Uruguay (continued): Royal Bank of Canada announces it is closing local branch

Following a police raid on its Uruguay branch during an investigation into money laundering in football, Royal Bank of Canada is leaving the country as of October.

Article (in Spanish): http://www.elpais.com.uy/informacion/estiman-mala-senal-que-se-banco-allanado-pedido-argentino.html

Translation of main points:

The Association of Private Banks and local tax experts called this development a “negative precedent”. RBC justified its move by calling it part of a “strategic revision of its activities in Latin America”.

Director of the Association of Private Banks Julio Brun said: this episode is a “bad signal” because it affects “the image of banking and of the country”.

In the meantime, tax lawyer Alberto Varela questioned the decision of the local judge who ordered the raid, saying that the tradition in Uruguay is not to cooperate [with international requests]: “for the offshore industry, this is a terrible precedent”.

 

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