GOLDEN VISA, FREE PORTS AND LETTERBOX COMPANIES FROM A MONEY LAUNDERING AND TAX EVASION PERSPECTIVE

On 18th October, the EU Parliamentary Research Service Blog published a post about a meeting of the European Parliament’s Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3) devoted to ‘golden visa’, ‘free ports’ and ‘letterbox companies’ from a money laundering and tax evasion perspective.  Researchers from the EPRS Ex-Post Evaluation Unit and the European Added Value Unit will present 3 in-house studies to TAX3 Members –

  • citizenship by investment (CBI) and residency by investment (RBI) schemes in the EU analyses the state of play and issues surrounding citizenship and residency by investment schemes (also known as ‘golden passports’ and ‘golden visas’) in the EU. It looks at their economic, social and political impacts and examines the risks they carry in respect of corruption, money laundering and tax evasion. The study compares the schemes offered by several EU Member States;
  • money laundering and tax evasion risks in connection to free ports provides an insight, particularly those that function as (semi-) permanent storage for high value goods, such as art, antiques, diamonds or luxury wines. It provides an appreciation of the effectiveness of the UCC, the EU AML Directive and the Directive on Administrative Cooperation in addressing these risks and makes the connection to the unregulated market of ‘investment art’.  Part of the research consists of a case study into the legal and supervisory framework at ‘Le Freeport’ in Luxembourg; and
  • an overview of shell companies in the European Union, the main common feature of which is the absence of real economic activity in the Member State of registration. The study aims to contribute to a better understanding of the phenomenon of shell companies by seeking to estimate the incidence of such companies, by means of a set of ‘proxy’ indicators at Member State level.  It also explains the main risks associated with shell companies and current policies aimed at mitigating the risks identified.

https://epthinktank.eu/2018/10/18/golden-visa-free-ports-and-letterbox-companies-from-a-money-laundering-and-tax-evasion-perspective/

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s