As a follow-up to KPMG's Global Financial Services (FS) Tax practice report titled “Automatic Exchange of Information: The Common Reporting Standard,” KPMG has created a Value Proposition document that takes a closer look at the impact of CRS and considers the steps financial institutions should take to achieve compliance cost-effectively.
Here is a brief outline of the key issues examined:
The Organisation for Economic Co-operation and Development (OECD) proposed a Common Reporting Standard (CRS) for the Automatic Exchange of Information (AEOI) that will see a significant increase in the customer due diligence and reporting obligations of financial institutions across the world. The CRS will be effective from January 2016 for more than 50 'early adopter' countries. Financial institutions based in a country that adopts the CRS will, subject to the enactment of enabling legislation, be compelled to implement new requirements on customer on-boarding, pre-existing customer due diligence, entity and product classification, governance and reporting.
The aim of KPMG's member firms is to support clients' efforts to achieve and maintain compliance with the CRS in a cost efficient manner that limits disruption to them and their business operations.
KPMG recognizes that many clients are looking for a range of solutions based on their size, geographical impact, internal project and technology capabilities. To address this, KPMG member firms have developed a suite of integrated services that are designed to work together or independently which can be tailored to the specific needs of each client.