Is Your Organisation Compliant With FATCA And CRS?

As tax specialists will already know, operational taxes are a crucial area for compliance matters nowadays. Broadly speaking, they encompass withholding taxes, transactional taxes, due diligence, and tax and investor reporting. In this article, we look at these requirements under the FATCA and CRS regimes. Keep reading for our 5-question checklist, designed to help you determine how compliant you are with FATCA and CRS.

1. Pre-existing accounts

   Have you completed the FATCA and CRS remediations of pre-existing accounts?

   The remediation period for entities was two years under both FATCA and CRS. In other words, reporting financial institutions had two years from the go-live of FATCA and CRS to conduct the necessary due diligence procedures for pre-existing accounts. They should now ensure that their reporting and policy documentation, for recalcitrant and undocumented individuals or entities, are treated properly.

2. Onboarding

   Are you comfortable with the FATCA/CRS status provided by your clients?

   Compared to pre-existing clients or account holders, new accounts are subject to enhanced due diligence obligations in terms of the collection of self-certification forms and the identification of controlling persons. Thus, robust client onboarding processes should be put in place.

3. Reporting

   Do you have a comprehensive system for annual FATCA and CRS reporting?

   Automatic exchanges of information are challenging compliance obligations, where the reporting process will highlight the accuracy and completeness of data and documentation obtained from all relevant account holders. The XML files produced should also be in line with precise specifications prescribed by local tax authorities. In the view of avoiding error or penalties, tested and validated IT systems...