MIFID 2 and MIFIR. LEI NUMBER Requirement for Legal Entities.

Starting from January 3, 2018 with the entry into force of MIFID 2 and MIFIR it will be mandatory for all legal entities that have or intend to have operations on financial instruments to obtain the LEGAL ENTITY IDENTIFIER CODE (LEI NUMBER).

It is a 20-digit alpha-numeric code assigned internationally and based on the ISO 17442 standard, similar to a tax identification number and necessary to financial intermediaries for the purposes of reporting transactions to ESMA (European Securities and Market Authority). This identifier code, containing key information of legal entities to which it is assigned, enables clear and unique identification of legal entities participating in financial transactions.

This is certainly an important innovation aimed at greatly enhancing transparency in the global marketplace, in view of the fact that the database of the LEI numbers is publicly available on a global level.

For more details related to the contents of this article and to request information on the LEI number assignment procedure, please send an e-mail to : segreteria@sintesinetwork.com

EU publishes its first Blacklist naming 17 Tax Havens.

The European Union has released a blacklist of 17 countries named as “non-cooperative jurisdictions for tax purposes”. The decision was made at a meeting of finance ministers in Brussels aimed at further sensitizing the EU authorities on the issue of tax avoidance and evasion in the light of the repeated requests in terms of transparency sent to the different countries over the past year. The 17 blacklisted territories are: American Samoa, Bahrain, Barbados, Grenada, Guam, South Korea, Macau, Marshall Islands, Mongolia, Namibia, Palau, Panama, Saint Lucia, Samoa, Trinidad and Tobago, Tunisia and the United Arab Emirates. The EU made exceptions for countries faced with natural disasters such as hurricanes, and put the process temporarily on hold.

Another 47 countries have also been included in a “grey list” of countries not compliant with EU tax standards but who have committed to change their rules. These countries will have to adopt EU standards by the end of 2018, or 2019 for developing countries, to avoid being included in the blacklist. Also British overseas territories and the crown dependencies of Jersey, Guernsey and the Isle of Man have been placed on the grey list.

EU tax commissioner Pierre Moscovici said the blacklist represented “substantial progress”, adding: “Its very existence is an important step forward. But because it is the first EU list, it remains an insufficient response to the scale of tax evasion worldwide”.

In this regard, members of the European Parliament criticised the absence of certain countries from the list.

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