Kenneth Rijock

Kenneth Rijock

Saturday, June 27, 2015

NEW UK CLAWBACK RULES WILL SEND CITY BANKERS TO OFFSHORE TAX HAVENS, AND POSSIBLY CLEVER LAUNDRYMEN


The UK Financial Conduct Authority has announced that it intends to permit British banks take back bonuses paid out, from its senior managers who commit misconduct, or risk management failures, for up to ten years, and for up to seven years for those found to be material risk takers.

This rule has already had the effect of driving City bankers to their tax professionals; what compliance officers outside the UK should be aware of is that these bankers will most certainly be moving assets to places where British banks cannot seize it, namely tax havens. It also means the use of anonymous trusts, or bearer-share corporations, will certainly be employed, to hide beneficial ownership. You know who also uses those vehicles to conceal their clients' interest; money launderers

Although the vast majority of bankers seeking at this time to shield their assets offshore are certainly legitimate, since money launderers often choose to hide their clients' illicit wealth amid the flurry of normal business, I would confirm their status when professionals advise you that their client is one of the individuals who must move assets offshore, as a prudent response to the new clawback rules. Don't take a money launderer's client, thinking that he is merely a nervous banker.

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