Month: June 2025

The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) are international structures established to improve tax transparency and prevent cross-border tax evasion. FATCA, enacted in 2010, requires financial institutions to report data on United States account holders.  On the other hand, CRS was developed by the OECD, expanding the FATCA model. It helps participating countries to exchange data automatically. FATCA/CRS reporting is mandatory for financial entities and fund administrators. These regimes entail strict reporting requirements, progressive…...

The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) are key global mandates steering how financial institutions address tax compliance. These frameworks require banks, fund managers, and service providers to identify and report the tax residency of account holders to tax authorities. Why does this matter? Because non-compliance can spark crippling fines, reputational damage, and regulatory audits that persist beyond a penalty notice. For cross-border financial institutions, these structures are foundational to doing business, not optional.…...

Each year, tax evasion costs governments an estimated $492 billion globally. To create more financial transparency governments and regulators have implemented policies to ensure individuals and entities disclose their offshore assets and income to tax authorities.  Central to these changes are the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). These frameworks require financial institutions (FIs) and fund managers to determine, record, and submit information on account holders who may be tax residents in other jurisdictions.…...