Read how ReportGenie streamlines FATCA and CRS reporting

Regulatory reporting checklist: avoid these 10 common errors

Navigating FATCA and CRS reporting can be a complex and intricate process prone to errors. Earlier this year, the Jersey Government published a paper on common errors found in the 2022 CRS and FATCA submissions. Delving into the errors of 2022 and other common pitfalls, this article provides guidance and explains how software can play a crucial role in avoiding these costly mistakes.

Regulatory reporting frameworks, common mistakes and solutions

Regulatory reporting plays a pivotal role in the finance industry and provides transparency, efficacy and integrity across different markets and their stakeholders. This article provides an in-depth look at the regulatory reporting process, its requirements and frameworks and how to avoid common mistakes to improve the regulatory reporting process.

FATCA CRS reporting: reporting schemas improving tax transparency

In an era of increased cooperation between worldwide tax authorities, the automatic exchange of information (AEOI) requires financial institutions like banks, insurance companies, trust companies and stockbrokers to report client information to their local tax authority using the appropriate reporting schema. This provides the monitoring bodies with information on the activities and tax compliance of the jurisdictions and their tax resident companies and citizens. CRS & FATCA are two reporting schemas that aim to improve tax transparency and help promote tax compliance by ensuring financial jurisdictions gather and report sufficient information on their clients to the agreed reporting standards. FATCA applies to the United States whilst CRS applies to 120 worldwide reporting jurisdictions.

What is the Common Reporting Standard (CRS)?

The Common Reporting Standard (CRS) is an international standard for the automatic exchange of information (AEOI) between tax authorities. It was developed by the Organisation for Economic Co-operation and Development (OECD) and is aimed at combating tax evasion by individuals and entities. The CRS requires financial institutions and entities to identify and report certain information about their account holders to the tax authorities in the jurisdiction where the account holder is a resident. The reported information includes the account holder's name, address, and tax identification number, as well as the account balance and any income generated by the account.

What are the penalties for non-compliance with CRS and FATCA regulations?

Non-compliance with Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) regulations can result in significant penalties for financial institutions and entities, including fines and potential criminal charges. These penalties can have a severe impact on a company's reputation, financial health, and ability to operate. Therefore, it is essential for financial institutions and entities to understand their obligations under these regulations and to take the necessary steps to comply with them.

What is the Foreign Account Tax Compliance Act (FATCA)?

The Foreign Account Tax Compliance Act (FATCA) is a U.S. law that was enacted in 2010 to combat tax evasion by U.S. taxpayers who hold financial assets outside of the United States. The law requires foreign financial institutions and entities to report certain information about their U.S. account holders to the Internal Revenue Service (IRS). This includes information such as the account holder's name, address, and tax identification number, as well as the account balance and any income generated by the account.