The Tax Gap Increased to $688 Billion in Tax Year 2021
On 10/12/23 announced new tax gap projections for tax years 2020 and 2021 showing the projected gross tax gap increased to $688 billion in tax year 2021, a rise of more than $192 billion from the prior estimates for tax years 2014-2016 and a rise of $138 billion from the revised projections for tax years […]
Accountants or Lawyers May Have Reporting Requirements under the CTA
On 9/18/23, FinCEN published the Small Entity Compliance Guide for beneficial ownership information (BOI) reporting under the Corporate Transparency Act (CTA) and simultaneously updated the FAQs regarding CTA compliance under FinCEN’s BOI FAQs. Professional Service Providers such as accountants or lawyers can potentially have reporting requirements under the CTA even if they are not beneficial […]
OFAC Suspends Certain Venezuela Sanctions
On 10/18/23, OFAC provided issued sanctions relief to Venezuela entities in the following sectors: oil and gas, state-owned gold mining company and Venezuelan sovereign bonds and PdVSA (Petróleos de Venezuela, S.A.) debt and equity. OFAC cautioned that it is prepared to revoke these authorizations, if appropriate, to support US foreign policy and national security priorities. […]
FinCEN BOI Small Business Guide
On September 18, 2023, the FinCEN BOI Small Business Guide was released to assist the small business community in complying with the beneficial ownership information (BOI) reporting rule that starts January 1, 2024. The purpose of the FinCEN 56-page BOI Guide is to help small businesses understand the description of each of the BOI reporting […]
FinCEN’s Pig Butchering Alert
On 9/8/23, FinCEN issued an alert on a prevalent Virtual Currency Investment Scam commonly known as “Pig Butchering”. FinCEN’s Pig Butchering alert addresses “Pig butchering” scams which resemble the practice of fattening a hog before slaughter. “Victims invest in supposedly legitimate virtual currency investment opportunities before they are conned out of their money. Scammers refer […]
Compliance Note from BIS, DOJ & OFAC
On 07/26/2023, the U.S. Department of Justice (DOJ), the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), issued a Tri-Seal Compliance Note: Voluntary Self-Disclosure of Potential Violations. The Compliance Note focuses on the voluntary self-disclosure policies that apply to U.S. […]
FedNow is live!
On 7/20/ 23, the Board of Governors of the Federal Reserve system announced the launch of the FedNow Service. FedNow is a new instant payment infrastructure developed by the Federal Reserve that is available to depository institutions in the United States and enables individuals and businesses to send instant payments through their depository institution accounts. […]
IRS Digital Assets Proposed Regulations
On 8/29/23, the IRS issued a Notice of Proposed Rulemaking and Notice of Public Hearing for Digital Assets Proposed Regulations. The IRS Digital Assets Proposed Regulations address information reporting, the determination of amount realized and basis, and backup withholding, for certain digital asset sales and exchanges by requiring brokers, digital asset trading platforms, digital asset […]
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 […]
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 […]
