International Regulations for Family Businesses & Investments

Yes—cross-border family businesses and investments are subject to a complex web of international regulations, including tax laws, corporate compliance requirements, currency controls, and reporting obligations. High-net-worth (HNW) and ultra-high-net-worth (UHNW) families must carefully structure and manage their global holdings to remain compliant and protect their wealth.

Cross-border investments can trigger multiple tax obligations and disclosure requirements, including obligations under the OECD Common Reporting Standard (CRS); FATCA (Foreign Account Tax Compliance Act); Controlled Foreign Corporation (CFC) rules; and Double Taxation Treaties (DTTs). Non-compliance with these standards can lead to significant penalties and reputational risk.

Many countries also impose regulations on foreign ownership or investment, particularly in sectors such as real estate, banking, defense, and technology. These can include pre-approval or notification requirements, national security screening, and limits on equity participation or profit repatriation. Some countries also enforce capital export restrictions, remittance taxes, or require approval for transferring funds internationally. Structuring investments through compliant legal entities can mitigate these limitations.

Lastly, with the assistance of a skilled family office practice, family offices operating or investing across jurisdictions must comply with: local corporate governance rules, any applicable licensing or registration requirements (especially in regulated financial services), and anti-money laundering (AML) and Know Your Customer (KYC) obligations