FATCA & The OECD's Common Reporting Standard – Q&A

The Common Reporting Standard (CRS), a global initiative to introduce the automatic exchange of information on financial accounts beneficially owned by residents of foreign countries, took effect on 1st January 2016. Governments of signatory countries have drafted or are in the process of drafting local legislation in accordance with guidance provided by the OECD in August 2015. Financial institutions, including Sovereign, will need to report details of accounts owned by individuals, companies, trusts, foundations and other structures to their local tax authorities which will then exchange that information with the tax authority of the beneficial owner's country of tax residence on an annual basis.