FROM THE EUROPEAN BANKING FEDERATION
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BANKS SUPPORT FIGHT AGAINST FINANCIAL FRAUD & CRIME
BRUSSELS, 27 March 2019 – The European Banking Federation takes note of the detailed and comprehensive European Parliament’s Report on financial crimes, tax evasion and tax avoidance. On this occasion, the EBF would like to reiterate its full support to the fight against tax fraud and financial crime.
Transparency of taxpayers and investors is a pivotal theme in the Report. Banks play a key role in this field; by reporting information on accountholders to tax authorities and by providing Financial Intelligence Units with suspicious transaction reports, as required by applicable regulations.
The EBF would like to emphasize the significant investments made by the banking sector to comply with the relevant international standards in the area of tax reporting and anti-money laundering. However, the EBF agrees that the efficiency and the administrability of the current EU framework could be improved and should be better aligned on international standards. The recent money laundering cases are a sad demonstration of this situation.
In the area of anti-money laundering the EBF strongly supports better cooperation between authorities and financial institutions, both domestically and cross-border.
The EBF strongly supports alignment with international standards. Accordingly, the EBF notes and welcomes the acknowledgement in the Report that the indicators referred to in the 5th revision of the Directive on Administrative Cooperation (DAC6) should be clarified in accordance with international standards. Earlier this month, the EBF and AFME published joint recommendations which could help improve the implementation of DAC6 by financial institutions. Another very useful tool to enhance the efficiency and administrability of international tax procedures applicable to investment income could consist in the implementation of a withholding tax relief at source system inspired by the OECD implementation package of “TRACE”.
Media contact:
Raymond Frenken, Head of Communications, +32 2 508 3748, r.frenken@ebf.eu
About the EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from 45 countries. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere. Website: www.ebf.eu Twitter: @EBFeu.
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The post Banks support fight against financial fraud & crime – EBF press release appeared first on EBF.
]]>EBF advisor: Roger Kaiser
Publication date: 6 July 2018
The EBF supports the Commission’s agenda to enhance tax transparency within the EU with the aim to tackle tax abuse and distortions in the internal market. In this respect, European banks are committed to the implementation of the automatic exchange of financial account information. However, the EBF is concerned by the recent Directive amending the Directive on Administrative Cooperation, referred to as “DAC6”, which imposes mandatory disclosures on tax intermediaries and tax advisers. DAC6 provides for a very broad definition of Intermediaries. The EBF shares Commissioner Moscovici’s view that financial institutions which only provide the service of maintaining a bank account for a customer should not qualify as an intermediary under the DAC6.
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Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
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The post Amendment of the Directive on Administrative Cooperation (DAC6): EBF position appeared first on EBF.
]]>EBF advisor: Roger Kaiser
Publication date: 19 March 2018
The EBF has serious concerns about the Commission’s proposals for a Directive on mandatory disclosures in relation to some cross-border arrangements ( “DAC6”) and the OECD model for Mandatory Disclosure Rules for tax reporting avoidance arrangements and offshore structures which DAC6 is expected to incorporate.
A major concern is that the contemplated scheme would be very challenging to implement in practice if financial institutions have to carry out granular investigations, potentially with retroactive effects.
The broad scope of application of DAC6 and the absence of a clear actual knowledge test will result in a great deal of legal uncertainty for financial institutions, which in their vast majority are not designers/promoters of tax schemes for their clients and in some Member States are even legally prevented from providing any tax advice.
The EBF therefore calls on the Council to reconsider the scope of application of the proposed Directive and to clarify that providing routine banking services (e.g. maintaining a financial account for a customer) without any additional involvement in structuring, does not make the bank an “intermediary” under DAC6.
Subscribe to the EBF Weekly + FinReg Agenda
Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
Subscribe to the EBF Morning Brief
The EBF Morning Brief is published Monday through Friday morning and brings you the top banking headlines, relevant announcements from the EU institutions and the latest from the EBF and its members, national banking associations in 32 countries in Europe. CLICK HERE TO SUBSCRIBE
The post Mandatory disclosure for intermediaries directive – EBF comments appeared first on EBF.
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