Twelve no/low tax countries share data on companies with no substance with UBO's country
- Thread starter Martin Everson
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CRS based on passport is absolutely a reality. Maybe not in UAE, which might speak to a poor compliance culture and in turn be a contributing factor to possible pending FATF greylisting, but it absolutely does happen elsewhere.
But it's not standard practice. For most retail customers that have no other signs of unusual activity, reporting is based simply on tax residence and the bank takes the customer provided TIN and stated tax residence at face value. Saying the risk doesn't exist isn't entirely accurate, though.
But it's not standard practice. For most retail customers that have no other signs of unusual activity, reporting is based simply on tax residence and the bank takes the customer provided TIN and stated tax residence at face value. Saying the risk doesn't exist isn't entirely accurate, though.
Exactly and this looks in practice with local UAE banks like this:
-> No TIN available
-> Reason: Country doesn't issue TIN.
That's the reason why we only propose local UAE banks and Private Banks in Switzerland with Subsidiary in the UAE as they do understand the UAE itself as a jurisdiction︀ itself.
Would never advise to onboard a Dubai Company with a Lithuania Laundromat EMI or︁ other joker financial institutions without proper compliance omboarding only desperate clients with no other options︂ - for sure they will report you for fun based on everything to everyone to︃ simulate a compliance while they are onboarding scam after scam.
https://www.lb.lt/en/news/bank-of-lithuania-imposed-a-fine-of-eu280-thousand-on-wallter-uab
It is already much harder and what you mention is already in place.︇
That's why we are here as a Service Provider.
-> No TIN available
-> Reason: Country doesn't issue TIN.
That's the reason why we only propose local UAE banks and Private Banks in Switzerland with Subsidiary in the UAE as they do understand the UAE itself as a jurisdiction︀ itself.
Would never advise to onboard a Dubai Company with a Lithuania Laundromat EMI or︁ other joker financial institutions without proper compliance omboarding only desperate clients with no other options︂ - for sure they will report you for fun based on everything to everyone to︃ simulate a compliance while they are onboarding scam after scam.
https://www.lb.lt/en/news/bank-of-lithuania-imposed-a-fine-of-eu280-thousand-on-wallter-uab
It is already much harder and what you mention is already in place.︇
That's why we are here as a Service Provider.
This won't happen.
Before we fool people with EMI's we would mention this here and I would congratulate to everyone that went right in time for his Dubai Company Setup.
The whole point about our approach is getting a real physical Bank Account and without this you would have just another BVI.
Before we fool people with EMI's we would mention this here and I would congratulate to everyone that went right in time for his Dubai Company Setup.
The whole point about our approach is getting a real physical Bank Account and without this you would have just another BVI.
Sorry Fred, but this time you speak nonsense. Of course, there are various EMI's in the market, including bad actors, but some of them DO comply with regulations (and I am speaking not only about Bankera, which is great by the way).
I would bet some Lithuanian EMI's have more serious compliance than UAE banks. And it is more flexible too. Especially when you speak about crypto or other high-risk industry.
Pricing too - find me a reliable︀ bank that would be friendly to higher risk clients and have good pricing (compared to︁ some EMI's).
Everybody knows about the lack of DD when it comes to UAE banking.︂ That's why most people like it.
I would bet some Lithuanian EMI's have more serious compliance than UAE banks. And it is more flexible too. Especially when you speak about crypto or other high-risk industry.
Pricing too - find me a reliable︀ bank that would be friendly to higher risk clients and have good pricing (compared to︁ some EMI's).
Everybody knows about the lack of DD when it comes to UAE banking.︂ That's why most people like it.
With more financial institutions licensed than they can ever possible hope to effectively supervise, it's hard to make any meaningful, broad statements about EMIs in Lithuania. There's everything from Revolut (albeit a bank now), Connectpay, Wallter, and Paysera to the likes of Bankera, Verifo, Valyuz, and so on. What goes for the big three/four does not necessarily represent the smaller ones. It's an absolute mess and it's no wonder the ECB is watching Bank of Lithuania with suspicion.
There is garbage in both UAE and Lithuania. But I have seen more examples of thorough (and perfectly sensible) due diligence in Lithuania while still having a︀ high risk appetite, than I have in UAE. If anything, the Lithuanians go overboard at︁ times, in part a consequence of Bank of Lithuania being keen to not face ECB︂ sanctions for their loosey-goosey attitude to dishing out SEPA clearing access left and right.
Don't put all your eggs in one basket.
There is garbage in both UAE and Lithuania. But I have seen more examples of thorough (and perfectly sensible) due diligence in Lithuania while still having a︀ high risk appetite, than I have in UAE. If anything, the Lithuanians go overboard at︁ times, in part a consequence of Bank of Lithuania being keen to not face ECB︂ sanctions for their loosey-goosey attitude to dishing out SEPA clearing access left and right.
Don't put all your eggs in one basket.
@Gediminas I'm sorry but we picked up more then 1 client with Ajman FZ and Pervesk︀ that was frustrated about having his name on the public UAE Economic Register as the︁ Authorized Manager as well as getting 5x times asked for the same transfer to the︂ same recipient about the purpose of the transfer - that's something you simply don't see︃ with physical retail banks.
UAE Residency will be considered, but they can also include you nationality country as reportable country.
They can mark both countries as reportable UAE and your nationality country
Company account will probably also be reportable if you are UBO of that company
They can mark both countries as reportable UAE and your nationality country
Company account will probably also be reportable if you are UBO of that company
In terms of reporting if Switzerland Banks it depends - fully fledged private bank does the job right however I wouldn't count on something like Dukascopy or other discount banks - they earn so less that they for sure report to everywhere to be on the save side.
If you want to be on the safe side - stick to UAE Banks only - they don't report for sure.
If you want to be on the safe side - stick to UAE Banks only - they don't report for sure.
I don't agree here. If a bank decides to CRS you based on your passport, the fact that you don't live in your country may not help you. Your tax office will ask you where are you paying your taxes then? Where is your center of business? If the answer is, I live in Thailand but I don't pay taxes there, your tax office may consider you tax︀ resident of your home country and good luck proving to them otherwise. It may depend︁ from country to country, but in my case (Russia), there are legal docs that explicitly︂ say that you have to pay taxes at home in case you don't pay taxes︃ elsewhere and living outside of the country is not enough to be off the hook.︄ I suspect other high income tax countries may have the same approach. You didn't say︅ "John" is tax resident in Thailand right? But in this case you have to look︆ for non CFC country and get a tax residency there which is not as easy︇ as just get a Dubai residency and enjoy 0% taxes
BTW @Fred can you comment︈ on this? Economic substance regulations in the UAE
Do Dubai banks do ESR?
There are︉ some things like "Calculation of full-time equivalent employees and operating expenditure in relation to Relevant︊ Activities" etc
BTW @Fred can you comment︈ on this? Economic substance regulations in the UAE
Do Dubai banks do ESR?
There are︉ some things like "Calculation of full-time equivalent employees and operating expenditure in relation to Relevant︊ Activities" etc
Only for specific business activities and even then when you have a Residence Visa in︉ the UAE - you are basically the Substance as they look through the registered Agent︊ Address directly on you - therefore no ESR reporting necessary in such a case.
You would really need to have a non-resident Offshore RAKICC Holding Company to need to make︋ fillings and this is very rare as no bank nowadays banks you with such a︌ structure in the UAE anyway.
You would really need to have a non-resident Offshore RAKICC Holding Company to need to make︋ fillings and this is very rare as no bank nowadays banks you with such a︌ structure in the UAE anyway.
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