NewsWhore
09-30-2011, 03:30 PM
The Central Bank and Superintendence of Banks have joined commercial banks in asking the Department of Taxes (DGII) to revoke a new measure that requires banks to retain 1%, as reported by Ramon Cabrera, following a meeting at the Chamber of Deputies where a bill has been submitted to oblige the DGII to suspend the order to retain the funds, as reported in El Nacional.
The Central Bank and Superintendence of Banks agree the measure is in violation of Art. 56 of the Monetary Law. They say only the Monetary Board can institute changes of this type. The banks say the measure affects banking secrecy. The DGII had issued a new rule that appointed loans and savings banks, multiple banks, and credit corporations to serve as retention agents when interest of any nature is paid to companies or individuals.
The measure has met with rejection from the Association of Commercial Banks (ABA), the League of Loans and Savings Associations, the Association of Savings and Credit bank and association of credit corporations. Also, the National Business Council (Conep), the Association of Young Entrepreneurs (ANJE) and the Institutionalism and Justice Foundation (Finjus) organizations are calling on the DGII to revoke the interest retention order.
Some 22,000 accounts would be affected, say the associations, and the measure would create operational chaos, as reported in Listin Diario. The financial institutions say there is no time to implement mechanisms for the automatic retention of the 1% interest.
The Association of Commercial Banks says the Rule 13-2011 is illegal and is not applicable, as reported in Listin Diario. The banks have taken the matter to court and Judge Sarah Henriquez is expected to issue a judgment today.
The measure would come into effect as of 1 October 2011.
www.aba.org.do/ABA2/noticiasdet.asp?docid=403 (http://www.aba.org.do/ABA2/noticiasdet.asp?docid=403)
More... (http://www.dr1.com/index.html#3)
The Central Bank and Superintendence of Banks agree the measure is in violation of Art. 56 of the Monetary Law. They say only the Monetary Board can institute changes of this type. The banks say the measure affects banking secrecy. The DGII had issued a new rule that appointed loans and savings banks, multiple banks, and credit corporations to serve as retention agents when interest of any nature is paid to companies or individuals.
The measure has met with rejection from the Association of Commercial Banks (ABA), the League of Loans and Savings Associations, the Association of Savings and Credit bank and association of credit corporations. Also, the National Business Council (Conep), the Association of Young Entrepreneurs (ANJE) and the Institutionalism and Justice Foundation (Finjus) organizations are calling on the DGII to revoke the interest retention order.
Some 22,000 accounts would be affected, say the associations, and the measure would create operational chaos, as reported in Listin Diario. The financial institutions say there is no time to implement mechanisms for the automatic retention of the 1% interest.
The Association of Commercial Banks says the Rule 13-2011 is illegal and is not applicable, as reported in Listin Diario. The banks have taken the matter to court and Judge Sarah Henriquez is expected to issue a judgment today.
The measure would come into effect as of 1 October 2011.
www.aba.org.do/ABA2/noticiasdet.asp?docid=403 (http://www.aba.org.do/ABA2/noticiasdet.asp?docid=403)
More... (http://www.dr1.com/index.html#3)