That was the question posed to Compliance Week magazine by a reader overseeing operations for a company in Latin America. The reader wanted to know if the rules (requiring companies to have controls preventing identity theft) apply to foreign businesses or only to U.S. companies? And if they don't, should U.S. companies with overseas operations be doing anything outside the U.S.?
Compliance Week called on Day Pitney partner Richard Harris, and counsel James Bowers and Thomas Zalewski for the answer.
The Red Flag Rules require certain businesses to develop and implement written procedures to protect against identity theft and mainly focus on banks and other companies accepting deferred payment for goods and services. At the moment nobody knows whether the rules apply to foreign creditors or whether the Federal Trade Commission will apply any special conditions. Guidance issued last year made clear that the rules do not apply to foreign branches of U.S. financial institutions but the FTC might still break with this approach and has indicated it will address the issue of foreign subsidiaries in forthcoming guidance. The deadline is June 1.
See Compliance Week for the full answer (subscription required).
Day Pitney Advisory
Day Pitney LLP hosted its annual invitation-only Palm Beach Family Office Forum at the Eau Palm Beach.
Von Sanborn, Darren Wallace and Stephen Ziobrowski authored an article, "Key Tax Considerations For High Net Worth Family Offices," published in Law360.
Carl Merino presented a seminar on tax and estate planning for foreign nationals during the Jewish Community Federation and Endowment Fund's Annual Day of Philanthropy in San Francisco on November 7.
Stephen Ziobrowski, Andrew Wogman, Carl Merino, Aaron Kriss and Matthew Woodbury authored an article, "Check the Box Elections for Non-U.S. Business Entities," which was published in the Journal of International Tax, Trust and Corporate Planning.
Daniel Gottfried, chair of Day Pitney's International Transactions practice was quoted in an article, "Who Can You Trust in the Cryptocurrency Economy?," published by the Robb Report.
Day Pitney Press Release
Von Sanborn and David Silvian were quoted in an article, "You, Taxes and 2018: What to Expect from the Tax Bill," published in Private Asset Management magazine (PAM).
Peter Bilfield and Steven Gold were mentioned in an article, "Day Pitney Expands Investment Management and Private Equity Practices," published inThe Hedge Fund Law Report.
Peter Bilfield and Steven Gold were quoted in an article, "Day Pitney Lands 2 Corporate Finance Partners," published in Law360.