On April 3rd, 2016, the International Consortium of Investigative Journalists published a giant leak of offshore financial records, better known as the Panama Papers.10) These revelations caused public outrage. What was needed was a shift in conscience… By August 2015, the OECD had released the first version of a CRS Implementation Handbook.8) It provided practical guidance to assist government officials and financial institutions in implementing CRS.īut while the standards set by the OECD came into force in 2016 in early-adopting states, by March of 2016 these standards were still far from being fully integrated into the global financial system.9) This was especially true in the offshore jurisdictions that were the main target. The Panama Papers Just in Time to Boost Worldwide Implementation of Automated Reporting…Īfter publishing their standards in 2014, the OECD needed to get countries and their financial institutions in line.
The authorities enlisted all financial institutions as involuntary (but powerful) assistants in collecting facts and evidence needed for tax compliance. Now, there is no more hiding of accounts held with a foreign financial institutions.
This is why all financial service providers request utility bills: they prove where you live, and hence where they have to report to.Īll financial institutions that are currently subjected to these regulations are forced to automatically report to the authorities the name, address, Tax Identification Number(s), date and place of birth, the account number, and the account value as of the end of the relevant calendar year (or other appropriate reporting period).7) The goal: to prevent persons from holding financial accounts in offshore jurisdictions and not reporting them back home. In 2014, the OECD published the Standard for Automatic Exchange of Financial Account Information in Tax Matters.6) This publication created a “Common Reporting Standard” ( CRS), which forces financial institutions to automatically exchange account information with the authorities of the country of residence of their account holders. This report explains exactly what to expect from the latest developments launched in October 2022…ĭisclaimer: Given that this post is based on new international standards that have not yet been implemented in national legislation, and US proposed legislation, non of this information can be considered legal or financial advice.Īutomated Exchange of Financial Information with Authorities Since 2014 As you’ll discover, these new regulations force upon us a system of complete surveillance and control. The aim: to tackle anonymous spending and exchanging of crypto. Send all this info annually to the (tax) authorities Īnd finally, the G20 forces governments to pass these rules into domestic law. Record all transfers to cold storage and make lists with private wallet addresses Record (large) purchases from private wallets Record ALL crypto trades on exchanges, DEFI and DEXs Massive overreach of international regulators to force all service providers in the industry to: Automatic Reporting of ALL Trades and Transactions Soon Mandatory.
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