Automatic exchange of financial account information across borders

HMRC has just updated its guidance on the registration process for those entities that are covered by the various automatic exchange of information (AEOI) provisions, as well as the reporting requirements.

The United States was first out of the blocks on this with its FATCA regime which required the rest of the world to report back to the US, from 2015 onwards, via their tax authority financial account information in relation to persons who had US connections.

This general process had been under discussion at OECD for some time but the US seized the opportunity and got their end of the information flow started in advance of the rest of the world.

ICAEW set up a portal at the time FATCA was being introduced. ICAEW members were potentially within FATCA if they were, for instance, trustees holding and managing money on behalf of clients which from a FATCA perspective made them similar to banks and financial institutions. We were concerned that ICAEW members would be unaware of their new obligations.  

You can access the FATCA portal by clicking here.

After that the rest of the world, under the auspices of OECD, put in place equivalent arrangements with the Common Reporting Standard which began last year.

UK based entities have to report the required information via HMRC and for both FATCA and CRS the 2018 reporting deadline is the end of May..