Getting trouble of receiving monies from Russia?

Have you ever thought of setting a company and bank account in #Cyprus?

Historical and cultural bonds have linked Cyprus and Russia for centuries. With the establishment of the Republic of Cyprus in 1960 there followed immediately the conclusion of diplomatic relations with the then USSR (18th August 1960). With Cyprus’ entry into the European Union on May 1st 2004, another dimension was added to Cyprus-Russia relations since the EU is a strategic partner of #Russia. The trade and economic ties between Cyprus and Russia are on a satisfactory level. A large number of Russian entrepreneurs use Cyprus as their base for their business and investment activities.

On the other hands, Cyprus and Russia are members of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures (#MONEYVAL), permanent monitoring mechanism of the Council of Europe, where #Poland, #Romania and #Ukraine are also the members. Hence, the banks of these countries are welcome and facilitate in providing banking services.

If you are aiming to expand business globally, getting a bank account there could be great help and you will no longer be afraid of getting account frozen after receiving funds.

If needed, sent us email at info@rbcs.com.hk

Report: Seychelles and Anguilla are removed from the bloc's blacklist of tax havens

In early October, European Union finance ministers in Brussels removed the Seychelles from the EU’s tax haven blacklist along with two other states: Dominica and Anguilla. They denied the request from a fourth jurisdiction – Panama.

About the Blacklist

The European Union set up the blacklist in 2017 to combat both tax avoidance and tax evasion. They highlighted a number of jurisdictions for poor transparency. Several states cleaned up their act and subsequently removed while others have been added.

Analysts within the EU recommended the most recent removals as those jurisdictions all agreed to undergo reviews of their respective tax systems.

The organisation responsible for reviews and ongoing monitoring is Global Forum on Transparency and Exchange of Information for Tax Purposes.

Moving to the Grey List

Seychelles, Dominica, and Anguilla are now on the EU’s grey list. This is a list of countries showing genuine commitment to tax transparency reforms. What happens next will depend on the results of each’s country’s respective review.

The European Union announced the changes in late September and met a week later for formal approval. One member state raised concerns about these changes. However, it is not clear which member raised the issue, which of the jurisdictions it concerned, nor the nature of the complaint.

The Seychelles has earnt the status of “tax haven.” But the delisting came after resolution of the major point of concern.

The Situation with Panama

Panama asked for consideration among the latest batch of status changes. But the EU refused, stating that Panama lacked the commitment to abolishing FSIE (Foreign Source Income Exemption). At the time of removal of the three other jurisdictions, Panama had yet to resolve their FSIE issues.

Panama remains on the blacklist and therefore subject to stricter European Union transaction controls.

No New Blacklist Additions

The good news is that no countries currently on the grey list were moved to the blacklist. There were concerns that Turkey would move from the grey list, but this did not happen. The European Union is frustrated with Turkey over its continued refusal to exchange tax information with Cyprus.

Countries that remain on the blacklist are American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, US Virgin Islands, and Vanuatu.

Click here to EU list of non-cooperative jurisdictions

SEYCHELLES | INTERNATIONAL BUSINESS COMPANIES (AMENDMENT) ACT, 2021

Dear Customer,

The government of Seychelles has enacted the International Business Companies (Amendment) Act, 2021, effective as of 5 August 2021, enforcing new regulations on International Business Companies (IBCs) by amending the International Business Companies Act, 2016.

Relevant amendments to the International Business Companies Act, 2016, include new requirements for:

a. Register of directors

IBCs shall keep a register of directors at their registered office in Seychelles completed with accurate and up-to date information. The register of directors must be filed at the Registrar, within thirty (30) days of the appointment of directors or of any change of directorship and their particular information.

The register of directors to be kept at the registered office in Seychelles, must include, additionally, the following details:

• For individual directors: Date of birth, nationality, address for service of documents and residential address, if different to the service address.

• For corporate directors: Date and place of incorporation or registration, and registered office.

These requirements also apply to alternate directors and reserve directors.

Entries related to former directors (or alternate directors or reserve directors, as the case may be) may be removed from the register after seven (7) years from the date on which the directors ceased to be in service.

IBCs that fail to keep a register of directors at their registered office in Seychelles, completed with accurate and up-to date information and other provisions set out above, shall be liable to a penalty not exceeding US$10,000. Any director who knowingly permits said contravention, shall be liable to a penalty not exceeding US$10,000.

All IBCs must comply with the requirements set out, within twelve (12) months from the commencement of the International Business Companies (Amendment) Act, 2021; i.e. no later than 5 August 2022.

b. Accounting records

An IBC shall keep reliable accounting records that (i) are sufficient to show and explain the IBC’s transactions; (ii) enable the financial position of the IBC to be determined with reasonable accuracy at any time; and (iii) allow for financial statements of the IBC to be prepared.

Where an IBC is a “holding company“ and not a “large company”, and its accounting records are kept outside of Seychelles, the IBC shall lodge on a biannual basis, the accounting records at its registered office in Seychelles.

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“Holding company” means an IBC with no trade or business operations of its own but holding interests in other companies or assets.

“Large company” means an IBC which meets the annual turnover of more than SCR50,000,000 (approximately USD3,900,000 depending on the current exchange rate).

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All other IBCs shall:

(i) prepare an annual financial summary to be kept at its registered office in Seychelles within six (6) months from the end of their “financial year”; and

(ii) where its accounting records are kept outside of Seychelles, the IBC shall lodge on a biannual basis, the accounting records at its registered office in Seychelles.

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The “financial year” shall be the calendar year, unless it is changed by a resolution of directors and notified to the registered agent of the IBC within fourteen (14) days of passing said resolution.

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Click below to download the template of financial summary provided by the Financial Services Authority of Seychelles.

SEY_Financial Summary_2021.pdf

Download PDF • 151KB

Where a copy of the accounting records and the financial summary are kept in electronic form at the registered office of the IBC, it shall be sufficient compliance. The IBC shall inform its registered agent, in writing, the physical address of the place where the original accounting records are kept and, if such place changes, the IBC shall notify the registered agent within fourteen (14) days of the change.

Accounting records shall be preserved by the IBC for at least seven (7) years from the date of completion of the transactions or operations to which they each relate.

The accounting records shall be presented to Seychelles competent authorities upon request, whether these are kept outside or within the territory of Seychelles.

IBCs that fail to comply with each of the provisions set out, as applicable, shall be liable to a penalty not exceeding US$10,000. Any director who knowingly permits said contravention, shall be liable to a penalty not exceeding US$10,000.

Should you have further inquiries, kindly contact us at info@rbcs.com.hk .