Amendments to the Common Reporting Standard
Abstract
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The Common Reporting Standard (CRS) is a reciprocal, automatic exchange of information (AEOI) mechanism developed by the OECD at the request of the G20 and unveiled in 2014. The first AEOI occurred between the early adopters in 2017 with respect to 2016. The vast majority of jurisdictions have adopted the CRS, which is now the global AEOI standard. The legal structure of the CRS is set out in the text of the CRS and its Commentaries.
The CRS and its Commentaries were amended in 2023 (the Amendments) to introduce new due-diligence and reporting requirements, and to create a separate reporting framework for crypto-assets. The Amendments are not yet effective but will come into force when incorporated into local law by CRS jurisdictions, which is not expected to occur before 2026.
This article reviews the Amendments and the basic CRS rules under which financial account information is collected and transmitted by reporting financial institutions, such as banks and securities firms, as well as corporate service providers and trust companies.
The Common Reporting Standard (CRS) is a reciprocal, automatic exchange of information (AEOI) mechanism developed by the OECD at the request of the G20 and unveiled in 2014. The first AEOI occurred between the early adopters in 2017 with respect to 2016. Some 114 jurisdictions were expected to exchange information under the CRS in 2023. Every major jurisdiction, except for the US, has adopted the CRS and is engaged in automatic exchange of financial account information.
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