MFP Global services organises online training programme for stakeholders

THE management of MFP Global Services, led by Prince Oyebade Oyedepo, has organised an online training programme for professional accountants and members of the public.

The training programme which took place recently, attracted financial stakeholders with the topic ‘Offshore Financial Centres and its impact on economies,’ delivered by Dr Tunde Oriji and chaired by Mrs Modupe Oyeduntan. Offshore Financial Centre, with the acronym OFC, is defined as a country or jurisdiction that makes available financial services to non-residents with the purpose of circumventing aspects of the non-resident’s home country or jurisdiction and it is regarded as a third-class financial centre by the International Monetary Fund (IMF).

OFC offers significant tax and regulatory advantages as well as providing clients from other countries with international banking services. It also has an impact on the international financial market in the early 1970s, when many developed nations and sovereign governments attempted to regulate capital flows through the imposition of restrictive domestic regulations.

However, the growth of OFC is predicated on the establishment of capital controls, imposition of taxes with tightening of monetary policies and the removal of foreign exchange restrictions on the conversion by nonresidents in developed economies, leading to the movement of assets and capital to OFC by some wealthy individuals and international corporations It stated the benefit of the OFC to include providing platform for offshore banking licences, offshore corporations, offshore insurance companies, Special Purpose Vehicle(SPV), enhanced tax planning as well as facilitating growing mobility of finance by introducing no/ low tax regulations.

It also enables capital to roam the world with an oath of secrecy and anonymity and offers legal protection from unjustified claims. The communiqué, however, said that it encourages a disproportionate tax burden on middle-income taxpayers, disables elected governments to eradicate poverty and fight environmental degradation as well as enables corrupt leaders and businessmen to steal money and impede economic growth.

The communiqué also stressed the need for global international policy initiatives by the IMF and other international agencies to address the negative tendencies of OFC.

Professionals across boards should restrict the urge to compromise by maintaining integrity and improving the standard of living of the people, while individuals, especially the wealthy and those in positions of authority are encouraged to be more intentional in addressing underdevelopment within their territories. Those present at the training programme include Mrs Tolu Olatoyan, FCA Rapporteur-General.