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 LLP hosted its annual invitation-only Palm Beach Family Office Forum at the Eau Palm Beach.
On February 20, Von Sanborn will be presenting on "Passionate Collecting, Thoughtful Ownership: Collecting, Owning and Selling Art" at a STEP Southwest Florida Chapter event.
On April 26, Von Sanborn will be giving a presentation at "Cross Border Wealth, Estate and Tax Planning – What You Don't Know May Surprise You," a seminar being presented by the Estate and Business Planning Council of Hartford.
Von Sanborn will be chairing a panel, “As the Art World Turns: Current Trends and Considerations for Families with Art Collections,” at the Family Office Association Palm Beach Investment Forum.
Von Sanborn served as a panelist at the 23rd Annual International Wealth Transfer Practice Conference, presented by the International Bar Association and held in London, England.
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.
Von Sanborn was featured in an article, "Tax Screw-Ups and People Problems: Experts Reveal Biggest Blunders of Rich Families," published by Bloomberg.
Von Sanborn was quoted in an article, "U.S. Family Offices Face Increasing Competition from Foreign Families," published by Private Asset Management.
International tax partner Von Sanborn was quoted in an article, "Six Family Offices Themes Likely to Set the Agenda in 2019," published by Fund Intelligence.
Day Pitney Press Release