FDIC Risk Review 2023 adds Crypto
On 8/14/23, the FDIC Risk Review 2023 was published. The FDIC Risk Review 2023 report summarizes conditions in the U.S. economy, financial markets, and banking industry. The report provides a comprehensive summary of key developments and risks in the U.S. banking system and includes a new section focused on crypto-asset risk. The report focuses on […]
OECD CARF and CRS
On 6/8/23, after conducting the first comprehensive review of the CRS in consultation with participating jurisdictions, financial institutions, and other stakeholders, the OECD released the International Standards for Automatic Exchange of Information in Tax Matters CRYPTO‑ASSET REPORTING FRAMEWORK (CARF) AND 2023 UPDATE TO THE COMMON REPORTING STANDARD). This resulted in two outcomes: a new tax […]
Digital Asset Contractors Sought by IRS
On 6/23/23, the IRS issued a Request for Information (RFI) though its Enterprise Digital Asset Initiative Project Office (DAIPO) “specifically seeking to improve the use of data and technology to identify and address digital assets noncompliance”. The RFI is another indication that the IRS continues to invest in digital asset compliance that includes digital asset […]
Bribery: Avoid the FCPA and the IRS!
The FCPA prohibits an offer, payment, promise or the authorization of a payment of money or anything of value (a/k/a bribery) to a foreign official for the purpose of obtaining or retaining business. Moreover, it prohibits individuals and businesses from knowingly falsifying books and records, thereby circumventing or failing to implement a system of internal […]
PEPs and Financial Institutions
Financial Institutions are required to have processes in place for identifying Politically Exposed Persons – known as “PEPs” within their customer base. PEPs are individuals perceived as more vulnerable to corruption and bribery involvement due to a current or past governmental position of influence. Financial Institutions include the immediate family and close associates in the […]
What is Covered under the FCPA?
The FCPA prohibits payment of bribes to foreign officials to assist with obtaining or retaining business. It also requires companies whose securities are listed in the US to make and keep books and records that accurately and fairly reflect their transactions and devise and maintain adequate systems of internal accounting controls. Violations of the FCPA […]
FinCEN: Mission, Priorities and Successes
On April 27, 2023, Himamauli Das, Acting Director of FinCEN spoke before the Committee on Financial Services U.S. House of Representatives. His Statement reiterated FinCEN’s mission to safeguard the financial system from illicit use, combat money laundering and its related crimes including terrorism, and promote national security through the strategic use of financial authorities and […]
Form 1099-K: Understanding what the IRS wants you to know
The American Rescue Plan Act of 2021 lowered the threshold for reporting third party network transactions from aggregate payments exceeding $20,000 to aggregate payments exceeding $600 during the calendar year and eliminated the 200-transaction threshold for reporting third party network transactions entirely with respect to Form 1099-K. Although the IRS announced in late 2022 that […]
Managing Third-Party Relationships and Risks
On June 6, 2023, Federal Bank Regulatory Agencies (Federal Deposit Insurance Corporation (FDIC), Board of Governors of the Federal Reserve System (FRB), and the Office of the Comptroller of the Currency (OCC)) issued final joint guidance designed to help banking organizations manage risks associated with third-party relationships, including relationships with financial technology companies. The Agencies […]
Digital Assets Transactions Subject to IRS Increased Enforcement Activities
On 4/5/23, the IRS published the Inflation Reduction Act Strategic Operating Plan where it states that the Agency will pursue enforcement for complex, high-risk and emerging issues; including digital assets transactions. IRS reports in its Operating Plan that digital asset transactions have high risk for non-compliance. Despite the IRS’s resource limitations, the Agency reports that […]
Offshore Digital Assets Information Exchange Coming!
The Biden Administration General Explanations of the Administration’s Revenue Proposals for Fiscal Year 2024 discusses the proposal for exchange of information reporting by financial institutions and offshore digital asset brokers. The proposal for exchange of information stems from the sentiment that tax evasion using digital assets continues to be a rapidly growing problem. The global […]
GAO highlights Underreporting, Underpayment and Non-filing of Taxes
The U.S. Government Accountability Office (GAO) is known as the U.S. “congressional watchdog,”. GAO is an independent, non-partisan agency that works for Congress by examining how taxpayer dollars are spent and provides Congress and federal agencies with objective, non-partisan, fact-based information to help the government save money and work more efficiently. On 2/27/23, GAO issued […]
