Latin America is the most complex region for exporters
Ireland has been ranked the least complex country for multinational enterprises to comply with corporate regulation and legislation during 2015.
At the other end of the spectrum however, Argentina has topped the rankings as the most complex country for business compliance for the third year running, according to TMF Group’s Global Benchmark Complexity Index.
According to the findings, Latin America remains the most complex region for multinationals with regard to regulation and compliance. Brazil, the second most complex country in 2014 has fallen eight places to 10th in the 2015 rankings, whereas Colombia has climbed 18 places to 3rd position. Mexico (6th) and Bolivia (7th) are the other countries from the region in the top 10.
The highest European entry in the complexity rankings is Hungary (13th), followed by Poland (17th) which has dropped out of the top 10 for the first time.
International Entity Management at TMF Group director Matthew Eckford said: “Multinationals have to deal with an ever increasing regulatory and compliance burden, as they manage their presence in multiple territories or expand into new regions. Boards of directors face mounting pressure from many governments, who are creating additional layers of compliance as they continue to demand that companies provide them with more information about their activities and corporate structures. This can cause major headaches for in-house teams who do not have sufficient knowledge of local regimes and their potential pitfalls.”
SMEs let down by their banks’ FX services
UK SMEs with their sights set on international expansion the UKs next mini-multinationals are being hindered by poor service, unclear fees and a lack of appropriate products when using banks for international currency transfers.
According the latest research by currency experts, World First, of those SMEs using a bank for their currency transfers, more than half (52%) felt their bank did not understand their FX needs. Furthermore, 53% of SMEs using a bank admitted to not understanding the charges applied to their international currency transfers, whilst nearly half (49%) stated that their bank fails to offer them a full range of appropriate products to help them manage their FX needs.
Additionally, almost a third (30%) said they did not think their bank acted in their best interests when managing their FX needs.
World First CEO Jonathan Quin said: “SMEs, the engine room of our economy, are telling us that they are not being served well by the banks when it comes to fulfilling their foreign currency needs. If we want UK businesses to achieve their potential, particularly those in the scale up phase and eyeing up international expansion, then we need to break down as many barriers for them as possible.
“More than half of businesses in our survey say that they have struggled to expand internationally and even if 1% of this is due to a lack of support from their FX provider, then this is simply too many.”