HG.org Legal Resources

Banking and Finance Law Articles

Articles written by lawyers and expert witnesses worldwide
explaining the different aspects of Banking and Finance.


How Does U.S. Law View Offshore Bank Accounts?

  By HG.org
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.

What Does the Law Say About Loaning Money to Friends and Relatives?

  By HG.org
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?

The Most Awaited Third Pillar Pension Scheme

In light of the launch of a regulatory structure for private pensions forwarded by the MFSA the Minister for Finance Prof. Edward Scicluna recently launched the Third Pillar pension scheme, also referred to as the Personal Retirement Scheme which is accompanied by another scheme called the Individual Savings Account.

Malta - A Jurisdiction for Private Equity Funds

The MFSA is currently amending its legislative and regulatory framework in order to make Malta an efficient jurisdiction for structuring private equity funds.

How Does Venture Capital Work?

  By HG.org
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?

What is a Ponzi Scheme

  By HG.org
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?

Is the Bitcoin Legal?

  By HG.org
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.

Collateral Assignments in Respect of Credit Agreements: Belt or Suspender for Foreign Companies in Turkey?

Turkey has been one of the fastest growing economies during the course of the last decade.

Malta’s Banking Institutions Considered Sound and Resilient by the European Central Bank

The European Central Bank (ECB) has published the results of the stress-test that it has conducted over the past year in respect of the 130 largest banks in the euro area, considering their financial position as at the 31st December 2013.

How Legal Are Payday Loans?

  By HG.org
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!

Factors Elderly and Senior Investors Should Know

Investment risk factors seniors, elders, and their friends and family should be aware of.

An Overview of FIDIC Rules in Turkey

FIDIC, (Federation Internationale Des Ingenieurs Conseils), International Federation of Consulting Engineers aims to find a resolution in construction sector. There are five different FIDIC contracts in different colors that regulates different and separate obligations and rights.

Financial Fraud Schemes Victimizing Elders and Senior Citizens

There are many fraud schemes used by sellers intent on defrauding seniors and elders of their hard-earned money. Learn what they are to protect yourself.

Malta Applicants for Online Forex Trading - Category 2 / Category 3 Investment Services Licence

The MFSA recently circulated a notice outlining additional criteria with respect to the licensing of entities that would like to offer online forex trading to retail clients in terms of the Investment Services Act, Chapter 370 of the Laws of Malta.

Business Taxes, Payroll Taxes and Trust Fund Recovery Penalty

When the business faces a cash flow problem, many business owners use the payroll taxes collected but not yet turned over to the IRS.

Cyprus Nominee Shareholders - Valid Trusts Arrangements or a Mere Façade?

First to be explored is the legal nature of the so called “nominee shareholder”. Nominee shareholder is a shareholder of a company holding shares nominally only, that is, only in name. In such a way the identity of the ultimate beneficial owner (“UBO”) of the shares is not disclosed.

Collecting from an Out of Business Company or Employer

Collecting on a judgment even in ideal circumstances can often be a time-consuming and complex process, and that presumes the debtor is solvent, and doing business and/or making money. When the judgment enforcement against a debtor who is a company or legal entity, which appears to be (or is) out of business, the process can be considerably more troublesome and taxing.

New Rules Simplify the Filing and Approval of Chinese Outbound Investment Projects

On September 6, 2014, the Ministry of Commerce ("MOFCOM") issued the Outbound Investment Management Rules (the "Rules"), which took effect on October 6, 2014. The Rules have replaced old MOFCOM regulations regarding Chinese outbound investment projects. On April 8 2014, the National Development and Reform Commission ("NDRC") issued a regulation regarding measures for the administrative approval and filing of outbound investment projects (the "Measures").

MFSA on the Alternative Investment Fund Managers National Private Placement Regime

The MFSA recently published a set of documents formalising the implementation of the National Private Placement Regime (‘NPPR’) in Malta.

What to Do if You Suspect Securities Fraud

  By HG.org
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?

MFSA Thematic Review on Compliance with the Requirements on Governance, Compliance & Risk Management in Malta

The MFSA recently published a circular addressed to the compliance officers of investment services license holders with consolidated feedback from the Securities and Markets Supervision Unit.

Pitfalls in Financing the Renewable Investments in Turkey

In 2012, OECD has reported that economy-wide transformation will require cumulative investment in green infrastructure in the range of USD 36-42 trillion between 2012 and 2030, i.e. approximately USD 2 trillion or 2% of global GDP per year. Today more less is being invested annually. Therefore, a remarkable investment gaps exist that needs to be addressed.

The Fallout of Arthur Andersen and Enron on the Legal Landscape of American Accounting

  By HG.org
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.

Can the Shares of a Cayman Islands Company be Pledged as Security?

  By Loeb Smith
It is not possible to "pledge" registered shares under Cayman Islands law because title to the shares cannot be transferred by physical delivery. Any grant of security over registered shares that is called a "pledge" will typically be either (i) a legal mortgage or (ii) an equitable mortgage/share charge, depending on its terms. If the security purports to be something else, the chances are that it will be entirely ineffective.

Foreign Investments in the Ukraine

A brief overview about the guarantees that Ukrainian legislation provides for foreign investors and which steps should be done to enjoy them.

Update your Credit Application Procedures Today

The recession has two valuable lessons for credit managers: First, even the best businesses can become significant credit risks, and, second, we have all had more practical experience in extending credit and collecting on past-due receivables. This article focuses on practical tips which credit managers can implement today to reduce the likelihood of nonpayment.

When Limitation Periods for Loss Claims Start

When does a limitation begin to run? Limitation periods (also known as ‘prescriptive’ periods) are an important element in litigation. A claim will be out of time if it is not made within the limitation period and the claimant will not be able to take legal action (subject to strict exceptions).

And You Thought Your Legal Fees Were High...Banks' Legal Fees Top $103 Billion After Housing Bubble Burst

  By HG.org
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.

Crowdfunding, Crowdinvesting, Kickstarter, and the JOBS Act

  By HG.org
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?

Offshore Banking in Turkey

The turning point for regulating the market dates back to 2001 for Turkish banking industry after a major banking crisis in Turkey.

Approved for Financing at the Dealer Then Denied a Few Days Later; What Happens Now

  By HG.org
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 Creditor’s Levy in CA - The Most Basic Judgment Collection Tool

A levy is performed by a “levying officer”-- for a Los Angeles collection attorney, this is either the LA Sheriff, or a private process server working with the sheriff under specific legal levy instructions. A levy is best summarized as the process by which a levying officer goes out, and takes assets of the debtor involuntarily. This happens whether the debtor wants it to happen or not. The assets are either sold at auction or simply collected and paid to the creditor.

What is Money Laundering and Why is It Illegal

  By HG.org
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?

A Touchstone in Energy Financing: Reduced Yield and Turkish Insurance Market

The effect of climate change is not only an environmental problem today as it directly relates to the resource based industries. In today’s world, the scientific assessments lead the players of energy to reflect on their project viability. In direct proportion to the growth in financing renewable projects, insurance companies and underwriters are also expected to formulate their risk assessments on resource-oriented allocation models.

New Regulation for the Turkish Banking Industry: Towards a Healthy Synthesis

Turkish banking industry is considered one of the strongest in Europe. The crisis ridden global banking industry had experienced numerous difficulties following the 2008 market collapse, but Turkish banking industry had survived the crisis with relatively insignificant scars.

REITs to Boost Growth and Transparency in Indian Real Estate Sector

Today, the Real Estate Investment Trusts [REITs] are highly successful in more than 20 countries worldwide, including USA, UK, Australia, France, etc. Therefore, SEBI has rightly allowed trading of such REITs in India also, in August 2014, to pave the way for desired growth and transparency in the vast and fast-paced real estate sector of India. Besides bringing in the globally accepted practices, these REITs are expected to infuse a new lease of life and zing in the Indian real estate sector.

20 Early Warning Signs Indicating Changes in Credit Profile

After a vendor extends credit, it is vital that the vendor continually monitor the debtor for changes in its credit profile in order to minimize the vendor's risk of nonpayment. The following list of 20 early warning indicators, will help you see the risk coming before it happens.

How Can Turkish Banking Cope with the Changing Global Banking Dynamics?

The 2008 global economic meltdown had served as an important wake up call for the global banking industry. The complicated web of interrelated financial instruments created by investment banking gurus, accompanied by a lax regulatory regime came to create one of the biggest financial disasters after the Great Depression and itself termed by many as the Great Recession costing millions of people their savings, jobs and houses.

Banking Law: Client Often at a Disadvantage Vis-à-vis Bank – Lawyers Can Help

Banking law is one of the fields of law that almost everyone comes into contact with, yet it features many pitfalls which can be expensive for clients.

Cyprus Holding Companies

Cyprus provides an established, stable and solid legislative framework under which Cyprus companies can be formed for intermediary or ultimate holding purposes within corporate groups, in project finance, cross-border transactions or even investment management contexts.

Cyprus Alternative Investment Funds

In what constitutes a pivotal step in the transformation of Cyprus into one of the primary investment funds jurisdictions, new legislation is in place to regulate the establishment of Alternative Investment Funds. The Alternative Investment Funds Law of 2014 (the Law) provides a much-expected overhaul to Cyprus' investment funds regime, which commenced with the Alternative Investment Fund Managers framework enacted in 2013.

Good News for Cayman Domiciled Private Equity Funds - Introduction of New ELP Law

  By Loeb Smith
The Cayman Islands (“Cayman”) continue to be the leading offshore jurisdiction for the establishment of both hedge funds and private equity funds. Typically, private equity funds are structured in Cayman as exempted limited partnerships (“ELPs”) and the introduction of the Exempted Limited Partnership Law, 2014 (the “New ELP Law”), which came into force on 2nd July 2014, will enhance the attractiveness of Cayman as the leading offshore jurisdiction for private equity funds.

Emoney and Payment Institution License in Cyprus

Cyprus Guidelines on Completing and Submitting Applications for Authorization as an Electronic Money Institution (‘EMI’) and Payment Institution under Directive 2012 [“the EMD”]; the Appointment of Agents & the Establishment of Branches

European Economic Interest Groups in Italy (EEIG)

EEIG in Italy ("Gruppo Europeo di Interesse Economico", GEIE) is an associative organization. GEIE or EEIG can exclusively be used within European area, it encourages cooperation between companies, others economic entities, professionals and physical persons even, and its main requirement is that, at least, partners are coming from two States members of the U.E. This tool can be easily employed in the participation to tenders.

Significant Changes to Several Requirements on Registration of Foreign Invested Enterprises in China

On June 17, 2014, the Ministry of Commerce of China issued a notice regarding the improvement of review & approval and statistical rules of foreign investment in China (the “Notice”) and the Notice shall take effect as of its promulgation date. The Notice revised several important issues regarding the review and approval of registration of foreign-invested enterprises (the “FIE”) in China.

AIFMD News Update: Distinguishing between Open and Closed-Ended Funds

When the AIFMD was adopted, no harmonised definition of “closed-ended” Alternative Investment Funds (“AIFs”) was provided within the Directive’s text.

Strong Regulatory Base of the Turkish Banking Sector Amid Mixed Signals

Mixed signals are recently coming from the Turkish Banking sector. The industry, on the one hand, has recently seen an unprecedented levels of volume which is estimated to be USD$ 855 billion to dwarf the economic might of 22 of the 28 EU member states and on the other hand has been witnessing a reduction in the credit volume that went down to 1.130 trillion Turkish liras as of the July 2014.

Profit Utilization of Limited Liability Company in Indonesia

  By Leks&Co
Profit utilization of limited liability company is regulated under Article 70-73 Law Number 40 of 2007 on Limited Liability Company (“Company Law”).

Georgia Court of Appeals Denies Grading Contractors' Claims

A grading subcontractor was not paid for putting in the roads in a new subdivision; after the construction lender foreclosed upon the project developer, the subcontractor sought payment from the bank. After the trial court awarded the subcontractor its full claim plus attorneys fees, the Georgia Court of Appeals reversed. Some very important lessons for subcontractors and lien claimants are made clear in the ruling.

FATCA - Malta on the Way to Implementing its IGA

Following the signature of the intergovernmental agreement (“IGA”) between Malta and the US on the 16th December, 2013 whereby the latter agreed to implement Foreign Account Tax Compliance provisions (commonly known as FATCA) in Malta, the Inland Revenue Department (“IRD”) has issued draft FATCA Regulations and Guidelines implementing the said intergovernmental agreement.

A Potential Regulatory Regime for Virtual Currencies is Proposed by EBA

The European Banking Authority (EBA) published on the 4th of July 2014 an Opinion addressed to the EU Council, European Commission and European Parliament setting out the requirements that would be needed to regulate ‘virtual currencies'.

SAFE Issues New Regulations on Cross-Border Security

  By MMLC Group
On May 12, State Administration of Foreign Exchange (“SAFE”) issued Regulations on Cross-Border Security as well as its Implementation Guidelines (the “Regulations”). The Regulations has become effective on June 1.

Willfulness and the Civil FBAR Penalty

  By Brown, PC
In 2008, when it was revealed that wealthy individuals around the world were utilizing accounts and trusts in Liechtenstein to evade taxes, the United States initiated a coordinated effort with foreign governments to combat tax evasion through the use of offshore trusts and accounts. The U.S. Department of Justice (DOJ) has since launched criminal investigations of several foreign banks, many of which are ongoing.

Class Action Lawsuit Against Life Partners Will Move Forward Following Judge’s Ruling

A Texas judge has rejected a motion by Life Partners Holdings, Inc. to toss a class action lawsuit filed by investors who allege they were misled by the life settlements company. Three Life Partners executives were also named in the lawsuit, which alleges that the company fraudulently misrepresented the nature of life settlements that were sold to investors, making them appear more valuable than they actually were.

The Regulation of Virtual Currencies - A Positive Step Undertaken by the EBA

On Friday the 4th of July the European Banking Authority (EBA) published an opinion addressed to the EU Council, European Commission and European Parliament outlining its view on how ‘virtual currencies' should be regulated.

An Update on the UCITS V Directive

The UCITS V Directive shall shortly be published in the Official Journal of the European Union later on this year.

Managing Retirement Benefits of Trust or Trusteed IRA

Congratulations on making the decision to plan for your retirement accounts through a trust or trusteed IRA. You’ve selected a cost-effective, responsible plan for your future. Now the question is, “What do I do in this plan?”

IRS Changing Terms for Offshore Account Holders

  By Brown, PC
U.S. taxpayers hiding assets abroad should take note of the Internal Revenue Service’s plan to sharply increase penalties for such acts, while those who unintentionally fail to disclose offshore accounts will experience much more leniency.

Planning for the Million Dollar Balance Retirement Account

A million dollar retirement account sounds like a significant sum. If something tragic were to happen, a retirement account of this size would seem to financially care for it’s beneficiaries for a long time. However, studies have shown that a typical inheritance is spent within 17 months.

Licence and Registration, Please! – New Licensing and Registration Regime for Directors of Cayman Companies

  By Loeb Smith
On 4th June 2014, the Directors Registration and Licensing Law, 2014 (the “Law”) came into force in the Cayman Islands. The Law requires all directors (wherever they reside in the world) of “Covered Entities” to register with the Cayman Islands Monetary Authority (“CIMA”). The Law has also introduced a licensing regime for “Professional Directors” and “Corporate Directors”.

Divorce and Credit Card Debt – Known and Unknown

More and more couples are racking up excessive amounts of debt. To make matters worse, some debt, especially credit card debt, is hidden from the other spouse. Some blame this phenomenon on the fact that more marriages consist of two-income couples. Each spouse may find it difficult to relinquish control of his or her own money. But when divorce is on the horizon, how is this debt ultimately divided?

Loan Funds Take the Stage in Malta

Spurred by various enquiries on the matter, the MFSA has last week launched the Investment Services Rules for Loan Funds (the “Rules”) which provide for the licensing and regulation of collective investment schemes investing through loans (“Loan Funds”). This paper will analyse the Rules and how these fit into the current Maltese fund legislation.

Moneyval's Statement Calling for Enhanced Due Diligence Measures for Bosnia and Herzegovina Transactions

On 1st June 2014, the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) issued a public statement about the persistence of deficiencies in the anti-money laundering and counter financing of terrorism (AML/CFT) regime in Bosnia and Herzegovina.

Congo-Brazzaville: Bill on the Creation of a Congolese Investment Fund has been Adopted

According to a bill presented during the Ministers’ Council of August 8th, 2013, the Republic of Congo just promulgated Law No. 1-2014 of January 6th, 2014 on the establishment of a Congolese investment fund.

Development Bank of Southern Africa Amendment Bill

The main objects of the Bill are to propose amendments to the Development Bank of Southern Africa Act, 1997 (Act No 13 of 1997 - "the Act")

Protect your Financial Security During and After Divorce

A growing number of people are divorcing late in life. No matter what the reason it is imperative to protect your financial security throughout and after the divorce process. You have accumulated a lot of things during the marriage—now is the time to retain as many as possible. There are savings and investment accounts, real estate and other personal and in some cases business assets to consider. An estate plan must be updated, health and other insurance replaced and the list goes on.

TTIP: Who Will Benefit from Better Compliance and Trade Dispute Resolution?

The economic relations between European Union and the United States have been far from smooth. Even during the Cold War, when the two economic powers were supposed to be on the same side of the Cold War divide, rows occurred that led to a serious political tensions.

Extra! Extra! Read All About It! IRS Commissioner Announces That Changes Are In the Offing For OVDP 2012

On June 3, 2014 the new IRS Commissioner, John A. Koskinen, gave a speech before the International Business - OECD International Tax Conference. His speech covered the history of the offshore enforcement initiative since the UBS debacle in 2009. His remarks acknowledge what most professionals in the tax community have recognized since the inception: that OVDP needs more tweaking in order to meet the overall goals of enforcement and fairness.

Incorporating a Limited Liability Company in Italy

Limited Liability Company is one of the simplest companies to use in the Italian market with limited costs and -of course- limited liability. This article features the main steps and information you will need to incorporate it.

U.S. District Court Upholds Multiple Willful FBAR Penalties Against Taxpayer

  By Brown, PC
In a case that has raised eyebrows in the tax community, a jury in the Southern District of Florida has sustained the IRS’s assessment of multiple willful FBAR penalties against an American business man and bank director.

Transatlantic Trade and Investment Partnership: An Answer to the Shift of Global Economic Balances?

Long gone are the days the American economy by itself producing almost the 50% of the total world economic output immediately following the Second World War. Gone, together with the predominance in the global economic output is the cheap energy prices that sustained the American economy and its new role back in the post war world as the workshop of the world following the British political and economic decline.

Alphabet Soup for Installment Agreements

What is an installment agreement? An installment agreement is an option for those who cannot pay their entire tax bills by the due date. It allows taxpayers to pay the amount due over a period of time

US Persons with Secret Bank Accounts in Switzerland

In case you have a secret account in Switzerland with a Swiss bank, if you are a US person, if you have received a letter from a Swiss bank demanding to waive your rights to have bank secrecy, is a good idea if you start to act proactively. You can qualify for the OVDP or you file a late FBAR. It is worth to analyse this complex topic on a case-by-case basis.

U.S. to Ease Initial Enforcement of FATCA (Foreign Account Tax Compliance Act)

  By Brown, PC
With FATCA set to take effect on July 1, financial institutions around the world have been lobbying to delay implementation of the law, citing concerns about costs and potential disruptions to global markets.

The Shifting Landscape of the OVDP Opt-Out

  By Brown, PC
Since the IRS announced the 2009 Offshore Voluntary Disclosure Program (OVDP) over five years ago, our firm has been assisting taxpayers submit accurate and complete disclosures in accordance with the program guidelines and procedures. The evolution of the OVDP through the 2011 and 2012 programs has brought a longer look-back period, steeper penalties, and more insight into IRS positions and procedures at different points in the program.

The Protection of Depositors in the Event of a Bank Failure

The liability of financial supervisory authorities and deposit-guarantee schemes. However, it has proved not to be sufficient: bank failures still do happen, causing serious negative consequences not only on depositors’ personal level – they become unable to recover their savings – but also on a general level, since the solidity of the financial sector will appear undermined. With a view to limit such risks, deposit-guarantee schemes have been created and are being constantly improved.

FBAR and FATCA – Two Abbreviations That Can Wrap You Around the IRS Axle

FBAR and FATCA are two important abbreviations for those who have overseas financial interests. Failure to file the FBAR report, in view of the IRS’s continuing application of FATCA, can get you into what old military veterans used to call FUBAR.

Pilot Programme for Mutual Connection of Transactions in Shanghai and Hong Kong Stock Markets Approved

The China Securities Regulatory Commission (“CSRC”) and the Securities and Futures Commission (“SFC”) have approved, in principle, the development of a pilot programme for establishing mutual stock market access between Mainland China and Hong Kong in order to promote the common development of the capital market.

Update on MiFID II and MiFIR

ESMA, the European Securities and Markets Authority issued consultation documents for the implementation of the revised Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) on 22nd May 2014.

Five Points You Should Know About the Cheques (Checks) in the UAE

The payment of the cheque (check in American English) should not be conditional. Whereas, if the payment of the cheque was related to some conditions, and those conditions were not fulfilled, the cheque will still remain due on its date

Cheques (Checks) in the UAE

Cheque (Check in American English) is a replacement for money. It is one of the most common methods to execute payments especially in commercial transactions. Since a cheque is meant to replace money, people must have trust in it. Therefore the UAE penal law levied a punishment against anyone issuing insufficient funds its due date. Such a crime is known as the bounce cheque crime.

Deconstructing the “Act of Production” Doctrine

Tax cases are document-intensive cases. As any white-collar criminal defense attorney knows all too well, summonses and grand jury subpoenas routinely seek documents. And there is a good reason why. If the government cannot get the requested documents, it often cannot make a case. It is for this reason that the seminal issue in document production cases is whether the taxpayer has a Fifth Amendment privilege with respect to documents that he possesses.

The Rules Governing Taxation of Foreign Nationals

Below are the rules governing taxation of foreign nationals.

Islamic Banking in Turkey: A Safe Haven for the Investors?

The last decade in Turkey has seen an immense macro-economic growth that spilled over to various different branches of the national economy. The banking sector has been one of the leading industries to benefit from this growth. What accounted for such growth was in part domestic and in part international.

New Law Passed to Modify Contract Law in the Cayman Islands

  By Loeb Smith
The Contracts (Rights of Third Parties) Law, 2014 (the “Law”) has now been passed into law in the Cayman Islands and is expected to enter into force shortly. The Law will grant to one or more persons who are not parties to a contract (each a “Third Party”) the ability to enforce rights and benefits expressly granted to the Third Party in the contract.

Car Accidents in Egypt with Foreigners

Be absolutely free from the driving rules - is the most popular "law" in the Egypt for car holders. There are probably only women drive carefully but that fact doesn't decrease the count of accidents with people on the streets. Car accident may happen with anyone in any country. Here an a real example of financial fraud according to the car troubles.

Fraud Technical Advisors: An End-Run Around Tweel?

United States v. Tweel is the most famous example of a motion to suppress in a tax case. In Tweel, the Fifth Circuit Court of Appeals held that it constitutes trickery, fraud, and deceit for the IRS to conduct a criminal investigation under the guise of a civil examination. Because of how fact-sensitive the holding of this case is, a recitation of the facts is necessary.

Malta Individual Investor Program – Facilitating Citizenship Through Investment in the Republic of Malta

The Republic of Malta allows investors to apply for citizenship, with all of its advantages. Acquiring Maltese citizenship also confers the benefits of European Union citizenship, since Malta has been a member of the European Union since 2004. Maltese citizenship also provides a visa exemption to more than 160 countries around the world, including the U.S.A.

Los Angeles Area Man Arrested on Financial Elder Abuse Charges

A financial advisor was recently arrested at a seminar in Los Angeles on financial elder abuse charges.

“FATCA” Law is Striking Fear into Foreign Banks

Law That May Reduce Tax Evasion Goes Into Effect On July 1 The Foreign Account Tax Compliance Act (FATCA) became law in the United States in 2010, but the clock is still ticking on its implementation. The clock will stop ticking on July 1, 2014.

Treasury Guaranty for Large Scale Projects In Turkey

According to the New Regulation on Undertaking of Liabilities by the Undersecretariat of Treasury ("Regulation"), which has entered into force on 19.04.2014, the Treasury may provide guaranty for public private partnership ("PPP") projects over the limits that have been determined by the Regulation.

When Will the Cayman Courts Pierce or Lift the Corporate Veil of a Cayman Company

  By Loeb Smith
The general legal principles regarding corporate personality under the law of the Cayman Islands are similar to those under English law.

What Can A Tax Attorney Do For Me?

Of the professionals that you can turn to for help with IRS problems, tax attorneys can most effectively help you sort through legal issues. Hiring such an expert is the most efficient way of getting on the right track. Here are seven reasons that make them valuable and indispensable.

Ten Ways To Avoid Becoming a Guest of “Club Fed”

Contrary to popular belief, the IRS doesn’t want to throw you in jail. Criminal investigations consume a lot of resources, take time, and are expensive. For most taxpayers, a criminal investigation isn’t a first step, but rather the last step in a lengthy process to get you to resolve your tax debt. In other words, it’s rare that an agent will show up on your doorstep one day with cuffs in hand.

Understanding the PFIC Rules Without Suffering a Migraine

The PFIC regime was not introduced until 1986. Prior to 1986, U.S. taxation of foreign corporations was strictly tied to control of the corporation held by U.S. persons. This allowed not only the foreign mutual fund to avoid U.S. taxation, but also U.S. persons who invested in the fund. How so?

An Update on MiFID II/MIFIR in Malta

On the 23rd of April 2014, the European Parliament adopted updated rules for MiFID II. The Directive and the Regulation are expected to enter into force in June 2014.

Malta - Industry Update - UCITS V

On the 25 February 2014 an agreement was reached for the amendment of the UCITS Directive (2009/65/EC). UCITS V has been designed to enhance investor confidence and protection by introducing additional safeguards:

MFSA Clarifies the Limits Applicable to Cross Sub-Fund Investments

Subject to certain conditions, a sub-fund of a PIF or of an AIF which is constituted as a SICAV is allowed to invest up to 50% of its assets into another sub-fund or sub-funds within the same umbrella scheme.

Malta Confirms its Individual Investor Programme (IIP)

The Malta Individual Investor Programme (IIP) is to allow for the grant of citizenship by a certificate of naturalization to foreign individuals and their families who contribute to the economic development of Malta.

Regulating Corporate Services Providers in Malta

On the 24th December 2013, Chapter 529 of the Laws of Malta was promulgated, comprising the new Company Service Providers Act. This Act aims to regulate corporate services providers with a view to strengthen the industry’s arsenal against abuse of the financial system for the purposes of money laundering and terrorist financing.


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