automatic exchange of information - impact on dubai-based...
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Automatic Exchange of Information - impact on Dubai-based
foreign clients, banks and services providers.
By – Vikrant Pangam Amicorp Advisory FZE – Dubai
Common Reporting Standard (CRS)
What is CRS? • Automatic Exchange of Financial Information in Tax Matters • The Common Reporting Standard (CRS) contains Due Diligence rules and reporting requirements for the FI’s • FI’s in CRS jurisdictions will start to collect, identify and report data about its accountholders, who are
resident in other CRS jurisdictions • Many Jurisdictions take the Wider Approach
What is required? • Undertake a comprehensive review of their existing financial accounts • Identify any clients that are tax residents of the CRS zone countries while opening new financial accounts • All Account Holders (tax residents of the CRS zone countries) identified must be reported to the local tax
authority on an annual basis
Classification under CRS Entity
Reporting Financial Institute
Non-Reporting Financial Institute
Financial Institute
Active Non-Financial Entity
Passive Non-Financial Entity
Non-Financial Entity
Investment Entity
Specified Insurance Co
Depository Institution
Custodial Institution
Government Entity
International Org.
Central Bank
Pension Funds
Exempt Invest Schemes
Trustee Doc Trust
Holding Entities of NFE
Income & Asset Test
Publically Traded
Non-Profit NFE
Treasure Entity of NFE
Start-up
Qualified CreditCard Co
Classification under CRS Entity
Reporting Financial Institute
Non-Reporting Financial Institute
Financial Institute
Active Non-Financial Entity
Passive Non-Financial Entity
Non-Financial Entity
Investment Entity
Specified Insurance Co
Depository Institution
Custodial Institution
Government Entity
International Org.
Central Bank
Pension Funds
Exempt Invest Schemes
Trustee Doc Trust
Holding Entities of NFE
Income & Asset Test
Publically Traded
Non-Profit NFE
Treasure Entity of NFE
Start-up
Qualified CreditCard Co
Financial Institution – Investment Entity
The term “Investment Entity” includes two types of Entities:
1. An Entity that primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer: • Trading in money market, foreign exchange, interest rate and exchange traded instruments • Individual and collective portfolio management; or • Otherwise investing, administering, or managing Financial Assets or money on behalf of other
persons.
2. The second type of “Investment Entity” (“Investment Entity managed by another Financial Institution”) is any Entity the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets where the Entity is managed by another Entity that is a Depository Institution, a Custodial Institution, a Specified Insurance Company, or the first type of Investment Entity.
Note: Investment Entity located in a Non-Participating Jurisdiction and managed by another Financial Institution is treated as a Passive NFE
Passive NFE & Controlling Persons
Under the CRS a “Passive NFE” means any NFE that is not an Active NFE.
“Controlling Persons” are the natural person(s) who exercise control over an entity and are identified by the Reporting Financial Institutions as follows:
Control by Ownership
Control by other means
Control via Senior Managing Official
Controlling Persons of a trust, means the settlor (s), the trustee(s), the protector(s) (if any), the beneficiary(ies) or class(es) of beneficiaries, and any other natural person(s) exercising ultimate effective control over the trust (including through a chain of control or ownership).
Summary of CRS compliance •Financial Institutions - resident in the CRS participating jurisdictions
Depository FI, Custodian FI, Certain Insurance FI, FI - Investment Entity to implement due diligence procedures on its financial accounts (incl Self-Certifications) to identify and document reportable accounts under CRS to establish reporting processes on the reportable accounts.
•Reportable Accounts :
financial accounts held by individuals and entities (incl Trust and Foundations) who are tax resident of other CRS participating jurisdictions Also: Controlling Persons of Passive NFE (look-through approach)
•Information to be reported by FI to local tax authorities
Name, address, tax residence(s), TIN(s), date and place of birth Account balances, all types of investment income, sale proceeds
CRS Indicia
In case in Due Diligence the FI identifies a person with Indicia: assumed a tax resident in CRS Participating Jurisdiction, if:
Residency address or mailing address;
Telephone number;
standing instructions to transfer funds to a account in a CRS jurisdiction;
any POA or other signatory authority to any person with address in a CRS jurisdiction; or
provided any verified “in-care” or “hold mail” address in a CRS jurisdiction
NEW : previous residence in case migrated to jurisdiction with synthetic Tax Residence Certificate
Introduction to Amicorp Group www.amicorp.com
Amicorp Group
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Who are we
An independent growing global provider of company secretarial and fiduciary services
Serving corporate but also high-net-worth-clients
International Group - established in 1992
Emerging markets: Latin America, Eastern Europe & Asia
Global networked team
ISO 9002, SAS 70 type II & ISAE 3402 type II, Six Sigma
Licensed & regulated corporate, trust and fund provider
Strict compliance policies, compliant solutions
Secure systems with backups in Geneva
Introduction to Amicorp Group www.amicorp.com
Our Services
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Corporate Client Services
Director and Shareholder Services
02 Private Clients Services
Compliance and Regulatory Services
Company Formation and Management
FATCA & CRS Services
Deliver the broadest range of structuring alternatives involving corporate vehicles such as companies, partnerships and foundations. We assist with risk management and the simplification of global operations.
Lead the engagement with private banks, family offices, accounting and legal firms and independent financial advisers. We deliver trust and fiduciary solutions including asset protection, tax planning, business and family succession planning.
Establish and administer all types of corporate entities. Provide all supporting services related to company management and administration services.
Provide corporate directors or other relationship services relating to the holding of clients’ entities in a range of jurisdictions. We supply a variety of services that ensure strict compliance with tax laws.
Assist our clients in managing the ever increasing complexity they are faced with: · Compliance policy procedures – AML framework · Regulatory inspection readiness · Regulatory remediation.
Comply with US FATCA and the announced global FATCA regulations. To ensure clients are FATCA compliant we provide the following services: classification, registration, sponsorship, identification of US persons, reviewing existing structures for compliance, etc.
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Introduction to Amicorp Group www.amicorp.com
Our Services
Financial Services Estate Planning
Fund Structuring and Administration
Outsourcing Services
We establish and administer estate planning structures. We provide private office services that are independent from any asset management relations the client has.
Amicorp Bank and Trust (ABT), provides tailor-made financial products and business solutions. AmiLife: Single Premium Life Insurance Amicorp Insurance Company (AIC) offers a captive insurance program .
We set up the right structure in the right jurisdiction. We obtain regulatory approval, draft prospectuses, resolutions and all related agreements. ISAE 3402- certified fund administrator.
Our multiple services include: Scanning and document handling Finance and accounting (including internal and client administration), investment portfolio administration, payroll administration, compliance and IT hosting.
Trust and Private Foundation Structures
Used as the top entity in private or corporate investment holding structures, we provide establishment, management and administration services as well as trustees and directors.
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