Waiting for the Other Shoe to Drop, Compliance Pros Can Take Steps to Limit Tax Evasion

By Kieran Beer

In the wake of an extensive proposal forwarded by the Obama administration to stem tax evasion, anti-money laundering compliance departments are looking again at what they can and must do to fight the crime. The proposal, introduced on May 4, would pressure foreign financial institutions to become "qualified intermediaries," a legal designation that would mandate greater information sharing with U.S. investigators. Under the plan, U.S. banks would have to withhold 20 to 30 percent of payments tied to financial institutions that haven't agreed to share data. Lawmakers are considering how to best move forward on the proposal as a tug-of-war...