Tax incentives for repatriated funds, the COVID-19 pandemic, and a complicating geopolitical landscape have provided Taiwan’s onshore wealth management scene with some momentum but, truth be told, only a small portion of offshore assets have returned to Taiwan. Most have remained in offshore banking units (OBUs), Singapore, and Hong Kong. “Around 60% of the repatriated funds come from businesses, and […]

The post Tax amnesty alone may be “insufficient” to lure Taiwan HNWIs’ assets onshore appeared first on Asian Private Banker.

The Philippines tax amnesty has hardly affected private banking clients, while it’s “business as usual” for banks as the country is still not a member of the Common Reporting Standard (CRS) network, according to a private banker with experience in the Philippines market. In December last year, the Senate of the Philippines passed a bill endorsing a tax amnesty scheme covering […]

The post Philippines tax amnesty has limited impact on HNWIs appeared first on Asian Private Banker.

Although tax reporting is becoming increasingly standardised across jurisdictions, emigrating HNWIs must acquaint themselves with the relevant local tax arrangements in order to avoid “unexpected surprises”, according to global tax and professional services network, BDO. While the CRS tax reporting scheme continues to facilitate the development of relatively universal tax-reporting standards across Asian jurisdictions, BDO has cautioned individuals to examine and […]

The post Relocating HNWIs must scrutinise local tax rules to avoid shocks: BDO appeared first on Asian Private Banker.

Independent trust companies on the ground in Asia are well-positioned to capture a greater share of the wealth planning market due to the concurrent drivers of reduced appetite by private banks for trust business and rapidly growing demand from Chinese HNWIs. Trust market environment not ideal for financial institutions According to Jacqueline Shek, executive director at ZEDRA, an independent global […]

The post Chinese demand for wealth planning spells opportunity for independent trust companies appeared first on Asian Private Banker.

The “broadly unorganised” nature of data collected in accordance with the common reporting standard (CRS) regime could limit the impact of information exchanges between tax authorities, according to a legal expert. While tax experts previously told Asian Private Banker that HNWIs will need to brace themselves for enquiries from tax authorities as the CRS exchange commences, Stefano Mariani, counsel at […]

The post CRS impact could be blunted by “broadly unorganised” data appeared first on Asian Private Banker.

With the first international Common Reporting Standard (CRS) exchange of information due to commence this month, private banks should be aware of “incredibly complex” rules published by the Organisation for Economic Co-operation and Development (OECD) which will require greater attention than many would expect, according to a CRS expert. The OECD published mandatory disclosure rules (MDRs) on 9 March which […]

The post OECD’s “incredibly complex” mandatory disclosure rules could cause headaches as CRS exchange looms appeared first on Asian Private Banker.

Confusion and disputes may arise over clients’ tax residencies with the Common Reporting Standard (CRS) information exchange set to take place across Asian jurisdictions for the first time in September, according to a tax expert. Hong Kong, Singapore, and a number of other Asian countries will take part in their first CRS information exchange next month. Account information collected from […]

The post Disputes might arise over tax residencies as CRS information exchange looms appeared first on Asian Private Banker.

Asian HNWIs’ search for privacy and confidentiality has been “consigned to history” as the region’s wealthy increasingly favour transparency in tax and other regulatory compliance, according to Jersey Finance, a market-promoting body funded by Jersey’s government and financial services sector. In a recent survey conducted by Jersey Finance, more than 48% of respondents — comprised of private banks, wealth managers […]

The post Asian HNWIs’ search for privacy “consigned to history” appeared first on Asian Private Banker.

This is a sponsored article from BearingPoint. Global moves to increase tax transparency, headlined by the OECD’s Common Reporting Standard regime and multiple tax amnesties, are stirring Asia’s private banking industry, which has no choice but to manage this regulatory flux across jurisdictions. But while Asian high-net-worth individuals (HNWI) have no choice other than to deal head-on with complex tax […]

The post Client tax reporting a priority as CRS kicks in appeared first on Asian Private Banker.

For offshore private banks, the OECD-developed Common Reporting Standard (CRS) regime suggests an opportunity for lower-cost tax reporting and standardised account opening. However, domestic banks in Taiwan are more pessimistic about the impact of the regime, which in practice, should come into effect in the jurisdiction on 1 January 2019. Although Taiwan cannot officially join the CRS regime as an […]

The post Taiwan’s local private banks worried about incoming CRS framework appeared first on Asian Private Banker.

Enforcement of the new OECD-led Common Reporting Standard (CRS) in October will put pressure on UK asset owners who hold assets directly or through trust structures to report on their asset holdings, according to tax experts. While the London property market has been a popular asset choice for Asian HNWIs, according to Mark Taylor, head of Buzzacott’s tax investigation and dispute […]

The post Non-resident UK asset owners under pressure ahead of CRS info exchange appeared first on Asian Private Banker.

According to one industry study, Asia’s burgeoning independent asset management industry could more than double its AUM by 2020 to US$55-60 billion. To achieve this, IAMs will need to grow at a CAGR in the range of 14.9-16.9% – well above what Asia’s private banks are achieving (6.5% CAGR, 2012-2016). Anecdotally, a number of firms have told Asian Private Banker […]

The post Asia’s independent asset managers: a snapshot survey appeared first on Asian Private Banker.

2017 has seen its fair share of regulatory events for Asia’s private banking industry, including multiple enforcement actions brought by the region’s watchdogs against individuals and institutions alike. Arguably the most high-profile incident involved HSBC’s legacy unit, HSBC Private Bank (Suisse) Hong Kong branch, which was slapped with a record HK$400 million fine and had two licences revoked as the […]

The post 2017’s key regulatory enforcements appeared first on Asian Private Banker.

Wealthy Chinese investors are considering how best to structure their assets in preparation for the Common Reporting Standard (CRS) regime, tax consultants and lawyers tell Asian Private Banker, noting three strategies in particular that clients are turning to. Industry experts say that wealthy individuals need to be proactive in their planning, especially since CRS will be implemented retrospectively and considering […]

The post Three ways Chinese HNWIs are preparing for CRS appeared first on Asian Private Banker.

Transfers of Standard Chartered client assets from Guernsey to Singapore in 2015 were likely a “deadline arbitrage” move ahead of the implementation of the Common Reporting Standard (CRS) regime in Guernsey, according to compliance solutions provider Accuity. Bharath Vellore, product innovation manager at Accuity, tells Asian Private Banker that the transfers – worth a combined US$1.4 billion – were probably […]

The post StanChart’s private client asset transfers likely done to “defer” CRS obligations appeared first on Asian Private Banker.

Amendments to Hong Kong’s tax legislation were presented to the Legislative Council yesterday, paving the way for the city to enter into multilateral tax cooperation agreements. “The chief executive in Council currently does not have powers under the Inland Revenue Ordinance to give effect to multilateral agreements or arrangements for international tax cooperation,” law firm Baker McKenzie said in a […]

The post Hong Kong a step closer to entering multilateral tax transparency network appeared first on Asian Private Banker.

Hong Kong’s tax authority has signed a Common Reporting Standard (CRS) agreement with Switzerland, and the government department has drafted amendments to tax laws aimed at facilitating Hong Kong’s inclusion in the multilateral tax transparency network. “We have been seeking to expand Hong Kong’s AEOI (Automatic Exchange of Financial Account Information) network with our tax treaty partners,” a spokesperson for […]

The post HK signs CRS agreement with Switzerland, plans afoot to enter multilateral network appeared first on Asian Private Banker.

Standard Chartered has responded to reports that it is under investigation for the role that its staff played in transferring US$1.4 billion of assets from Guernsey to Singapore in 2015 by saying that it proactively notified authorities, according to media reports. The bank has also conducted a full account review of the trust structures used, according to the report by […]

The post StanChart says US$1.4 billion transaction under investigation was proactively reported appeared first on Asian Private Banker.

The Indonesian Financial Transaction Reports and Analysis Centre (PPATK) is investigating reports that Indonesians with ties to the local military wired US$1.4 billion to accounts managed by Standard Chartered, according to local media. “We are communicating with relevant parties to investigate the case,” PPATK chairman Kiagus Ahmad Badaruddin told The Jakarta Post yesterday. The publication says the Indonesian authority is […]

The post Indonesian watchdog investigates StanChart’s private client asset transfers appeared first on Asian Private Banker.

Standard Chartered has come under regulatory scrutiny from the Monetary Authority of Singapore (MAS) and Guernsey’s Financial Services Commission for the role that the British bank’s staff played in transferring US$1.4 billion of private banking client assets from Guernsey to Singapore in 2015, according to media reports. The regulators are investigating Standard Chartered after the bank carried out an inquiry […]

The post Regulators in Singapore and Guernsey “investigating” StanChart’s transfer of private banking assets appeared first on Asian Private Banker.

Indonesia’s government has introduced regulations aimed at detecting, and ultimately taxing, assets that were not declared under the country’s recently-concluded tax amnesty programme, according to a Reuters report. The island nation’s nine-month tax amnesty scheme resulted in just 3% (Rp 147 trillion) of assets declared being repatriated. According to the government, both asset declarations and repatriations of offshore assets did […]

The post Indonesia to clamp down on tax evasion six months after amnesty ends appeared first on Asian Private Banker.

Data gaps and quality issues are among the many data management challenges that private banks are grappling with as they trawl through their internal systems in preparation for the Common Reporting Standard (CRS) regime, Abraham Teo, head of APAC regulatory policy at AxiomSL, tells Asian Private Banker. “One common theme we have noticed among private banks and retail banks is […]

The post Private banks grappling with data management issues as CRS looms appeared first on Asian Private Banker.

To quote the HKMA’s Norman Chan, we are in the midst of the “dog days of summer”, and watchdogs have indeed been slower at rolling out new regulations and circulars. Earlier this week, however, lawyers spoke with Asian Private Banker on a precedent-setting judgement from the Hong Kong Court of Appeal, was the first ever ruling of its kind in favour of investors, who […]

The post August Regulatory Round-up: precedent-setting mis-selling ruling; cybersecurity a concern; CRS less so appeared first on Asian Private Banker.

The common reporting standard (CRS) regime will be positive for private banks and far less onerous than many in the industry expect, according to Pictet Wealth Management’s APAC CEO, Claude Haberer. Haberer told Asian Private Banker that CRS will be “very simple” for private banks, whose only obligation is to inform local authorities about clients’ tax information. Advertisement A spokesperson […]

The post Compared to FATCA, CRS will be “very simple” for private banks appeared first on Asian Private Banker.

With the common reporting standard (CRS) regime looming, a consultant tells Asian Private Banker that “financial complexity” will increase worldwide over the short- to medium-term. “We see additional complexity in meeting the CRS requirements, but as we all get used to the regulation it should simplify and reduce complexity,” Henry Reynolds, an accounting and tax portfolio director at TMF Group, […]

The post CRS will temporarily increase financial complexity, consultant says appeared first on Asian Private Banker.

Indonesia has fulfilled a requirement for its participation in the automatic exchange of information (AEOI) scheme, with lawmakers successfully turning an emergency rule in lieu of law into a law yesterday, according to a Bloomberg report. The rule, which was first issued by the country’s president without parliamentary approval in May, allows Indonesia’s tax office to obtain information for tax […]

The post Indonesia passes law that paves the way for AEOI participation appeared first on Asian Private Banker.

Private banks and wealth managers in Asia have a “crucial window” of just 11 days to renew their US tax agreements in order to remain participants of the foreign account tax compliance act (FATCA), a tax consultant says. Given the high number of US expats in Hong Kong and Singapore, the US Internal Revenue Service (IRS) has “focused its attention” […]

The post Private banks in Asia need to renew their FATCA agreements by month’s end appeared first on Asian Private Banker.

Singapore signed an agreement relating to the automatic exchange of financial account information (AEOI) scheme with Switzerland yesterday, ahead of a working meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes, held in Geneva. The bilateral agreement was signed by Huey Min Chia-Tern, deputy commissioner of the Inland Revenue Authority of Singapore, and Alexander Karrer, […]

The post Singapore signs AEOI agreement with Switzerland appeared first on Asian Private Banker.

Given that private banks must keep tabs on their clients’ account information for common reporting standard (CRS) purposes, as of 1 July, banks must have sound communication channels in place with local tax authorities, according to a tech vendor. While private banks in Hong Kong previously dealt primarily with the HKMA and SFC, the Inland Revenue Department has now come […]

The post Advent of CRS means private banks and tax authorities must develop close ties, says tech vendor appeared first on Asian Private Banker.

Hong Kong’s tax authority has signed a bilateral agreement with its counterpart in New Zealand concerning the automatic exchange of financial account information (AEOI) scheme. The Inland Revenue Department (IRD) said in a statement last Friday that its agreement with New Zealand expands its AEOI partner network to 14 jurisdictions. Hong Kong and New Zealand previously had a double tax […]

The post Hong Kong signs AEOI agreement with New Zealand appeared first on Asian Private Banker.

Hong Kong will likely abandon its bilateral approach to signing ‘tax treaties’ in order to fast-track its preparations for the common reporting standard (CRS) regime, given that the Financial Action Task Force (FATF) will evaluate its progress next year, a lawyer says. “Hong Kong may be changing from a bilateral approach to a multilateral approach,” says Joanna Caen, senior consultant […]

The post With inspection looming, Hong Kong could abandon bilateral approach to CRS preparations, says lawyer appeared first on Asian Private Banker.

Singapore will sign a bilateral ‘tax treaty’ agreement with Indonesia when the island nation’s confidentiality and data protection safeguards are brought in line with international standards, according to Indranee Rajah, a senior minister of state for finance and law in Singapore. “On Singapore’s side, these [safeguards] are in place, and we look forward to when Indonesia is able to let […]

The post Singapore will sign tax treaty with Indonesia when its safeguards are in place: minister appeared first on Asian Private Banker.

Indonesia has signed an agreement with Switzerland for the automatic exchange of financial account information (AEOI) scheme, Indonesia’s tax office said on its website. The agreement aims to ensure that both countries exchange individuals’ tax information, under the common reporting standard (CRS) framework, from 2018. Indonesian finance minister Sri Mulyani Indrawati said the joint declaration is important to Indonesia since […]

The post Indonesia adds major financial centre to its tax reporting network appeared first on Asian Private Banker.

To implement the common reporting standard (CRS) framework effectively, Asian countries face “a really big cultural challenge” that will inevitably have to be addressed, says Jersey Finance CEO Geoff Cook. “Privacy is a bigger issue here in Asia, because it’s about family wealth,” Cook tells Asian Private Banker. While corporates in the US and Europe have fragmented shareholdings, “it’s completely […]

The post Asia’s bias towards family-owned businesses means “privacy is a bigger issue here” ahead of CRS rollout appeared first on Asian Private Banker.

Singapore has signed two multilateral tax reporting agreements, effectively expanding the city-state’s information exchange network from 23 to 91 jurisdictions, and including the country in a tax reporting network concerning multinational enterprises. Singapore signed multilateral agreements covering the automatic exchange of financial account information (AEOI) – which facilitates the exchange of tax information relating to individuals and entities, and the […]

The post Singapore signs multilateral tax reporting agreements to bolster partner network appeared first on Asian Private Banker.

Hong Kong has signed an automatic exchange of financial account information (AEOI) agreement with Indonesia, and has also gazetted changes to its tax framework in order to facilitate the rollout of the OECD initiative. The Inland Revenue Department’s latest amendment ordinance enables Hong Kong to implement the AEOI scheme “more effectively”, a government spokesperson said in a statement. “We must […]

The post Hong Kong signs AEOI agreement with Indonesia, prepares for information exchanges appeared first on Asian Private Banker.

The wave of global tax changes aimed at improving compliance and transparency “is far more radical than in any other period of time in history”, says Richard Weisman, international tax partner at Baker McKenzie in Hong Kong. Private banks and high net worth individuals are grappling with a raft of new tax laws around the world, including the Foreign Account […]

The post Changes to tax landscape more extreme “than any period in history”, says tax specialist appeared first on Asian Private Banker.

Hong Kong’s Private Wealth Management Association (PWMA) has partnered with the Hong Kong Monetary Authority (HKMA) to roll out the Treat Customers Fairly  (TCF) Charter to the 47 PWMA members, in order to make the industry “more competitive”, according to a joint press release from the two industry bodies. “To remain competitive as the premier private wealth management hub in Asia, […]

The post HKMA and PWMA roll out “treat customers fairly” framework to keep industry “competitive” appeared first on Asian Private Banker.

With China readying for the implementation of the common reporting standard (CRS) from July, a law firm has advised Chinese citizens that they will likely not be able to avoid being subject to the automatic exchange of financial account information (AEOI) by changing nationality. A joint statement titled “Managing methods for due diligence on non-resident financial accounts” (translated from Chinese: 《非居民金融账户涉税信息尽职调查管理办法》) […]

The post Unlikely that Chinese citizens can avoid AEOI scrutiny by changing nationality, says law firm appeared first on Asian Private Banker.

Asian Private Banker sits down with Credit Suisse’s Benjamin Cavalli to speak about his dual role, his key regulatory concerns and the private bank’s increased focus on onshore Southeast Asian markets. Asian Private Banker (APB): Given your fairly new role as Credit Suisse’s Singapore CEO in addition to being head of Southeast Asia, how have your responsibilities changed? Benjamin Cavalli (BC): […]

The post Credit Suisse’s Cavalli on striking a balance between his two roles appeared first on Asian Private Banker.

Indonesia’s finance minister said yesterday that “bank secrecy has ended with regard to tax purposes”, after the country announced progress in its preparations for the automatic exchange of information (AEOI) scheme. According to Indonesian publication netral news, finance minister Sri Mulyani Indrawati confirmed that the minimum account balance to be reported under the AEOI scheme in Indonesia will be US$250,000, […]

The post Bank secrecy relating to taxes “has ended”, says Indonesia’s finance minister appeared first on Asian Private Banker.

Indonesian President Joko Widodo has signed a law allowing tax authorities to access information on accounts held at financial institutions, according to a report by Reuters. The island nation’s new regulation requires banks, insurance companies and other financial institutions to report on client information – such as cash balances and financial gains from assets, as required under international standards – […]

The post Indonesia authorises tax office to access account information at financial institutions appeared first on Asian Private Banker.

Anti-money laundering (AML) officers at Asia’s private banks are warming to prospects of greater automation in their daily workflow, but remain wary of widespread adoption, according to a survey of 24 AML and compliance officers in Hong Kong and Singapore by Asian Private Banker. Transaction monitoring, as the term implies, involves sifting through client transactions to detect abnormal activities, or […]

The post Transaction monitoring may be ripe for automation, but no machine will beat the client “smell test” appeared first on Asian Private Banker.

With Hong Kong’s common reporting standard (CRS) list growing to include a possible 74 jurisdictions, bankers who manage the assets of clients from worldwide tax jurisdictions – including Mainland China, should keep a close eye on CRS developments, according to an international law firm. “CRS would be a serious concern for Mainland Chinese customers who have assets offshore, as Mainland China […]

The post HK bankers managing Mainland client assets should “keep abreast” of CRS developments appeared first on Asian Private Banker.

The Hong Kong government this week signed competent authority agreements (CAAs) – relating to the automatic exchange of financial account information (AEOI) – with two more countries, as part of its efforts to speed up its AEOI collaborations to avoid being labelled as “non-cooperative” by the OECD. The government’s information website said Portugal and South Africa became the eighth and ninth […]

The post HK signs two more AEOI agreements, 63 others in the pipeline appeared first on Asian Private Banker.

The Common Reporting Standard (CRS) regime, an OECD initiative that requires jurisdictions to obtain client information from financial institutions and, where necessary, to ‘automatically’ share it with other jurisdictions, is an issue that casts a long shadow over Asia’s private industry – if only for the uncertainty it engenders. Concerns will have only increased when news surfaced last week that the […]

The post Web search data points to uptick in Asia CRS chatter appeared first on Asian Private Banker.

The Hong Kong government is considering expanding its list of reportable jurisdictions for the Automatic Exchange of Information (AEOI) and this will impact those financial institutions that have thus far taken a “narrow approach” to the CRS regime, Richard Weisman, international tax partner at Baker & McKenzie in Hong Kong, tells Asian Private Banker. Currently, Hong Kong has just two […]

The post HK private banks must “rapidly expand” AEOI compliance approach, as govt eyes new reporting partners appeared first on Asian Private Banker.

Indonesia is in the third phase of its tax amnesty programme after generating US$8 billion from the first two. The programme is expected to rely on hefty contributions from small and medium businesses in order to reach its US$12.4 billion target. The third and final phase will end in March 2017, which will enable participants to pay a tariff of 10% […]

The post Indonesia enters third phase of tax amnesty programme with US$8 billion collected appeared first on Asian Private Banker.

The Common Reporting Standard (CRS) is fraying more than a few private banking nerves, with many predicting that the regime will cause complications for an industry already under significant pressure. With just over a year to go before the regime is enforced in Hong Kong and Singapore, Asian Private Banker takes a look at some pressing CRS-related concerns for private banks in the region. 1. […]

The post Four CRS concerns for private banks appeared first on Asian Private Banker.

Independent asset managers in Asia stand to benefit from the incoming Common Reporting Standard (CRS) regime, according to industry sources, who point out that HNWIs are actively structuring wealth to ensure that assets earmarked for offshore investment purposes are ring-fenced from business assets. “This year, many of our new clients were low-profile single family offices,” says one source from a leading global asset manager. […]

The post CRS pressures contribute to Asian IAM growth appeared first on Asian Private Banker.

Private banks have been disbanding their international desks with increasing frequency, and the incoming common reporting standard regime (CRS) could prove to be the final nail in the coffin. Singapore and Hong Kong remain home to a handful of private banks with functioning international desks manned by bankers that service clients globally. But CRS – combined with wider regulatory and market-related strains – is […]

The post CRS challenges viability of international desks appeared first on Asian Private Banker.

The 1MDB fiasco that has gripped the Malaysian nation since 2015 and claimed the merchant banking licences of two private banks in Singapore may be far from over, but Danial Mah Abdullah, CEO of Labuan International Business and Financial Centre (IBFC), tells Asian Private Banker that the offshore special economic zone has experienced little-to-no negative impact. “[Labuan] is quite separated, it […]

The post Labuan IBFC not affected by 1MDB says SEZ’s CEO appeared first on Asian Private Banker.

Private banks may become inundated with “a mess” of duplicate and superfluous information when the common reporting standard (CRS) regime comes into force, warns Dawn Quek, principal at law firm Baker & McKenzie, who says that matters could become especially complicated when a family trust structure involves multiple parties linked to multiple jurisdictions.  Under CRS, the new global standard for the Automatic […]

The post CRS likely to have messy impact on private banks warns legal expert appeared first on Asian Private Banker.

The incoming common reporting standard (CRS) regime may be fraying a few nerves among Asia’s private banks but, by general consensus, much of the burden will fall squarely on the shoulders of relationship managers who will need to strike a balance between providing a “seamless onboarding experience” and adhering to the requirements of CRS, say attendees of Asian Private Banker’s RM Nexus: […]

The post CRS has the “potential to level the playing field” and RMs will carry that burden appeared first on Asian Private Banker.

Private banks that expect to reuse their FATCA-tailored technologies to comply with the incoming Common Reporting Standard (CRS) regime are sorely mistaken, according to regulatory and risk firm AxiomSL, which says that financial institutions will need to invest in new systems due to the sheer scale of the global framework. “While some firms have been able to get by under the […]

The post FATCA-tailored systems won’t suffice for CRS regime appeared first on Asian Private Banker.

With the onset of stringent compliance issues, private banks are referring their clients to independent advisers, particularly when it comes to dealing with FATCA and CRS. “Private banks are facing stringent compliance issues that are leading them to refer their clients to independent advisers for their clients’ tax issues such as FATCA,” says Debby Davidson, Hong Kong-based managing director for […]

The post FATCA, CRS forcing private banks to outsource tax advisory services appeared first on Asian Private Banker.

The Hong Kong Securities and Futures Commission (SFC) has found instances of “unsatisfactory” know-your-client (KYC) procedures at Hong Kong intermediaries. A circular sent to financial intermediaries on 12 May detailed breaches found during a recent supervisory review. These breeches included reliance on mobile phone videos when on-boarding clients, and lapses in investigating multiple clients using the same addresses. The circular […]

The post SFC highlights “deficiencies” in KYC process appeared first on Asian Private Banker.

The Hong Kong government has announced a public consultation process on the latest proposals to bring Common Reporting Standard (CRS) to Hong Kong. The consultation will last until 30 June, and members of the public and industry are invited to submit their views on aspects in the new regulations. Topics include the scope of the financial institutions involved, reporting requirements, […]

The post Public consultation for tax law appeared first on Asian Private Banker.