SOLUTIONS TO INCREASING TRANSPARENCY Presented by Phani Schiza Antoniou of Globalserve Consultants ltd at ‘Changing Fiscal and Banking International Environment’ Seminar Moscow October 2017

How can confidentiality be maintained in the new environment ? IT CANNOT One by one all countries comply to the new transparent environment as they do not have much of a choice To use other names for owners is dangerous, risky and at the end banks can reject them

What is the solution for international business? BUT international business still need foreign companies for the requirements of their worldwide operations, for banking access, for access to international capital markets and foreign investors, to have access to a reliable and recognizable legal system, for asset protection, etc In such a case the solution is : To be able to prove that the management and control of the company is done in the chosen jurisdiction of the company and that the company is not a paper company For the beneficial owner to choose an appropriate tax residency for himself

Management and control OECD definition: The minimum requirement is the place where decisions are taken and the BOD meets But additionally more requirements have to be met to protect the place of effective management from challenges by foreign jurisdictions ( The requirements will depend on the volume of activity of the company and the nature of its business)

Management and control Composition and experience of BOD to be connected to the company’s activities At least one of BOD members to have executive position Existence of office Employees Where operational management is Where the company documents and records are maintained Where the important contracts and agreements are signed Documents to be executed by directors from the company jurisdiction Bank account and residency of person who manages the account No general power of attorneys Place of approval of financial statements Location of seal

for your attention! Questions ???? Thank you for your attention! Questions ???? Phani Schiza Antoniou