This month saw the Foreign Account Tax Compliance Act (FATCA), which imposes a withholding tax on payments from U.S. sources to certain noncompliant foreign entities, finally take effect. Also this month, we look at cyber risk, which has become a top priority for companies.
The total value of digital payments is on course to reach $2.5 trillion this year, and the figure is expected to rise to $4.7 trillion by 2019. The biggest contributing factors to the rise are expected to be increased remote physical goods purchases and a surge in activity in emerging markets.
The majority of corporate treasurers and CFOs who responded to the 2014 AFP Liquidity Survey, underwritten by RBS Citizens, indicated that their organizations would significantly alter their investment policies if money market funds receive an overhaul. They may need to start making those changes as early as next week.
Three Chinese banks have temporarily suspended a yuan remittance service over suspicion of money laundering. China Central Television (CCTV) has accused Bank of China (BOC) of allowing wealthy Chinese citizens to circumvent the country’s controls on cross-border transfers by exploiting an obscure program called You Hui Tong.
In the latest entry to the Leadership in Treasury series, Dana Laidhold, treasurer for The Carlyle Group, tells why she switched from audit to treasury.
Corporate treasurers and CFOs continue to build their organizations’ cash reserves in response to improved operating cash flows, according to the 2014 AFP Liquidity Survey, underwritten by RBS Citizens. 36 percent of companies reported rising cash reserves in the last year.
The Federal Reserve has indicated that will end its five-year-old quantitative easing (QE) program this October. Officials have been steadily winding down their monthly purchases of Treasury bonds and mortgage-backed securities since January, but this is the first time an end date has been presented.
Despite long-running bipartisan support, the Export-Import Bank of the United States might be on the verge of closing. The bank’s charter expires at the end of September, and for the first time ever Congress might not renew it. Should treasury and finance executives be worried?
In the July issue of Risk, cyberrisk is now a key topic of discussion for senior executives and the board,one treasurer recounts her experience when her company endured a cyberbreach, and bitcoin continues to gain legitimacy from regulators.
Attendees of the FP&A Luncheon at the upcoming 2014 AFP Annual Conference in November will hear from Dr. Zachary Karabell, one of the leading voices on the global economy and international relations. A Harvard Ph.D. and prolific author, Karabell argues that numbers like GDP, inflation and unemployment are no longer adequate indicators of the economy.
The number of American businesses using renminbi (RMB) to settle trade has nearly doubled in the past year, and that trend is expected to accelerate over the next 12 months, according to a new survey. Seventeen percent of U.S. business leaders said their companies used RMB to settle trade this year, up from 9 percent in 2013.
Policy debates are taking their defined contribution cues from the successes of plans with $200 million - $1 billion in assets.
This week, California Governor Jerry Brown signs a bill legalizing bitcoin, a venture capitalist wins 30,000 Silk Road bitcoins at a U.S. Marshals auction, and Japan decides against regulating bitcoin.
This week, fraudsters are believed to have stolen nearly $4 billion by exploiting Brazil’s boleto payment method. Using man-in-the-browser attacks, a fraud ring has compromised nearly 500,000 boleto transactions. Also, anti-spam complaints are already sky-high in Canada even though the nation's new law just took effect last week.
The holiday-shortened week surprised the market to the upside as the biggest news of late reinforced the narrative that the U.S. economy has finally turned the corner and is poised for a healthy expansion. That news, of course, was the monthly employment report with a gain of 288k jobs and the unemployment rate dropping to 6.1 percent from 6.3 percent.
An alarming surge in cyberattack incidences on many of the largest U.S. companies has ushered into corporate boardrooms a new axiom of executive management: cyberrisk. Public companies are facing mounting pressure to bolster cybersecurity protocols and incorporate these surfacing threats within their businesses risk management operations.
The financial position for the single-employer insurance program has improved dramatically, according to the FY 2013 Projections Report, released Monday by the Pension Benefit Guaranty Corp. (PBGC). However, the financial position for the multiemployer insurance program has declined dramatically—which could also spell trouble for single-employer plans and for PBGC itself.
A new survey of financial planning and analysis professionals reveals widespread frustration with current software and hardware options. Elsewhere this issue, an interview with the new CFO of Booz Allen Hamilton, and a look at the changing FP&A organizational structure.
Many of the organizations that are upgrading their FP&A functionality are doing so through larger systems designed for complex reporting. One such organization is a Chicago-area healthcare provider that invested in Tier 2 technology after using Word, Excel and PowerPoint tools.
The Foreign Account Tax Compliance Act (FATCA), the law that imposes a withholding tax on payments from U.S. sources to certain noncompliant foreign entities, is now in effect. Corporate treasury departments have been working over the past few years to ensure that they are FATCA compliant.
Moving bank account management from a paper-based to an electronic process offers corporate treasurers clear efficiency and visibility benefits. However, widespread corporate adoption of electronic bank account management (eBAM) remains elusive.
What’s it like from a treasurer’s perspective when your company is hit by hackers? A treasurer recalled what transpired when her company suffered a $125-million cyberbreach.
The chief economist for HSBC Bank Canada urged Canadian treasury and finance executives to help their companies become stronger business partners with China and look beyond their traditional relationship with the United States.
Financial planning and analysis professionals widely use Excel and technology systems to do their jobs, but nobody is particularly happy about it. That was the theme survey respondents kept repeating in the 2014 gtnews FP&A Technology Survey, underwritten by WDesk.
This month, we bring you exclusive coverage of the career-related sessions at the CTC Corporate Treasurers Forum in Chicago and the AFP Canadian Forum in Toronto. Also, one of the first applicants to pass the beta FP&A Certification exam discusses his process in taking the test, the AFP Advisors Network looks at the business skills required to become a successful independent consultant, and more.
Canada gave royal assent to Bill C-31 last week, becoming the first country to regulate Bitcoin and other virtual currencies. Some nations have weighed in on Bitcoin on a case-by-case basis, including a recent ruling by the Internal Revenue Service, while others, including Japan, are taking a wait-and-see attitude. Not Canada.
The AFP Guide to FP&A Organizational Structures: Trends & Best Practices, sponsored by Wdesk, explores the various approaches to an FP&A organizational structure. The guide provides an overview of different companies’ approaches and emerging trends, delves into the pros and cons of each approach, and offers a list of best practices.
Recent regulatory developments relevant to treasury and finance professionals are reviewed in the AFP Reg Report. In this issue: Cyberthreat data sharing legislation, the SEC MMF reform stalemate and the Fed’s push for a new U.S. payments network.
We sit on the cusp of Dow 17k and S&P 2k and even though are a few bumps on the horizon, we prepare for what looks to be a bright second half of 2014. The Dow recently climbed to a new all-time high of 16,978.02, and the S&P 500 seems to hit a new high every day.
Are you credible? It’s a serious question. You might be a credible job candidate, but unless you appear credible you probably aren’t… at least not in the minds of those in a position to hire you.
A substantial portion of North American banks believe the online banking capabilities they offer their corporate clients are inadequate and those clients agree, according to a new report from Aite Group.
This month, Payments turns its attention toward fraud and cyber risk, as recent events have caused quite a shakeup. We recap a session at the CTC Corporate Treasurer’s Forum, in which FBI Special Agent Kory Bakken provided an insider’s view of the GameOver Zeus botnet. We also look at the recent security breach at P.F. Chang’s, which is now believed to have compromised up to 7 million cards.
Fueled by concerns about bond-fund runs after an eventual tightening of interest rates, Federal Reserve Board officials are reportedly discussing charging investors a fee for accessing bond funds, according to the Financial Times.
Last week, P.F. Chang’s Chinese Bistro confirmed that it had undergone a massive security breach that compromised customer credit and debit cards. Though details of the breach were initially sparse, it is now being reported that the breach may have compromised up to 2 million cards and lasted for at least nine months.
As treasury’s role continues to grow, and new responsibilities are added, one unintended consequence is a growing challenge over hiring and retaining staff. Many treasury groups now must develop leaders not only for treasury but for the entire organization.
Most leaders understand the importance of focusing on people and inspiring them. Retired Canadian Chief of the Defense Staff Gen. Rick Hillier, who keynoted the seventh annual AFP Canadian Forum last week, believes great leaders need to take those two steps one step further: “Focus on people, inspire them, and draw inspiration from them.”
If you’re a financial planning and analysis professional who is not a skilled spreadsheet user, you can’t do your job effectively. Here are 19 tips that will make you a faster and better spreadsheet user.
When new regulatory requirements in Europe and the United States mandated portfolio reconciliation, there was an explosion in the number of market participants looking to comply. In America, only swap dealers and major swap participants are required to comply; however, because of these obligations many corporate end users also are affected.
Faced with the reality that comprehensive tax reform will not happen this year, key lawmakers are pinning their hopes on a one-time tax repatriation holiday on U.S corporate overseas earnings that could return as much as $2 trillion -- giving treasury and finance executives more cash to deploy.
The Foreign Account Tax Compliance Act (FATCA) deadline is less than a month away. Risk managers need to move quickly to comply, or face the consequences. Also this issue, Sun Chemical reveals how it mitigates FX volatility.