Common Reporting Standard
Where Common Reporting Standard (CRS) idea comes from ?
Following the 2010 US Foreign Account Tax Compliance Act (FATCA), the Common Reporting Standard (CRS) emerged in May 2014 when forty-seven countries agreed to sign the multilateral agreement on the Standard for Automatic Exchange of Financial Account Information regarding bank accounts for tax purposes across the world.
OECD is revising constantly its Frequently Asked Questions. You will find the latest version under CRS-related Frequently Asked Questions.
One could note the unique status of the United States, that did not sign the international treaty and that receives information relating to US citizens' accounts from countries due to the compliance requirements of the FATCA act.
CRS regulation in a nutshell
- The information will be exchanged annually between the jurisdictions for which the convention is in force and in effect;
- All financial institutions (banks, brokers and insurance companies) will be reporting the information;
- The information reported concerns individuals and entities;
- Personal details of the account holder, account identification details, account balance and financial information will be reported;
CRS Practical Implications
- Data gathering becomes more important on all levels;
- Data quality is a challenge for all institutions;
- Flexibility is key to keep the pace with changing regulatory demands;
- All financial institutions will be analyzing solutions in house or will buy from the market tools;
- The decision depends on the resources (IT and staff);
Common Reporting Standard technological challenges
New technologies will allow businesses and financial institutions to ease the use/management of large amounts of data and in general collect and process faster and more accurately. In the future, it is sure that reporting requirements will become more complex, detailed and demanding, and it is better if businesses prepare themselves for a compliance complex future.
Financial institutions must be able to identify and verify the identity of their cus...
Insider dealing (the term "insider trading" is also frequently used) arises w...
The concept of Politically Exposed Person (PEP) is essential to understand by your fi...
The Directive 2014/65/EU (hereafter the "Directive") on markets in financia...
Due to globalisation, companies are increasingly exposed to the risk of sanctions, op...
The idea behind the Payment Service Directives (PSD) aims to simplify the life of the...
The Customer Due Diligence (hereafter “CDD”) investigation is required by EU juri...
Financing of terrorism is defined as the distribution or collection of funds, in any ...
Anti-Money Laundering (hereafter "AML") regulation compliance is a challenge ...
Fighting against dumping and bribery is required for a company. Suspicions of corrup...
Faced with the outcrop of highly targeted attacks and a highly regulated environment,...
Where Common Reporting Standard (CRS) idea comes from ?The concept of agreeing to a u...
Are you familiar with the term "screening" or are you wondering what does it ...
Fraud is one of the most damaging risks your business can faceWe are in a persistent ...
Market Abuse is a concept that encompasses unlawful behaviour in the financial market...
We'll present you the technology to stop money laundering and terrorist financing
Europol defines the Financial Crime as the "illegal acts committed by an individual or a group of individuals to obtain a financial or profession...
Return to financial crime
Conduct Risk has been the hot topic during the past few years and its scope falls outside the traditional domains of risk like liquidity, market, credit and operational risk. Looking at peers in the market will allow benchmarking and reflection if the company maintain...
Read more Author What else ?