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Experimental approach to app development... Westpac CIO Clive Whincup.

A little more like Google, a little less like a bank, say chiefs.

Despite cutting several hundred jobs and being accused of planning to offshore the majority of its IT operation, Westpac technology chiefs say the development of new mobile applications and innovative solutions for the banking group must be handled in-house.

Chief information officer Clive Whincup and chief technology officer Jeff Jacobs used a technology media briefing last week in Sydney to unveil two new iPad apps developed in Australia by a team of about 50 staff. The team, comprised primarily of former St George Bank developers and additional personnel, bases app features on insights garnered from consumer and user behavioural research.

The Broker App is to be used by mortgage brokers to evaluate customer's eligibility for loans and to calculate repayments, while Tabula is exclusively for the use of board members now that the banking group no longer issues paper documents ahead of board meetings.

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Westpac chief technology officer Jeff Jacobs.

"We've grown the team quite rapidly with our own staff. We're not relying on contractors. We think a lot of the innovation comes from the intimacy between the developer and the business community and the customer workshops we run. You can't get that when you ship (a brief) overseas," he said.

Westpac axed around 150 IT jobs in January and March, after sending roles offshore. According to the Finance Sector Union, since 2007, more than 6200 jobs have been relocated offshore by Australian banks and financial companies.

But only last week, Westpac-owned St George reneged on a plan to outsource another 200 IT jobs to IBM, the leading outsourcing vendor in Australia, according to Gartner.

Original post:
Westpac to develop technology in-house

by Amy Davenport

Lloyds TSB is pleased to announce the appointment of May Hooper to the position of Senior Relationship Manager of Corporate Banking, Financial Institutions and Foreign Exchange. Ms Hooper has over 25 years experience in the offshore finance sector, having previously worked predominantly within treasury and business development roles in the banking and insurance industry.

Ms Hooper joined the ever expanding Lloyds TSB corporate banking team at Victory House on Prospect Hill six months ago after spending seven years with AIB International Savings, formerly Anglo Irish Bank. There she was responsible for both the establishment and running of the foreign exchange desk coupled with corporate relationship management. Her previous role at Lloyds TSB saw Ms Hoopers role develop to entail the management of financial institutional clients within the life assurance industry, captive insurance market and the funds sector, amongst others.

In addition to her practical experience, Ms Hooper also holds a number of professional qualifications including the ACI Dealing Certificate; a qualification which allows candidates to acquire a working knowledge of the structure and operation of the major foreign exchange and money markets, including the application of the fundamental mathematics used in these markets, and their core products. She is currently studying for the full ACI Diploma, which she hopes to complete this year.

Commenting on her new position, Ms Hooper stated: I would just like to say that I am extremely pleased with my promotion and that I am looking forward to the challenges that this new position brings with it. I am very fortunate to work within a very friendly team who work very hard and aim to deliver excellent rates and service to existing clients and new clients alike.

Lloyds TSB Isle of Mans Head of Corporate Banking, Mr Simon Prescott, also commented on Ms Hoopers appointment: We are delighted to offer May the position of Senior Relationship Manager at Lloyds TSBs corporate banking team. The promotion reflects the drive, energy and considerable expertise she has brought to the team since joining us six months ago and will significantly enhance our offering to the Islands Financial Institutions and larger companies. On behalf of our team and Lloyds TSB as a whole, I would like to take this opportunity to once again welcome May and wish her every success with us in the future.

- Ends -

I would just like to say that I am extremely pleased with my promotion and that I am looking forward to the challenges that this new position brings with it."

May Hooper, Senior Relationship Manager of Corporate Banking, Financial Institutions and Foreign Exchange

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Lloyds TSB Appoints May Hooper to Senior Relationship Manager

(BRUSSELS) - Austria and Luxembourg on Tuesday frustrated European Union plans to claw back unpaid tax on earnings lying in offshore banking havens, prompting an angry rebuke from Brussels.

"Tackling tax evasion is a growth-friendly way of boosting national budgets. How can any member state possibly justify blocking progress in this area," said tax commissioner Algirdas Semeta after talks between finance ministers broke down at EU headquarters.

Citing "extreme frustration" on a bid to open negotiations to reclaim lost taxes from accounts in Switzerland and other territories, Semeta said "the positions Austria and Luxembourg adopted are unfair."

A row centred on whether EU governments would have to automatically share information on deposits.

"I leave it to [the two governments] to explain to citizens across Europe why they can support tax hikes and spending cuts for ordinary people, but won't allow us to step up our fight against tax evaders," Semeta said.

He said the countries, known for secretive banking traditions, had shown an "unjustified resistance to merely opening discussions."

The Danish chairwoman of the finance ministers' meeting must report back to EU leaders ahead of a summit at the end of June before the next steps can be decided.

Text and Picture Copyright 2012 AFP. All other Copyright 2012 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.

Original post:
Austria, Luxembourg frustrate EU plans to fight tax evasion

Wealth management firms the world over are declining to open offshore accounts for Americans.

In a piece for Bloomberg, reporter Sanat Vallikappen begins, Go away, American millionaires. Valliikappen then goes on to explain that wealth management firms the world over are declining to open offshore accounts for Americans.

This is the institutional blog of the Ludwig von Mises Institute and many of its affiliated writers and scholars commenting on economic affairs of the day.

I dont open U.S. accounts, period, said Su Shan Tan, head of private banking at Singapore-based DBS, Southeast Asias largest lender, who described regulatory attitudes toward U.S. clients as Draconian.

It hadnt been easy for Americans doing financial business overseas, but since the 2010 passage of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts, opening a foreign bank account has become mission impossible.

Valliikappen writes,

The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which could affect their ability to generate returns.

The Institute of International Bankers and the European Banking Federation said in an April 30 letter to the IRS, that the 400 pages of rules and regulations issued by the American tax authority create Unnecessary burdens and costs.

Massachusetts Democrat Richard Neal says the government needs to crack down on offshore tax dodgers. Mr. Neal wants tax money and doesnt care much about privacy and all that.

People should know, and the IRS should know, what money is being held offshore and for what purpose, Neal said. I dont think theres anything unreasonable about that.

See original here:
Offshore bank accounts: no Americans allowed

Mauritius Banking Act 2004 integration of onshore and offshore banking licences provides for greater confidentiality on client information, such that any request under POCA [Prevention of Corruption Act 2002], or under Financial Development Services Act 2001, or under the United Revenue Act will require formal applications to a Judge in Chambers. Prior to Promulgation in October 2004, I had intervened as Chief Economist of the Barclays Group, on behalf of the Mauritius Bankers Association Chairman, on matters of substance pertaining to regulatory loopholes and consistency in banking guidelines deemed to be within the spirit of the Act. The Seal of enhanced Confidentiality and Lifting of Corporate Veil to establish Economic Substance in 'offshore' global business operations were bound to become an uneasy thorn in our international economic diplomacy. Tax Information Exchange Agreements (TIEA), signed by Mauritius, effectively removed our Jurisdiction off the potential "grey list" of offshore tax havens listed by the Organization for Economic Cooperation and Development. The upcoming Global Forum on Transparency and Information Exchange [Mexico, September 2012] will create a new organization to oversee the progress of Tax Information Exchange Agreements. The Forum guides the OECD's work in the area of tax evasion. The postponement of India's GAAR (General Anti-Avoidance Rules to counter aggressive tax avoidance practices via overseas jurisdictions) hails an opportune moment for Mauritius to seize the economic diplomacy window and query offshore policy fundamentals. GAAR is a watershed opportunity to sanitise the World Investment image of Mauritius in the global business sector. GAAR Provisions conceptually plugs the loopholes within our Tax Jurisdiction, and performs the due diligence role relinquished by the Financial Services Commission [FSC], and other regulatory and tax authorities of Mauritius. GAAR highlights the hazy status prevailing in our Treaty Shopping image, and the ensuing opacity in our international economic diplomacy since 1995. Notwithstanding the application timing of GAAR, who will bear the responsibility of a rigorous assessment and a formal regulatory ruling pertaining to the adequacy of commercial and economic substance of a Third Party seeking the cloak of a TRC [Tax Residency Certificate]? Has the FSC relinquished its prerogative to establish a comprehensive list of all Global Business transactions which could be legally construed as colourable devices [a dubious method or subterfuge clothed with apparent dignity] as per the Mc Dowell ruling? Is it not an opportune moment for FSC Mauritius to upgrade its own operational standards to internalise the core essence of GAAR, without duress or undue external diplomatic pressure? GAAR should not be viewed as an obstacle to be circumvented, but a Global Business Policy Tool to be rendered statutory within the FSC Regulatory Framework in a bid to cleanse the opacity and apparent breach of international confidence in the sanctity of our TRC status. Prime Minister Ramgoolam letter to India's PM Manmohansingh creates more mistrust in the Offshore quagmire. Why does Prime Minister Ramgoolam display such eagerness to urge a forgiveness of all Tax Residency Certification beneficiaries prior to GAAR's potential implementation? The Government of Mauritius had a clear responsibility since 2006 which hailed the diplomatic exasperation of our staunchest ally on the World stage - Mother India. India tags our Government's 'unwillingness' to carve a path to thwart Treaty Shopping and global business transactions devoid of economic substance. The Government of Mauritius has a duty of care towards the international economic community to issue an unambiguous Policy Statement to FIIs [Foreign Institutional Investors] using the shield of our TRC status, that Treaty Shopping shall be deemed not to be conducive to our Special Relationship Status with India. India hinted that no relief would apply to Vodafone-type overseas deals involving Capital Gains Tax on sale of domestic assets, whereby proposed retrospective changes to Income Tax Act would apply. Finance Minister Duval may bring soft pressure to bear on local auditing firms whose Partners are local Directors of hundreds of Global Business Companies with Mauritius TRCs. Thus it is most feasible for these Auditors, bound by UK Chartered Accountancy Codes of Practice, to disclose to FSC Mauritius the nature of those TRC beneficiaries who may be deemed to lack commercial and economic substance. Goodwill and Good Faith, in lieu of GAAR Legislation from India, will ventilate a new phase in our international economic diplomacy. The Government's failure since 2010 to launch a goodwill-based credible economic diplomacy with India, and the diplomatic faux pas of Finance Minister Duval's absence in the Government Mission to India led by PM Ramgoolam speaks volumes as to our lack of synchronicity and calibration of our international economic diplomacy and our national economic development program. Foreign Minister Boolell should have been in the front line of staunch lobbying preceding GAAR Legislation proposals in April 2012. Has our economic diplomacy been outsourced to Global Investor Forums with no mandate from Government, thereby operating ultra vires with respect to speaking with a 'coherent single voice' to Indian Authorities? The last gasp lobbying attempt by non-specialist Investor Forums in lieu of technocratic void in our Diplomatic Mission in India and the non-existent role given to Finance Minister Duval in India by Prime Minister Ramgoolam, do not seal our case in the right direction. The serious concern of India regarding the shortfall in Tax receipts from Global Business platforms and the impact on its development strategies and equitable share of global transactions may not be casually underestimated by our Policymakers and economic diplomacy strategists. Is Mauritius an economic partner or a tax parasite vis--vis its Global Protector - India? GAAR should highlight our tactical ability to forge farsighted international economic relations beyond the safety nets of DTAs, AGOA, and crumbling bilateral trade agreements in the long term. Is Singapore Model our salvation?

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INDIA's GAAR: OFFSHORE, Mea Culpa