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Thread: Has The IFSC Attracted Dubious Activities ?

  1. #76
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Not too well versed in quote stuffing but sure as hell we're getting stuffed by the IFSC Clearing House Group:
    The financial services industry successfully lobbied Government to have IFSC-based international insurers excluded from the Quinn Insurance levy amid concerns about overseas policyholders being forced to pay for the insurer’s losses.

    The Government changed the legislation so foreign policyholders whose insurance companies were based in the IFSC would not be levied.

    A 2 per cent levy has been imposed on all non-life Irish insurance policyholders to cover the cost of Quinn Insurance which could reach €1.65 billion.

    Minutes of eight meetings of the IFSC Clearing House Group, seen by The Irish Times, also reveal the extent of the industry’s access to senior Department of Taoiseach and Department of Finance officials, and the Central Bank, the industry’s regulator
    http://www.irishtimes.com/newspaper/...327835561.html

  2. #77
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    We should be thankful for the focus but why all this reference to lobbying when the highest mandarins in country are on this thing.

    Who's side are they supposed to be on when lobbying?

  3. #78
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Quote Originally Posted by Dr. FIVE View Post
    Don't know enough about this but it seems to be an Algo (computer trading algorithm) trick. Would have to be done by an Irish broker to be successful here, I think.

    Interestingly, Cantor Fitzgerald, a large US broker, purchased an Irish brokerage recently.

    tactic of quickly entering and withdrawing large orders in an attempt to flood the market with quotes that competitors have to process, thus causing them to lose their competitive edge in high frequency trading. This tactic is made possible by high-frequency trading programs that can execute market actions with incredible speed. Only market makers and other large players in the market are capable of executing these tactics, since they require a direct link to the exchange in order to be effective.

    Read more: http://www.investopedia.com/terms/q/...#ixzz2Ez0nNcwr
    More on the practice here: http://www.zerohedge.com/article/how...market-any-mom
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

  4. #79
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    An internal DOF position paper from last year in the IT today. Gets interesting on pages two and three.
    But the global financial crash in 2008 and other factors have inevitably affected the IFSC and placed it at a crossroads in terms of its future development.This is highlighted in an internal position paper produced by the Department of Finance last year by Neil Ryan, a former banker who is now assistant secretary in the department and who was seconded to Irish Bank Resolution Corporation for a period. It highlights the challenges facing the IFSC and makes eight proposals that could help it grow.
    The document has been seen by The Irish Times and states that the IFSC’s “offering” needs a “radical re-think”.
    It said the IFSC was becoming more reliant on a “small number of banks for the bulk of the jobs”.Middle- and back-office operations are maintaining their position but “offer lower wages [and therefore lower tax take] to the exchequer”.
    According to the document, the contribution from each banking job in the IFSC is roughly the equivalent of two jobs in each of the other activities carried out in the centre.
    According to an FSI Accenture report from September 2010, the annual payroll generated by banking activities in the IFSC amounted at the time to €738.8 million out of a total of €1.966 billion for the centre as a whole. In the two years up to the publication of the position paper, 186 jobs had been lost at IFSC companies while another 409 were in companies in some form of wind-down, including DePfa, Dexia, DZ Bank and EAA Bank.
    The document said the trend of banks in wind-down mode was “unlikely to be staunched in the short term”.
    It also noted the challenge posed by moves towards tax harmonisation in Europe and the “potential tightening of US tax rules”.
    http://www.irishtimes.com/business/s...lear-1.1460832
    Last edited by PaddyJoe; 12-07-2013 at 12:27 AM.

  5. #80
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Unpossible, surely

    International mafia money is being routed through Ireland concealed in massive hedge funds, according to the head of the Criminal Assets Bureau (Cab).

    Russian mafia money is hard to detect because it is hidden in high value investment funds that are often routed through international institutions in the Irish Financial Services Centre

    According to Mr Corcoran, investment in land - as opposed to houses - is also becoming a bit of a theme. Land is often cheaper, often maintenance-free and is less likely to attract attention. One group of criminals is investing heavily at the moment on sites in parts of Kildare.

    "There is a quite a pattern developing there in north Kildare and we are trying to do something about that," he said.


    http://m.independent.ie/irish-news/n...-34370807.html
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

  6. #81
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Bloomberg wonders if a 2.6 trillion bomb is ticking in Ireland?

    http://www.bloomberg.com/news/articl...-irish-shadows

    Based in a drab office building in Dublin down the road from a pub frequented by Prime Minister Enda Kenny, VPB Funding Ltd. had no employees but one function: selling bonds. In 2013, it issued $225 million of unsecured notes.

    The proceeds of that sale were funneled to Vneshprombank Ltd., a Moscow lender whose license was revoked last month when Russian authorities accused management of pilfering its assets and falsifying accounts. VPB’s notes have plunged to pennies on the dollar.

    The entanglement of an obscure Dublin firm in the woes of a lender 2,000 miles away shows why Irish officials have begun shining a light on special purpose vehicles like VPB, unregulated entities that borrow on behalf of corporations throughout the world. The Irish capital, home of Europe’s costliest banking meltdown, remains a hub for the sort of opaque operations that contributed to the global financial crisis, threatening risks that policy makers are seeking to stamp out.

    “There’s concern that Irish SPVs are exporting risk to other financial systems around the world and could have contagion effects,’’ said Shaen Corbet, a lecturer in finance at Dublin City University.


    SPVs fall under the heading of shadow banking -- lending by entities outside the traditional banking industry. Ireland ranks with China as the biggest center for nonbank finance firms after the U.S. and the U.K., with 2.3 trillion euros ($2.6 trillion) of assets, based on a survey by the Financial Stability Board, a group of global regulators. The nation’s shadow-banking system -- including hedge funds, mutual funds and insurers -- is more than 10 times the size of the economy.

    While most of the network falls under the purview of authorities in Ireland or elsewhere, unregulated vehicles -- including SPVs -- account for an estimated half a trillion euros, the survey found.

    Gareth Murphy, who heads the Irish central bank’s markets-supervision unit, said authorities must increase cooperation in circumstances where a Dublin-based SPV, for example, is linked to “a German bank or a French bank which is prudentially regulated elsewhere.”

    “Monitoring of the full financial landscape wasn’t good enough,’’ Murphy, who formerly worked at JPMorgan Chase & Co. and the Bank of England, said in an interview. “One of the lessons of the financial crisis is that a narrow, inwardly focused approach to the pursuit of one’s regulatory mandate really doesn’t work because of the global nature of financial services.”
    Gathering Data

    The scenario has played out before. In 2007, Germany’s Landesbank Sachsen Girozentrale needed a 17 billion-euro emergency credit line from a group of German banks after its Dublin-based SPVs, loaded with toxic assets, were unable to pay their debts.

    Irish authorities have begun amassing data on SPVs, and joined last year in an annual survey of shadow banking by the FSB, a group of regulators that monitors the global financial system. The report examined 26 jurisdictions, though some countries with large shadow-finance operations, such as Luxembourg, didn’t participate.

    “It makes sense for the central bank to look for that kind of information just to get an idea of the scale of what’s happening,” said Enda Faughnan, a Dublin-based partner at accounting firm PricewaterhouseCoopers, which helps set up the vehicles.
    Cross-Border Risks

    The collapse of Vneshprombank encapsulates some of the cross-border risks the central bank is seeking to identify. The lender, which held billions of rubles in deposits for some of Russia’s biggest state companies, including oil producer Rosneft OJSC and pipeline operator Transneft OJSC, set up VPB Funding to raise cash for “general corporate purposes’’ and to “diversify its sources of funding,’’ a prospectus shows.

    Last year, Russian regulators found a 187 billion-ruble ($2.5 billion) hole in Vneshprombank’s balance sheet. Former managers may have stripped the bank’s assets for investments in real estate, expensive vehicles and financial instruments, Russia’s central bank said in a Jan. 21 statement. The lender remains under administration by the central bank and a liquidation will follow, said a spokeswoman for Russia’s Deposit Insurance Agency who declined to comment further.

    Ireland’s central bank said all prospectuses are subject to a “robust approval process,” and that the VPB notes were issued before the U.S. and European Union imposed sanctions on Russia in 2014. The sale was restricted to institutional investors and use of the proceeds was “clearly disclosed,” it said.

    VPB Funding’s notes were quoted at 13 cents on the dollar as of Jan. 19, according to Trace, the bond-price reporting system of the U.S. Financial Industry Regulatory Authority.
    Hidden Links

    Shadow-banking assets have swelled since the financial crisis, and not just in Ireland. Globally, nonbank firms that extend credit had an estimated $36 trillion of assets at the end of 2014, after climbing by an average $1.3 trillion a year since 2011, according to the FSB. Regulators, concerned that banks may use shadow lending to evade new rules and wary that risks could build up unseen, are trying to map the size of the industry and develop rules for it.

    Until late 2015, Irish SPVs had no obligation to alert the central bank to their presence in Dublin or explain their purpose, except where their activities touched on regulated areas.

    Officials face a challenge in monitoring the SPVs because of the “complexity and opaqueness of their transactions,’’ Ireland’s central bank said in a report last July. The biggest borrowers through these vehicles are in the U.S., U.K., Germany, France, Italy, Russia and the Netherlands, according to the report.
    Shadow Mapping

    There are about 2,100 companies in Ireland set up under the legislation that governs SPVs, including some 1,400 since 2010, Irish Finance Minister Michael Noonan said in parliament last month. Even tax authorities don’t know how many assets these firms hold, he said.

    “Risks may be building up in the part of the shadow-banking sector for which a statistical breakdown is not readily available,” the European Central Bank, the euro-area’s banking supervisor, said in an e-mailed response to questions.

    Under Irish law, the entities are structured so that transactions deliver little or no taxable profit. Their shares are held by charitable trusts, which can keep their assets and liabilities off the balance sheets of the parties that use them. Law firms typically set up the trusts and pass along a portion of the fees they generate to charities, according to lawyers who structure them.
    Putin’s Pals

    VPB Funding is registered at the address of Cafico International, an Irish company that focuses on setting up SPVs for banks, airlines and aircraft-operating lessors. Cafico Managing Director Rodney O’Rourke didn’t respond to calls, emails and a visit to his offices seeking comment.

    Vneshprombank wasn’t alone in making the trip to Dublin. Moscow-based UralSib Bank Ltd., which faced bankruptcy last year until the state orchestrated a takeover by an ally of President Vladimir Putin, is among Russian firms with ties to SPVs, Irish company filings show.

    In 2013, another SPV lent $1 billion to Sibur Holding, a chemicals company part-owned by Gennady Timchenko, a billionaire subject to U.S. sanctions, and Kirill Shamalov, who a family acquaintance said last year is Putin’s son-in-law. (Putin has not confirmed the relationship.) Other entities have ties to Russian oil-drilling firms, energy companies, the country’s national energy grid and Domodedovo Airport in Moscow, filings show.

    These are the kinds of cross-border links Ireland’s central bank should be worried about, said Corbet, a former commodities trader.

    “I’d be concerned about the reputational, financial and contagion risks that would be associated should more Russian banks with SPVs in Ireland meet the same fate as Vneshprombank,’’ he said. “Without data, the central bank is in the dark.’’


  7. #82
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Well gee. Imagine that.What is the IFSC except a giant laundromat for iffy money? That is what it was set up to do.
    Think National. Act Local. Oh- and superstition is just the dark matter of human history.

  8. #83
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    The Irish central bank is about as useful as an ashtray on a motorbike in this regard and that is precisely why so much dodgy money is funnelled through the IFSC.

    And the central bank is well aware of the nature of that particular roulette wheel.
    Think National. Act Local. Oh- and superstition is just the dark matter of human history.

  9. #84
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Better put Garda Joe on Defcon Five with his shtubby pencil. He's the boy that will put manners on the FSB and the laundering of drug, prostitution and protection money out of Russia alright.
    Think National. Act Local. Oh- and superstition is just the dark matter of human history.

  10. #85
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Quote Originally Posted by DCon View Post
    Just when we thought it couldn't get worse than Cerberus.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  11. #86
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Quote Originally Posted by Captain Con O'Sullivan View Post
    Well gee. Imagine that.What is the IFSC except a giant laundromat for iffy money? That is what it was set up to do.
    Sure what could go wrong ? Isn't it self-regulated ?
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  12. #87
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    Offshore Ireland implicated in bank collapse, once again

    http://www.taxjustice.net/2016/02/26...ampaign=buffer


    ^^

    This pdf about the IFSC linked to in the above piece is worth linking to separately:

    http://www.financialsecrecyindex.com/PDF/Ireland.pdf
    "If you go far enough to either extreme of the political spectrum, Communist or fascist, you'll find hard-eyed men with guns who believe that anybody who doesn't think as they do should be incarcerated or exterminated. " - Jim Garrison, Former DA, New Orleans.

  13. #88
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    Default Re: Has The IFSC Attracted Dubious Activities ?

    This is an interesting thread.
    "If you go far enough to either extreme of the political spectrum, Communist or fascist, you'll find hard-eyed men with guns who believe that anybody who doesn't think as they do should be incarcerated or exterminated. " - Jim Garrison, Former DA, New Orleans.

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