AEOI | KPMG | QM

AEOI

AEOI

Automatic Exchange of Information (AEOI)

Automatic Exchange of Information (AEOI)

AEOI background

Building on the US Foreign Account Tax Compliance Act (FATCA) and the associated Intergovernmental agreements (IGAs), the the Common Reporting Standard (CRS) is the OECD’s response to combatting cross-border tax evasion. CRS and FATCA, collectively known as AEOI, is a significant step towards a globally coordinated approach to the automatic exchange of financial account information of non-resident customers and investors.

This means that financial institutions around the globe are faced with significant additional identification and reporting responsibilities for their customers, which may vary in detail and timing by jurisdiction. Crucially, they need to be able to collect and track complex, varied customer information quickly and easily and to report domestically in each jurisdiction where they operate.  There are both reputational and financial risks to getting AEOI wrong.

This means that financial institutions around the globe are faced with significant additional identification and reporting responsibilities for their customers, which may vary in detail and timing by jurisdiction. Crucially, they need to be able to collect and track complex, varied customer information quickly and easily and to report domestically in each jurisdiction where they operate.  There are both reputational and financial risks to getting AEOI wrong. 

AEOI will impact most banks, investment management/administration companies, trust companies and life insurers globally. In order to become compliant, financial institutions will need to review their customer on-boarding processes, make changes to their withholding and reporting engines and remediate millions of customer accounts globally.

The ambitious time frame to be compliant is stretching resources and the lack of clear guidance means organizations have no certainty – much less consistency – in how the rules will apply across all of their operating markets. Many organisations are now struggling to understand how they should prepare for the AEOI.

 

How we can help

To help our clients move forward with confidence in the midst of uncertainty, KPMG has developed a suite of services to support organisations’ compliance with evolving rule sets across and within jurisdictions. KPMG’s tools offer a blend of technology -based services, project accelerators, tax technical advice, communications and training methods, and process and control planning.

KPMG's teams of highly-experienced professionals include former regulators, tax authorities and industry executives that helped develop model IGA agreements, negotiated bilateral and multilateral instruments (including the CRS), and have drafted US regulatory guidance under FATCA are here to support you. The team are in regular dialogue with the tax authorities and local government officials and are active contributors on a number of advisory and industry FATCA and CRS committees.   

We can work closely with you to provide a bespoke service depending on
s.the level of involvement you require from us.

 

Our services

Education

  • Assess and identify gaps between existing FATCA/IGA framework and CRS requirements
  • Provide training on CRS and other relevant areas appropriate for all levels of staff
  • Provide help desk service to support you with the implementation of CRS  

Policy

  • Provide assistance with developing a general policy on the implementation requirements for FATCA/IGA and CRS purposes
  • Review new customer on-boarding forms and other customer communication documentation to ensure compliance with CRS requirements
  • Provide assistance and advice on remediation of existing customers for FATCA/IGA/CRS purposes

Reporting

  • Provide advice and assistance on reporting requirements and respective processes under FATCA/IGA and the CRS
  • KPMG AEOI Reporting tool provides a global tax reporting solution to support reporting under FATCA/CDOT/CRS across multiple reporting regimes

Assurance

  • Undertake testing of any work completed and implemented policies as and when required
  • Carry out health-checks of current due diligence and reporting processes and provide suggestions and advice on how processes may be improved to meet best practices

 

Our experience  

KPMG in the Channel Islands has an experienced team locally with a wealth of knowledge.

John Riva from the Jersey office and Tony Mancini from the Guernsey office have been closely involved in helping the States of Jersey and Guernsey in the development and formulation of local guidance and practice.

To review our global reports and updates please visit our global site

 

 

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