New market realities: FATCA & CRS. In an ever-evolving global regulatory landscape, the OECD and local governments are rapidly implementing new global regulations to combat tax evasion by taxpayers on their foreign financial accounts and cross-border investments.

The OECD has established the Standard for Automatic Exchange of Financial Account Information in Tax Matters known as the Common Reporting Standard (CRS). This was based on the Foreign Account Tax Compliance Act (FATCA), and the Intergovernmental Agreements (IGA) launched by the USA in 2014.

Today, more than 100 jurisdictions worldwide have implemented CRS in their domestic legislation, and agreements are being signed to exchange information on financial accounts between CRS participating jurisdictions automatically. The CRS agreements are effective as of 2016 or 2017 with the first automatic exchange between jurisdictions as per 30th September of the subsequent year. This will have a profound impact on your compliance, reporting, as well as structuring.

FATCA & CRS compliance requirements

Every entity has to be classified as either Financial Institution or Active/ Passive Non-Financial Entity (NFE), with each different compliance and reporting obligations. All entities classified as Financial Institutions (FI) in CRS participating jurisdictions that maintain financial accounts have compliance and reporting obligations under the CRS. The FIs include not only banks, mutual funds, and hedge funds, but also trusts with corporate trustees, and many offshore Private Investment Companies with a discretionary mandate granted to investment managers, which are to be classified as FI-Investment Entities.

To be compliant, each FI needs to perform pre-described due diligence procedures to identify financial account holders who are tax resident in CRS reporting jurisdictions. The information of those reportable accounts will be annually reported by the FI to local tax authorities and subsequently will be automatically exchanged between CRS reporting jurisdictions. CRS sets out the personal and financial account information to be reported (balance/value, interest, dividends, and sales proceeds), which FIs need to report and the different types of accounts and taxpayers covered (individuals and entities).

Our FATCA/CRS services

You or your client may hold one or more entities with investment accounts, which under FATCA, the IGAs, or CRS may have to be classified as financial institutions.

Amicorp Assurance continues to maintain close monitoring of all these new regulations. We are well-positioned to help you meet all the reporting requirements. Amicorp Assurance can help financial institutions, family offices, high-net-worth individuals, and asset and fund managers with all the CRS compliance requirements, from CRS classification, registration, due diligence on account holders, annual reporting of CRS reportable accounts up to completing W8 and self-certification forms.

Our services include:

Entity Classification

Determine the classification of an entity as Financial Institution-Investment Entity (FI-Investment Entity) or Non-Financial Entity (NFE), either Passive NFE or Active NFE. The FATCA and CRS Classification reports will be prepared and are accessible through our online portal giving full insight into all classification and ongoing actions. And classifications will be aligned with the respective banks / FI’s where financial accounts are held.

Prepare W8 Forms and Self Certificates
Authorizing Person (AP) and Principal Point of Contact (PPoC) services
Due Diligence of New Entity Accounts and New Individual Accounts
Pre-Existing Account Due Diligence and Enhanced File Review
Annual Reporting
System Analysis
Training and Consulting
Outsourcing Services
Tax disclosure by UBO’s and compliant structuring

Amicorp Assurance can also help you or your clients with the impact of this increasing transparency on the tax disclosures and compliant structuring. Upon your request, we can review your existing structure or your entire client portfolio to assess the local disclosure compliance and determine if restructuring measures are necessary and favorable to your needs.

We can assist by providing compliance, regulatory, risk management, and corporate secretarial services. We can also provide corporate governance services and a statutory managing director or trustee – keeping you compliant with regulatory and local filing requirements.

Our professionals

Eric Boes, Global Head – Regulatory Reporting and Tax Compliance Services
Manjunath Janardhanaiah - Team lead

For more detailed information about our services and for any queries please contact fatca-crs.helpdesk@amicorp.com