Know Your Costumer (KYC)
WHAT IS KYC?
Applicable European regulations require us to identify our “Know Your Customer” or Kyc customers in order to combat money laundering.
Money laundering can be defined as any operation aimed at concealing the illicit origin of proceeds from crimes and offenses.
Kyc refers to the set of processes that we must follow to ensure a thorough knowledge of our customers.
To fight against tax fraud and money laundering, Rubicon has implemented a Kyc process; this set of processes must be complied with by our clients in order to identify them and to be able to establish a deep knowledge of each client, natural person or natural persons benefiting from an entity as a legal person.
We then set up a data warehouse for mandatory reporting to the competent authorities. By gathering this client knowledge through a system of data analysis and business intelligence, the firm guarantees its clients the transparency and sustainability of its activities in Spain and Europe.
OFFSHORE ACCOUNTS AND COMPANY SET-UPS
The previous scandals (Panama papers, Offshore leak, Paradise papers, etc.) and probably those to come, reveal that the set-ups advised by certain firms no longer work. Apart from the very negative impact on public opinion and the business sector, tax administrations no longer accept this type of tax optimization set-up, which can be summarized as “Compliance” and “Substance”.
Compliance is the fact of being governed by an Authority, an administration, a tax agreement, etc. This is usually done through bookkeeping, auditing and tax returns (even if nil).
Substance is the fact of having in the country of registration of the foreign company, an office, personnel, a bank account, a resident manager, a computer server, etc. located in the country. The tax authorities no longer accept “zip code” companies, but they do accept a “real” company from which it can be justified that the business cycle is being developed. This point is particularly essential in order to benefit from the advantages of double taxation treaties.
At Rubicon we recommend fleeing from meaningless business set-ups and the importance of Compliance and Substance. It is possible to reduce, within the law, the taxation of a company with an international activity. This will require installing a “real” society and forgetting certain set-ups that common sense should keep them out of practice.
We recommend that our clients review our “On boarding” entry document so that we can perform an initial analysis of the client’s data.
Data Protection Officer.
Mayra Gnagnarello
