Banking and Finance Law Articles

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


Sanusi’s Suspension: Legal or Illegal - Nigeria

The suspension of erstwhile Governor of Central Bank of Nigeria, Sanusi Lamido Sanusi by President Goodluck Jonathan has generated a lot of heated legal debate on the legality or illegality of the suspension.

Turkish Banking Sector is Still Resilient

Recently one of the world renowned leading credit rating institutions has stated that Turkish banking industry has the necessary liquidity capacity to pay back the short term debts.

Current Status of Temporary Capital Restrictions in the Cyprus Banking System

Cyprus continues to implement a series of temporary capital restrictions measures, with the aim to support the banking sector and safeguard the stability of the Cypriot banking system. The temporary Cyprus restrictive measures were implemented through decrees issued by the Minister of Finance pursuant to the provisions of the Restrictive Measures on Transactions in case of Emergency Law of 2013.

New Age for Pension Funds in Turkish Market

Turkey has been incrementally applying for new implementations on the grounds of mitigate the current account deficit. New Individual Retirement System is one of the most efficient way for this new austerity plan.

Turkey and Aircraft Financing Junction: Sukuk Issuing

Despite a slowdown in 2013 with 13% decline by sukuk volume, it is most likely to witness a distinct expand in next year since it will lie beyond Gulf region.

Whistleblower Reward Is $63.9 Million In JP Morgan Mortgage Fraud Case

A whistleblower will receive $63.9 million for providing information to the government that lead to a recovery.

Base Erosion and Profit Shifting Action Plan: Effects on PE Funds

BEPS ( "Base Erosion and Profit Shifting") is a tax strategy which is driven by asymmetries and mismatches amongst different jurisdictions in terms of tax issues.

Concessions in Albania / PPP in Albania

According to the assessment, the application of the laws of the PPP / concession in Albania is estimated to achieve "high efficiency" compared to international standards, the implementation of AML being a strong pillar and institutional frameworks and policy pillars were weak.

Democratic Republic of the Congo: Delay in Application of Uniform Act on Business Accounting Systems

The entry into force of the OHADA Treaty in the Democratic Republic of the Congo (DRC) resulted in the immediate application of the Treaty, its Regulations and Uniform Acts. It also led to the repeal of any DRC anterior legal instruments contrary to the Treaty and its Uniform Acts.

Turkish Banking Industry Outlook 2014

The Turkish Banking sector is expected to operate in crunchy year in 2014. The concerns related with Fed's actions that might result with the end of monetary expansion clearly signals that the year 2014 might be tough one for the emerging economies.

Democratic Republic of the Congo – OHADA: Delay in Uniform Act to Regulate Company Accounting Systems

DRC: Delay in the application of the Uniform Act organizing and harmonizing company accounting systems.

Democratic Republic of the Congo: Impact of the “Doing Business” Report on Tax and Duties Payments

Progress towards tax and duties payment in the Democratic Republic of the Congo in connection with the “Doing Business Report”.

The Contracts (Rights of Third Parties) Bill, 2014 proposes changes to Cayman contract law

  By Loeb Smith
The Cayman Islands Government has published a new bill that will modify contract law in the Cayman Islands when it is passed into law by mid-March 2014.

Angel Investment, Private Equity and Venture Capital in Turkey

Throughout the last decade Turkey had managed to transform itself in to an economic hub in its region. Its high rates of economic growth combined with a stable social and political environment had generated an investor friendly atmosphere.

Jurisdictions with Strategic Deficiencies Identified by FATF

On 21st February 2014, the MFSA issued a Notice to Financial Services Licence Holders informing them on the Financial Action Task Force (FATF) identifying jurisdictions with strategic deficiencies, as outlined in the recent publication of two public documents. These countries are considered to have strategic deficiencies regarding anti-money laundering& and combating the financing of terrorism (AML/CFT).

A Brief Look into Turkish Promissory Note System

The aim of this article is to provide an insight on the Turkish negotiable instrument system and promissory notes in particular. The article outlines the important facts regarding the promissory notes.

Legal Outlook of Turkish Private Equity Market

Companies that invest in the private equity market bear high risks but also the possibility of high returns. Usually, private equity companies exit after about three to seven years. However, Turkish private equity companies tend to invest for longer periods. Private equity capital is also preferred for buyouts, which gives the investor company the opportunity to take control of the investee company.

Think You Got Game? Try Solving a Criminal Tax Problem

While reading can aid in learning, there is no substitute for doing. Reading about what steps should be taken to solve a tax problem is no different than reading about how to ride a bicycle. In the same way that the only way to learn how to ride a bicycle is by experiencing it firsthand – i.e., by physically getting on it (and perhaps falling off it more than once) – the only way to become proficient at solving tax problems is by trudging through a multitude of hypotheticals.

HK New Companies Ordinance : Changes to Directors’ Duties

The entirely new Companies Ordinance (Cap 622) (“New CO”) will come into force on 3 March 2014. We highlight the New CO’s major changes relating to registration of charges and private limited companies.

China Simplifies Rules on Foreign Exchange Administration of Foreign Direct Investment

On May 10, 2013, State Administration of Foreign Exchange (“SAFE”) released the “Regulations on the Foreign Exchange Administration of Domestic Foreign Direct Investment” (hereinafter the “Regulations”), which came into effect on May 13, 2013.

A Lucrative Exit by PE Funds: Recap Strategy in Turkey

Private equity becomes more popular in Turkey since majority of companies intend to utilize private equity funds.

Attractive and Reliable Investments in Ukrainian Financial Sector for Foreigners

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.

Settlement of Investment Disputes and Provisional Measures

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.

More U.S. Taxpayers Admit to Secret Swiss Accounts

Why Swiss Bank Clients Who Can’t Stand the Heat Are Getting Out of the Kitchen.

New Corporate Governance Standards for Regulated Mutual Funds in the Cayman Islands

  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”).

Failing to File a Tax Return and that “Wascally” Little Word (not "Wabbit") Called Willfulness

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?”

Home Sweet Home for International Tax Collection

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.

Don’t Forget to Add the Salt When Cooking Up an IRS Voluntary Disclosure

New Jersey Notice of Federal Tax Change Requirements

Managing changes in Material Interest in Maltese Listed Companies: A Survivor’s Guide

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).

Private Equity Investments in Family Owned Businesses in Turkey

Buy-outs of family/private firms represent a significant part of the overall buy-out market in Turkey.

Mezzanine Capital in Turkey; A Breakthrough Growth or A Simple Alternative in Financing

Financial system is wide range of new alternative instrument for developing countries and Turkey heads toward new financial system in this regard.

Section 6050I – A Weapon In The IRS’s Criminal Arsenal

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.

MiFID II – Taking it to the next level

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.

Bridge Financing for Turkish Private Equity Market

Turkey is emerging market’s dynamism and is a suitable area for future factors in the traditional market.

Why Still Invest in Turkey?

The global economic uncertainties surrounding the apprehensive expectations of Fed’s future monetary policies have already coalesced with the ongoing political crisis in Turkey.

New Opportunities to Earn: Passive Profit in Ukraine

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.

Long-term Investment Account - Hole in the Net

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.

When is a Promissory Note a Security?

  By HG.org
It is important to differentiate between notes and securities. When a note is not a security, security law compliance does not need to be considered. Having a note that is not considered a security is often attractive to issuers who wish to avoid the expense of securities law compliance.

Corruption Claims and Effects in Turkish Banking Law

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.

Emerging Financial Instrument in Turkey: Asset Backed Securitization

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.

Financial Aspects of Private Equity Investment Funds in Turkey

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.

Global Economic Uncertainties and The Expanding Sukuk Market in Turkey

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.

More Transparency and Less Concern about Factoring Companies in Turkey

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.

A New Austerity Plan: Regulated Credit Cards Market in Turkey

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.

Motivations and Limitations of Private Equity Investment Funds in Turkey

Turkey provides substantial opportunities for private equities with rapidly developing sectors, liberalization policies in state-owned areas and corporate tax benefits.

Spending Cuts and the Banking Sector in Turkey

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.

AIFMD: 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.

Opportunities in Fragile Turkish Equity Markets: Turbo Certificates

Turbo certificate ("Turbo") is a derivative product that reacts with respect to an underlying asset is determined in advance.

Integration of Turkish Banking System to Global Market

Turkish banking system becomes to adapt new conditions and this impacts to increase competition in terms of new services and products.

Chinese Regulations for Investments in Germany

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.

What Is the Advantage of Using Model Contracts in Project Finance? - Turkey

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,

Who Is Liable for the Construction Risks in Project Finance? - Turkey

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.

Key Process-Plant Specific Clauses in Process-Plant EPC Contracts - Turkey

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.

New Investment Opportunities for Master Funds Schemes in Turkey

Business world firstly threw master funds opinion into the pot in 2011. After two years, this attempt currently came into climax with government support.

AIFMD – Implementation of the Depositary Lite Provisions - Malta

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.

Developing Countries Are Potential Actors for Investment

Foreign direct investment has an extraordinary role in the international sectors since it can contribute to remain the rate of global business.

Current Account Deficit in Turkey; Switch Structure of Society

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 and Taxation under Turkish Legislation

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.

How to Secure Projects: the Significance of Insurance in Project Finance

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 Guide to Benefit from the New Turkish Incentive Scheme

The overriding concern behind the new Turkish incentive scheme is the resumption of the macro-economic stability of the Turkish economy.

Project Finance in Turkey and Its Attractions for Investors

Primarily, the attractions of project finance lie in its features. Project finance packages risks associated with the project into discrete "bundles".

Turkish Project Finance Perspective, Indirect Guarantees in Project Finance

Long term contracts with output purchasers are the source of cash flow by which the lenders may be paid.

Foreign Account Tax Compliance Act - Panama

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.

Risks that Will Be Triggered during Hard Economic Times - Turkey

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.

Higher Savings Mean More Stringent Regulations for Turkish Banking

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.

Overview of Cayman Islands Law Governing Hedge Funds – Q&A

  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.

Founding Partner Liable to Pay Compensation Even Though a Broker Was Used – Germany

According to the Federal Supreme Court (BGH), founding limited partners are liable for incomplete or wrong information given by the brokers they use.

Malta Named European Domicile of Choice - HFR SP, 2013

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.

Turkey Construction Contracts Which Mean EPC Contracts in Project Finance

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...

An Overview of Turkish Defense and Aerospace Industry, Tendency to Domestic Production

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.

Why Does Turkish Banking System Gain Importance?

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.

The Emerging Turkish Sukuk Market: A Safer Way to Invest

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

Construction Contract and Project Finance - Turkey

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.

What Is New for Private Equities in Basel III: The Turkish Experience

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.

Agents of Foreign Companies in Turkey

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

A Corporate Guide for Private Equity Funds in Turkey: Board of Directors in Joint Stock Companies

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.

A Crash Course in the Federal Sentencing Guidelines

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, Risk Allocation, Risk Mitigation & How to Ensure Flexibility in Project Finance - Turkey

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.

Whistleblower Comes Forward to Talk About Experience at SunFirst Bank

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.

Virtual Currencies - A Question of Trust

The pressing need for regulatory clarification on Bitcoin and other virtual currencies in Europe and beyond.

UCITS Report: Can a Leopard Change its Spots?

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.

Bank of Cyprus, Back on Track!

Progress made with respect to the banking sector in Cyprus.

Cyprus Implements New EU Directive on Combating Late Payment in Commercial Transactions

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.

EU Proposal for a European Bank Account Preservation Order

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.

Banking Sector in Turkey and the Expectations for Basel III

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%.

World Economic Forum Confirms Malta’s Placing as a Top-20 Financial Services Jurisdiction

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.

AIFMD - MFSA Issued a Consultation Document on the Depositary Lite Regime - Malta

On the 27th June 2013 the MFSA launched the new Investment Services Rulebooks which effectively transposed the AIFMD into the MFSA’s Rules.

Bond Subscribers Facing Substantial Losses – Germany

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’ Duty of Confidentiality about Customer Secrets in Turkish Banking Law

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.

General Solicitation and Advertising Now Permitted under Rule 506(c)

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).

State Shuts Down Crowdfunding Website SoMoLend in Ohio

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.

Rule 506(C) Question and Answer

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.

Securities Laws and Investment Environment in Mauritius

The Securities Act in Mauritius has created a real kickoff in the investment environment.

Insight into Turkey's Energy Market and New Energy Exchange EPIAS

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.

New Opportunities for Sukuk in Turkey

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.

The Distinction between Rule 506(C) and Crowdfunding

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.

The Opportunities Behind Angel Investments in Turkey

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.


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