Banking and Finance Law Articles
Articles written by lawyers and expert witnesses worldwide
explaining the different aspects of Banking and Finance.
It should come as no surprise that the IRS has authority to assess FBAR civil penalties. However, what might come as a surprise is that an FBAR violation doesn’t automatically mean that a penalty will be asserted. Why not?
United States citizens, residents and other persons must annually report their direct or indirect financial interest in, or signature authority over, a financial account that is maintained with a financial institution located in a foreign country if, for any calendar year, the aggregate value of all foreign accounts exceeded $ 10,000 at any time during the year.
Islamic finance has been gaining ground in global markets as well as in Turkey throughout the recent years. In this regard what is especially important for the business world is the transformation of Islamic finance from simple financial tools to highly specialized tools for project finance.
Law enforcement and financial regulators everywhere are on the lookout for money laundering. Big corporations and financial institutions hire compliance experts, and those experts cooperate fully rather than face huge fines and penalties.
Sometimes the problem with “food for thought” is that it can almost choke you with its stark simplicity. Take our tax system, for example. The federal government prints our money, regulates the places where we keep it and has vast powers to take it away from us if we don’t give them their cut.
The rising stock market has also broadened the appeal of certain investments such as variable universal life and indexed universal life insurance policies that are linked to stock performance.
A Los Angeles area insurance agent accused of defrauding senior citizens will spend five years in jail and was ordered by the court to pay $1.2 million to compensate his victims.
The most common white-collar offenses run the gamut of nonviolent crimes from antitrust violations to money laundering. The FBI estimates that white-collar crime costs the United States more than $300 billion annually. These estimates do not take into account cases where aggressive and ambitious prosecutors snare an unwary person, who eventually pleads guilty in the face of intimidation and threats. Then there is the plethora of regulations where ignorant noncompliance is, nevertheless, a crime.
In 2010 President Obama signed P.L. 111-147, the Hiring Incentives to Restore Employment Act. The purpose of the law is in its eponymous title, but the IRS got into the act with the Foreign Account Tax Compliance Act (FATCA) provisions.
Ordinarily, the United States taxes U.S. citizens and resident aliens on their worldwide income, even when they live and work abroad for an extended period of time. To provide some relief, a U.S. citizen or resident who meets certain requirements can elect to exclude from U.S. taxation a limited amount of foreign earned income plus a housing cost amount. A double tax benefit is not allowed, however, and a taxpayer cannot claim a credit for foreign income taxes related to excluded income.
The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted to assist the government with discovering financial fraud. A recent SEC whistleblower received a $14 million dollar reward for reporting a real estate scam.
Bid rigging is mostly a current issue at public institutions however it has become widely encountered at public sector as well ant it surely causes serious financial damage.
The one of the most significant principle in an M&A transaction is “the principle of maintenance of partnership structure” (or the maintenance principle) under Turkish Commercial Code.
It is convenient neither for the consumers nor for the producers to get accustomed to a global financial market which is marked by liquidity shortages after a decade of growing global money supply to be present virtually in every part of the globe.
Transfer agents play a key role in the going public process. Transfer agents are the record keeper for a company’s securities when it goes public. Share ownership is reflected on the issuer’s shareholder list. In addition, transfer agents issue and cancel certificates to reflect changes in the ownership of securities and act as an intermediary for the company and its stockholders during the going public process.
Regulation D under the Securities Act of 1933,as amended (the “Securities Act”), sets forth a safe harbor from the registration statement requirements of the Securities Act for certain private placements of securities. In connection with these exemptions, offerings made in reliance upon Regulation D, Rule 504, 505 and 506 can be made to up to 35 non-accredited investors and an unlimited number of “accredited” investors.
Rule 144 (“SEC Rule 144”) under the Securities Act of 1933 (“Securities Act”) provides a safe harbor from the registration provisions of the Securities Act for resales of restricted and control securities by persons other than the issuer if all conditions of the rule are complied with.
The Securities and Exchange Commission (“SEC”), Division of Corporate Finance frequently notes disclosure deficiencies in the disclosure of reverse merger transactions in on 8-K Filed. This post summarizes SEC staff comments in response to reports on Form 8-K reporting of reverse mergers with public shell companies or similar transactions that result in a public company no longer being designated as a shell company.
Typically, foreign companies seeking to raise capital attempt to obtain public company status. Foreign companies that go public in the U.S. may complete a public offering by registering securities with the Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, as amended (the “Securities Act”) or by registering a class of securities under the Securities Exchange Act of 1934 (the “Exchange Act”).
The OTCMarkets OTCQX offers foreign issuers seeking to go public in the U.S. an appealing alternative to listing on a stock exchange. Foreign issuers whose securities are listed on a foreign stock exchange that qualify for the exemption from the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
A private placement memorandum (“PPM”) is also referred to as a confidential offering circular or memorandum. PPM’s are typcially prepared by securities lawyers who assist private companies with their going public transactions. PPM’s are used to raise capital by selling either debt or equity in an exempt offering that has not been registered with the SEC. These exempt offerings are often called private placements.
Addressing the most common questions we receive about going public using Form S-1 and the SEC registration statement process.
Shareholders and management of private companies are often unaware of their reporting obligations upon completion of a going public transaction. Section 16(a) of the Exchange Act of 1934 (the “Exchange Act”) requires the reporting of beneficial ownership by the officers, directors and stockholders who hold stock directly or indirectly, beneficially owning more than 10% of the company’s common stock or other class of equity securities registered under Section 12(b) or 12(g) of the Exchange Act.
On July 10, 2013, the SEC adopted final rules as required by Title II of the JOBS Act, which directed the SEC to eliminate the ban on general solicitation and advertising for certain offerings conducted under Rule 506 of Regulation D, of the Securities Act of 1933, as amended (the “Securities Act”) provided the securities are sold only to accredited investors.
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.
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.
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.
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.
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.
A whistleblower will receive $63.9 million for providing information to the government that lead to a recovery.
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.
By LPA Law Firm
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.
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.
Progress towards tax and duties payment in the Democratic Republic of the Congo in connection with the “Doing Business Report”.
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.
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.
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).
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.
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.
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.
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.
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.
Private equity becomes more popular in Turkey since majority of companies intend to utilize private equity funds.
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.
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.
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.
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.
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.
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.
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...
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.