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Investcorp Hedge Funds Group Hires Business Development Professional

Investcorp has announced that David Walsh has joined the firm’s Hedge Funds business. In his new role with Investcorp, Mr. Walsh’s responsibility will be to identify and source emerging hedge fund talent, and to structure and develop relationships with these managers. He will report directly to Nick Vamvakas, Head of Investcorp’s Single Manager Business. Investcorp’s Single Manager Business establishes strategic relationships with emerging managers, providing them with seeding and acceleration capital in addition to distribution and business support.

Commenting on the strategic hire, Lionel Erdely, Head and Chief Investment Officer of the Hedge Funds Group at Investcorp, said, “David has been identifying and working with early stage hedge fund managers for years in his prior roles. We believe his background will enhance our capabilities in identifying and sourcing new hedge fund talent early in their life cycle. His addition is a boost to our seeding and emerging manager program as we work to execute on our plans to significantly grow our investment universe.”

Before joining Investcorp, Mr. Walsh served as a senior member at UBS as part of their Capital Introduction Group, where he was actively involved in all aspects of the prime brokerage business – including originating prospects, sales, and relationship management. Earlier in his career, he helped UBS develop and structure products to provide investors access to alternative investments through the investment bank’s Funds Derivatives Group.

Investcorp is a leading provider and manager of alternative investment products. The Investcorp Group has offices in New York, London, the Kingdom of Bahrain, the Kingdom of Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As at December 31, 2013, Investcorp had $11.3 billion in total assets under management.

FESE Director General Judith Hardt to Step Down

| For Alicia Miguel | 0 Comentarios

The Federation of European Securities Exchanges (FESE) has announced that Judith Hardt, Director General, will step down from her role on 23 May.

Judith Hardt has been with FESE since 2005 and has led the organisation through a number of high profile mandates such as the development of the Code of Conduct on Clearing and Settlement for which Judith Hardt was nominated ‘lobbyist of the year’; the review of MIFID to reverse some of the negative impacts of MIFID I and developing industry thinking to improve SME financing. In addition, there have been numerous other regulatory initiatives in which Judith Hardt has helped the FESE steer through review and implementation.

During Hardt’s tenure FESE has become more focused and more effective in promoting the value of regulated exchanges through its activities across numerous mandates and improved interaction with actors in the financial and political landscape within Brussels and abroad.

FESE will commence a selection process to identify a successor.

Christian Katz, President of FESE said “I would like to thank Judith Hardt for all her hard work and tireless dedication to the Federation and our industry over the past nine years. FESE is now more organized and focused due to Judith’s leadership. On behalf of the Board and the entire Membership of the Federation we wish Judith Hardt well in her new endeavours”.

Judith Hardt said “After nearly 10 years at FESE and with the successful outcomes of MiFID II for exchanges, I believe that now is a good time to explore new opportunities. I immensely enjoyed leading this association during a fascinating period of fundamental regulatory overhaul and industry consolidation. I have also been privileged to work with incredible staff. I know that the dedication of the FESE team will ensure a seamless transition”.

The Federation of European Securities Exchanges (FESE) represents 41 exchanges in equities, bonds, derivatives and commodities through 21 full members from 30 countries, as well as 2 Observer Members. FESE is a keen defender of the Internal Market and many of its members have become multi- jurisdictional exchanges, providing market access across multiple investor communities. FESE represents public Regulated Markets. Regulated Markets provide both institutional and retail investors with transparent and neutral price-formation. Securities admitted to trading on our markets have to comply with stringent initial and ongoing disclosure requirements and accounting and auditing standards imposed by EU laws.

At the end of 2013, FESE members had up to 8,950 companies listed on their markets, of which 8% are foreign companies contributing towards the European integration and providing broad and liquid access to Europe’s capital markets. Many of our members also organise specialised markets that allow small and medium sized companies across Europe to access the capital markets; 1,478 companies were listed in these specialised markets/segments in equity, increasing choice for investors and issuers.

LarrainVial Signs an Agreement with U.S. Authorities to Adopt FATCA

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LarrainVial firma un acuerdo con las autoridades estadounidenses para adoptar FATCA — Photo: Tuxyso. LarrainVial Signs an Agreement with U.S. Authorities to Adopt FATCA

LarrainVial has signed an agreement with the Internal Revenue Service (IRS), the U.S. tax authority, to adopt the FATCA law (Foreign Account Tax Compliance Act), from the date of agreement.

The agreement with the IRS, an institution homologous to the Internal Revenue Service (SII) of Chile, was signed voluntarily by LarrainVial last Friday and before the expected legal time limits. The FATCA rules, which were adopted in 2010 by the U.S. Congress, begin to fully take effect and be obligatory for all financial institutions as from July 1, 2014.

The signing of this agreement is part of the cooperation agreement that the governments of Chile and the United States signed on March 5 to facilitate the implementation of U.S. legislation known as FATCA.

The agreement signed by Larrain Vial with the Internal Revenue Service, includes different LarrainVial Group companies, among which are LarrainVial Corredora de Bolsa (LarrainVial Brokerage); LarrainVial Administradora General de Fondos (LarrainVial General Funds Management); LarrainVial Activos Administradora General de Fondos (LarrainVial Assets General Funds Management), and its subsidiaries in Peru and Colombia.

The FATCA legislation provides for all financial institutions, including Chilean ones, the obligation to cooperate with the IRS by periodically sending information on the accounts or financial products of United States taxpayers (as such term is defined in the rule itself). The account information to be shared with the Internal Revenue Service shall apply only for those who meet that definition, informs LarrainVial.

The main benefit of having signed this agreement is that LarrainVial customers will not be exposed to sanctions by the U.S. tax authority, such as 30% withholding tax, which is the maximum penalty imposed by FATCA regulations.

Santander will Sell Part of its Custody Business in Spain, Mexico and Brazil

| For Alicia Miguel | 0 Comentarios

Santander venderá parte de su negocio de custodia en España, México y Brasil — Photo: Ardfern. Santander will Sell Part of its Custody Business in Spain, Mexico and Brazil

Spain’s major bank will not restrict itself to selling part of its asset management business, as it did last year when it sold 50% of the business to Warburg Pincus and General Atlantic funds for US$1.3 billion.

Furthermore, according to the daily publication “Expansion”, the bank plans to dispose of half its custodial and depository business. Once again, one of the buyers is the equity fund Warburg Pincus, which, together with other partners, is apparently close to grabbing a 50% share of that business. According to the Spanish newspaper, the sale will initially affect the Global Custody & Securities Services business in Spain, Mexico and Brazil, but could later be extended to other countries. Besides those three markets, Santander has custody and depository business in Chile, Argentina and Portugal.

According to market sources consulted by Expansion, Santander’s division responsible for providing securities’ settlement, custody, and administration services, could be valued at between €0.5 and €1 billion.

Gaining muscle at the global level

Although the sale of 50% of Global Custody & Securities could be considered the first step out of the asset custody business, Expansion points out, citing market sources, that the bank’s intention could be quite the opposite, since the bank could be looking for partners which allow it to grow, especially outside Spanish borders, to become a strong player globally.

Following the sale, the bank could guarantee its partners liquidity over the medium term through an IPO, the same formula which the bank has used with Santander Consumer, Santander Consumer USA went public earlier this year, and which it also used with its asset management division. According to Expansion, the other option would be for the bank to sell the other half of its custody business to other international groups such as BNP Paribas, BNY Mellon or State Street.

The impact of regulation

One of the reasons why some companies are planning to sell their custody and depository businesses is the new regulation: UCITS V will increase the depositories’ costs and responsibilities. In this regard, UCITS V regulates three issues: the depositary liability regime; the content of the custody function in respect of the different types of financial instruments and of the function of supervision; and the requirements to act as depositary and the conditions under which this role may be delegated to sub-custodians.

As Ramiro Martinez, director of Gomarq Consulting, explained to Funds Society, the proposal introduces a new harmonized system of “quasi-strict liability” which deems the depositary liable if the assets are lost in custody (including assets transferred to a third party in sub-custody), replacing them with others of the same type or value. For the expert, this new liability regime “significantly increases the risk of the depository role and forces depositors to increase their control and will therefore increase their costs (and will probably involve additional capital requirements for the provision of this service). This will require specialization and the pursuit of economies of scale to absorb cost increases,” says Martinez.

That is why the experts are referring to a certain activity of sales of this business amongst those institutions which do not consider it core business, and its concentration among institutions which have enough financial muscle globally to meet the new requirements.

FIFA Seeks to Regulate Mutual Funds in the World of Soccer

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A few days ago, FIFA spoke out about investment funds in the soccer world, as it intends to regulate them as another vehicle at the service of clubs and players. The web site Iusport.com reports that FIFA approved a circular dated May 12, declaring itself in favor of regulating mutual funds, rather than banning them.

Despite FIFA’s approval, UEFA continues to disapprove of investment funds in the world of soccer. By means of this circular, FIFA seeks a solution to the conflict and the regulation of investment funds in order to provide legal assurance, transparency and clarity as a means of alternative funding for clubs, and to eliminate the current irregularities.

In the circular, signed by Jerome Valcke, FIFA’s general secretary, the sporting association explained that they have commissioned two studies to CIES and CDES in order to develop a final proposal. The aim is to raise the issue during the next FIFA Congress in Sao Paulo in mid-June.

Titled “Summaries & Comments of the Study on the Ownership of the Economic Rights of Players by Third-parties”, the circular begins by admitting that the matter of the ownership of the economic rights of players by third-parties has occupied an important place in discussions led by FIFA within the international soccer community, and that its competent committees have included it in their agendas in order to find an effective formula for addressing the issue.

FIFA also maintains that discussions about it have shown that so far, the soccer community has not established a common front to tackle the problem effectively, though apparently most stakeholders recognized that such practices may pose a threat to the integrity of soccer tournaments.

Given the complexity of this phenomenon and the strategies employed in various regions to regulate it, FIFA, as it had notified, commissioned two studies with the general purpose of gathering information on the ownership of the economic rights of players by third parties and about various aspects of this practice, which, in turn, would provide more data to support discussions and initiatives. The two studies have brought together a number of views on the subject from stakeholders in the soccer world, as well as its impact on the soccer sector in general.

FIFA’s primary objective is to tackle this problem from a solid foundation which takes into account all aspects related to this practice, so that it is possible to provide adequate and fair solutions within the framework of a well documented participatory process which includes the stakeholders within FIFA’s competent bodies.

Should you wish to learn more about it you can consult the circular, which is attached in a document.

Citi Private Bank Announces New Family Office Leadership

| For Alicia Miguel | 0 Comentarios

Citi Private Bank announced on Tuesday that William Woodson will join the firm in June as Managing Director and Head of the North America Family Office Group. Mr. Woodson will be based in West Palm Beach, FL and report jointly to Peter Charrington, CEO, Citi Private Bank, North America, and Catherine Weir, Global Head of Family Office Group, Citi Private Bank.

Stephen Campbell, formerly head of the group, has been named Chairman for the North America Family Office Group. In this role, Mr. Campbell will focus on advising the firm’s largest family office and foundation clients in North America and globally.

Mr. Campbell joined Citi in 2011 to build out the Private Bank’s North America family office platform. Since that time the business has grown its AUMs exponentially, becoming a significant part of the firm’s overall offering. Mr. Campbell has more than 25 years of diverse financial industry experience prior to joining Citi, having led investment management and technology organizations for Fidelity Investments in the U.S, Europe and Asia; founding as well as investing in early stage venture companies; and as Chief investment Officer of a family office.

Mr. Woodson joins Citi from Credit Suisse where he was Head of the Ultra High Net Worth and Family Office Business for the North American Private Bank. A tax professional by training, Mr. Woodson spent a decade in public accounting with both Coopers & Lybrand and Arthur Andersen before leaving to run the family office for one of his largest clients. Mr. Woodson was a founding member and Managing Director of myCFO and worked as a private banker with the Merrill Lynch Private Banking and Investment Group before joining Credit Suisse in 2007 to lead the firm’s Multi-family Office Practice and Wealth Planning Group.

Mr. Woodson holds a BS degree in Economics from the University of California and a MS degree in Accounting from New York University. “In Steve and Bill we have two exceptional family office resources for our clients. Steve has done a remarkable job leading this key business unit in the past three years and we look forward to its continued growth with Bill at the helm. We recognize that Family offices are as unique as the families they serve and our team’s mission is to help ensure the success of each individual family office we serve,” said Peter Charrington, Citi Private Bank.

“I look forward to helping address the evolving needs of Citi’s family office clients by providing the tailored investment, lending, banking and advisory services they need, and to building lasting relationships with new family office clients who can benefit from Citi’s vast global network of expertise, strategies and services,” said Woodson.

Buying Something You Don’t Understand

| For Elena Santiso | 0 Comentarios

El inversor compra cosas que no entiende — . Buying Something You Don't Understand

People are not great at assessing relative risk. Most of us know people who are afraid to fly but have no issue with driving long distances. While both have risks, it is generally understood that driving is far more dangerous than flying.

Investing is no different. You can’t avoid risks, but you should at least know what risks you’re taking.

According to one of the recent surveys by MFS Investing Sentiment Insights, many investors have very interesting ideas about the risks of passive investing.

The first finding that jumped out was that 64% of investors thought an index fund was safer than the market. This is a pretty clear example of someone not knowing what they’re buying or how it is designed.

The second finding was even more scarier. When asked why they purchased passive investments, 48% said a major factor in the purchase was “minimal risk.” Imagine how an investor who purchased an equity index fund because of minimal risks will react during the next downturn?

There is a role for both active and passive investments in a portfolio. However, it rarely ends well when we buy something we don’t understand.

India’s Review of Depositary Receipts Could Open the Door to Increased Foreign Investment

| For Alicia Miguel | 0 Comentarios

Many global investors are welcoming recommendations contained in the M.S. Sahoo Committee report, announced last week by India’s Ministry of Finance. The report recommends allowing over-the-counter (OTC) non-capital-raising American depositary receipt (ADR) programmes on any kind of securities, not only equity. Neil Atkinson, Asia-Pacific head of depositary receipts at BNY Mellon, discusses the case for DRs and why he believes this is positive news both for India and those investing in Indian securities.

“The M.S. Sahoo Committee’s ground-breaking recommendations are terrific news for India and the global investment community. The introduction of the new scheme for DRs will provide global investors with convenient access to Indian companies, who in turn can attract foreign investment through this flexible and cost-efficient securities product. In permitting OTC non-capital-raising DRs, India would join more than 60 countries worldwide whose companies have established non-capital raising DR programs for secondary market investors.

The case for India’s DR reform

“The M.S. Sahoo report is a remarkable study which acknowledges current regulatory constraints that inhibit foreign investment in India. There is significant international demand for Indian equity and greater access to DRs may meet some of the demand not satisfied through routes previously available. Conversations with global investors indicate they warmly welcome this news and look forward to exploring greater investment in India in the near future.

“While DRs remain a valuable source of capital-raising from overseas investors, today they are much more than that. DRs play an essential role in cross-border trading and are a preferred instrument for companies listing their shares on global markets and for investors seeking international portfolio diversification. Not only do they broaden and diversify the range of investors who participate in capital markets, but adding a DR programme can also provide greater visibility for issuers.

“For investors, DRs are an attractive route to entry in a market because they offer a combination of convenience, simplicity and flexibility when compared to direct investment in a foreign market. In our research report from March 2013, ‘India: Easing Conditions for Investors’, we found nearly half of all global funds that invest in India using DRs chose not to invest directly through local shares. Many indicated a preference for the familiarity and convenience of DRs and were unable or unwilling to invest directly or use derivatives.

“While it could be argued that the importance of DRs has subsided since India’s onshore market has developed, DRs remain an attractive route for foreign investment into India. At BNY Mellon, we commend these ground-breaking developments which should promote greater integration of the Indian financial system with international capital markets.”

Since the 1920’s, investors, companies, and traders have used DRs to meet their needs. According to BNY Mellon data as of 31 December 2013, there are more than 3,750 DR programmes available to investors, representing issuers from 75 countries. More than 4,400 institutions invest over $800 billion in DRs globally.

Institutional Use of ETFs Has Transformed in Five Years

| For Alicia Miguel | 0 Comentarios

ETFs have become a standard tool in institutions’ investment toolkit, according to a study released today by Greenwich Associates. Nearly half (46%) of institutional ETF investors surveyed allocate 10% or more of total assets to ETFs and 47% say they expect to expand their use in the next year.

The study, “ETFs: An Evolving Toolset for U.S. Institutions,” conducted by Greenwich Associates and sponsored by BlackRock, presents the ETF usage trends of institutions, including corporate and public pensions funds, foundations and endowments, asset managers, investment consultants, insurance companies, and Registered Investment Advisors (RIAs).

Key findings include: all institutions are increasing their allocations to ETFs, ETFs have become critical long-term investment tools, the most common ETF application is core portfolio exposure and there has been a dramatic increase in adding fixed income ETFs to portfolios.

1. ETF allocations are growing across all types of institutional investors. Nearly half (46%) of institutional ETF users allocate 10% or more of total assets to ETFs. About 30% of institutional ETF investors report ETF allocations in the 10% to 25% range. RIAs, who are the largest users of ETFs by assets, have the largest ETF allocations with 41% of RIAs investing more than 25% of total assets in ETFs.

All institutional investor types expect to increase their ETF allocations in the coming year. 45% of insurance companies, who currently invest in ETFs, plan to increase their allocations in the 1-10% range. More than 50% of investment consultants expect their clients to boost allocations this year. In comparison, in 2010, the first year of the study, 33% said they would not change their ETF allocations over a three-year period.

2. ETFs have become critical strategic tools held for the long-term, particularly among pension plans. 63%of all survey respondents describe their ETF usage as strategic, up from 58% in 2013. This is remarkably different than in 2010, when approximately 20% of institutional ETF investors said they employed ETFs to implement strategic or long-term investment decisions.

Today, 49% of participants report average holding periods of two years or more, which is a jump from 36% in 2013. Among institutional investor types, 66% of pension plans’ strategic usage is up sharply from 47% in 2013.

While institutions are expanding their strategic usage, at the same time they continue to implement tactical allocations with ETFs. 81% of asset managers list tactical adjustments as one of the most common applications for ETFs.

Daniel Gamba, Head of iShares Americas Institutional Business at BlackRock, said: “We’re seeing the evolution of institutional investors’ usage of ETFs. Many institutions once confined ETFs to only cash equitization or transitions. Over the last few years, they’ve discovered their usefulness and broadened usage to many other portfolio applications including core portfolio exposure and liquidity and risk management.”

3. Most common ETF application is core portfolio exposure by all types of institutions. Approximately 80% of participating institutions are employing ETFs as a means of obtaining core portfolio exposures, up from 74% in 2013. This is in stark contrast to 2010 when only 19% of asset managers and 28% of pension plans used ETFs as a core/satellite application.

Core exposure is the most common ETF application by pension plans, RIAs and insurance companies. Regarding the latter, ETFs have been gaining significant traction among insurance companies as an efficient vehicle for surplus asset investment, which is considered a core exposure application. From 2013 to 2014 the share of insurers in the study using ETFs to invest surplus assets nearly doubled, from approximately 30% to almost 60%.

It appears that insurance companies are also becoming more comfortable using ETFs when investing reserve assets. In 2013, only 6% of participating insurers reported using ETFs to invest reserve assets. That share climbed to more than 25% in 2014.

4. Dramatic increase in use of fixed income ETFs. One of the drivers of ETF growth over the past few years has occurred with fixed income ETFs. Until recently, most institutions viewed ETFs as equity products. This year, 66% of institutional ETF investors are employing ETFs in domestic fixed income portfolios, up from 55% in 2013.

Over the past 12 months, the share of asset manager ETF investors employing fixed income ETFs significantly increased. The biggest and potentially most important increase occurred in domestic fixed income, where the share of asset managers jumped to 72% in 2014 from 30% in 2013. For international fixed income, in 2013, asset managers reported virtually nothing in the way of ETF. In 2014, nearly half of asset manager ETF investors are employing the vehicles in that asset class.

Daniel Gamba concluded: “The role that ETFs play in institutions’ portfolios has quickly transformed in five years. Today ETFs play an important role in institutions’ portfolios in multiple ways strategically and tactically. And all signs point to continued acceptance and usage by institutional investors.”

Federal Reserve Board Announces Civil Money Penalty and Issues Cease and Desist Order Against Credit Suisse

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Credit Suisse se declara culpable de fraude fiscal en EE.UU. y pagará una multa de 2.500 millones — Photo: Varnent. Federal Reserve Board Announces Civil Money Penalty and Issues Cease and Desist Order Against Credit Suisse

The Federal Reserve Board on Monday announced that Credit Suisse will pay a $100 million penalty for unsafe and unsound practices and failure to comply with the federal banking laws governing its activities in the United States. The Federal Reserve also issued a cease and desist order requiring Credit Suisse promptly to address deficiencies in its oversight, management, and controls governing compliance with U.S. laws. This action is taken in conjunction with actions by the Department of Justice and the New York State Department of Financial Services for violations of the federal income tax laws and various New York State laws. The penalties issued by the agencies total $2.6 billion.

The Board’s cease and desist order and assessment of civil money penalty against Credit Suisse, a foreign bank that is subject to the International Banking Act and other U.S. federal banking laws, are based on the institution’s inadequate risk-management and compliance program, and its failure to conduct and accurately report to the Federal Reserve the operations of its New York representative office in compliance with U.S. banking laws. These failures contributed to the violation of the International Banking Act, the U.S. income tax laws, and the U.S. securities laws. Credit Suisse’s New York representative office was closed in 2009. Credit Suisse continues to operate a branch office in New York, which is covered by the enhanced policies and procedures required by the order.

The order requires Credit Suisse to complete its ongoing efforts to implement programs and policies to ensure that Credit Suisse conducts its operations in the United States and worldwide in full compliance with U.S. banking laws and the contemporaneous orders of the Department of Justice and the New York State Department of Financial Services.

As part of the order, Credit Suisse has agreed to terminate its relationship with, and not re-employ or otherwise engage, nine individuals who were involved in the actions that resulted in the violation of U.S. laws. Apart from the actions with regard to the institution, the Federal Reserve is investigating whether other specific individuals that may have been involved in the actions that resulted in violations of U.S. banking laws during the relevant period should separately be subject to actions by the Federal Reserve. These actions could include fines and orders prohibiting specific individuals from participating in the business of banking, including working for any institution subject to the jurisdiction of U.S. federal banking supervisors. Credit Suisse has agreed to cooperate in these investigations, but is not the subject of these investigations.

At a press conference, Deputy Attorney General James M. Coleannounced the guilty plea in Credit Suisse offshore tax evasion case, an historic guilty plea by the bank and the largest monetary penalty of any criminal tax case ever. “Today’s guilty plea is an appropriate resolution, given the duration and breadth of Credit Suisse’s conduct. Credit Suisse engaged in serious wrongdoing, first, when it aided and abetted U.S. tax evasion, and then when it failed to take immediate steps to remedy this conduct and cooperate in our investigation. Today Credit Suisse has admitted that conduct and faces significant consequences for it. Its agreement to pay fines and restitution in excess of 2 and a half billion dollars reflects both the significance of the problem at the bank and the bank’s acceptance of responsibility for it”.

Credit Suisse is taking the appropriate steps to put its criminal conduct behind it and move toward a new era of compliance. Through this guilty plea and Credit Suisse’s civil resolutions with the Securities and Exchange Commission, the Federal Reserve, and the New York Department of Financial Services, Credit Suisse has committed to working with U.S. law enforcement and banking regulators in order to ensure that its wrongdoing remains in the past. “We acknowledge Credit Suisse’s efforts in this regard, and I expect that as the Bank moves forward, it will continue on its new path of compliance with U.S. tax laws”.

More Swiss banks

“In several public statements, I have promised additional public developments with respect to the Department’s investigations into the use of secret offshore bank accounts in Switzerland and elsewhere, and one of those developments has come to pass with today’s plea. But there have been many other notable actions in the past few months in our ongoing efforts to combat the use of foreign bank accounts to evade U.S. taxes. Eight individuals affiliated with Credit Suisse have been indicted by the United States Attorney’s office for the Eastern District of Virginia for their role in conspiring to assist U.S. clients in concealing their income and assets from the IRS. Two of them have pleaded guilty in recent weeks. In January 2013, Wegelin Bank, another Swiss bank, pled guilty to conspiracy to evade taxes. We have targeted 13 other Swiss banks for similar conduct”, adds.

Just recently, a Swiss asset management firm, Swisspartners Group, entered into a multi-million-dollar settlement with the U.S. Attorney’s Office for the Southern District of New York, and produced account files of its clients. “We have also had over 100 Swiss banks come forward as part of a program we put in place with the support of the Swiss government. Under this program, these banks, which were not under investigation, will pay penalties for the violations of US law that were committed at their institutions, and provide us with information that will lead to the identification of their US clients who evaded paying their taxes. We also have had over 43,000 US taxpayers enter into the IRS voluntary disclosure program and pay over $6 billion in back taxes and penalties to the United States Treasury”.

The Department is committed to robust enforcement in the offshore area, not just in Switzerland, but wherever in the world it is found. “We have taken public actions in India, Israel, Luxembourg, the Cayman Islands and several other Caribbean countries. And we are engaged in law enforcement actions around the world that are not yet public”.