E-wallets and CRS

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Arbusers
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E-wallets and CRS
« on: December 10, 2015, 04:16:20 PM »

I asked our managers in both e-wallets about the Common Reporting System coming into effect from January 1st 2016 and received the following answer:

“E-money” providers that are governed by the provisions of the European Union Electronic Money Directive (2009/110/EC) (EMD) are not deposit takers for the purposes of the Banking Consolidation Directive (2006/48/EC). Recital 13 to the EMD specifically states that “The issuance of electronic money does not constitute a deposit-taking activity pursuant to Directive 2006/48/EC”, consequently such providers will not fall within the definition of Depository Institution that requires deposits to be accepted in the ordinary course of a banking or similar business.


I also made a search all over the gambling field websites to see if anyone else raised this kind of question and found the following official Skrill statement:

"Our Head of Group Regulatory has recently commented on this matter, and I quote for your reference:

From the latest guidance notes, published by HMRC in September, we conclude that UK licensed e-money institutions, like Skrill Limited, will not be subject to the automatic exchange of information by OECD between countries under the Common Reporting Standards.

The CRS cover entities that fall into certain categories of institutions, which include custodial institutions, depository institutions, investment entities and specified insurance companies. There was some uncertainty as to whether or not E-money institutions might be regarded as depository institutions. The latest guidance notes however specifically state that “E-money” providers that are governed by the provisions of the European Union Electronic Money Directive (2009/110/EC) (EMD) are not deposit takers for the purposes of the Banking Consolidation Directive (2006/48/EC). Accordingly such providers will not fall within the definition of depository institution and therefore also not in the scope of the CRS".


I believe that all these statements are based on the interpretation of this:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/461418/Guidance_Notes_for_the_Automatic_Exchange_of_Financial_Account_Information.pdf

For as long this interpretation remains as it is, my opinion is that no data will be exchanged.
It would be wise from our community to keep this issue low.
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kapetan1122
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Re: E-wallets and CRS
« Reply #1 on: December 10, 2015, 06:30:14 PM »

Nikos or anybody else for rest of us who are not so good with English language can somebody explain in simpler language what does this mean?
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Cash
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Re: E-wallets and CRS
« Reply #2 on: December 10, 2015, 07:34:21 PM »

i think it means that skrill deposits dont have to be reported as income for English people.  i was actually wondering about this.  a good arber will profit maybe 10%, but according to the deposits he makes, it might look like he's making 10X more to revenue agencies, seeing all the deposits made in to bank...... but those deposits are mostly not profit, but transfers from one book to another, then back to the bank.  i dont know what an arber does if he gets audited.
« Last Edit: December 10, 2015, 10:24:20 PM by Cash » Logged
TjTaker
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Re: E-wallets and CRS
« Reply #3 on: December 10, 2015, 09:38:41 PM »

What is common reporting system?
Our finances will be controlled?
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Re: E-wallets and CRS
« Reply #4 on: December 10, 2015, 10:53:26 PM »

Dont really understand this.  Skrill transactions are not income, they are the same as any other deposits and withdrawals to banks, bookies, casinos etc?
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Pete
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Re: E-wallets and CRS
« Reply #5 on: December 11, 2015, 02:16:09 AM »

In simple language:

The EU decided all banks(/financial institutions) have to report their customer's data to the new system.
We wondered if that applies for Neteller and Skrill too or not.
The answer - from what they say - is no, it does not apply, our data won't be reported.
« Last Edit: December 11, 2015, 02:19:32 AM by Pete » Logged
Arbusers
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Re: E-wallets and CRS
« Reply #6 on: December 11, 2015, 06:08:15 AM »

 Thank you Pete.
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kapetan1122
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Re: E-wallets and CRS
« Reply #7 on: December 11, 2015, 10:50:06 AM »

bbc_standard_quote">In simple language:

The EU decided all banks(/financial institutions) have to report their customer's data to the new system.
We wondered if that applies for Neteller and Skrill too or not.
The answer - from what they say - is no, it does not apply, our data won't be reported.

Thank you very much!
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Looter
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Re: E-wallets and CRS
« Reply #8 on: December 11, 2015, 11:31:16 AM »

I thought that only banks controlled from ECB were going to be affected.
Are you sure that UK banks will share data of their customers?
UK banks are controlled from Bank of England.


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Looter
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Re: E-wallets and CRS
« Reply #9 on: December 11, 2015, 12:57:29 PM »

Thanks for the link.
I noticed that Singapore , Hong Kong , China , Russia and Turkey are not included which means that there are still safe places.
Personally I have chosen Singapore to transfer most of my overseas banking activities
Furthermore I really doubt that all the countries agreed to start exchanging data after September 2018 will remain in this boat...
Even if you have nothing to hide , money in the banks should be like keeping something in your pocket , which means privacy.
I would suggest to try to avoid such regulations no matter what the cost is.
Don't forget that if the big banks start to lose customers due to this regulation , they will find "solutions" to keep their customers.
For example all the  major Swiss banks have now presence in Singapore...
« Last Edit: December 11, 2015, 01:01:23 PM by Looter » Logged
raizzak
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Re: E-wallets and CRS
« Reply #10 on: December 11, 2015, 02:10:53 PM »

Do we really believe that? The boatloads of money from any illegal activities means they will be exposed? Hold your horses always there will be a loophole or something im skeptical.
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Skaggerak
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Re: E-wallets and CRS
« Reply #11 on: December 11, 2015, 06:18:07 PM »

So time to move all the transaction to e-wallets by the time this starts.
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Alfa1234
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Re: E-wallets and CRS
« Reply #12 on: December 11, 2015, 09:23:11 PM »

Bulgaria is not included either. 
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Arbusers
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Re: E-wallets and CRS
« Reply #13 on: December 11, 2015, 09:45:06 PM »

You have to check again and again. More countries signed in these last weeks.
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Looter
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Re: E-wallets and CRS
« Reply #14 on: March 19, 2016, 08:14:23 PM »

Singapore accepted to exchange information (AEOI) and added to the list which can be found here.

https://www.oecd.org/tax/transparency/AEOI-commitments.pdf
https://www.streber.st/2016/03/aeoi-oecd-automatic-exchange-of-information/

Panama is still a grey zone but news may come soon for this country too

The future for bank privacy is getting more and more grey...
The e-wallets are currently excluded due to the fact that they do not own a bank licence to be subject of information exchange (please note that this may not apply to PayPal which has a bank licence in Europe).

Please note the the banks will exchange information after the incorporation which mean that countries like Singapore and Panama are safe for now.

The key factor is WHERE is your tax residency location. If you leave in UK but have a tax residency in UAE for example you are ok cause the bank data will be sent to UAE where there is no tax to pay... If you are tax resident in a country with high corporate or personal income tax you must be able to prove that your money abroad are not a non-taxed product...

There are still solutions to avoid AEOI but the cost is high and won't explain them here for sure.

Just a small update for a very crucial issue...
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