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Harneys is pleased to announce the continued expansion of its Asia practice with the addition of partner Charles Clayton-Payne to its Hong Kong Banking and Finance team this week.

In Palladyne International Asset Management B.V. v Upper Brook (A) Ltd and Others, the Grand Court of the Cayman Islands issued important judicial guidance regarding the extent to which the dealing restriction under the Libyan sanctions regime was applicable in the Cayman Islands. In particular, the court was asked to examine the scope and meaning of the restriction on the ‘use’ of funds frozen under the Libya (Restrictive Measures) (Overseas Territories) Order 2011.

Harneys is pleased to announce that Yin Xu joined as a transactional partner in our Hong Kong office. Yin joins the team from another offshore firm, where he was Partner in the Corporate team since 2016.

The BVI ITA announced yesterday that the FATCA and CRS reporting deadline for all reporting Financial Institutions (FIs) other than Trustee Documented Trusts (TDT) remains 31 May 2019. TDTs with CRS reportable accounts have until 28 June 2019 to complete their CRS reporting for the 2018 calendar year.

The International Tax Co-operation (Economic Substance) Law (the ES Law) was introduced in the Cayman Islands on 1 January 2019 in response to OECD’s Base Erosion and Profit Shifting framework and related EU initiatives in relation to what are known as ‘Geographically Mobile Activities’. Under the ES Law any relevant entity which carries on a relevant activity and receives relevant income in a financial period must satisfy the economic substance test in relation to that activity (ES Test) and make an annual filing with the TIA. Aside from the basic filing requirements, a relevant entity which does not carry on any relevant activity is not required to satisfy the ES Test. Harneys has issued a guide to assist directors and operators of Cayman Islands companies and limited liability partnerships.

Harneys advised on the Cyprus law regulatory and tax aspects of the placing and sale of global depository receipts representing interests in class A shares in TCS Group Holding PLC (the parent company of Tinkoff Bank) by Altoville Holdings Limited, the joint-controlling shareholder of Russian consumer lender TCS Group, to raise US$150 million. Tinkoff Bank is one of the largest players in Russia’s credit card market. Morgan Stanley & Co. International plc acted as bookrunner in connection with the Placing.