KPMG Risk Seminar (with a twist) 13 December 2017

Transcription

1 KPMG Risk Seminar (with a twist) 13 December 2017

2 Towards effective data protection KPMG Risk Seminar (with a twist) 13 December 2017

3 EU GDPR: Myths Who is the real regulator? The industry will be fully compliant? I have ticked security boxes? I have my contracts reviewed? 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. 3

4 GDPR top challenges - market 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. 4

5 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! 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. 5

6 Technology enabler for business growth KPMG Risk Seminar Antony Mancini and Alexandra Reip

7 Cost and quality The 80/20 20/80 rule Reducing costs Consistent quality 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. 7

8 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 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. 8

9 People 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 Source: KPMG CEOs survey 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. 9

10 AML and Tax Compliance solutions Antony Mancini 13 December 2017

11 All for One Customer KYC Verification FATCA Due Diligenc e Sanctions Screening AML Financial Services CRS Risk Ratings Classification Periodic Reviews Reporting 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. 11

12 Solution for the Industry Documentar y evidence Profile details Annual reporting Sanction screening FATCA/CRS classification Indicative risk rating 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. 12

13 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 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. 13

14 KPMG ID Register Let s get in touch

15 KPMG DDIQ KPMG DDIQ aggregates, filters and categorises results for analysis, escalation and review, saving both time and money. The system delivers its results in an easily accessible format with the most important risks clearly presented. Natural language processing and sentiment analysis replicates the way human researchers conduct research, ensuring quality and consistency Name of individual or legal entity General information including addresses and local language names Source information such as corporate registries, ID&V and media sources Sanctions match identified with the highest degree of confidence Risks identified including money laundering and corruption Specific risk and related media result(s) De-duplication of adverse media result(s) Other noteworthy information includes indicators of source of wealth / funds 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. 15

16 KPMG Astrus Enhanced due diligence tool â Efficient use of scarce compliance resources Documented Foreign Language Searches Online Secure Ongoing Monitoring 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. 16

17 MI dashboard 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. 17

18 MI dashboard 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. 18

19 Questions?

20 Contacts Tony Mancini Tax Partner +44 (0) Alex Reip Senior Manager, Advisory +44 (0) 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. 20

21 Requirement to correct ( RTC ) Jason Laity 13 December 2017

22 Requirement to Correct Overview Failure to Correct Reasonable Excuse Actions Needed Requires taxpayers who have outstanding offshore tax noncompliance 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 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. 22

23 Corporate Criminal Offence ( CCO )

24 Overview of Corporate Criminal Offence Criminal tax evasion by a taxpayer (not simply noncompliance falling short of fraud) Criminal facilitation of that criminal tax evasion by an associated person of relevant body acting in that capacity Failure to prevent from committing the criminal facilitation act Effective now, but HMRC recognise may be month roll out period, but should be rapid Should by now have at least considered risk assessment 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. (Only) defence Relevant body had put in place reasonable prevention procedures to prevent its associated person from committing tax evasion Revised HMRC guidance issued 1 September loads/system/uploads/attachment_ data/file/642714/tackling-taxevasion-corporate-offences.pdf Otherwise - guilty of offence 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. 24

25 Reasonable Prevention Procedures HMRC s 6 Guiding Principles, Assess exposure to risk and document relevant body s risk assessment and tax risk appetite Monitor and revisit preventative procedures and improve where necessary Monitor, Report & Review Risk Assessment Risk-based Prevention Procedures Identify and apply proportionate measures to prevent criminal facilitation of tax evasion including common elements in HMRC guidance Policies and procedures should be communicated, embedded and understood throughout the organisation, and possibly externally Communica tions Top level commitment Top-level management should be committed to and involved in preventing criminal facilitation of tax evasion Due diligence 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 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. 25

26 UK trusts registration service ( TRS )

27 UK trusts registration service ( TRS ) Background Which trusts must register? Which beneficiaries are disclosed? Timelines Non public register driven by 4MLD available to law enforcement authorities, including HMRC Regulations at v.uk/uksi/2017/692/pdfs/u ksi_ _en.pdf Draft (not final) HMRC guidance latest version 22 November s/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 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. 27

28 Information to be disclosed Information in respect of trust 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). Information in respect of each beneficial owner and potential beneficiary 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 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. 28

29 Information to be disclosed Information in respect of corporate 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 Information in respect of individual trustee (i.e. as beneficial owner) 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 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. 29

30 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 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.