Part 4/8:
The internet brought new kinds of businesses that were hard to assess economically—further complicating the auditing landscape. Valuation discrepancies arose from unclear pricing structures of online services and products. Without thorough inter-bank communication or real-time data sharing, hiding financial inconsistencies became relatively easy.
The iconic 2007 UBS scandal, however, marked a watershed moment in offshore banking scrutiny. Following intense pressure, the United States initiated a global campaign to eradicate offshore banking loopholes. The introduction of the Foreign Account Tax Compliance Act (FATCA) and new regulatory frameworks drastically reformed how banks interacted with tax authorities.