News and Views

UKRAINE

Customs easement to help Ukraine aid exports

Moving aid and donations to the people of Ukraine will be made easier thanks to a customs easement, the UK government has announced. The simplification of customs processes will apply to goods intended to support those affected by the humanitarian crisis in Ukraine which are exported from Great Britain. Provided that the goods are not exported to, or through, Russia or Belarus, then these simplified processes apply to qualifying goods regardless of the destination to allow maximum flexibility to get aid to where the need is greatest.

The government still recommends that organisations and people who would like to help donate cash through trusted charities and aid organisations, rather than donating goods. Cash can be transferred quickly to areas where it is needed, and individuals and aid organisations can use it to buy what is most needed.

However, businesses, charities and community organisations sending aid from British ports will be able to make a customs declaration by speaking to customs officers or simply by the act of driving through a port. They will no longer need to complete and submit electronic customs declarations to HMRC before exporting these goods, and smaller movements will not need to use the Goods Vehicle Movement Service to pass through ports where it is in operation.

The easement will also remove other customs formalities, such as needing to notify HMRC when the goods have been exported.

IRELAND

Record employment in international financial services in Ireland

Speaking at the launch of the Ireland for Finance Action Plan for 2022, Minister of State for Financial Services, Credit Unions and Insurance, Seán Fleming TD, has welcomed the record level of employment in international financial services firms in Ireland.

The new Action Plan for 2022 has a sharper focus than recent years with 11 priority measures that were developed in partnership with industry to be delivered across five key themes:

● sustainable finance;

● fintech and digital finance;

● diversity and talent;

● regionalisation and promotion; and

● operating environment.

Seán Fleming TD stated: “I welcome the news that there are over 52,800 people working across the country in international financial services, a new record high for the sector in Ireland. The resilience that the industry demonstrated in 2020 and 2021 made further growth possible and the results from last year give us an even stronger platform for the future.”

LEGISLATION

New measures to tackle corrupt elites and dirty money become law

The UK’s new Economic Crime (Transparency and Enforcement) Act 2022 received Royal Assent on 15 March, following an expedited passage through Parliament.

Introduced following Russia’s invasion of Ukraine, the new legislation will mean that the government can move more quickly to impose sanctions against oligarchs already designated by our allies, as well as intensifying our sanctions enforcement. The Foreign Secretary will continue to set out further sanctions made possible by our new powers.

A new Register of Overseas Entities, requiring those behind foreign companies which own UK property to reveal their identities, will also be created under the Act. Entities that refuse to reveal their “beneficial owner” will face tough restrictions on selling the property and those who break the rules could face a fine of up to £2,500 per day or up to five years in prison. This will be a valuable tool for law enforcement agencies in investigating suspicious wealth. Companies House will now begin work to implement the register as quickly as possible, working closely with the UK’s three land registries. Any foreign company selling properties between 28 February and the full implementation of the register will also be required to submit their details at the point of sale.

Reforms to Unexplained Wealth Orders (UWOs) will remove key barriers to their use, increasing time available to law enforcement to review material provided in response to a UWO and protecting them from incurring substantial legal costs if they act reasonably in a case that is ultimately unsuccessful.

Furthermore, UWOs will be more effective against those who hold property in the UK via trusts and other complex ownership structures. The government has also committed to publishing an annual report on their use. Chancellor of the Exchequer Rishi Sunak said: “Our Economic Crime Act will enable us to crack down harder and faster on dirty money and those who support Putin and his regime. We are using all of our financial might to send a clear message to the Kremlin that this criminal venture will end in total failure.”

These measures form part of a wider package of legislative proposals to tackle illicit finance which will be introduced in Parliament in the coming months, including reforming Companies House and introducing new powers to seize crypto assets more easily.

SINGAPORE

Singapore Budget 2022

© Getty images/iStockphoto

Singapore’s Minister for Finance Lawrence Wong delivered the Singapore Government’s Budget Statement for Financial Year 2022 on 18 February 2022.

Against a backdrop of ongoing difficulties relating to Covid-19, which is continuing to impact the country both economically and personally, Budget 2022 charts a new way forward. It was delivered as a first step in strengthening Singapore’s position in a post-pandemic world.

Budget 2022 sets out key plans to:

● invest in new capabilities;

● advance the green transition;

● introduce measures aimed at creating a fairer society; and

● develop a fairer and more resilient revenue structure.

Full details of Budget 2022 are at: www.singaporebudget.gov.sg.

RUSSIA

Big 4 accounting firms leave Russia

The Big 4 accountancy firms – PwC, KPMG, EY, and Deloitte – have announced that they will no longer operate in Russia amid the ongoing attacks on Ukraine.

PwC, KPMG, and EY are global networks of individual firms that are separate legal entities, a structure required to comply with laws stipulating that audit firms must be locally owned and independent.

KPMG will also leave Belarus. A spokesperson for KPMG International said: “We believe we have a responsibility, along with other global businesses, to respond to the Russian government’s ongoing military attack on Ukraine. As a result, our Russia and Belarus firms will leave the KPMG network.

“KPMG has over 4,500 people in Russia and Belarus, and ending our working relationship with them, many of whom have been a part of KPMG for many decades, is incredibly difficult. This decision is not about them – it is a consequence of the actions of the Russian government. We are a purposeled and values-driven organisation that believes in doing the right thing. We will seek to do all we can to ensure we provide transitional support for former colleagues impacted by this decision.”

SECURITY

SEC awards approximately $14million to whistleblower

The US Securities and Exchange Commission (SEC) has announced an award of about $14 million to a whistleblower who published an online report exposing an ongoing fraud. The whistleblower, who days later shared the same information with the SEC and was persistent in reaching out to the staff, prompted the opening of an investigation which resulted in a successful enforcement action and the return of millions of dollars to harmed investors.

“Whistleblowers can play a critical role in an investigation,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Here, the whistleblower posted a research report online outlining the allegations against the company and its officer and also, importantly, took expeditious steps to provide this information to the Commission. This case demonstrates the importance of whistleblowers reporting directly to the SEC so that the agency can promptly investigate allegations of wrongdoing.”

The SEC has awarded approximately $1.2 billion to 249 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.