UAE amended Common Reporting Standard Regulations expressly for the Abu Dhabi Global Market.
The amended regulations introduces in
“Part 4 Contraventions, enforcement and appeals”
“Section 7A. Specific Controlling Person contravention” to enact penalties on Controlling Persons, who knowingly or negligently submit inaccurate or incorrect personal information and the obligation on RFIs to disclose such facts towards the Regulatory Authorities within 30 days.
“Section 7B. New Account opening contravention” to sanction RFIs opening new accounts without obtaining a valid self-certification within 90 days from opening such an account and/or failing to validate such self-certification.
“Part 13 Definitions”
The terms “Controlling Person” and “New Account”
“Schedule 1 of Part 1 General Reporting Requirements’”
the obligation on RFIs to retain for a period of not less than six years after the end of the period for which a RFI must report all records of steps undertaken and evidence relied upon to establish compliance with the local CRS regulations.
“Schedule 1 of Part 7 Special Due Diligence Rules”
due diligence rules on account holder resident in jurisdictions which becomes a participating jurisdiction during a current reporting period .
The amendments came into force on 24 June 2020 and puts additional burden on RFIs existing AML/KYC and due diligence procedures.
Financial institutions are encouraged to assess their current operating model and may consider to implement IT solutions like CRS/FATCA OneTM from Trans World Compliance Inc. supporting financial institutions AML/KYC, remediation and reporting obligations under FATCA and CRS to mitigate their legal and reputational risks through in-adequate AML/KYC and fiscal reporting procedures.
About the Author
Marco is a Banker, MBA (finance and accounting) and LLM (international business and tax law) with 30+ years experiences as internal auditor, business consultant, project manager and in-house legal and tax counsel with of leading Private Banking Institutes, Wealth Management Organisations and Central Securities Depository and Clearing houses located in Europe and the APAC Region.
Marco is focused on advisory services and project management in the field of
AEoI, FATCA, EU-DAC6, OECD-CRS;
U.S Qualified intermediary regime (QI);
Withholding Tax on Capital gains and Investment Income
Securities transaction tax (stamp tax); and
Austrian, German, Hong Kong, Swiss and U.S. International Tax Law