Lawrence E. Ritchie
May 30, 2016
Journalist Ken Mark examines the all-too-real consequences of the Panama Papers data breach in a recent article in Listed magazine. In addition to discussing the implications for public figures such as Iceland’s former Prime Minister Sigmundur David Gunnlaugsson and British Prime Minister David Cameron, Mark reviews the heightened scrutiny that tax evaders worldwide can now expect to face from financial services regulators and tax authorities. For further insight, he consults Larry Ritchie, Osler partner and chair of the firm’s Risk Management and Crisis Response practice and co-chair of the Capital Markets Regulatory Enforcement and Broker-Dealer Disputes practice.
“Since the 2008 financial meltdown, all regulators have become more proactive about white-collar issues and focusing on greater transparency in business dealings,” Larry explains.
Though the Canada Revenue Agency has responded to the Panama Papers’ leak by enhancing its tax evasion and anti-money laundering policies and practices, Larry says it isn’t clear whether Canadian regulators will go as far as the U.S. Department of Justice and its customer due diligence rule that requires U.S. financial institutions to know who are the beneficial owners of their corporate clients.
“Canadian authorities cannot ignore trends and reactions in other major markets, especially in the U.S.,” he says. “They inevitably follow suit, with their own ‘made-in-Canada’ variant, whenever they feel it necessary to align legal and regulatory expectations.
“Wise directors and managers should be vigilant in watching and understanding these types of trends and developments, seek advice from experts on how the trends could affect their businesses, and be prepared to adjust their business practices accordingly.”
Read Ken Mark’s full article What happens offshore … winds up onshore in the Spring 2016 issue of Listed magazine.