Although there has been progress since the Memorandum of
Understanding (MoU) was developed between the International Accounting
Standards Board (IASB) and the Financial Accounting Standards Board
(FASB) in 2002, today there continues to be differences between
International Financial Reporting Standards and US Generally Accepted
Accounting Principles (US GAAP) [Accounting Standards Codifications
(ASC)].
The United States Foreign and Corrupt Practices Act (FCPA) makes it illegal for a US citizen, a US-based or US-listed company, or foreign persons acting in the US, to attempt to bribe foreign officials (including making gifts or charitable contributions) with the goal of gaining a business advantage. It is also illegal for a company to use an agent or a third party to make or offer such a prohibited payment.
On 1 July 2011 the Bribery Act 2010 came into force in the United
Kingdom. The legislation has been described as the “toughest anti
corruption legislation in the world”. The introduction of an
offence for commercial organisations which fail to prevent bribery, has
led many businesses to take rigorous steps to put in place adequate
procedures to combat bribery.
The Internal Revenue Service (IRS) has announced they are on track to
issue proposed FATCA regulations in December 2011 (if the IRS miss their
announced deadline we expect the guidance will be released before 31
January, 2012), with registration required by 30 June, 2013.
In Tunisia, Egypt, Libya, across the
Middle East and North Africa a “wave of revolutions” raises cries for freedom
and democracy. In their wake, the global community sweeps in sanctions to
support citizens and help suppress oppressive regimes. Will they work? Will
they impact your organisation?
Nine years after the 9/11 attacks in the United States, confidential
diplomatic communications leaked by WikiLeaks reveal millions of dollars
still flowing to terrorists for plans to attack and kill innocent
civilians worldwide.
At the core of the recent international and regional initiatives addressing the financial activities of what have come to be known as ‘Politically Exposed Persons’ is the desire to curb corruption and prevent fraud among some of the poorest nations and peoples of the world.
Over the last 50 years, we have witnessed fundamental changes to the
role of the auditor. Influenced by critical events (eg court decisions,
corporate failures, economic melt-downs), audit responsibility has
evolved from straight-forward error and fraud detection to the provision
of more value-added services for clients and regulators;
It does not take long for a visitor to the Caymans to realise that the 1993 film The Firm still arouses the ire of those in the Cayman financial sector. Even today in certain circles Cayman is synonymous with money laundering and other financial misdeeds. Others however recognise that Cayman is far from the world’s money laundering haven and is in fact exploited by fraudsters because of its record of political and financial stability.
Technology has provided the tools for companies to engage in business in any corner of the world and to be managed from any location. Cayman’s tax neutral platform and security as a United Kingdom overseas territory, as well as its reputation for efficiency and an abundance of financial expertise, provides an advantage over other international financial centres.
The recent rhetoric of the G20, OECD and other international bodies includes official corruption as a critical global problem. This is then tied back to ‘tax havens’ and ‘bank secrecy’, i.e. offshore financial services centres are active participants in processing the proceeds of official corruption, particularly corruption in the impoverished third world.
This despite hard evidence to the contrary from several respected sources – for example the Turner Review (p74, March 2009) which specifically acknowledges that ‘the role of offshore financial centres was not central in the origins of the current crisis’.