IIB ANNUAL INSTITUTE TAX SEMINAR TO BE HELD ON JUNE 22 ND AND 23 RD Preparations are under way for the Institute s annual seminar on U.S. taxation of international banks, to be held on Thursday, June 22 nd and Friday, June 23 rd (until 12:30 p.m.) at the Grand Hyatt New York (Park Avenue at Grand Central). As in past years, this comprehensive seminar will feature government officials and private-sector experts (including representatives of Institute member banks and member firms of our Professional Liaison Committee), who will address the latest tax developments affecting internationally headquartered banking/financial institutions operating in the United States. Hal Hicks, the Treasury Department s International Tax Counsel, will give the keynote luncheon address on Thursday, June 22 nd. We are grateful to Benmark, one of the largest benefit specialists operating nationwide, for sponsoring the Continued on page 3 INSTITUTE S BREAKFAST DIALOGUE SET FOR SEPTEMBER 18 TH IN SINGAPORE The Institute will hold its 19 th Annual Breakfast Dialogue with Government Officials on Monday, September 18 th during the IMF/ World Bank meetings in Singapore. Confirmed speakers include Sir Callum McCarthy, Chairman of the U.K. s Financial Services Authority. Representatives of our member institutions from head offices, U.S. and other operations who will be in Singapore during the IMF/World Bank INSTITUTE NEWS Published by the INSTITUTE OF INTERNATIONAL BANKERS Sir Callum McCarthy, Chairman, Financial Services Authority (U.K.). meetings are encouraged to attend this important Institute event. The 2006 Breakfast Dialogue will be held at the Meritus Mandarin. We are grateful to the Association of Banks in Singapore for cosponsoring this year s event. April 12, 2006 INSTITUTE S ANNUAL AML SEMINAR TO BE HELD ON MAY 24 TH IN NEW YORK The Institute will hold its annual anti-money laundering program on Wednesday, May 24th in New York for the international banking community. This comprehensive full-day program provides a unique forum for internationally active banks and their legal and compliance advisers to hear the latest developments in this critical area. This program is designed for Institute member banks as well as internationally active domestic banks. (An on-line registration form is available on the Institute s web site at www.iib.org/ events.) Robert W. Werner, Director of the Treasury Department s Financial Crimes Enforcement Network (FinCEN), will give the keynote luncheon address. Other confirmed governmental and private-sector Continued on page 6 U.S., INTERNATIONAL POLICYMAKERS AND INDUSTRY LEADERS ADDRESS Nearly 300 representatives of member institutions as well as other interested professionals and invited governmental guests heard senior U.S. and international policymakers and industry leaders discuss cross-border implementation of Basel II, the U.S.-EU dialogue on financial market regulation, the latest developments in anti-money laundering/ Bank Secrecy Act enforcement and regulation, U.S. and European perspectives on competing in the U.S. and Robert W. Werrner, Director, FinCEN. Mark W. Olson, Member, Board of Governors of the Federal Reserve System. global wholesale financial markets and other key topics at the Institute s Annual Washington Conference (March 13-14) at the Four Seasons Hotel. Many of the Continued on page 2 The Institute s mission is to help resolve the many special legislative, regulatory and tax issues confronting internationally headquartered financial institutions that engage in banking, securities and/or insurance activities in the United States. 299 Park Avenue, 17th Floor, New York, N.Y. 10171 Telephone: (212) 421-1611 Facsimile: (212) 421-1119 E-Mail: IIB@IIB.ORG HTTP://WWW.IIB.ORG Everett Schenk, Chairman Lawrence R. Uhlick, Executive Director
(continued from page 1) Randal K. Quarles, Under Secretary of the Treasury for Domestic Finance. John C. Dugan, Comptroller of the Currency. Annette L. Nazareth, Commissioner, Securities and Exchange Commission. excellent presentations from this year s conference are available on the Institute s web site at http:// www.iib.org/events/aconference/2006aconference.htm. The first day of the program featured the following governmental speakers: Randal K. Quarles, Under Secretary of the Treasury for Domestic Finance, who gave the keynote address on Monday morning, March 13 th ; Mark W. Olson, Member of the Board of Governors of the Federal Reserve System; John C. Dugan, Comptroller of the Currency; Annette L. Nazareth, Commissioner, Securities and Exchange Commission; Senator Michael Crapo, Member of the Senate Banking Committee; Rep. Michael G. Oxley, Chairman of the House Committee on Financial Services; Rep. Barney Frank, Ranking Minority Member of the House Financial Services Committee; William Langford, Associate Director, Financial Crimes Enforcement Network; Nicholas Le Sen. Michael Crapo, Member, Senate Banking Committee. Rep. Michael G. Oxley, Chairman of the House Financial Services Committee. Rep. Barney Frank, Ranking Minority Member, House Financial Services Committee. Pan, Chairman of the Basel Committee s Accord Implementation Group and Canada s Superintendent of Financial Institutions; and Daniele Nouy, Chair of the Committee of European Banking Supervisors and Secretary General of the French Commission Bancaire. Private-sector speakers were: Lewis B. Kaden, Vice Chairman and Chief Administrative Officer of Citigroup Inc.; Filip Dierckx, Member of the Executive Committee of Fortis, CEO of Merchant Banking; and political analyst Charles E. Cook, Jr., editor and publisher of the Cook Political Report. The Tuesday portion of the program consisted of panel discussions of key tax and regulatory developments of importance to internationally headquartered financial institutions. Participants on the tax panel included: Harry (Hal) J. Hicks, III, International Tax Counsel, Department of the Treasury; Michael S. Novey, Treasury s Associate Tax Legislative Counsel; Continued on page 3 From left: Lawrence R. Uhlick, Executive Director Yaron Z. Reich, Partner, Cleary Gottlieb Steen & Hamilton LLP; Harry (Hal) J. Hicks, III, International Tax Counsel, Department of the Treasury; Andrew Froberg, Treasury s Associate International Tax Counsel; Michael S. Novey, Treasury s Associate Tax Legislative Counsel; and Harrison J. Cohen, Principal, Deloitte Tax LLP. From left: Lawrence R. Uhlick, Executive Director Jack P. Jennings, II, Associate Director, Division of Banking Supervision and Regulation, Federal Reserve Board; Michael J. Lesser, Deputy Superintendent, Large Complex Banks Division, New York State Banking Department; Nancy Wentzler, Deputy Comptroller, Global Banking and Financial Analysis, Office of the Comptroller of the Currency; Robert L.D. Colby, Deputy Director, Division of Market Regulation, Securities and Exchange Commission; and Donald T. Vangel, Partner, Ernst & Young LLP. 2
(continued from page 2) William Langford, Associate Director, Financial Crimes Enforcement Network Nicholas Le Pan, Chairman of the Basel Committee s Accord Implementation Group. Daniele Nouy, Chair of the Committee of European Banking Supervisors. Lewis B. Kaden, Vice Chairman and Chief Administrative Officer, Citigroup Inc. Filip Dierckx, Member of the Executive Committee, Fortis, CEO of Merchant Banking. Charles E. Cook, Jr., Political Analyst. Andrew Froberg, Treasury s Associate International Tax Counsel; Harrison J. Cohen, Principal, Deloitte Tax LLP; and Yaron Z. Reich, Partner, Cleary Gottlieb Steen & Hamilton LLP. Participants on the regulatory panel included: Jack P. Jennings, II, Associate Director, Division of Banking Supervision and Regulation, Federal Reserve Board; Michael J. Lesser, Deputy Superintendent, Large Complex Banks Division, New York State Banking Department; Nancy Wentzler, Deputy Comptroller, Global Banking and Financial Analysis, Office of the ANNUAL INSTITUTE TAX SEMINAR (continued from page 1) luncheon program. The seminar will include discussions of key issues that tax professionals need to consider with their senior management as well as practical howto sessions for tax specialists and other interested professionals. Topics to be covered at the seminar will include: financial/tax accounting; federal audit controversy developments; Reg 1.882-5/OECD capital allocation; Reg 475/global dealing/transfer pricing; Multistate/NYS/NYC tax developments; financial products; structured products: CLOs/CDOs/CDSs; and information reporting and withholding. While the seminar is designed for tax specialists, all interested professionals from both the U.S. operations and head offices of our member institutions are encouraged to register. Attendees at Comptroller of the Currency; Robert L.D. Colby, Deputy Director, Division of Market Regulation, Securities and Exchange Commission; and Donald T. Vangel, Partner, Ernst & Young LLP. The Sunday evening welcoming reception at the Four Seasons Hotel was sponsored by Cleary Gottlieb Steen & Hamilton LLP; the Monday luncheon program was sponsored by Benmark; and the Monday evening reception at the Galleria at Lafayette Centre for conference attendees and the Washington community was sponsored by Ernst & Young LLP. We are grateful to all of the sponsors for their generous support. Continued on page 4 the seminar who are licensed accountants in either New York or New Jersey will be eligible for Continuing Professional Education (CPE) credits. In addition, the Institute has filed with the New York State Continuing Legal Education Board an application for accreditation of the seminar. In the event accreditation is granted, seminar attendees who are subject to the New York continuing legal education requirement will be eligible to receive CLE credit (transitional CLE credit for newly admitted attorneys and non-transitional credit for experienced attorneys) as authorized by the Board (in this connection, a copy of the Institute s financial assistance policy is available from the Institute on request). This year s seminar is being co-chaired by John DeRosa (Deutsche Bank) and Todd Tuckner (UBS) and is being organized in conjunction with the Institute s professional staff, Tax Committee Chairman Andrew Barkin (The Bank of Tokyo-Mitsubishi UFJ, Ltd) and Yaron Reich (Cleary Gottlieb Steen & Hamilton LLP), the Institute s Tax Counsel. An on-line registration form is available on the Institute s web site at http://www.iib.org/events. 3
(continued from page 3) WELCOMING RECEPTION The Institute s welcoming reception for conference attendees, sponsored by Cleary Gottlieb Steen & Hamilton LLP, was held on Sunday evening at the Four Seasons Hotel. From left: Everett Schenk, CEO, North American Corporate and Investment Banking, BNP Paribas, and Chairman of the Institute; Carol Chave; and Robert E. Hand, General Counsel, The Bank of Tokyo-Mitsubishi UFJ, Ltd. From left: Hirotaka Masubuchi, Manager, Japanese Bankers Association; Lawrence R. Uhlick, Executive Director and S. Rajan, Chief Executive Officer, State Bank of India. From left: M. Rafiq Bengali, Regional Chief Executive - Americas Region, National Bank of Pakistan, and Chairman of the Institute s Membership Committee; Indranil Ganguli, Manager, Banking Supervision & Deposit Insurance, Bundesverband Offentlicher Banken Deutschlands; and Bruce T. Richards, Executive Vice President and General Manager Americas, National Australia Bank, and Member of the Institute s Executive Committee. Una Neary (left), Vice President, Foreign Bank Supervision, Federal Reserve Bank of New York, and David S. Fredsall, Deputy Superintendent, Foreign and Wholesale Banks, New York State Banking Department. Paul Glotzer (left) and Kenneth L. Bachman, Partners, Cleary Gottlieb Steen & Hamilton LLP. Nancy Bengali (left) and Carol Uhlick. Continued on page 5 4
(continued from page 4) RECEPTION FOR THE WASHINGTON COMMUNITY The Institute s reception for conference attendees and the Washington community, sponsored by Ernst & Young LLP, was held on Monday evening at the Galleria at Lafayette Centre. The Honorable Mark W. Olson (left), Member of the Board of Governors of the Federal Reserve System, and James J. Fanning, Partner, Ernst & Young LLP. From left: Leonard Glassman; Sarah A. Miller, Director, Center for Securities, Trust and Investments, American Bankers Association; and The Honorable Cynthia Glassman, Commissioner, Securities and Exchange Commission. From left: Lawrence R. Uhlick, Executive Director Donald Soifer, Executive Vice President, Lexington Institute; Nicholas Le Pan, Canada s Superintendent of Financial Institutions and Chairman of the Basel Committee s Accord Implementation Group; and Ray Soifer, Chairman, Soifer Consulting LLC. From left: Jean-Marc Moriani, Chief Executive Officer, Calyon Americas, and Member of the Institute s Board of Trustees; Michael J. Lesser, Deputy Superintendent, Large Complex Banks Division, New York State Banking Department; and Jacques Busquet, Executive Vice President, Risk Management, Calyon Americas. Walter R. Borek (left), Managing Director, Royal Bank of Canada, and Roger A. Blissett, Managing Director & Senior Deputy General Counsel, RBC Capital Markets. Bowman Brown (left), Chairman, Financial Institutions Industry Practice Group, Shutts & Bowen LLP, and Paul L. Lee, Partner, Debevoise & Plimpton. 5
INSTITUTE S ANNUAL AML SEMINAR (continued from page 1) speakers include: Bridget M. Neill, Manager of AML Policy and Compliance in the Federal Reserve Board s Division of Banking Supervision and Regulation; Daniel P. Stipano, Deputy Chief Counsel, Office of the Comptroller of the Currency; Michael J. Lesser, Deputy Superintendent of the New York State Banking Department; Eugene A. Ludwig, Chief Executive Officer of Promontory Financial Group and former Comptroller of the Currency; William M. Isaac, Chairman of the Secura Group and former Chairman of the Federal Deposit Insurance Corporation; William J. Fox, Senior Compliance Executive, Bank of America, and former Director of the Financial Crimes Enforcement Network; Richard A. Small, Managing Director, Global Anti-Money Laundering, Citigroup Inc., and former Deputy Associate Director of Supervision and Regulation at the Federal Reserve Board; Herbert A. Biern, Executive Vice President, Head of Regulatory Affairs/Compliance for North America, ABN AMRO Bank N.V.; H. Rodgin Cohen, Chairman of Sullivan & Cromwell; Stevenson Munro, Global Head for Economic Sanctions, UBS Investment Bank; and Kenneth L. Bachman and Derek Bush, Partners at Cleary Gottlieb Steen & Hamilton LLP. We also expect to be joined by a senior official from Treasury s Office of Foreign Assets Control (OFAC). The continuation of high-profile enforcement actions against banking institutions illustrates the priority that the banking agencies and FinCEN are placing on AML compliance and risk management. Meanwhile, internationally active banks are continuing to grapple with new standards, evolving expectations and new risks, devoting everincreasing resources in this area. The Institute s AML program a one-of-its-kind event in the New York area is designed to bring together leading public and private sector experts to help institutions navigate this complex territory. The Institute s program also will include senior examiners from the banking agencies, including the Federal Reserve, OCC and New York State Banking Department, as well as from FinCEN, to share their perspective on how internationally active banking organizations can ANNUAL GENERAL MEETING/ELECTIONS, MEMBERSHIP LUNCHEON TO BE HELD ON FRIDAY, JUNE 16 TH IN NEW YORK The Institute s Annual General Meeting and Elections, preceded by a Membership Luncheon, will be held on Friday, June 16 th at the Waldorf-Astoria Hotel. Further details, including information about the luncheon speaker, will be provided in the near future. In the meantime, please reserve this date on your calendars. best meet today s supervisory expectations. As in prior Institute seminars in this area, we will ask the examiners to discuss the key areas of focus in current examinations and to share their observations regarding shortcomings and best practices that they are seeing in the field. Legal and compliance professionals will address topics such as designing an effective antimoney laundering program, preparing for examinations, handling emerging criticisms and handling the threat of an enforcement action or criminal prosecution. The program will cover the latest developments in such key areas as correspondent accounts and private banking, including FinCEN s recent rulemakings implementing section 312 of the USA Patriot Act, FinCEN s feasibility study concerning cross-border wire transfer reporting requirements, and OFAC s new enforcement guidelines. We also anticipate that ongoing concerns and questions in connection with the filing of suspicious activity reports (SARs) will again feature prominently in this year s program. In addition, the Institute has filed with the New York State Continuing Legal Education Board an application for accreditation of the seminar. In the event accreditation is granted, seminar attendees who are subject to the New York continuing legal education requirement will be eligible to receive CLE credit (for experienced attorneys) as authorized by the Board (in this connection, a copy of the Institute s financial assistance policy is available from the Institute on request). The program will be held from 8:30 a.m. to 5:45 p.m. in the James B.M. McNally Amphitheater at Fordham University School of Law (140 West 62 nd Street). 6
SCHEDULE OF EVENTS THROUGH OCTOBER 2006 All interested officers of member institutions are urged to put these dates on their calendars. Wednesday, May 24, 2006 8:30 a.m. to 5:45 p.m. Institute s Annual Anti-Money Laundering Seminar, at Fordham University School of Law. Friday, June 16, 2006 12:00 noon Institute s Annual General Meeting/Elections and Membership Luncheon, at the Waldorf-Astoria Hotel. June 22-23, 2006 Institute s Annual Seminar on U.S. Taxation of International Banks, at the Grand Hyatt New York. This comprehensive program provides a detailed and authoritative review of the key tax issues and developments affecting internationally headquartered banking/financial institutions operating in the United States. Monday, September 18, 2006 8:00 a.m. Breakfast Dialogue with Government Officials during the IMF/World Bank meetings in Singapore. Thursday, October 12, 2006 12:00 noon Institute Membership Luncheon, at the Waldorf-Astoria Hotel. Wednesday, October 18, 2006 Institute s Annual Golf Outing, at Piping Rock Club, Locust Valley, Long Island Dates for additional seminars, workshops and other events, will be provided in the near future 7