In 2019, the factsheet of Macro Global’s solutioning addressed major regulatory reporting challenges over operational data governance and sovereignty due to various geographical presence of the financial institution.
Every financial institution scrambling to get over the line of HMRC CRS deadline every year around April and May, Are you pro-active with your planning? Are you ready to submit your CRS with confidence and manage queries back to back with HMRC? We discuss and try to answer the above questions in this blog to give you peace of mind.
As you are aware, after decades of discussion and dialogue finally in 2014, the Organization for Economic Co-operation and Development (OECD) introduced CRS as a global legal framework for Automatic Exchange Of Information(AEOI) between multiple jurisdictions to promote tax transparency and prevent offshore tax evasion. OECD directs the participating jurisdictions to obtain information from the Financial Institutions on the financial accounts held by the non-residents. This information will then be exchanged annually among the relevant jurisdictions. So far 115 jurisdictions around the globe have adopted CRS to maintain the integrity of the tax systems by combating offshore bank secrecy
Whom does it affect?
Why is CRS important?
CRS Compliance is imperative in retaining the reputation of the financial institutions and the participating jurisdictions, as the CRS data shared by the jurisdictions will be peer-reviewed and any non-adherence to the agreement may place them on the OECD’s lists of non-cooperative jurisdictions. This is placing immense pressure on the tax authorities to ensure that the internal controls are in place and the financial institutions abide by the regulatory requirements.
What does this mean in reality for banks?
Financial Institutions need a robust framework to handle the ever-evolving CRS requirements. AEOI compliance will not be a “business as usual” for the financial institutions as their existing KYC/AML and client onboarding procedures will go through an exhaustive due diligence procedure to segregate and categorise the CRS reportable accounts.
To ensure comprehensive and hassle-free compliance to robust regulations, Financial Institutions need to foster collaboration between various teams such as Operations, IT, Legal, and Taxation. With our futureproof “CRS Stride – AEOI / HMRC CRS & FATCA Reporting Solution”, financial institutions would be better placed to furnish the precise CRS data in line with the HMRC CRS specifications.
We take care of your CRS reporting obligations in its entirety and assist you not during the deadline but prepare you before and after the submission through our audit and automation platform. You have one less thing to worry about and fully confident that your compliance adherence completely addressed throughout with an assurance validation by our tax and subject matter experts.
CRS Reporting deadline is fast approaching! Are you ready? If not, click here to start.