Common Reporting Standard
Where does the 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 foreign countries who follow the 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 keeping the pace with changing regulatory demands;
- All financial institutions will be analyzing solutions in-house or will be buying them 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 which will be collected and processed faster and more accurately. In the future, it is certain that reporting requirements will become more complex, detailed and demanding, and it is better if businesses prepare themselves for a complex compliance future.
Due to globalisation, companies are increasingly exposed to the risk of sanctions, op...
Anti-Money Laundering (hereafter "AML") compliance regulation is a challenge ...
It is essential that your financial company understands the concept of Politically Ex...
Financial institutions must be able to identify and verify the identity of their cus...
The idea behind the Payment Service Directives (PSD) aims at simplifying the lives of...
Faced with the outbreak of highly targeted attacks and a highly regulated environment...
Are you familiar with the term "screening" or are you wondering what does it ...
Market Abuse is a concept that encompasses unlawful behaviour in the financial market...
The Directive 2014/65/EU (hereafter the "Directive") on markets in financia...
Insider dealing (the term "insider trading" is also frequently used) arises w...
The Customer Due Diligence (hereafter “CDD”) investigation is required by EU juri...
Fraud is one of the most damaging risks your business can faceWe are in a persistent ...
The financing of terrorism is defined as the distribution or collection of funds, in ...
What are the dangers of cryptocurrencies?Cryptocurrencies are virtual or digital curr...
Where does the Common Reporting Standard (CRS) idea comes from ?The concept of agreei...
Fighting against dumping and bribery is required for any company. Suspicions of corr...
We'll present you the technology to stop money laundering and terrorist financing
Europol defines Financial Crime as "illegal acts committed by an individual or a group of individuals to obtain a financial or professional advant...
Return to financial crime
VAT Carousels - The look back in the transactions For several years there have been occasional stories of VAT carousels that are exposed after the facts and where banks then do a look back in the transactions on their systems to determine whether something could have be...
Read more Author What else ?