Despite increased regulations, some in the region’s banking industry expect tax evasion to more than double according to a new report
Global credit scoring and analytics firm FICO found in a survey that 1 in 5 banks in Asia Pacific believe that incidents of tax evasion will be higher by between 100% and 500% compared to 2016 levels. Another 1 in 5 said that there would be increases of less than 100%.
The forecasted rise is despite regulations introduced this year to tackle the issue.
The new international reporting standard for the sharing of taxpayers’ bank account details begins this September in India and Korea before being expanded to New Zealand, Australia, China, Japan, Indonesia, Malaysia, Brunei, Macao, Hong Kong and Singapore in the third quarter of 2018.
“The goal is to make offshore tax evasion impossible,” said Dan McConaghy, president for FICO Asia-Pacific. “More than 100 jurisdictions have already signed up to the automatic exchange of information (AEOI) as part of a common reporting standard (CRS).
Most of the survey’s respondents (68%) said that their organisation does not have the resources and solutions necessary to effectively and report tax evasion.
Just 22% have applied behavioural analytics to help fight financial crime with 73% using rules-based systems.
“Financial crimes such as money laundering and tax evasion are escalating in priority for governments across the globe,” said McConaghy. “As we head towards a new era of data collection and sharing in a global environment to prevent tax evasion, banks will need systems that are fast and accurate to comply.”
The forecasted rise is despite regulations introduced this year to tackle the issue.
The new international reporting standard for the sharing of taxpayers’ bank account details begins this September in India and Korea before being expanded to New Zealand, Australia, China, Japan, Indonesia, Malaysia, Brunei, Macao, Hong Kong and Singapore in the third quarter of 2018.
“The goal is to make offshore tax evasion impossible,” said Dan McConaghy, president for FICO Asia-Pacific. “More than 100 jurisdictions have already signed up to the automatic exchange of information (AEOI) as part of a common reporting standard (CRS).
Most of the survey’s respondents (68%) said that their organisation does not have the resources and solutions necessary to effectively and report tax evasion.
Just 22% have applied behavioural analytics to help fight financial crime with 73% using rules-based systems.
“Financial crimes such as money laundering and tax evasion are escalating in priority for governments across the globe,” said McConaghy. “As we head towards a new era of data collection and sharing in a global environment to prevent tax evasion, banks will need systems that are fast and accurate to comply.”
