Regulatory
Compliance

1. Reporting services :

FATCA approach:

The Foreign Account Tax Compliance Act (FATCA) is a United States of America federal law designed to enforce the requirements for U.S. persons and citizens (including those living outside the USA) to file yearly reports on their non-US financial accounts to the IRS.
Reynders & Co can assist you with FATCA classification, FFI registration, FATCA on boarding, FATCA pre-existing account due diligence and FATCA reporting.
FATCA affects two groups:

  1. U.S. taxpayers who need to report on certain foreign financial accounts and offshore assets
  2. Foreign Financial Institutions (FFI) who need to report on financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest

FATCA is quite broad in its application and has far reaching impact, not only on U.S. based companies but also on companies with U.S. assets or clients and more.
FATCA has a global scope and requires that each FFI around the world reports accounts held by US tax payers. Financial institutions failing to report these accounts will be subject to a 30% withholding tax on payments from the US.

Most countries have negotiated intergovernmental agreements (“IGAs”) with the IRS (US Tax Authority) in order to facilitate information flows between entities, local tax authorities and the IRS and look to include local specificities into these agreements.

How can Reynders & Co assist you?

We can assist clients with the:

    • FATCA Classification

In order to implement the proper methodology for FATCA compliance (or not) we can assist you in determining if an entity is either an FFI or a Passive of Active Non-Financial Entity.

    • FFI Registration

We aid FFIs needing to register ,through the IRS website, with the U.S. internal Revenue Service (IRS) in order to obtain a Global Intermediary Identification Number (GIIN) and aid in  FATCA compliance for U.S. Purposes.

    • FATCA On-boarding

FFIs have to perform customer due diligence for new account holders to determine whether or not they will fall under the reportable account holder category. We assist you with the collection and review of each account holder’s documentation. We determine also if there is US indicia. If so, we help to sort out issues, where applicable, directly with the account holder.

    • FATCA Pre-Existing Account Due Diligence

FATCA due diligence should be performed on pre-existing accounts. The process is similar to our FATCA on-boarding process. We collect and review the account holder’s information and we determine if FATCA reporting is in order, review the US indicia, assist with curing it and provide a clear overview to the FFI and its account holders.

    • FATCA Reporting

Entities have to submit information either to their local tax authority or directly to the U.S. Authorities. We prepare and transmit annually on reportable accounts, account holders and required personal information in accordance with FATCA regulations.

Should you be interested in this service, have questions or if you would like to receive a fee quote please do not hesitate to contact us by telephone (0032 733 67 42) or sent us an email to the following address : office@reyfin.com and we will revert to you quickly.

Common Reporting Standard (CRS) approach:

On 1st of January 2016, the CRS (Common Reporting Standard) became effective. This new regulation results from an initiative of the OECD (Organisation for Economic Co-operation and Development) to expand the scope of FATCA to as many jurisdictions as possible in order to prevent tax fraud by individuals investing and earning income through offshore Financial Institutions (FIs). These new global reporting standards, as well as FATCA, are commonly referred to as Automatic Exchange of Information (AEoI).
So far over 90 jurisdictions have either signed, or have committed to sign, Multilateral Competent Authority Agreements, which bind these Partner Jurisdictions to have their financial institutions identify and report on all their respective reportable accounts to their domestic tax authorities.

The CRS initiative resulted from:

  • An increase in entities doing business internationally and the availability of online banking platforms that made it easier for taxpayers to manage accounts and assets offshore, leading to potentially escaping monitoring in their home tax authority
  • Increase political and financial pressure on governments to drive tax transparency and compliance

All entities classified as financial institutions (FIs) that maintain financial accounts of reportable persons have obligations under CRS. To be compliant, entities will need to confirm both that:

  1. They are a financial institution
  2. And comply with their reporting obligations

A financial institution must review its financial accounts annually and, if applicable, report to the local tax authority on the financial account as well as the account holders.
The information is then exchanged with the competent authority of the account holders’ tax residency jurisdiction.
CRS should give governments worldwide a clear picture of the assets of their tax residents outside their own jurisdictions.
Consequences of Non-compliance:
The notified competent authority will take all appropriate measures under domestic law to address any errors or non-compliance which could result in fines. Managers, Directors, Trustees and others, providing services to entities under scope may also be held liable.

How can Reynders & Co assist you?

We can assist clients in four areas:

    • CRS Entity Classification

Entities have to determine if they are a reporting financial institution. We assist you in determining the classification of an entity and identify the relevant implications arising from such classification.

    • CRS on boarding and due diligence of new entity accounts and new individual accounts

After determining their CRS assessment and their CRS status (if they are considered as a Reporting FIs or not), we assist entities with their due diligence forms for CRS purposes.
From collection to review of each account holder’s documentation (KYC and AML). We determine whether any CRS indicia or information inconsistencies exist and assist the account holder by properly informing and working on the curing of such. FIs must obtain from each new account holder a self-certification disclosing the CRS status (for entities) and the tax residence (for individuals).

    • CRS pre-existing account due diligence and enhanced file review

CRS due diligence is mandatory for pre-existing accounts. When there is a “change in circumstance” with a pre-existing account we assist you with a new classification where needed and record the proper new CRS status. We help you in collecting the new self-certification form and required documentation, as prescribed under CRS.

    • CRS Reporting

In line with CRS, entities have to submit information to the local tax authority. We prepare and transmit annual reports on the reportable accounts, related financial account information and personal information in accordance with CRS regulations.

Should you be interested in this service, have questions or if you would like to receive a free quote please do not hesitate to contact us by telephone (+32 733 67 42) or send us an email to the following address : office@reyfin.com and we will revert to you quickly.

AIFMD approach:

Does the Alternative Investment Fund Managers Directive (AIFMD) apply to you?
AIFMD applies to every entity that manages what the AIFMD has defined as alternative investments funds.

This concept has been defined very broadly and as a consequence if you are launching an investment structure even small size vehicles or if you are raising capital from at least 2 investors, you need to consider how such investment scheme is structured and considered whether AIFMD applies.

With the Directive introduced very late into Belgian legislation, numbers of entities in the country are not aware that they fall within the criteria and have consequently obligations under AIFMD AND if you are not compliant you could face significant penalties and even administrative sanctions.

How Reynders & Co can help you?

In reviewing your existing investment structures, we identify the impact, if any, of AIFMD on your enterprise.
If you look to enter the investment management space, we support you through the entire AIFM (Belgian Alternative Investment Fund Manager) incorporation process, including gaining authorisation from FSMA (Financial Services and Markets Authority), and making sure your set-up complies with the directive from the outset.
We support you not just with the legal side of the directive, but also on an operational level, implementing required new procedures. (for example , rules on remuneration, conflicts of interest, risk management, liquidity management, valuation, delegation, depositary, etc..).
We help you to comply with new reporting obligations (annual report, disclosure to investors and reporting obligation to competent authorities) and even in helping you make sure you have the right people on board to continue to manage your compliance status going forward.

Should you be interested in this service, have questions or if you would like to receive a free quote please do not hesitate to contact us by telephone (+32 733 67 42) or send us an email to the following address : office@reyfin.com and we will revert to you quickly.

2. Compliance services

Anti – Money Laundering approach:

Preventing money laundering and terrorist financing is high on the agenda of governments and global financial regulatory bodies. Over recent years compliance legislation has become more and more complex and wide-ranging.
Failure to comply puts financial institution at significant risk ( evidenced by several huge legal actions against organisations that failed to meet their regulatory obligations).

    1. Why should you be concerned about anti-money laundering and sanctions ?

Due to the regulatory environment (law dated September 17,2017 – 4ème EU Directive) and the fact that you want to be sure that you are compliance with AML and other regulations ?
Due to the fact that you have uncovered an incidence of suspected Money Laundering ?
Due to the fact that you are under review by a regulator ?
Due to the cost of the compliance approach ?

    1. In this context how can Reynders & Co help you?

 

    • We provide you insurance of compliancy or assist you to establish an AML program and internal policies to become compliant with anti-money laundering and financial crime regulations
    • We monitor effective management of incidents (transaction monitoring)
    • We provide you with expert opinions and advise you on anti-money laundering and financial crime regulations ( including assistance and support in dealing with authorities)
    • We help you to reduce current expensive AML processes by improvement of the efficiency and the effectiveness of the AML systems

Should you be interested in this service, have questions or if you would like to receive a free quote please do not hesitate to contact us by telephone (+32 733 67 42) or send us an email to the following address : office@reyfin.com and we will revert to you quickly.

The GDPR approach:

All organisation who handle or process any personal information now need to fully comply with the new GDPR regulations (General Data Protection Regulation) and it is imperative that they fully understand the requirements of GDPR to avoid paying heavy fines.
Breaches within the regulation around the collection, usage and maintenance of personal data are significant, but the loss of customers and stakeholders confidence leading to a loss of reputation could be catastrophic.
Nevertheless, GDPR is not just a threat, it is also a huge opportunity !
It starts with the recognition that personal information is one of your organization’s most important assets. From this starting point, every business process using personal information will be considered as an opportunity.
Based on this simple finding, many questions relating to the privacy matters for daily business arise within companies.

How can Reynders & Co assist you?

We can assist you by:

  1. Assisting you to define your level of privacy strategy
  2. Assisting you to determine your current situation regarding GDPR
  3. Assisting you to implement a pragmatic approach
  4. Assisting you regarding the coordination of the effective implementation relating to the day to day business operations
  5. Assisting you in sustaining the compliant processes

Should you be interested in this service, have questions or if you would like to receive a free quote please do not hesitate to contact us by telephone (+32 733 67 42) or send us an email to the following address : office@reyfin.com and we will revert to you quickly.

UBO Register:

Following the entry into force of the law of 18 September 2017 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and limitations to the use of cash (the “Law”) companies and associations incorporated under Belgian law must declare all data regarding their ultimate beneficial owners (“UBO”) to the Federal Public Treasury Service (« SPF ») and comply with their new obligations by 31 March 2019 at the latest.

The Law foresees sanctions against both, companies and associations as well as against UBOs, consisting on fines up to 50.000,- EUR.

All data regarding UBOs must be kept up-to-date and maintained annually and, if changed, modified or updated, within one month of the occurrence of that change or update.

Disclosure of information relating to UBOs must be made via an electronic platform set up by SPF. For this purpose you must designate within your company or association a Role Management Administration (« RMA ») holding an E-ID card.

The RMA may be an officer or director of your company/association or an agent (for example, a chartered accountant or tax advisor).

How can Reynders & Co assist you?

Reynders&Co can assist you in fulfilling these new legal obligations by carrying out these formalities on behalf of your company/association and by ensuring the maintenance of UBOs data up-to-date.

In order to proceed with these formalities, an electronic proxy must be activated.

Should you be interested in this service, have questions or if you would like to receive a free quote please do not hesitate to contact us by telephone (+32 733 67 42) or send us an email to the following address : office@reyfin.com and we will revert to you quickly.