Further to our briefing note "The Common Reporting Standard: draft Jersey legislation released" dated November 2015, the Chief Minister's Department has published draft guidance notes dated February 2016 ("Guidance Notes") which provide guidance on the implementation of the Common Reporting Standard ("CRS")  in Jersey. The Guidance Notes are not intended to replace the OECD commentaries on the CRS and consequently they are not intended to provide a comprehensive set of notes covering every scenario.  

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Although the Guidance Notes go some way to identify the key areas of difference between the CRS and FATCA so far as CRS applies in Jersey they do not identify all such areas.  Given that there are differences between CRS and FATCA (some of which are not touched on in the Guidance Notes), Jersey Financial Institutions should review their current systems and procedures and take appropriate advice to ensure that they are adequate for the purposes of the CRS as well as their continuing obligations under US FATCA.  

Further, where Financial Institutions use third party service providers, they should have agreements in place to document the relationship.  Existing agreements which have been put in place for FATCA may no longer be suitable and should therefore be reviewed, particularly noting that the concept of a sponsoring entity is not available under the CRS.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.