fraud and other forms of crime that can only tarnish the integrity and reputation of the country ’ s financial sector. among other initiatives, banks must ensure that their internal control environment is up to standard and effective ; for example, compliance with “ know - your - customer ” ( kyc ) requirements must be up to date. indeed, botswana banks have vested interest in ensuring effective compliance with both the spirit and principles of the global standards on anti - money laundering and the financing of terrorism. director of ceremonies, distinguished ladies and gentlemen, as i come to the end of my remarks, i wish to reiterate my commendation of the board, management and staff of bank of india for bringing additional banking services and facilities to botswana. i invite the bank and its personnel to settle in well and relatively quickly, and make your presence felt in the botswana banking sector ; in which case, it would not be unreasonable to expect expansion of the bank ’ s operations to other parts of the country sooner rather than later. please rest assured of the bank of botswana ’ s support, at all times, in more ways than one, including through regulation and supervision. i know i am speaking to the converted as i remind you of the merits of maintaining cordial working relations with relevant organs of the banking sector, particularly the regulator. it does make life easier. your excellency, the high commissioner of india to botswana, honoured guests, distinguished ladies and gentlemen ; this concludes my remarks. it is now my distinct privilege and honour to declare the bank of india ’ s presence in botswana officially launched. i thank you for your attention. bis central bankers ’ speeches

u. s. internal revenue service ( irs ) all clients who are u. s. citizens, green card holders living in the u. s. or abroad, or who are foreign entities in which u. s. taxpayers hold a substantial ownership interest. to properly comply with these new reporting requirements, a foreign financial institution will have to enter into a special agreement with the irs by june 30, 2013. under this agreement, a participating foreign financial institution will be obligated to : 1. obtain information to determine which account holders are u. s. persons ; bis central bankers ’ speeches 2. comply with verification and due diligence procedures on such account holders as required by the irs ; and 3. report annually to the irs on the name and address of each u. s. client, as well as the largest account balance in the year and total debit and credits of any account owned by a u. s. person or foreign entities with substantial u. s. ownership. the penalties are steep for non - compliance. a participating foreign financial institution will be required to deduct and withhold a 30 percent tax on all payments of u. s. source income ( such as interest and dividends ) as well as u. s. source capital gains made to recalcitrant account holders ( those who do not willingly and promptly provide the requested information ), and to foreign financial institutions that did not enter into an agreement with the irs. in addition, fatca requires u. s. citizens and green card holders who have financial assets outside of the united states exceeding us $ 50, 000 to report these assets to the irs. fatca focuses on the high net - worth individuals, the so - called “ fatcats ”. if a foreign financial institution refuses to comply with these requirements, a withholding tax of 30 percent will be applied on all u. s. source income of that institution, regardless of whether or not such payment was made for the benefit of the u. s. account holder, for another client, or for the institution itself. foreign financial institutions, as currently drafted, may broadly include every member of the investment community and encompass banks, credit unions, custodians, asset managers, investment funds and pension fund schemes, brokers and insurance companies ( where their products have an investment element ). ladies and gentlemen, it would be quite easy for some non - u. s. institutions to believe that they will not be affected by fatca, as