acquire these funds, like dipping into personal savings, taking out bank loans, or through traditional stock sales. But, for a lot of money fast, one approach that is increasingly popular in the Internet age is venture capital. But what is it and how does it work?
Turkey as a member of NATO and due to its geographic location has been allocated the highest funds from the budget to defense industry for many years. Today the total turnover of defense and aerospace industry is around USD 4,5 - 5,0 billion.
Economic activities contribute to increase of banking sectors in Turkey since expectations have developed rapidly and there is a stability which has been sustained in the financial markets. Therefore, this situation reflects to ascend the effectiveness of supervision in the banking system.
Sharia compliant non interest paying Islamic instruments, Sukuk is on the rise throughout the global financial markets. The volume of the global Sukuk market which is currently led by Malaysia, has already reached a volume of 1.5 trillion dollars
The construction contract in an international project financing serves to give the project company a fully completed and equipped facility. In addition, it provides for delivery by the contractor of a facility that satisfies specified performance criteria, for a fixed or predictable price, and completed on a specific date.
Basel III is a key regulation that is aiming to build on the already existing Basel II regulation by series of amendments. The regulation is considered one of the most critical for global financial stability considering the destabilizing role the banking sector had played during the latest global economic meltdown.
Since the last decade due to the increase in FDI which is positively affected by GDP growth, Turkey has attracted many investors from all around the world. While some of those investors were looking for opportunities to set up their organizations some run their business through the agencies based in Turkey
The management of a company is one of the most crucial issues for private equity funds since it is the value of the acquisition itself. As a key component of funding by a private equity, the management refers to controlling of daily business.
A Corporate Guide for Private Equity Funds in Turkey: Shares and Shareholder Rights in Joint Stock Companies
In contrary to the decrease in European and U.S. markets the private equity funds in Turkey accelerating the volume of the investment day by day. Either financially backed by management buy-outs or leveraged buy-outs the acquisition by a private equity fund has a typical acquisition progress like in a private company.
The Federal Sentencing Guidelines are used by judges, prosecutors, and defense attorneys to determine the possible sentence, or the range of a possible sentence, for any federal crime. They are based on the concept that each type of offense should result in a sentence within a determined range – adjusted to the high or low end of the range – depending on certain known factors, including the defendant’s criminal history.[i]
Risk and the risk mitigation instruments have been assessed in order to ensure flexibility in the view of Project Sponsors and Project Company and these elements have been examined in detail according to project finance documental phases and project finance contracts individually. Privileged analysis states project financing is dependent on contracts and governed by contract law.
A whistleblower recently spoke at a conference in Las Vegas to discuss her experiences. She was the compliance officer at a bank where gambling funds were processed. She cooperated with federal regulators and exposed the illegal operations at the bank.
The pressing need for regulatory clarification on Bitcoin and other virtual currencies in Europe and beyond.
After the recent economic downturn, the news was filled with stories about various Ponzi schemes. Bernie Madoff became notorious for defrauding millions of dollars from high-profile investors through such a scheme. So what is a Ponzi scheme and why is it illegal?
Bitcoin is a form of electronic currency that functions without being backed by any governmental authority. Bitcoin is often called a “cryptocurrency” because it is decentralized and uses a complicated system of cryptography to prevent double-spending. This form of currency has become a matter of great public interest as authorities debate whether it is legal and, if so, how they can regulate its use in illegal transactions and monitor it for tax purposes.
Over the last few years, establishments known for their payday loan services have popped up on seemingly every street corner. With promises of helping the cash strapped get by until payday, these businesses seem imminently helpful. That is, until one reads the fine print and notices that they may be paying interest equivalent to an APR (annual percentage rate) of several hundred percent!
The European UCITS brand is a seal of quality recognized in financial centers the world over, spanning from Asia to the Americas. The widespread appeal of Ucits-compliant funds exists notwithstanding the significant additional compliance burden that is pinned unto UCITS-compliant managers. This is a success story that began in 1985 and has undergone three subsequent and significant amendments, with another one, possibly two, in the regulatory pipeline.
Investors and companies around the world have been benefiting from advantageous corporate structures and favorable tax regimes for years in order to increase profitability.
Progress made with respect to the banking sector in Cyprus.
In order to protect European businesses, in particular SMEs, against late payment and to improve their competitiveness, a new Directive 2011/7/EU on combating late payment in commercial transactions was adopted on 16 February 2011 and must be integrated into national law by Member States by 16 March 2013 at the latest.
The European Commission has recently proposed to introduce an EU-wide freezing order known as a European Account Preservation Order (EAPO) to ease the recovery of cross-border debts for both citizens and businesses.
Usually the commercial entities in the Dominican Republic are incorporated as a Limited Liability Company or Sociedad de Responsabilidad Limitada (S.R.L.).
The impressive growth of the Turkish economy during the course of the last decade has its parallel in the country's banking sector. As of June 2013 Turkey has a diversified banking base with 49 different banks operating in the country employing around 208.000 people with 11.445 branches all over Turkey. The annual rate of branching in the sector is 6.8% and the growth of employment in the Turkish banking sector is 5.3%.
After the recent financial problems of the first part of the 21st century, it is natural for investors to be wary of those who handle their financial investments. So what should you do if you notice something questionable in your account statements or trade confirmations?
The Global Competiveness Report 2013-2014, prepared by the World Economic Forum, has ranked Malta’s financial services sector amongst the top 20 world nations, out of 148, with regards to issues related to soundness of its banking institutions (14th), the regulation of Securities Exchanges (17th) and the strength and reporting standards (13th), thereby reaffirming Malta’s position as a leading financial jurisdiction.
On the 27th June 2013 the MFSA launched the new Investment Services Rulebooks which effectively transposed the AIFMD into the MFSA’s Rules.
It may have been a decade ago, but the fallout of the accounting scandals of the late 1990's and early 2000's continue to resonate through both of the accounting and legal professions. The largely self-regulated accounting profession has enacted numerous changes that continue to evolve in response to the scandals and pressure from government agencies and the public.
Windreich GmbH is said to be bankrupt. An application for self-administered insolvency has been filed at the Municipal Court of Esslingen. The bond subscribers were informed in a letter.
Banks and banking transactions take an important place in finance. With regard to provide the protection of confidence and credibility, the protection of bank customer secrets has become very important. Obligation of secrecy is based on the principal of protection of individuals private life by Article 20 of Turkish Constitution.
As of today, September 23, Securities and Exchange Commission (“SEC”) rules implementing some provisions of the JOBS Act have become effective. Among them is the new Regulation D Rule 506(c).
Since the JOBS Act became law, numerous crowdfunding websites have popped up on the Internet. This month, the first enforcement action was brought against a crowdfunding website.
Private placement offerings under Rule 506 of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”) are a cost effective and relatively quick way for private companies to raise capital before, during and after a going public transaction.
And You Thought Your Legal Fees Were High...Banks' Legal Fees Top $103 Billion After Housing Bubble Burst
If you have ever complained about your legal fees, or been reluctant to hire an attorney because you did not think you could afford it, just be glad you are not one of the six largest US Banks recovering from the collapse of the housing market and resulting financial crisis. Bloomberg reports that together, they have amassed a whopping $103 billion in legal costs since the beginning of the Great Recession.
The Securities Act in Mauritius has created a real kickoff in the investment environment.
In 2012, the US federal government passed a bill called the JOBS act. Among its provisions was one allowing for small investments in exchange for equity in that company or project without having to go through the SEC or qualify as an investor. What is the difference between crowdinvesting and crowdfunding, what is Kickstarter, and how does it all work from a legal standpoint?
Turkey proved its aspiration with the liberalization of electricity market for being an energy hub in the heart of Europe and Middle East territory. According to Türk Eletrik İletim Anonim Şirketi (TEİAŞ) 2012 report, the electricity demand in Turkey will arise within the range of 398-434 billion kWh in the light of historical perspective in 2023.
The Arabic term for Islamic securities Sukuk , commonly refers to the Islamic equivalence of bonds. The Islamic ban on interest payments is the root cause of the Islamic financial instruments such as Sukuk that provides the investor a share of an asset and its cash flows and involved risks.
It is a horrifying situation. You buy a car, motorcycle, or RV by financing it at the dealership. You sign the paperwork and drive it home with the dealer's blessings only to discover a few days later that the financing has suddenly and unexpectedly been denied. Now the dealer wants its vehicle back and you are left holding the bag, maybe even out a down payment or other fees as well as the cost of any aftermarket additions to your vehicle. What do you do?
The JOBS Act’s new rules permitting general solicitation and advertising in Rule 506 private placements will become effective on September 23, and there is still some confusion about the difference between crowdfunding and general solicitation and advertising in Rule 506(c) offerings.
A common topic on spy shows and mobster movies, money laundering may be an unclear concept for many. What is it? Is it illegal? If so, why? What are the elements of this crime?
When Turkey first acquainted with franchising system, it was 1991. From that day to this, Turkey's economic perspective was entirely amended and currently ranked as the world's 17thlargest economy regarding GDP all over the world and converted into an integrated emerging market with a growing financial system.
Rule 506(c) will become effective in less than a month, on September 23, 2013. The rule fundamentally changes how private placements will be conducted, by allowing issuers to engage in general solicitation and advertising if specific requirements are met. The SEC has confirmed that the Rule 506(c) exemption will not be forgiving for issuers who engage in general solicitation but fail to comply with its requirements.
Companies seeking to raise capital through the sale of securities must either register the securities offering with the SEC or rely on an exemption from registration. Rule 506 of Regulation D is the most widely-used exemption from registration.
Rule 506(c) fundamentally changes how private placements will be conducted, by allowing issuers to engage in general solicitation and advertising if they comply with the Rule’s specific requirements.
Unlike securities listed on stock exchanges such as NASDAQ or the NYSE, securities may trade through the OTCMarkets interdealer quotation system whether they are Securities and Exchange Commission (“SEC”) reporting issuer or not.
Yesterday, FINRA sent a clear message to investors, “medical marijuana legal in almost 20 states, and recreational use of the drug recently legalized in two states, the cannabis business has been getting a lot of attention—including the attention of scammers”.