The Organisation for Economic Co-operation and Development (OECD) have today released their common reporting standard (CRS) document, which sets out a framework for exchange of information on financial accounts globally as well as recommended common due diligence procedures.
FATCA has been the catalyst for a movement towards a global exchange of information, and this proposal has been developed in conjunction with the G20 countries, who have fully supported the OECD in their presentation of a single standard for automatic exchange of information. It also draws on progress made within the European Union and global anti-money laundering standards.
The CRS outlines the information that jurisdictions will be called on to collect and exchange, including the financial institutions that will be required to report, the different types of accounts and taxpayers covered and common due diligence procedures. More than 40 countries have committed to early adoption of this standard and the system is scheduled to come into force in 2015. The full text is available here.
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