Mossack Fonseca becomes ISO 9001 Certified

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COVER STORY
Mossack Fonseca
becomes ISO 9001 Certified
Commitment to Quality
is Our Number One Priority
COVER STORY
PAGE 2
SEYCHELLES BRIEF
Seychelles signs its first TIEA
Mossack Fonseca becomes ISO 9001 Certified
A true leader in our field, we are proud to announce that Mossack
Fonseca & Co. is the first and only ISO 9001:2008 certified law firm in
the Republic of Panama. The world’s leading independent auditing and
certification agency has awarded Mossack Fonseca & Co. with a
prestigious certification acknowledging our commitment to quality,
continuous improvement and customer satisfaction.
Mossack Fonseca & Co. received the new global quality management
system certification from SGS, a certification entity accredited by
UKAS and ANAB, two of the leading and most rigorous independent
auditing and certification agencies in the world. The achievement,
including zero non-conformance items noted, confirms our
commitment to quality and innovation, and our ability to provide
measurably higher quality, and more defensible legal services to our
corporate counsel and clients.
ISO 9001:2008 - the new global benchmark for
providing assurance of an organization’s ability
to satisfy quality requirements and to enhance
client satisfaction.
ISO 9001:2008 is the most recent edition of the International Standard
and is based on criteria developed by the International Organization of
Standardization (ISO), and used by organizations as the global
benchmark for providing assurance of an organization’s ability to satisfy
quality requirements and to enhance client satisfaction. Mossack
Fonseca & Co. received this certification specifically for our MF Legal
Services management and operations processes. All of the
PAGE 3
Feature Article: Securitizing
Is it possible to securitize future
toll payments and government
bonds through joint ventures?
N0. 06 October 2010
www.mossfon.com
PAGE 4
INSIDE Mossfon
Taking the plunge for
Breast Cancer
documentation relating to Mossack Fonseca & Co.’s legal service
processes and office procedures is recorded in the ISO-approved
format.
We have also trained and certified twenty Internal Auditors who audit
every aspect of our quality process, and who are responsible for the
continuous review of our processes to ensure Mossack Fonseca & Co.
continues to operate within the requirements of ISO 9001:2008. The
ISO process also assures that all Mossack Fonseca & Co. employees
receive, and remain current in, the training required to do their job in a
professional and safe manner.
Most importantly, the ISO 9001:2008 quality system assures our
clients that Mossack Fonseca & Co. is committed to continuous
improvement and client satisfaction.
Why an organization should
implement ISO 9001:2008
To keep customers satisfied, the organization
needs to meet their requirements. The ISO
9001:2008 standard provides a tried and
tested framework for taking a systematic
approach to managing the organization's
processes so that they consistently turn out
product that satisfies customers' expectations.
Source: www.iso.org
ISO Central Secretariat
Headquarter in Geneva
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FEATURE ARTICLE
SEYCHELLES BRIEF
Seychelles signs its first TIEA
Seychelles and the Netherlands signed an agreement to
promote cooperation in tax matters through a tax information
exchange agreement (TIEA). The agreement was signed by
principal secretary for finance Ahmed Afif in the presence of
Albert Geerz, the Dutch honorary consul in Seychelles.
Mr. Afif said this is the first such accord Seychelles has signed,
and it will help in the battle to bring about greater transparency
in international transactions. “We strongly believe that we need
to develop an international business centre in Seychelles and
promote international financial services,” he added. He
maintained that it is vital for Seychelles to meet the
expectations of regulatory bodies such as the Organisation for
Economic Cooperation and Development (OECD).
“We have to be seen as a jurisdiction with best
practices and ensure that companies based in
both countries cannot do business without
paying their taxes.” Ahmed Afif
Mr. Afif also added that through these norms Seychelles aims
to show the OECD that it is committed to the rules of
transparency and exchange of information. Seychelles cannot
afford to be blacklisted as it is a small and vulnerable country
that depends on imports. “We have to be compliant and work
with these institutions and at the same time show our ability to
work as a team with all the international partners,” he added.
Mr. Geerz agreed and stated that the TEIA shows the good
cooperation that has been in place for a very long time
between the two countries. “It shows that regarding tax matters
things are developing further and this will be in the best
interests of both partners.” Mr. Afif closed by saying that as
soon as other countries are ready, Seychelles will sign a similar
agreement with them.
A TIEA at Work:
For example, if there is a Seychellois company in the
Netherlands that is avoiding paying taxes, then all the
necessary information should be available from this country for
an investigation. Through this TIEA, each country will ensure
that its relevant authority has the power to obtain and provide
on request information held by banks and other financial
institutions. This also involves information on the ownership of
companies, partnerships and trusts. The Netherlands will,
when making a request for information under the agreement,
give details such as the identity of the person who is being
investigated, a statement of the information sought, the tax
purpose for which it is sought and the name and address of any
person believed to have that information.
Bahamas Insight
TIEAs are only the beginning
According to Ryan Pinder, an attorney adept in US tax policy and
the PLP MP for the Elizabeth Constituency in The Bahamas
Parliament, the Bahamas has to set progressive policies in the
financial services industry in order to prepare for future initiatives
by the Organization for Economic Cooperation and
Development (OECD).
Mr. Pinder warned that the OECD is sure to set out other
requirements with respect to tax information reporting and
requests of countries. His comments came following the speech
given by Douglas H. Shulman, IRS Commissioner and Chair of the
OECD Forum on Tax Administration, before the OECD on June 8,
2010. In his message, Commissioner Shulman foreshadowed the
direction of international tax compliance by specifically stating that
“the next rung in the evolutionary ladder of international tax
administration [is] the progression from cooperation to
coordinated action on global tax issues.”
Mr. Pinder suggested that the new regimes indicated by Mr.
Shulman will allow multiple countries to jointly conduct an audit of
a taxpayer in international jurisdictions. "It is unclear whether this
is contemplated under the current TIEA regime, but it is evidence
that information reporting is going to be more intricate than a
single request from a single country," he said.
According to Mr. Pinder, the OECD and the Forum on Tax
Administration see the pressures on so-called tax havens as an
opportunity to "achieve significant long-term compliance in the
campaign against individuals parking assets and income in
offshore banks". Along with these changes in policy come
changes in enforcement and prosecution for malfeasance
Mr. Pinder added that TIEAs are not the end of global pressures
on offshore financial sectors. According to him, the Bahamas has
to evolve along with global tax information reporting. He
suggested the Bahamas can "survive" under the current OECD
model, even with the increased pressures on transparency and
compliance. "We have to distance ourselves from the perception
as a jurisdiction of tax cheats and a place to hide wealth," he
concluded.
The list below contains the Tax Information Exchange
Agreements (TIEAs) signed by The Bahamas.
Canada
Australia
Spain
Finland
Iceland
Norway
Sweden
Greenland
The Faroe Islands
Denmark
Mexico
France
Belgium
Netherlands
Argentina
China
New Zealand
United Kingdom
San Marino
Monaco
United States

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FEATURE ARTICLE
Is it possible to securitize future toll payments
and government bonds through joint In ventures? Brief
By Ramses Owens, Esq. Attorney-at-Law and Trustee, Mossfon Trust Corporation
The term for and the process of "securitizing" is increasingly accepted
in the Securities Markets. Securitization consists in the issuance of
instruments, paper or documents evidencing debt, either through the
stock market or the general public, by means of direct sales previously
approved by the governmental authority of the Securities Market,
backed by allocated or autonomous assets that have been previously
transferred to an entity, and whose assets consist of present or future
income flows.
In other words, it is the act of transforming a portfolio of existing
accounts receivable or a property or any documents evidencing a debt
or existing right, into cash, by replacing as a bank as common financial
intermediary for purchasers of securities issued by an issuer, on or off
the stock exchange. And you can also transform "potential or future
assets", i.e. future sales flows, into cash. Simply put, it is to transfer an
existing asset or a future income flow to a third party (under a trust) or
third-party fiduciary, so that the latter may become, through the trust,
an issuer at a stock market.
The securitization of "future income flows" can be perhaps more risky
for the investing public than the securitization of existing assets. An
account receivable is already an "asset" because it exists in the
accounting records as a result of income earned but not collected,
whereas a future income flow represents future revenue, which is the
product of a reality, an infrastructure or an existing law that allows that
future production. This type of securitization consists in transferring to a
third party (trustee of a trust), the rights enjoyed by a company on its
future sales, whether products or services.
Securitization in Panama
The northern and southern beltways or “toll corridors” of the city of
Panama are under a state concession for a set period of time. This right,
which has a current value, allows them to collect, through a built
infrastructure, income in the future for period of time fixed or to be
fixed. Statistics and forecasts can quite accurately establish the flow of
money that will be generated through the years. These are not
"accounts receivable", but "future income flows." This right to collect
any "future flows" can be transferred to a third party fiduciary, thus
creating an autonomous patrimony consisting of such "right" which
serves as collateral to issue securities (shares or bonds) in the Panama
Stock Exchange. This securitization can be done concomitantly with the
GLOSARY
Securitizing:
“titularizar” in Ecuador and
Colombia or “securitizar” in
Chile
Entity:
corporation governed by a
Trust, or a trust per se
purchase of rights by the State, so that the "originator" of or "party
constituting" such securitization is the State itself. The government buys
and at the same time transfers in trust said right for the future collection
of tolls. After a sensible time period, the Trustee issuer shall transmit the
proceeds obtained from the sales of securities to the Mexican seller. To
expedite the placement, one or several underwriters could take part in
the process.
The same principle applies to any assets that belong to the State or
Government. Share certificates are assets for the state. The holding by
the State of shares from joint ventures (Union Fenosa-Panama, Edemet,
Edechi and other businesses related to power generation
telecommunications) can be transferred in Trust to create separate
assets for issuing securities. The Trustee Issuer would surely be the
National Bank of Panama, but nothing prevents a private trust, duly
constituted and under the supervision of the Panama Superintendency
of Banks, from assuming this task if the necessary legal procedures are
carried out. The investor receiving a security arising from such issue,
acquired through a stock exchange, generates a steady and stable
income for many years. Panama, a country that is considered to have
an "investment grade", which is no longer merely a "speculative" one,
would draw the attention of international institutional investors, who
would surely invest in these debt papers. Many Panamanians could also
become creditors of their own State. These elements add a romantic
reality to the equation.
Securitization at work
Property:
parcel, lot, or a building to be
built, under construction or
already built
N0. 06 October 2010
In a fictional construction project, the owner of a parcel of land
contributes to a trust this parcel of land together with the plans,
blueprints and feasibility studies. The assets contributed
constitute in themselves sufficient guarantee that the regulatory
authority of the Securities Market (National Securities
Commission, in Panama’s case) will approve the Trust as an
"issuer" of its own securities, which are sold to the public. That
public investor receives an interest rate until the sale of the
project is completed, on which date the investor must receive
his/her capital back.
Existing right:
bonds, notes, factoring
contracts, leases, public debt,
government concession rights,
or any document created by
human ingenuity
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INSIDE MOSSFON Taking the Plunge for Breast Cancer
Julie Tann Morgan, from Mossack Fonseca’s Gibraltar Office, participated in a tandem
skydive on Sunday, June 27 and raised over a thousand pounds for a wonderful breast
cancer campaign. She was one of the 19 brave souls who volunteered for this fundraiser.
Although she was the last to jump and admitted to being terribly scared, she was able to
collect from all her sponsors and make a great contribution to a wonderful cause.
For more information, please visit
http://issuu.com/andalucialife/docs/andaluciam _life _ august _ 2010/14
Tandem basics
Tandem skydiving or tandem parachuting refers to a type of skydiving where a
student skydiver is connected via a harness to a tandem instructor. The instructor
guides the student through the whole jump from exit through freefall, piloting the
canopy, and landing. The student needs only minimal instruction before making a
tandem jump.
N0. 06 October 2010
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