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CRS: First exchanges this month

Monday, 18 September, 2017

The first automatic Common Reporting Standard (CRS) exchanges will take place this month between 49 jurisdictions. Overall, 102 jurisdictions have committed to implementing CRS, with 53 taking up exchanges in September 2018.

CRS applies to accounts held by persons from any reportable foreign jurisdiction, and financial institutions are required to report foreign account holders’:

  • names;
  • addresses;
  • taxpayer identification numbers;
  • dates and places of birth (for individuals); and
  • account numbers, and account balances or values, as well as interest, dividends, other income, and gross proceeds generated by or paid to the accounts (where applicable).

To successfully implement CRS, a country requires domestic legislation that ensures that financial institutions correctly identify and report accounts held by non-residents.

An international legal framework is also required; according to the OECD, the preferred route to implement this is through the CRS Multilateral Competent Authority Agreement (CRS MCAA), which defines the scope, timing, format and conditions for the exchange of CRS information.

So far, 95 jurisdictions have signed the CRS MCAA, and, under it, more than 2,000 bilateral relationships for the automatic exchange of CRS information have been established worldwide.

November 2017 will see a further activation round for those jurisdictions committed to a 2018 timeline, allowing the remaining jurisdictions to nominate the partners with which they will exchange CRS information.

Sources