Treasury STRIPS and Ultimate beneficial ownership: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
imported>Doug Williamson
(Mend link.)
 
Line 1: Line 1:
Separate Trading of Registered Interest and Principal of Securities of US treasury instruments.
''Risk management - anti money laundering - anti terrorist financing - sanctions.''


Certain US treasury notes and bonds issued since 1984 are eligible for the “separate trading of registered interest and principal of securities” (STRIPS) programme.  
(UBO).  


STRIPS are sold at a deep discount from their face value, representing interest income that will be received at maturity.  
Ultimate beneficial ownership is an important concept to establish in relation to new and existing suppliers and clients.


It emphasises that control and beneficial ownership may be exercised through nominees and intermediaries, requiring proper investigation to establish reliably.


Their high yield, liquidity, safety and the wide range of maturities make STRIPS attractive to many investment strategies.


As is true of all zero-coupon securities, the market price of STRIPS can be more sensitive to interest rate changes than interest-bearing instruments of a similar maturity.
== See also ==
* [[Anti money laundering]]
* [[Beneficial owner]]
* [[Customer risk]]
* [[Intermediary]]
* [[Know your business]] 
* [[Know-your-customer]]  (KYC)
* [[KYC utility]]
* [[Nominee]]
* [[Risk management]]
* [[Sanctions]]
* [[Terrorist financing]]
* [[Utility]]




Interest income on STRIPS is subject to federal income taxes on an actual basis.
== Other resource==


[[Media:2015_03_Mar_-_Squeaky_clean.pdf| Squeaky Clean, The Treasurer, 2015]]


==See also==
[[Category:Accounting,_tax_and_regulation]]
*[[Bond]]
*[[Coupon strip]]
*[[Discount]]
*[[Face value]]
*[[Interest]]
*[[Federal]]
*[[Income Tax]]
*[[Liquidity]]
*[[Market price]]
*[[Notes]]
*[[Principal]]
*[[Security]]
*[[TIPS]]
*[[Treasury ]]
*[[United States]]
*[[Yield]]
*[[Zero coupon]]
 
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Identify_and_assess_risks]]
[[Category:Financial_products_and_markets]]
[[Category:Manage_risks]]
[[Category:Liquidity_management]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 10:38, 10 May 2022

Risk management - anti money laundering - anti terrorist financing - sanctions.

(UBO).

Ultimate beneficial ownership is an important concept to establish in relation to new and existing suppliers and clients.

It emphasises that control and beneficial ownership may be exercised through nominees and intermediaries, requiring proper investigation to establish reliably.


See also


Other resource

Squeaky Clean, The Treasurer, 2015

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Treasury_STRIPS&oldid=49373’