Latest news with #FATCA
Gulf Business
26-05-2025
- Business
- Gulf Business
ADGM's FSRA fines 23 entities for international tax regulation breach
Image: ADGM/ For illustrative purposes The Financial Services Regulatory Authority (FSRA) of The sanctions follow enforcement actions taken against the entities for a range of compliance failures, including not submitting required risk assessments and annual information returns, failure to follow due diligence procedures, reporting incomplete or inaccurate information, and not collecting valid self-certification forms from account holders. The CRS and FATCA frameworks are part of international efforts to enhance tax transparency and combat global tax evasion. The UAE's participation in these inter-governmental arrangements facilitates the automatic exchange of financial account data with other jurisdictions. ADGM's FSRA committed to following global tax reporting standards 'ADGM is committed to upholding international tax reporting standards,' said Emmanuel Givanakis, CEO – FSRA at ADGM. 'These enforcement outcomes reflect the FSRA's firm support for the UAE's commitment to financial transparency and alignment with global commitments to information exchange. We are committed to identifying and addressing practices that do not meet our commitment to combat tax evasion through implementing robust and effective regulations in line with leading global standards of compliance and reporting responsibility.' Details of the FSRA's CRS and FATCA penalty notices are available on the ADGM
Khaleej Times
26-05-2025
- Business
- Khaleej Times
UAE fines 23 companies Dh610,000 for violating global tax reporting rules
The Financial Services Regulatory Authority (FSRA) of ADGM imposed penalties on 23 companies totalling Dh610,000 for not abiding by the Common Reporting Standard Regulations 2017 and/or the Foreign Account Tax Compliance Regulations 2022. Some of the breaches of CRS and FATCA compliance policies included failure to conduct risk assessments, follow due diligence procedures, submit the required annual information returns, and obtain valid self-certification forms. The regulations implement international frameworks that require reporting entities to collect and report information on foreign account holders to help combat international tax evasion. The underpinning inter-governmental arrangements entered into by the UAE enhance global tax transparency by facilitating the automatic exchange of financial account data between jurisdictions.
Forbes
17-05-2025
- Business
- Forbes
Why Pope Leo Can Skip FATCA, But Not FBAR
There has been a lot of discussion about the possible U.S. tax obligations for Pope Leo XIV, the first U.S. citizen Pope. Some of the assertions have generated confusion, leaving key U.S. tax concepts insufficiently addressed. One of the biggest areas of misunderstanding has been the Pope's possible FBAR reporting (FinCEN Form 114) versus FATCA reporting (IRS Form 8938) obligations for financial accounts at the Vatican Bank. Some of the discourse has been conflating the FBAR requirements under the Bank Secrecy Act with those of FATCA Form 8938 requirements under the U.S. tax laws. It is important to distinguish between the two. This article explains why, notwithstanding his vow of poverty with the Order of St. Augustine, Pope Leo XIV might face a legal duty under the FBAR rules to disclose financial accounts at the Vatican Bank, but need not report them under the mandates of FATCA on Form 8938. The holdings of the Vatican Bank are significant, totalling €5.4 billion in assets and serving 12,361 clients according to its 2023 Annual Report. The FBAR (FinCEN Form 114) is mandated under Title 31 of the U.S. Code, the Bank Secrecy Act. The BSA was enacted in the 1970s to fight terrorism, tax evasion and other financial crimes. It is not part of the Internal Revenue Code and does not impose any tax. Instead, it is an informational form requiring U.S. persons to report any 'financial interest in or signature authority over' foreign financial accounts if the aggregate value of all such accounts exceeds $10,000 at any point in the calendar year. The FBAR rules provide that having control over disposition of assets in a foreign financial account by direct communication with the financial institution is signature authority, sufficient to trigger FBAR filing obligations if the threshold is met. It is immaterial that one lacks ownership of the account. Additionally, the FBAR reporting obligation applies regardless whether the person is required to file a U.S. income tax return. All of this makes sense since the aim of FBAR is transparency about foreign financial accounts and not taxation. FATCA, enacted in 2010, is part of the U.S. tax laws, under Title 26 of the U.S. Code (Title 26 embodies the U.S. Internal Revenue Code). FATCA information reporting is carried out by completing IRS Form 8938 to report an individual's ownership of so-called 'specified foreign financial assets' that meet a certain threshold. It is a different regime altogether from the BSA and its concomitant FBAR filing obligations. FATCA, like FBAR, is aimed at offshore asset transparency, but has crucial differences. First, foreign financial assets that must be reported on the Form 8938 are only those assets in which the person has a beneficial ownership interest. While signature authority alone doesn't trigger Form 8938 reporting, it serves as an absolute and independent linchpin for FBAR disclosure. Second, Form 8938 is mandated only if the U.S. person is required to file a U.S. tax return and the specified foreign financial assets exceed certain thresholds. FBAR, by contrast, is not tied to a tax return. It must be filed even if the individual has no tax return filing obligation and even if he earns no income. These distinctions are vital in the case of Pope Leo XIV. When he was in his 20's, Pope Leo XIV took a vow of poverty as part of the Order of St. Augustine. The vow he took is very strict and means that he does not own personal property or assets; all are turned over to the Order. Additionally, any income he may earn or gifts he may receive are also turned over to the Order, a tax-exempt entity. This vow of poverty may exempt him from the need to file a U.S. tax return altogether even though as a general matter, U.S. persons living and working in foreign countries must file a tax return. Filing in the typical case is required, even if the foreign earned income falls below the special exemption amount for Americans overseas. Furthermore, the vow would mean that Pope Leo has no foreign financial assets in which he holds a beneficial interest. Accordingly, for these reasons, the Pope would have no duty to file FATCA Form 8938. The Pope's possible duties under FBAR are completely different. The requirement to file FBAR arises independently from ownership of any assets or earned income. It arises from control—specifically, signature or other authority over foreign financial accounts. The pressing issue is not whether Pope Leo XIV personally owns accounts at the Vatican Bank, formally known as the Institute for Works of Religion, but whether he has "signature or other authority" over the IOR accounts within the meaning of the FBAR regime. Under FBAR regulations, signature authority exists when an individual can control the disposition of assets in a financial account by direct communication (whether in writing or otherwise) with the institution maintaining the account. The Holy See is the Catholic Church's governing authority, led by Pope Leo, and is recognized as a sovereign entity. In 2022, Pope Francis mandated that all Holy See assets be consolidated in the Vatican Bank. This is a policy inherited by Pope Leo and it is this centralized control which raises questions whether the Pope's role equates to a de facto signature authority over IOR accounts. As the sovereign head of the Vatican and supreme authority over Vatican entities, including its financial institutions, Pope Leo XIV arguably exercises such control. Some recent discussions that have speculated on the Pope's potential U.S. tax obligations, seem to have a misunderstanding or misapplication of the relevant legal frameworks. Confusing FBAR and FATCA is a common, but very significant error. It is an error that can result in very harsh penalties as well as the stress of audits and an open-ended statute of limitations if the Form 8938 remains unfiled when otherwise required. Pope Leo XIV's vow of poverty likely shields him from income tax filing and FATCA's Form 8938 requirements. However, his potential control over the Vatican Bank raises important questions about FBAR filing duties. Since the Pope is a U.S. citizen and potentially exercises signature authority over foreign financial accounts that undoubtedly exceed $10,000 in aggregate, he may well have an FBAR obligation, regardless of his personal lack of wealth. In this era of financial transparency, even a pontiff may not be exempt from the long arm of U.S. financial reporting laws. The intriguing case of Pope Leo and his possible U.S. reporting obligations underscore the vast reach of FBAR and FATCA. While not everyone can be the Pope, this situation is a startling reminder that all U.S. citizens and residents must abide by FBAR mandates. It also serves as a warning to foreign employers who do not want company accounts to be disclosed to the IRS, that they should re-think giving U.S. persons control over such accounts. Stay on top of tax matters around the globe. Reach me at vljeker@ Visit my U.S. tax blog
Time Business News
24-04-2025
- Business
- Time Business News
Renouncing U.S. Citizenship in 2025: A New Identity, a New Future
VANCOUVER, BRITISH COLUMBIA – Amid growing global tensions, increasing taxation, and sweeping digital surveillance policies, more Americans than ever are choosing to renounce their U.S. citizenship and start over—legally, securely, and discreetly—with new identities. Amicus International Consulting , a world leader in second passport and identity transformation services, reports an unprecedented rise in demand for citizenship renunciation and new identity planning services in 2025. This press release provides an in-depth look at the motivations behind this dramatic shift, the intricate process of legal renunciation, the consequences of staying tethered to the U.S. tax regime, and the roadmap to personal sovereignty. 📉 The Changing Value of the U.S. Passport For decades, the U.S. passport has been a symbol of global mobility and national pride. But for many, particularly expatriates and high-net-worth individuals, it has become a liability—one that binds them to a complex web of taxation, financial scrutiny, and global stigma. Unlike most countries, the United States imposes citizenship-based taxation. This means that regardless of where an American lives or earns income, they must report worldwide earnings to the Internal Revenue Service (IRS), often hiring expensive tax consultants and facing legal exposure. 'What used to be an asset is now an anchor,' says a representative of Amicus International Consulting. 'You can work abroad, live abroad, and never set foot in the U.S. again—but you'll still pay taxes, report offshore assets, and navigate FATCA compliance for life.' 💰 The Cost of Citizenship: Exit Taxes and Bureaucratic Hurdles Renouncing U.S. citizenship is not free, and it's no longer easy. The renunciation fee now stands at $2,350, the highest of any country worldwide. But the cost doesn't stop there. The exit tax, applied to individuals classified as 'covered expatriates,' includes a tax on unrealized capital gains across all assets. Individuals with a net worth above $2 million or average annual tax liability above a certain threshold are especially affected. 'Imagine being taxed as if you sold your entire estate the day before you left,' explains Amicus. 'It's financial punishment for wanting to leave.' ⚖️ Citizenship Revocation and Asset Control The U.S. has added another restriction layer: passport revocation for tax debt. Passports can be revoked or denied if the IRS accuses citizens of owing over $50,000 in back taxes, even without a formal adjudication. Over 300,000 Americans were impacted by this law in 2024 alone. Simultaneously, American citizens face de-banking abroad. Financial institutions across Europe, Asia, and Latin America increasingly refuse to serve U.S. persons due to compliance costs under the Foreign Account Tax Compliance Act (FATCA). 'No one wants American clients anymore,' notes Amicus. 'Not because they're bad clients—but because they're walking liabilities.' 🌐 The Emerging Global Digital Tax Grid The push for global tax harmonization, led by the OECD and G20 nations, aims to standardize tax reporting across jurisdictions. As nations introduce central bank digital currencies (CBDCS) and phase out physical cash, financial privacy becomes nearly impossible. 'If you think the IRS knows too much now, wait until all transactions are digital and reportable in real-time,' says Amicus. In this climate, securing an offshore presence, a second passport, and discrete asset structures is more than strategic—it's essential for survival. 🕵️ Real-World Examples: Why Clients Act Now Case 1: The Fintech Entrepreneur A 36-year-old founder of a cryptocurrency firm based in Estonia faced increasing scrutiny from U.S. regulators despite living abroad for years. After Amicus International Consulting helped him renounce U.S. citizenship and secure St. Kitts citizenship through investment, he regained control of his financial freedom. He began using European private banking services without restrictions. Case 2: The Dual-National Retiree A retired dual-national living in Portugal received notice that his U.S. brokerage would close his account. FATCA had made him an undesirable client. Through Amicus, he renounced his citizenship, paid the one-time exit tax, and transitioned into a legal Panamanian identity, regaining access to international financial institutions. Case 3: The Political Journalist A journalist known for critical reporting on U.S. foreign policy was placed on a watchlist, leading to repeated secondary screenings at airports. Through Amicus, she acquired Caribbean second citizenship and now travels visa-free across Europe and Asia without fear of retaliation or visibility. 📑 The Process: Legal, Complex, but Doable Amicus International Consulting specializes in simplifying this complex journey. Their services include: Legal Name Change : In jurisdictions with simplified administrative frameworks. : In jurisdictions with simplified administrative frameworks. Second Passport Acquisition : Through investment, marriage, descent, or naturalization. : Through investment, marriage, descent, or naturalization. Exit Tax Mitigation : Structuring assets legally to minimize taxable exposure. : Structuring assets legally to minimize taxable exposure. Anonymous Travel Arrangements : Through biometric-silent identity documents and secure routing. : Through biometric-silent identity documents and secure routing. Relocation Support: Housing, bank accounts, and social integration abroad. 'You don't just need a lawyer—you need a strategist, a privacy engineer, and a relocation expert. That's what we provide,' says Amicus. 🌍 The Urgency to Act: The Window is Closing Legislation is evolving rapidly. Several proposals in the U.S. Congress and global institutions threaten to: Double the renunciation fee Make exit taxes permanent on post-expatriation income Impose penalties on family members who assist in expatriation 'Once they flip the switch to digital-only currencies, your window closes. You'll be watched, tracked, and taxed no matter where you live,' warns Amicus. The firm urges anyone considering renunciation to act within 6 to 12 months, before global agreements cement an irreversible system. 🧭 The Amicus Solution: Freedom Engineered Since its founding, Amicus International Consulting has positioned itself as a confidential provider of strategic second citizenships, legal identity change, and high-level asset migration. Its clients include: Political dissidents High-net-worth individuals Digital entrepreneurs Privacy advocates Dual nationals with complex exposure By leveraging international partnerships, discreet channels, and legal frameworks, Amicus ensures a smooth, secure, and compliant transition from one identity to another. 🛑 Final Thought: Delay is the Enemy of Liberty Every week you wait, legislation grows, oversight tightens, and the ability to act shrinks. 'Freedom isn't free—but it's still possible. You have to claim it before it disappears,' concludes Amicus. 📞 Contact Information Phone: +1 (604) 200-5402 Email: info@ Website: Follow Us: 🔗 LinkedIn 🔗 Twitter/X 🔗 Facebook 🔗 Instagram TIME BUSINESS NEWS
Gulf Today
26-03-2025
- Business
- Gulf Today
CBUAE imposes financial sanctions on 5 banks, 2 insurance companies
The Central Bank of the UAE (CBUAE) imposed financial sanctions totalling AED2,621,000 on five banks and two insurance companies operating in the UAE for non-compliance with the reporting procedures required by the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) guidelines. The sanctions were imposed due to the institutions' failure to meet compliance standards, particularly in due diligence and the accuracy of financial reporting, despite the CBUAE granting all licenced financial institutions ample time for rectification. The CBUAE affirmed that this step enhances the quality of the UAE's financial system, and aligns with its commitment to global initiatives promoting the integrity and transparency of tax systems and combat tax evasion, thereby preserving the UAE's position as a financial centre adhering to global best practices. WAM
