Transparency Gains Ground Over Money Laundering

Moscow, Russian Federation, August 19, 2015 (Newswire.com) - More are joining the crackdown on money laundering and corporate tax evasion. In this new article by Tranio, an international real estate broker, their experts examine how OECD initiatives and EU directives will affect both international firms and private investors.

                                           OECD initiatives and tax evasion

The Organisation for Economic Co-operation and Development (OECD) is working to implement the Action Plan on Base Erosion and Profit Shifting by the end of 2015. This project is set to transform the face of business accounting as well as national taxation rules and no doubt force international businesses to redefine their tax reporting structures. The clampdown primarily targets artificial avoidance of permanent establishment status and manipulation of transfer pricing rules.

                              Money laundering and tax compliance in the EU

The European Union has agreed on its 4th Anti-Money Laundering Directive to monitor the transparency of financial operations and accounts opened on its territory. It also establishes a Central Register of Beneficial Owners containing detailed information on owners of companies, trusts and other structures registered in European jurisdictions. It will be available to authorities, banks and other organisations including investigative journalists. Europe is also tackling citizens with undeclared assets outside its borders with its own version of America’s FATCA, signed by more than 80 members of the OECD and the Council of Europe.

                                         National initiatives and foreign funds

Banks and governments are making their own contribution to financial transparency which could make it tough on investors coming from outside the EU. Strict banking rules in the UK, France and Spain may hinder financial transactions and property purchases with overseas money if evidence of the funds’ origin is insufficient. These measures may tackle financial support for terrorism, but are also affecting genuine property buyers from abroad.

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