kpmg risk seminar (with a twist)
Post on 29-Jan-2022
4 Views
Preview:
TRANSCRIPT
3
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
EU GDPR: Myths
Who is the real regulator?
The industry will be fully compliant?
I have ticked security boxes?
I have my contracts reviewed?
4
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
GDPR top challenges - market
5
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Key takeaways
GDPR has the potential to disrupt your business
It’s more than policies and ticking boxes
Be pragmatic and assess your key risks to protect your crown jewels first!
7
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Cost and quality
Reducing costs Consistent
quality
The ‘80/20’ ‘20/80’ rule
8
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Customer experience
“ The digital revolution allows us to forge new types of relationships with customers, where technology is not only a business enabler but becomes an integral part of the way customers interact with the brand “
Source: KPMG CEOs survey 2017
9
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
People
Source: KPMG CEOs survey 2017
Rank Technology challenges over the next three years
1 Attracting new strategic talent
2 Integrating cognitive technologies
3 Piloting emerging technologies
4 Optimal use of data analytics and predictive technologies
5 Reskilling the current workforce
11
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
All for One Customer
KYC
AML
FATCA
CRSSanctions Screening
Due Diligenc
e
ReportingPeriodic Reviews
Classification
Risk Ratings
Verification
Financial Services
12
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Solution for the Industry
Profile details
Sanction screening
Indicative risk rating
FATCA/CRS classification
Annual reporting
Documentary evidence
13
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG ID Register - What does it do?
KPMG ID Register allows you to:— Collect KYC data and
information necessary to report for FATCA and CRS
— Share one profile rather than complete multiple forms that ask for similar information
— Comply with the KYC requirements and submit FATCA and CRS reports in multiple jurisdictions
— Secure information in our encrypted and tested service
Some of the ID Register functions include:— Live KYC profile available 24h
to fund administrators & service providers indicated by the user
— Indicative risk assessment
— Ongoing sanctions, PEPs and adverse media screening
— Entity classification for FATCA and CRS
— FATCA and CRS reporting under schemes required by various jurisdictions
15
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG DDIQKPMG DDIQ aggregates, filters and categorises results for analysis, escalationand review, saving both time and money. The system delivers its results in an easily accessible format with the most importantrisks clearly presented.
Source information suchas corporate registries,ID&V and media sources
De-duplication of adverse media
result(s)
Name of individual or legal entity
General information including addresses and local language names
Sanctions match identified with the highest degree of
confidence
Risks identified including money laundering and
corruption
Specific risk and related media
result(s)
Other noteworthy information
includes indicators of source of
wealth / funds
Natural language processing and sentiment analysis replicates the way humanresearchers conduct research,ensuring quality and consistency
16
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG Astrus – Enhanced due diligence tool
Efficient use of scarce compliance resources
Documented
âForeign Language Searches
Ongoing Monitoring
Online
Secure
17
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
MI dashboard
18
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
MI dashboard
20
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Contacts
Tony ManciniTax Partner+44 (0)1481 741845amancini@kpmg.com
Alex ReipSenior Manager, Advisory+44 (0)1534 632520alexandrareip@kpmg.com
22
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Requirement to Correct
— Requires taxpayers who have outstanding offshore tax non-compliance at 5 April 2017 to correct position by 30 September 2018
— Non-compliance must — involve an offshore
matter (income, assets or activities outside UK) or offshore transfer (income received or transferred outside UK)
— involve Income Tax, CGT or IHT
— have been committed on or before 5 April 2017
— Behaviour determines periods assessable and penalties - could be 4, 6 or 20 years (not extension to 5 April 2021)
— Penalties 200% (can be lowered but no lower than 100%)
— 50% additional penalty for seeking to avoid RTC
— For serious cases— Up to a 10% asset
based penalty on relevant asset (over £25,000 tax in a year)
— ‘Naming and shaming’ (over £25,000 tax across all years)
— No penalty where taxpayer has “reasonable excuse” for FTC
— Advice disqualified if given by interested person, i.e. participated in avoidance arrangements or for consideration facilitated them
— Also disqualified if advisor did not have appropriate expertise, failed to take account of taxpayer’s individual circumstances or was addressed to, or was given to, person other than the taxpayer
— Correct/Notify HMRC— Take one of the
prescribed actions to ‘correct’ the position with HMRC (e.g. disclose and pay, or enhance disclosure if position uncertain)
— Take further advice— Seek advice from a
non-interested advisor re original advice– this could provide a ‘reasonable excuse’
— If clients choose neither they risk being exposed to FTC penalties if tax liability is established post 30 September 2018
Overview “Failure to Correct” “Reasonable Excuse” Actions Needed
24
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Overview of Corporate Criminal Offence
(Only) defenceRelevant body had put in place “reasonable prevention procedures”
to prevent its associated person from committing tax evasion
— “Associated Person” is an employee, agent or other person who performs services for or on behalf of relevant body and associated person must act deliberately and dishonestly
— Where there is a UK tax evasion offence does not matter if relevant body or associated person is UK based or not –offence will have been committed and can be tried by courts of UK. UK nexus only relevant for the foreign tax offence.
Otherwise - guilty of offence
Criminal tax
evasion by a taxpayer (not simply
non-compliance falling short
of fraud)
Criminal facilitation of that
criminal tax evasion by an “associated person” of
“relevant body” acting in that
capacity
— Effective now, but HMRC recognise may be 12-18 month roll out period, but should be “rapid”
— Should by now have at least considered risk assessment
Revised HMRC guidance issued 1 September 2017
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/642714/Tackling-tax-evasion-corporate-offences.pdf
Failure to prevent
from committing the criminal facilitation
act
25
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Reasonable Prevention Procedures – HMRC’s 6 Guiding Principles
,
Risk Assessment
Risk-based Prevention Procedures
Top level commitment
Due diligence
Communications
Monitor, Report & Review
Assess exposure to risk and document relevant body’s risk assessment and tax risk appetite
Apply proportionate DD procedures in respect of persons who will perform services for on on behalf of relevant body including review
of contractual terms, disciplinary action for breaches, and whistleblowing procedures etc
Policies and procedures should be communicated, embedded and understood throughout the
organisation, and possibly externally
Monitor and revisit preventative procedures and improve where
necessary
Top-level management should be committed to and involved
in preventing criminal facilitation of tax evasion
Identify and apply proportionate measures to
prevent criminal facilitation of tax evasion including common elements in HMRC guidance
27
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
UK trusts registration service (“TRS”)
— Non public register driven by 4MLD available to “law enforcement authorities”, including HMRC
— Regulations at http://www.legislation.gov.uk/uksi/2017/692/pdfs/uksi_20170692_en.pdf
— Draft (not final) HMRC guidance latest version 22 November https://www.step.org/sites/default/files/Policy/TRS_Guidance_FAQ_-_22_November_2017.pdf
— Penalties in regulations are civil and criminal; guidance says “proportionate” penalty framework will be set out in near future
— “Relevant trusts” include those where trustees are non UK resident if the trustees receive UK income or have UK assets on which it is liable to pay certain UK taxes (IT, CGT, IHT, SDLT, SDRT)
— Trustees of “taxable relevant trust” (i.e. relevant trust in year in which trustees are liable to pay above taxes in relation to UK assets or UK income of trust) must register and disclose
— Revised “guidance” states trustees must register if there is “look through” to assets in underlying company; still needs clarifying re new IHT charges
— Beneficial owners and potential beneficiaries of taxable relevant trusts
— Settlor, trustees, beneficiaries, class in whose interest trust set up, and individual who has control over trust
— “Potential beneficiary” in regulations “Any other individual referred to as a potential beneficiary in a document from the settlor in relation to the trust such as a letter of wishes”
— Note revised HMRC “guidance”— Beneficiary named
separate from class must be disclosed
— Un-named, (and named?), or contingent, and part of class, disclose only when distribution made
— Special rules for EBTs
— Under SA rules, trustees must register by 5 October after end of tax year after liability to IT or CGT first arises
— For 2016/17 no penalty if trust, first taxable in 2016/17, registers and discloses before 5 January 2018
— Deadline for existing trusts (i.e. taxable before 2016/17) extended until 5 March 2018
— In subsequent years, must register and disclose by 31 January after end of tax year
— Notify changes (other than value) or state none, by 31 Jan after end of tax year of change, if still taxable relevant trust
— Apparently trusts wound up before 10 August 2017 may also be excluded, but should be checked
Background Which trusts must register?
Which beneficiaries are disclosed? Timelines
28
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Information to be disclosedInformation in respect of trust Information in respect of each
beneficial owner and potential beneficiary
— Full name of the trust;
— Date on which the trust was set up;
— Statement of accounts, describing the trust assets and identifying the value of each category of the trust assets at the date on which the information is first provided (including the address of any property held by the trust) – note not just UK assets;
— Country where the trust is considered resident for tax purpose;
— Place where trust is administered;
— Contact address for trustees; and
— Full name of advisers who are being paid to provide legal, financial or tax advice to the trustees in relation to the trust (subsequently limited to those assisting with registration process only).
— Full name;
— NI number or unique taxpayer reference;
— If no NI or UTR the individual’s usual residential address;
— If that address is not in the UK, either a passport or identification card number identification;
— Date of birth; and
— Nature of individual’s role in relation to the trust.
29
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Information to be disclosedInformation in respect of corporate trustee (i.e. as beneficial owner)
Information in respect of individual trustee (i.e. as beneficial owner)
— Legal entity’s corporate name;
— Legal entity’s UTR;
— Registered or principal office;
— Legal form of the legal entity and the law by which it is governed;
— The name of the register of companies in which the legal entity is registered; and
— The nature of the entity’s role in relation to the trust
— Full name;
— NI number or unique taxpayer reference;
— If no NI or UTR the individual’s usual residential address;
— If that address is not in the UK, either a passport or identification card number identification;
— Date of birth; and
— Nature of individual’s role in relation to the trust.
Document Classification: KPMG Public
© 2017 KPMG Channel Islands Limited, a Jersey company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
top related