FATCA And CRS Reporting Season Approaches: What You Need To Know

The annual round of FATCA and CRS reporting is fast approaching, or is here already in certain jurisdictions. For the majority of countries who have agreements to participate in these schemes for the automatic exchange of information, the deadlines for filing reports fall in the first half of the year. For those Reporting Financial Institutions (RFIs) who took advantage of deadline extensions last year, put in place due to the Covid pandemic, this year's reporting will have come around all too soon.

The Foreign Account Tax Compliance Act (FATCA) is a US federal law which aims to detect, deter and discourage tax evasion by US citizens. It demands increased transparency and reporting on foreign accounts. FATCA's reporting requirements apply to foreign financial institutions with accounts held by US taxpayers, as well as foreign entities in which US taxpayers hold a substantial ownership interest.