New Developments On International Automatic Financial Information Exchange And Disclosure

We last updated our clients and friends in February 2014 ( Feb 2014 Memorandum) on issues related to the disclosure and automatic exchange of financial information on an international basis.

Since then, the pressure from the OECD, G20 and individual countries has been growing rapidly for broad and automatic exchange of information.

There have been two major developments of which you should be aware, and which are likely to have a significant impact on business over the coming months and years.

Common Reporting Standard

On 21st July, 2014, the OECD released the full version of a new global standard for the exchange of information between jurisdictions. This was developed by the OECD working with G20 countries. The Standard for Automatic Exchange of Financial Account Information in Tax Matters sets the parameters for annual automatic exchange between governments of financial account information. This document includes the Common Reporting and Due Diligence