Joint Statement from the United States, Austria, France, Italy, Spain, and the United Kingdom, Regarding a Compromise on a Transitional Approach to Existing Unilateral Measures During the Interim Period Before Pillar 1 is in Effect

Joint Statement from the United States, Austria, France, Italy, Spain, and the United Kingdom, Regarding a Compromise on a Transitional Approach to Existing Unilateral Measures During the Interim Period Before Pillar 1 is in Effect

  1. Background
    1. On October 8, 2021, the United States, Austria, France, Italy, Spain, and the United Kingdom, joined 130 other members of the OECD/G20 Inclusive Framework in reaching political agreement on the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy.
    2. From the outset, a key impetus of the OECD/G20 Inclusive Framework’s negotiations was to stop the proliferation of “Digital Services Taxes and other relevant similar measures” (collectively “Unilateral Measures”) by replacing them with a consensus-based reallocation of taxing rights among Inclusive Framework (“IF”) members.  See Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy (October 8, 2021).
    3. In line with this objective, Austria, France, Italy, Spain and the United Kingdom have agreed that as part of Pillar 1, they will withdraw all Unilateral Measures on all companies and refrain from imposing new Unilateral Measures. In general, Austria, France, Italy, Spain and the United Kingdom had preferred for withdrawal of Unilateral Measures to be contingent on implementation of Pillar 1, while the United States had preferred withdrawal of Unilateral Measures immediately as of October 8, 2021, the date political agreement with respect to Pillar 1 was reached.
    4. This joint statement describes a political compromise reached among the United States, Austria, France, Italy, Spain, and the United Kingdom, on a transitional approach to existing Unilateral Measures while implementing Pillar 1 (hereinafter, the “Unilateral Measures Compromise”).  Under the Unilateral Measures Compromise, Austria, France, Italy, Spain, and the United Kingdom, countries which have all enacted Unilateral Measures before October 8, 2021, are not required to withdraw their Unilateral Measures until Pillar 1 takes effect.  However, to the extent that taxes that accrue to Austria, France, Italy, Spain, and the United Kingdom with respect to existing Unilateral Measures during a defined period after political agreement is reached, and before Pillar 1 takes effect, exceed an amount equivalent to the tax due under Pillar 1 in the first full year of Pillar 1 implementation (prorated to achieve proportionality with the length of the Interim Period), such excess will be creditable against the portion of the corporate income tax liability associated with Amount A as computed under Pillar 1 in these countries, respectively.  As part of the Unilateral Measures Compromise, the United States agrees to terminate proposed trade actions and commit not to impose further trade actions against Austria, France, Italy, Spain, and the United Kingdom with respect to their existing Digital Services Taxes until the end of the Interim Period. The United States, Austria, France, Italy, Spain, and the United Kingdom, will remain in close contact to ensure that there is a common understanding of the respective commitments under this agreement and endeavor to resolve any further differences of views on this matter through constructive dialogue.
  2. Definitions
    The following definitions apply for purposes of this joint statement:
    1. The “Credit Amount” is the amount by which taxes, which were accrued during the Interim Period (and regardless of whether they were actually paid during the Interim Period) with respect to Unilateral Measures enacted before October 8, 2021, exceed the Interim Pillar 1 Amount. 
    2. The “Interim Period” is the period beginning on January 1, 2022, and ending on the earlier of the date the Pillar 1 multilateral convention comes into force or December 31, 2023.
    3. The “Interim Pillar 1 Amount” is the product of (a) the amount of tax that is owed by the taxpayer as a result of Pillar 1 Amount A during the first taxable year that Pillar 1 is in effect in the Relevant Country in respect of the taxpayer; and (b) a fraction the numerator of which is the number of days during the Interim Period and the denominator of which is 365. 
    4. “MNE group” has the meaning provided in the Glossary of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
    5. “Relevant Country” is the jurisdiction that has imposed the Unilateral Measure with respect to which the Interim Credit is to be provided.
  3. Framework for Unilateral Measures Compromise
    1. In the case of Austria, France, Italy, Spain, and the United Kingdom:
      1. a) Each country agrees to provide a credit (“Interim Credit”) equal to the Credit Amount.  The Interim Credit shall be applied in the first taxable year that a taxpayer that is part of an MNE group is subject to Amount A tax liability after the Interim Period, and only against corporate income tax liability arising from the new taxing right under Pillar 1.  In the case of a taxpayer that is not a member of a MNE group that is subject to Amount A tax liability with respect to Pillar 1 in the first taxable year in which Pillar 1 is in effect in the Relevant Country, the Interim Credit shall be determined on the basis of the first year in which Pillar 1 applies to such taxpayer and shall become available at such time, except that Interim Credits shall not be available for a MNE group that first becomes subject to Pillar 1 more than four years after Pillar 1 comes into effect in the Relevant Country.  If the Interim Credit exceeds the liability arising from the new taxing right under Pillar 1 in a taxable year, the excess Interim Credit amount shall be carried forward, credited against tax liability arising from the new taxing right under Pillar 1, and commensurately reduced in each subsequent taxable year until the entire Credit Amount has been fully utilized.
    2. In the case of the United States:

      In recognition of the Unilateral Measures Compromise, the United States will terminate trade actions proposed under Section 301 and commit not to impose further trade actions with respect to the existing Digital Services Taxes imposed by Austria, France, Italy, Spain, or the United Kingdom during the Interim Period, provided that the country follows through on the agreement described in subsection C.1 of this joint statement. 

    3. The parties will meet regularly to discuss progress implementing Pillar 1 and any implications that may have for the appropriate application of the agreement.

Attachment:  Annex

ANNEX

This annex to the joint statement from the United States, Austria, France, Italy, Spain, the United Kingdom, and regarding the Unilateral Measures Compromise provides an example of the framework described in subsection C.1 of the joint statement. 

  1. Assumed facts: During the Interim Period, XYZ, a corporate taxpayer, pays €100x in taxes to Country A, one of the countries identified in subsection C.1, with respect to its digital services tax, a Unilateral Measure.  For Country A, the Interim Period ends on December 31, 2023.  On January 1, 2024, Country A implements Pillar 1 (effective for calendar year beginning 2024 and all subsequent years) and repeals its digital services tax.  XYZ is a member of a MNE group that is subject to Pillar 1 tax liability in TY 2024.  XYZ’s corporate income tax liability with respect to Pillar 1 is €20x in calendar TY 2024 and €25x in calendar TY 2025.  XYZ’s Interim Pillar 1 Amount is €40x (i.e., the product of the €20x Amount A tax liability for TY 2024 and 730/365).  XYZ’s total corporate income tax liability (including but not limited to Pillar 1 liability) with respect to TY 2024 and 2025, before application of the Interim Credit, is €110x and €70x, respectively.
     
  2. Result: XYZ’s Credit Amount with respect to Country A is €60x (i.e., €100x digital services tax liability less €40x Interim Pillar 1 Amount).  XYZ’s TY 2024 corporate income tax liability in Country A with respect to Pillar 1 Amount A of €20x is reduced to €0x by the Credit Amount.  The €40x remainder of the Credit Amount (i.e., €60x Credit Amount less €20x Amount A tax liability for TY 2024) is carried forward and reduces XYZ’s TY 2025 Country A corporate income tax liability to €0x with respect to Pillar 1 Amount A.  Accordingly, an Interim Credit of €15x (i.e., €40x Credit Amount carry forward less €25x Amount A tax liability for TY 2025) is carried forward to TY 2026.  XYZ’s total corporate income tax liability for 2024 and 2025 after application of the Interim Credit is €90x (i.e., €110x total corporate income tax liability less €20x Interim Credit) and €45x (i.e., €70x total corporate income tax liability less €25x Interim Credit carryforward), respectively. 

 

  1.  

The United States, Austria, France, Italy, Spain, and the United Kingdom Announce Agreement on the Transition from Existing Digital Services Taxes to New Multilateral Solution Agreed by the OECD-G20 Inclusive Framework

WASHINGTON – On October 8, an historic agreement was reached between 136 countries of the OECD-G20 Inclusive Framework – representing 94% of the world’s GDP – on a two Pillar package of reforms to the international tax framework to be implemented in 2023.

These reforms will provide for a tax framework that is fairer, more stable, and better equipped to meet the needs of a 21st century global economy.

In support of that agreement, the United States, Austria, France, Italy, Spain, and the United Kingdom have today announced the terms of an agreement on the transition from existing Digital Services Taxes to the new multilateral solution and have committed to continuing discussions on this matter through constructive dialogue.

This compromise represents a pragmatic solution that helps ensure that the named countries can focus their collective efforts on the successful implementation of the OECD/G20 Inclusive Framework’s historic agreement on a new multilateral tax regime and allows for the termination of trade measures adopted in response to Digital Services Taxes.

Overall, this political agreement carefully balances the perspectives of several countries and is yet further demonstration of our commitment to working together to reach consensus, and to deliver far-reaching multilateral reforms that help support our national economies and public finances.

To read the joint agreement, visit https://home.treasury.gov/news/press-releases/jy0419.

 

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BRP USER-CENTERED INNOVATIONS RECOGNIZED AT GOOD DESIGN JAPAN

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Valcourt, Quebec, October 20, 2021 – BRP’s innovations continue to gain recognition in global design competitions such as Good Design Japan. Embracing the 2021 theme “Aspiration and action with consideration”, BRP’s Design & Innovation team won awards for all of their submissions: the Can-Am Spyder RT Sea to Sky, the Sea-Doo GTI SE, and the Sea-Doo RXP X.

“This year’s theme really spoke to the way that we do things at BRP, all of our designs are centered on the user and their experience,” said Denys Lapointe, Senior Vice-President, Design, Innovation and Creative Services at BRP. “Our teams continue to seamlessly integrate our rich heritage of design and innovation with our aspirations for the future,” he added.

BRP continues to add to its impressive innovation & design award collection, with more than 30  international design awards in the last 2 years.

 

About the Can-Am Spyder RT Sea to Sky

With a modern look, heightened comfort, and extra storage, the Spyder RT isn’t just the key to unlocking what the open road has to offer, it’s the pinnacle of luxury touring.

“Maybe it’s not a rational choice. It gets wet when it rains, and it is not as easy to maneuver as a motorcycle. But as soon as you straddle it, what is the true nature of this power that makes us think, ‘There is a journey that can only be done on this machine!’ ”

-Mr. Kota Nezui (Jury / Creative Communicator)

 

About the Sea-Doo GTI SE

The smartly designed GTI platform offers a lower center of gravity for incredible stability and confidence at speed or at rest, yet lightweight and ultra-responsive for a power-filled fun factor.

With an abundant front cargo space, plus the option of adding LinQ accessories, the GTI SE offers the most available storage in its class. Perfect for adding variety to any adventure.

 

About the Sea-Doo RXP X

The RXP-X 300 re-establishes the entire high-performance watercraft segment with breathtaking acceleration, uncompromised high-speed handling and an “it” factor that sets it apart from all others on the water.Every ride pushes the limits with the T3-R hull. Deep-V design with ingenious attention to detail and unique Shark Gill design enables best-in-class acceleration and pinpoint, full-throttle control in any conditions.

 

About the Good Design Award

The GOOD DESIGN AWARD is a movement aimed at enriching our lives and society through design. Since the foundation in 1957, it has been commonly known together with the “G Mark”, the symbol of winning the award.

GOOD DESIGN AWARD has recognized various objects surrounding us, including industrial goods, architecture, software, systems, services and so on. No matter tangible or intangible, GOOD DESIGN AWARD will take it as design, evaluate and honor its quality, as long as it is created to fulfill certain ideals or purposes.

 

About BRP

We are a global leader in the world of powersports vehicles, propulsion systems and boats, built on over 75 years of ingenuity and intensive consumer focus. Our portfolio of industry-leading and distinctive products includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am on- and off-road vehicles, Alumacraft, Manitou, Quintrex, Stacer and Savage boats, Rotax marine propulsion systems as well as Rotax engines for karts, motorcycles and recreational aircraft. We complete our lines of products with a dedicated parts, accessories and apparel business to fully enhance the riding experience. With annual sales of CA$6.0 billion from over 130 countries, our global workforce is made up of approximately 14,500 driven, resourceful people.

 

www.brp.com

@BRPNews

Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Evinrude, Manitou, Alumacraft, Quintrex, Stacer, Savage and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.

For information:

Biliana Necheva

Senior Advisor, Media Relations

438.270.1210

[email protected]

 

 

FACT SHEET: Tax Compliance Proposals Will Improve Tax Fairness While Protecting Taxpayer Privacy

WASHINGTON — Rates of tax compliance in the United States are based in large part on the ways taxpayers accrue income. Those who receive their income that is reported on by a third-party source, such as wage earners, exhibit near-perfect compliance rates on their salaries–since the payer of the income also reports the income paid as a deduction.

By contrast, taxpayers who accrue income in hard-to-trace ways exhibit much lower rates of compliance, as there is no third-party source that reports income to tax authorities. Instead, these taxpayers take advantage of the fact that certain income streams are hidden from the IRS, with no information that the IRS can use to detect noncompliance.

Ultimately, this difference in compliance has led to a two-tiered system of tax administration in the U.S., whereby taxes are mandatory for wage earners and beneficiaries of federal programs—like Social Security recipients—while other taxpayers have far more discretion over whether they pay their taxes. Additionally, since less visible income streams accrue disproportionately to higher-income taxpayers, this tax compliance divergence means that low- and middle-income taxpayers have higher rates of compliance, while upper-income taxpayers likely have higher rates of evasion. Treasury estimates that the cost of tax evasion among the top 1 percent of taxpayers exceeds $160 billion a year.[1]

The only way to ensure that upper-income taxpayers pay what they owe is by giving the IRS the resources and information required to close the tax gap. The Administration’s compliance proposals will do just this by providing a bit of additional information and making transformative investments in the IRS, such as hiring enforcement agents who are trained to pursue tax evasion by sophisticated, upper-income taxpayers.

Congress reviewed the Administration’s proposed tax compliance reform released in conjunction with the Fiscal Year 2021 Budget. In response to considerations about scope, it has crafted a new approach to include an exemption for wage and salary earners and federal program beneficiaries. Under this revised approach, such earners can be completely carved out of the reporting structure. This is a well-reasoned modification: for American workers and retirees, the IRS already has information on wage and salary income and the federal benefits they receive. The Treasury Department is supportive of Congress’s tailoring of the compliance regime to shed light on income that is unreported to the IRS presently.

Question: How does the financial reporting proposal work?

Answer: Financial institutions and banks will add just two additional numbers to the information that they already supply to taxpayers and the IRS: the total amount of funds deposited into the account and the total amount withdrawn over the course of a year. The scope of this information sharing is extremely limited.  Banks will not share with the IRS any information to track individual transactions under this proposal, and the IRS will have no ability to track individual transactions.

The rationale for this reform is that the IRS can use this additional aggregate information to focus its enforcement efforts on wealthy tax evaders, with an improved ability to identify tax evasion and to decrease audits of compliant taxpayers.  

Misinformation regarding the Administration’s Compliance Proposals

In the months since the Administration’s compliance proposal was released, these reforms have been subject to widespread mischaracterization. One prominent misconception concerns whether banks will have to report individual transactions to the IRS.

To be clear: The financial reporting proposal does not include reporting on individual transactions of any amount. Instead, banks would add two additional data points to the information that is already supplied to tax the IRS: how much money went into the account over the course of the year, and how much came out.

Question: How would this information be useful?

Answer: Imagine a taxpayer who reports $10,000 of income; but has $10 million of flows in and out of their bank account. Having this summary information will help flag for the IRS when high-income people under-report their income (and under-pay their tax obligations). This will help the IRS target its enforcement activities on those who are actually evading their tax obligations—decreasing costly and burdensome audits for the vast majority of taxpayers who pay what they owe.

A second misconception is that all Americans will be swept up in greater IRS scrutiny as a result of the compliance proposals.

In reality, many financial accounts are already reported on to the IRS, including every bank account that earns at least $10 in interest. And for American workers, much more detailed information reporting exists on wage, salary, and investment income. There is nothing novel about the scope of the information reported to the IRS. The only difference is the group of taxpayers that it is extended to, as this reporting would serve to eliminate the existing disparity between American workers, whose income is already reported on the IRS; and disproportionately wealthy individuals who earn income in ways not visible to the IRS, and thus, are easily able to evade.   

Under the current proposal, financial accounts with money flowing in and out that totals less than $10,000 annually are not subject to any additional reporting. Further, when computing this threshold, the new, tailored proposal carves out wage and salary earners and federal program beneficiaries, such that only those accruing other forms of income in opaque ways are a part of the reporting regime.

Any additional reporting will be minor. As stated earlier, only total money into accounts and total money out of accounts will be reported to the IRS. To further help safeguard taxpayer privacy, financial services providers could report these totals to the nearest $1,000. The proposal also includes significant data security investment, giving the IRS the tools it needs to overhaul 1960s technology and meet threats to the security of the tax system, like the 1.4 billion cyberattacks the IRS experiences annually.

A third misconception concerns raising taxes on American workers.  

It cannot be emphasized enough that this proposal does not involve raising taxes on any taxpayers. Instead, the proposal is designed to collect taxes that are already owed under current law. This is an economically efficient and progressive way to raise revenue.

It is also important as a matter of equity: As IRS enforcement resources have deteriorated significantly over the past decade, enforcement actions directed at high-income taxpayers, which are the most costly and labor-intensive, have decreased the most. As a result of the Administration’s compliance efforts, additional IRS resources and information will be focused on detecting and addressing high-income evasion. In fact, audit rates will not rise relative to recent years for taxpayers making under $400,000 a year.

A further misconception is that greater tax enforcement will create new burdens for taxpayers and financial institutions.

This proposal was designed to ensure that taxpayers do not have to take any action at all. There is no reconciliation or paperwork burdens for taxpayers resulting from this proposal. All that will happen from a compliant taxpayer’s perspective is receiving two additional data points from their bank and a lower likelihood of a costly audit. And leading banking experts have stated publicly that the reporting regime under consideration would be simple to enact and virtually cost-free for banks.[2] Financial institutions are quite technologically sophisticated, as the advent of mobile banking illustrates. It is implausible that a requirement to add two pieces of information on a report that is already sent by financial institutions to the IRS could be onerous.

Ultimately, these efforts are focused on addressing tax evasion by shedding light on hidden income sources and giving the IRS the resources that it needs to address high-end noncompliance. Given the substantial revenue at stake, it is unsurprising that Interests that have marshaled strong opposition have deployed significant resources to derail these efforts.

But it is important to be clear about the facts: Under the version of the proposals before Congress, no additional information needs to be reported to the IRS about American workers. Further, audit rates will not rise relative to recent years for any taxpayer who makes less than $400,000 annually. All told, a robust attack on the tax gap will generate $700 billion of additional tax collection in next ten years—and roughly $1.6 trillion in the decade that follows. It will also increase the efficiency and competitiveness of the economy and help redress long-standing inequities in our tax system.

[1] Natasha Sarin. “The Case for a Robust Attack on the Tax Gap.” September 7, 2021. https://home.treasury.gov/news/featured-stories/the-case-for-a-robust-attack-on-the-tax-gap

[2] Charles Ellis and Alexander Boyle. “Banks are Wrong to Fight Proposed New IRS Disclosure Rule.” Bloomberg. September 28, 2021.  https://www.bloomberg.com/opinion/articles/2021-09-28/banks-are-wrong-to-fight-proposed-new-irs-disclosure-rule?sref=LPdcbdXL

Statement by Secretary of the Treasury Janet L. Yellen on Congressional Tax Compliance Proposals

I deeply appreciate Chairman Wyden and Chairman Neal’s leadership on reconciliation and in particular, on the need to close the tax gap. Under the current system, American workers pay virtually all their tax bills while many top earners avoid paying billions in the taxes they owe by exploiting the system. At the core of the problem is a discrepancy in the ways types of income are reported to the IRS: opaque income sources frequently avoid scrutiny while wages and federal benefits are typically subject to nearly full compliance. This two-tiered tax system is unfair and deprives the country of resources to fund core priorities.

Today’s new proposal reflects the Administration’s strong belief that we should zero in on those at the top of the income scale who don’t pay the taxes they owe, while protecting American workers by setting the bank account threshold at $10,000 and providing an exemption for wage earners like teachers and firefighters. We will continue to work with leaders in Congress to enact this important measure to level the playing field for workers and small businesses, and raise revenue to build our economy back better.

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Testimony of Deputy Secretary of the Treasury Wally Adeyemo before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate

As delivered

Chairman Brown, Ranking Member Toomey, and Members of the Committee, thank you for giving me the opportunity to speak to you today about the National Advisory Council on International Monetary and Financial Policies (NAC) report to Congress, the Treasury Department’s priorities, and our outlook for the global financial system.

As you know the International Financial Institutions form the core of an international financial architecture that is consistent with our economic interest. It is no accident that the U.S. economy is the largest in the world, that our financial markets are the deepest and the most liquid, and that the dollar is the world’s reserve currency. Our economic success is the result of the policy choices we made coming out of World War II, alongside the hard work and determination of the American people.

America’s interest in a strong, stable, and rules-based economic order is also deeply entwined with our foreign policy and national security interests. Our economic objectives cannot succeed if the international financial system facilitates the illicit flow of funds to oppressive regimes, terrorist groups, cyber criminals, and other malign actors. Bearing this in mind, Secretary Yellen requested a review of Treasury’s use of financial and economic sanctions since the terrorist attacks of September 11, 2001.

The review identified four primary challenges to the continued effectiveness of our sanctions regimes: (1) our advisories attempts to build payment systems that allow them to avoid the dollar based financial system; (2) technological changes like the growth of digital currencies; (3) the need to permit the flow of legitimate humanitarian assistance and avoid collateral impact on non-target populations; and finally, (4) ensuring that sanctions are always deployed alongside other measures as part of an overarching national security strategy.

I want to briefly describe to the Committee the five initiatives Treasury is advancing to respond to these challenges and modernize the use of sanctions:

1. Adopting a Policy Framework – Treasury will adopt the use of a structured policy framework in order to inform its recommendations on the use of sanctions. This framework will seek to ensure that sanctions support clear policy objectives within a broader strategy; reflect input from technical experts and other critical sources of information including the intelligence community; incorporates multilateral cooperation; and are easily understood, enforceable, and reversible. The framework will be a tool to improve the use of sanctions, not a means to prevent it.

2. Improving Access to Humanitarian Assistance – Treasury will work to expand sanctions exceptions, where appropriate, to support the flow of legitimate humanitarian assistance, incorporating lessons learned from the last 20 years. The Department is committed to consistently providing clear guidance in the context of all applicable sanctions regimes, including the continued flow of legitimate humanitarian aid to heavily sanctioned jurisdictions.

3. The Regular Assessment of Sanction Programs Treasury plans to use the sanctions policy framework on a regular basis to review sanctions programs and authorities and make recommendations to augment, adapt, or wind down individual authorities or to list or delist particular entities.

4. Improve Sanctions Coordination and Communications – The threat of sanctions alone—even without imposition—remains a powerful tool of economic statecraft. In order to calibrate the use of this tool, Treasury needs to communicate and coordinate more effectively with stakeholders affected by the use of financial sanctions. This includes U.S. allies and partners, financial institutions and other actors within the financial system, nonprofit organizations, and the media. We will do this by using existing forums where we meet with our allies and partners to coordinate and collaborate on sanctions, as well as building a more formal mechanism for receiving advice and providing information to stakeholders.

5. Modernize our Operational Capabilities – As the threats to our nation change, sanctions must also adapt. Treasury must invest in changes to its workforce and technical capabilities to meet these evolving threats. This will involve streamlining current functions, as well as making workforce and infrastructure investments to take on growing threats like ransomware and other cybercrime.

This effort will require building on current processes in some areas and changes in others. Certain changes may be implemented in the near-term, while others will require further deliberation and analysis to determine the best path forward in collaboration with the State Department and other executive branch partners. In many cases, support and advice from key partners, like Congress, will be critical.

Members, sanctions are not only an important tool for the United States they play an important role in maintaining the rules-based global economy, which has benefited the world for generations. I look forward to working with members of this committee to continue advancing U.S. international economic leadership abroad and creating opportunities for Americans at home.

I’m happy to take your questions.

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Peloton x Beyoncé Return With Largest Artist Series Ever

NEW YORK, Oct. 18, 2021 /PRNewswire/ — Peloton (NASDAQ:PTON), the world’s leading interactive fitness platform and Beyoncé, the most-nominated female artist in GRAMMY® history, announced today the newest installment of the Peloton x Beyoncé Artist Series launching October 19th, Peloton’s most extensive Artist Series to-date. The Peloton x Beyoncé Artist Series will offer 72 hours of powerful content, 17 classes over a three-day period with content streamed globally from Peloton Studios New York and the new Peloton Studios London. The Peloton Artist Series is one of the brand’s most anticipated events, with interest going far beyond Peloton’s over 5.9 million members across the globe.

The newest chapter of the iconic Peloton x Beyoncé Artist Series explores the relationship between our inner and outer power, how we harness motivation and source our strength with inspiration from the world around us, and from within. Members will be motivated to expand their minds and challenge their bodies to the iconic Beyoncé tracks that make their inner power shine. With her trademark strength and intention, Beyoncé emboldens the Peloton community and beyond to find their own purpose from the world around them, come together in the spirit of inclusivity and step into their individual definition of power.

To complement the live programming, daily on-demand classes will allow members to curate a well-rounded Peloton x Beyoncé experience at their own pace and convenience across nine modalities including Cycling, Tread, Tread Bootcamp and off-equipment offerings such as Strength, Barre, Stretching, and an Outdoor Run and Walk — making the series accessible for anyone with no hardware necessary. This powerful lineup will include classes in three languages, English, German and Spanish, a first for Peloton. The global event kicks off with a Two-for-One Ride live from the new Peloton Studios London. Every Peloton x Beyoncé Artist Series class can be accessed on the Peloton App which new Members can try for a free 30-day trial period.

Additionally, Beyoncé and Peloton will expand their social impact partnership by providing the fitness facilities of 10 Historically Black Colleges and Universities (HBCUs) with Peloton Bikes this fall. This initiative builds on Peloton and Beyoncé‘s shared commitment to provide access to best-in-class fitness, inspiring this generation of HBCU students to source their power, physically and mentally, through movement. Thousands of students redeemed gifted Peloton digital memberships at the onset of the partnership, ensuring students can enjoy Peloton’s library of content on-and off-equipment. Partner schools include: Bennett College, Clark Atlanta University, Grambling State University, Hampton University, Howard University, Morehouse College, Morehouse School of Medicine, Spelman College, Texas Southern University and Wilberforce University. Peloton will continue to pursue long-term recruiting partnerships across the internship, undergraduate and graduate levels while also shining a light on HBCU students.

“The Beyoncé Artist Series allows you to mentally draw deeply from internal and external places of power and this is the soundtrack that will transport you,” said Peloton’s Head of Music Gwen Bethel Riley. “We are honored to have designed a new series of classes that elevate movement and music on the Peloton platform. This empowering message will motivate our community to show up for each other and for themselves.”

For more information and to see class schedule updates visit:https://blog.onepeloton.com/beyonce-collaboration/.

About Peloton
Peloton is the leading interactive fitness platform in the world with a loyal community of more than 5.9 million Members. The company pioneered connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes for its Members anytime, anywhere. Peloton makes fitness entertaining, approachable, effective, and convenient, while fostering social connections that encourage its Members to be the best versions of themselves. An innovator at the nexus of fitness, technology, and media, Peloton has reinvented the fitness industry by developing a first-of-its-kind subscription platform that seamlessly combines the best equipment, proprietary networked software, and world-class streaming digital fitness and wellness content, creating a product that its Members love. The brand’s immersive content is accessible through the Peloton Bike, Peloton Tread, Peloton Bike+ and Peloton App, which allows access to a full slate of fitness classes across disciplines, on any iOS or Android device, Apple TV, Fire TV, Roku TVs, and Chromecast and Android TV. Founded in 2012 and headquartered in New York City, Peloton has a growing number of retail showrooms across the US, UK, Canada, Germany and Australia. For more information, visit www.onepeloton.com.

About Parkwood Entertainment
Parkwood Entertainment is a film and production company, record label and management firm founded by entertainer and entrepreneur, Beyoncé in 2010. With offices in Los Angeles and New York City, the company houses departments in music, film, video, live performances and concert production, management, business development, marketing, digital, creative, philanthropy, and publicity. Under its original name, Parkwood Pictures, the company released the film Cadillac Records (2008), in which Beyoncé starred and co-produced. The company has also released the films Obsessed (2009), with Beyoncé as star and executive producer, the winner of the Peabody Award for Entertainment, Lemonade (2017), the Emmy®-nominated Homecoming: A Film By Beyoncé (2019), which documents Beyoncé‘s history-making performance at the Coachella Valley Music & Arts Festival in 2018, and the Emmy®-winning Black Is King (2020). Parkwood Entertainment produced The Mrs. Carter Show World Tour (2013-2014), The Formation World Tour (2016), and the aforementioned “Homecoming” performances at Coachella (2018) and co-produced the ON THE RUN Tour (2014) and ON THE RUN II (2018).

Media Contact: [email protected]

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/peloton-x-beyonce-return-with-largest-artist-series-ever-301401653.html

SOURCE Peloton

U.S. Department of the Treasury Releases Sanctions Review

Report Emphasizes Need for Continued Multilateral Approach, Structured Policy Framework, and Enhanced Cost Mitigation

WASHINGTON – The U.S. Department of the Treasury today released the results of a broad review of the economic and financial sanctions that it administers and enforces, and issued recommendations to preserve and enhance their effectiveness in supporting national security and U.S. interests now and in the future.

“Sanctions are a fundamentally important tool to advance our national security interests,” said Deputy Secretary Adeyemo. “Treasury’s sanctions review has shown that this powerful instrument continues to deliver results but also faces new challenges. We’re committed to working with partners and allies to modernize and strengthen this critical tool.”

During Secretary of the Treasury Janet L. Yellen’s confirmation hearing, she committed to a comprehensive review of sanctions, which Deputy Secretary of the Treasury Wally Adeyemo led. Treasury’s review engaged hundreds of sanctions stakeholders, including former Treasury officials from both parties; key interagency partners including the Department of State, Department of Justice, and USAID; Members of Congress and their staffs; small and large commercial businesses and financial institutions; academics; non-governmental organizations; and the governments of our allies and partners abroad. 

Treasury’s review found that while sanctions remain an essential and effective policy tool, they also face new challenges including rising risks from new payments systems, the growing use of digital assets, and cybercriminals, as well as situations where careful calibration can help limit the impact of sanctions on the flow of legitimate humanitarian aid to those in need. Key recommendations to mitigate those challenges and bolster the effectiveness of Treasury’s role in sanctions moving forward include:

  1. Adoption of a structured policy framework that links sanctions to a clear policy objective. This framework asks whether a sanctions action: supports a clear policy objective within a broader strategy; has been assessed to be the right tool for the circumstances; incorporates economic and political implications for sanctions targets and others and has been calibrated to mitigate unintended impacts; includes a multilateral coordination and engagement strategy; and will be easily understood, enforceable, and, where possible, reversible. This policy framework is intended to cover key policy considerations in the sanctions implementation process and offer a standardized set of factors to be consistently used by sanctions professionals for both evaluating potential new actions and assessing the ongoing alignment of sanctions with evolving policy priorities. This framework also incorporates several of the recommendations which emerged from the sanctions review.
  2. Multilateral coordination wherever possible. Sanctions are most effective when coordinated as an Administration and where possible with allies and partners who can magnify the economic and political impact. This coordination also enhances the credibility of U.S. international leadership and shared policy goals of the United States and its allies.
  3. Calibration of sanctions to mitigate unintended economic, political, and humanitarian impact. Treasury should continue to seek ways to tailor sanctions to mitigate unintended economic, humanitarian, and political impacts on U.S. workers and businesses, allies, and non-targeted populations abroad. This will protect key constituencies and help preserve support for U.S. sanctions policy.
  4. Ensuring sanctions are easily understood, enforceable, and, where possible, reversible. Treasury can build on existing outreach and engagement capabilities through enhanced communication with industry, financial institutions, allies, civil society, and the media, as well as new constituencies.
  5. Investment in modernizing Treasury’s sanctions technology, workforce, and infrastructure. Treasury should invest in building its technological capabilities and deepening its institutional knowledge, especially in the evolving digital assets and services space, to support the full sanctions lifecycle of activities. Further investments in Treasury’s sanctions workforce and operational capabilities will sustain Treasury’s ability to execute a core tool of U.S. national security and foreign policy and protect the integrity of the U.S. financial system.

 

Read the Treasury 2021 Sanctions review.

 

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OCC Releases Bank Supervision Operating Plan for Fiscal Year 2022

News Release 2021-106 | October 15, 2021

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released its bank supervision operating plan for fiscal year (FY) 2022.

The plan provides the foundation for policy initiatives and for supervisory strategies as applied to individual national banks, federal savings associations, federal branches, federal agencies, and technology service providers. OCC staff members use this plan to guide their supervisory priorities, planning, and resource allocations.

Supervisory strategies for FY 2022 focus on

  • strategic and operational planning to ensure banks maintain stable financial positions.
  • credit risk management, allowances for loan and lease losses, and allowances for credit losses.
  • cybersecurity and operational resilience.
  • oversight of third parties and related concentrations.
  • Bank Secrecy Act/anti-money laundering (BSA/AML) compliance management.
  • consumer compliance management systems and fair lending risk.
  • Community Reinvestment Act performance.
  • the impact of a low-rate environment and the transition to alternative reference rates given the cessation of LIBOR.
  • payment systems products and services.
  • fintech partnerships for potential cryptocurrency-related activities and other services.
  • climate change risk management.

The OCC will provide periodic updates about supervisory priorities through the Semiannual Risk Perspective in the fall and spring.

Related Link

Media Contact

Stephanie Collins
(202) 649-6870

Treasury Continues Campaign to Combat Ransomware As Part of Whole-of-Government Effort

OFAC Issues Sanctions Compliance Guidance for Virtual Currency Industry
FinCEN Issues Report on Ransomware Trends in Bank Secrecy Act Data

WASHINGTON – Building on the first-ever designation of a virtual currency exchange for facilitating transactions for ransomware actors, the U.S. Department of the Treasury announced additional steps today to help the virtual currency industry prevent exploitation by sanctioned persons and other illicit actors. These actions are part of the Biden Administration’s focused, integrated effort to counter the ransomware threat. New industry-specific guidance outlines sanctions compliance best practices tailored to the unique risks posed in this dynamic space, while new data from the Financial Crimes Enforcement Network (FinCEN) shows the increasing threat ransomware posed to the U.S financial sector, businesses, and the public during the first half of 2021. Treasury’s actions underscore the need for a collaborative approach to counter ransomware attacks, including public-private partnerships and close relationships with international partners. “Ransomware actors are criminals who are enabled by gaps in compliance regimes across the global virtual currency ecosystem,” said Deputy Secretary of the Treasury Wally Adeyemo. “Treasury is helping to stop ransomware attacks by making it difficult for criminals to profit from their crimes, but we need partners in the private sector to help prevent this illicit activity.”

The private sector plays a key role by implementing appropriate sanctions and anti-money laundering/countering the financing of terrorism (AML/CFT) controls to prevent sanctioned persons and other illicit actors from exploiting virtual currencies and undermining U.S. foreign policy and national security interests. Treasury will continue its engagement with the private sector and other countries to disrupt and hold accountable ransomware actors and their money laundering networks.

Sanctions Compliance Guidance for the Virtual Currency Industry

As ransomware attacks have increased in recent years, so has the number of ransomware payments, which have been typically paid through virtual currency. Today, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued a brochure to promote sanctions compliance in the virtual currency industry. 

The growing prevalence of virtual currency as a payment method brings greater exposure to sanctions risks—like the risk that a sanctioned person or a person in a sanctioned jurisdiction might be involved in a virtual currency transaction. Accordingly, the virtual currency industry plays an increasingly critical role in preventing sanctioned persons from exploiting virtual currencies. 

OFAC sanctions compliance requirements apply to the virtual currency industry in the same manner as they do to traditional financial institutions, and there are civil and criminal penalties for failing to comply. The guidance issued by OFAC today provides an overview of OFAC sanctions requirements and provides examples of compliance best practices for operators in this space, including technology companies, exchangers, administrators, miners, and wallet providers, as well as more traditional financial institutions that may have exposure to virtual currencies or their service providers. Industry participants should consider incorporating the elements and controls outlined in the brochure into their sanctions compliance programs. If ignored or mishandled, sanctions risks are vulnerabilities that can lead to violations and subsequent enforcement actions, as well as harm U.S. foreign policy and national security interests.

OFAC is publishing this guidance as part of its commitment to engage with the virtual currency industry to promote compliance with sanctions requirements.

Ransomware Trends in Bank Secrecy Act Data

FinCEN is also publishing Ransomware Trends in Bank Secrecy Act data today. The Anti-Money Laundering Act of 2020 (AMLA) mandates that FinCEN publish threat pattern and trend information derived from financial institutions’ Suspicious Activity Reports (SARs). This first report issued pursuant to the AMLA focuses on pattern and trend information pertaining to ransomware, in line with FinCEN’s issuance of government-wide priorities for AML/CFT policy. FinCEN analysis of ransomware-related SARs filed during the first half of 2021 further establishes that ransomware is a significant threat to the U.S. financial sector, businesses, and the public. FinCEN’s analysis of ransomware-related SARs highlights average ransomware payment amounts, prevalent ransomware variants, and prominent ransomware money laundering typologies:

Average Monthly Ransomware Payment Amount: The average amount of reported ransomware transactions per month filed in 2021 was approximately $100 million.”

Prevalent Ransomware Variants: FinCEN identified 68 different ransomware variants reported in SAR data for transactions occurring between January 1, 2021 and June 30, 2021. The most commonly reported variants were REvil/Sodinokibi, Conti, DarkSide, Avaddon, and Phobos.

  • Ransomware Money Laundering Typologies: FinCEN identified several money laundering typologies common among ransomware variants in 2021, including threat actors increasingly requesting payments in Anonymity-Enhanced Cryptocurrencies such as Monero, and avoiding reusing wallet addresses, “chain hopping” and cashing out at centralized exchanges, and using mixing services and decentralized exchanges to convert proceeds.

Click here for OFAC’s Sanctions Compliance Guidance for the Virtual Currency Industry.

Click here for FinCEN’s Ransomware Trends in Bank Secrecy Act Data.

For More Information on Ransomware

Please visit Stopransomware.gov, a one-stop resource for individuals and organizations of all sizes to reduce their risk of ransomware attacks and improve their cybersecurity resilience. This webpage brings together tools and resources from multiple federal government agencies under one online platform. Learn more about how ransomware works, how to protect yourself, how to report an incident, and how to request technical assistance.

 

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