28 June - 4 July 2001

‘Know your client’ procedures win approval from America’s IRS

The Malta Financial Services Centre (MFSC) and the IRS have reached an agreement which should facilitate financial
services business between Malta and the United States.
The IRS have recognised that Malta is a reliable partner even in terms of the necessary controls such as “know your client” procedures which would enable Maltese financial institutions to obtain Qualified Intermediary (QI) status. In practice this means that individual intermediaries can be accepted as qualified intermediaries in the United States once their procedures are approved by the IRS.
Winning IRS approval is a significant issue for Malta’s finance sector. It is further evidence of the benefits of consistently improving regulatory standards and operational procedures.
Collectively, the IRS move, the OECD approval and the inclusion of Malta as a cooperative jurisdiction by the FATF are key building blocks to securing Malta’s position as a premier division finance
centre.
Organisations considering making a QI application can get advice and help from the IRS by calling the US on +1 202 874 1800 and all interested parties will find it helpful to study the IRS website at www.irs.gov/prod/businfo/qi/entry-list.html