Why Bermuda Financial Institutions Must Ensure CRS Compliance

The Organisation for Economic Co-operation and Development (OECD) has urged participating tax authorities around the globe to take further steps to ensure compliance with the Common Reporting Standard (CRS). As a result Financial Institutions have seen an increase in notices and other inquiries as tax authorities seek to enforce the CRS. As scrutiny increases on CRS compliance, Bermuda Financial Institutions must prepare and have a governance framework in place.

The OECD developed a common reporting standard, referred to as the ‘Standard for Automatic Exchange of Financial Account Information in Tax Matters' (the “Standard”) in 2014, with the purpose of improving transparency in the fight against tax evasion and protecting the integrity of tax systems. The Standard provides for the annual exchange between tax authorities of a predefined set of information on financial accounts held by individuals and entities resident in a foreign jurisdiction. Working under the