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It’s Coming! Panama Prepares for FACTA Reporting

Article Summary:

Starting January 2013 financial institutions outside the U.S. will have to report on the accounts of citizens from that country for U.S. tax purposes. Panama is taking proactive steps, says the Ministry of Economy and Finance, as Panama reaffirms its intention to support the U.S. and the terms issued for the exchange of financial information between the two countries.

Photo Credit: Capitol

Original Article Text From Capital via Google Translate :

FATCA, Priority for Risk Managers

Compliance with the Foreign Account Tax Compliance (FATCA), a U.S. law (U.S.) requiring financial firms from countries like Panama to report on the accounts of Americans abroad for tax purposes and begin to implemented in January 2013, has become one of the priorities of the units responsible for risk management in the financial sector.

“In Panama there is need for orientation to risk management, both technical and systems international. Bring clients ask experts to give some kind of training to support the implementation of FATCA, to understand it more, “said Patricio Perez, a partner at McGladrey LLP and risk management expert from the U.S., who recently participated in the International Risk Management Training organized by RSM International Company.

Specialist noted that in recent months the interest of companies to train their staff to meet this U.S. law processes has been increasing since the implementation of systems Risk management helps them clarify their weaknesses and the factors to be strengthened to comply with the new regulations.

On January 1, 2013 start recording agreements for compliance with FATCA and all financial sector entities, including insurers, brokerage houses, banks, credit unions and mutual funds that have U.S. customers, should act accordingly.

Foreign law any citizen or U.S. resident having more than $ 50,000 in financial assets abroad, report these assets through a form stating the accounts maintained abroad. And the entities that manage these assets should ensure that this happens.

Levante Diana, partner in the firm of auditors and accountants Levante and Associates, said it is important that financial firms train their staff, as the deadline to comply compliance with this U.S. law is a few months, so that employees of companies must be able to make the processes required by this legislation.

“On the FATCA is important that we are trained to support customers who will be in these circumstances, “Levant said.

Notably, the Ministry of Economy and Finance, as well as local regulators of banking, securities and others, maintain open communication and intention to support U.S. in terms of exchange of financial information under strict confidentiality procedures.

Amauri Castillo, secretary general of the Supertendencia of Banks of Panama, said that the implementation of FATCA is a major challenge for financial firms, not only in the country but world. And he recognized that companies are looking for guidance to implement it.

According to the official, risk management is being applied comprehensively in banks, still a matter of awareness and activity that is dynamic, requiring adjustments as presented environments local and international services need to be adapted.

Another issue in which risk management is aimed more followers today in Panama is in the implementation or use of the Treaties to Avoid Double Taxation (TDT), including an article to promote the exchange of tax information between authorities by confidentiality rules.

“Signing treaties and their implementation, results using several regulations, including those who make a business relationship in Panama with other countries, in addition to processes that allow you to see that the relationship is well supported. It is intended that through this training is most commonly used, “described De Levante, whose firm is a member of RSM International Network.

Risk management can create controls within a company to identify the same problems ranging from loss gain, commodities, international adaptations regarding its operational as FATCA, and even includes the identification of opportunities for businesses.

Link to Original Article:

From Capital

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