The report, “Guide on Promoting and Assessing Compliance by Financial Institutions” (the “Guide”) offers questions for tax administrators to ask FIs about their training initiatives. The report identifies various governance and implementation hallmarks that FIs should consider when fulfilling their CRS and FATCA reporting obligations. It is published by the Forum on Tax Administration.
According to the Guide, to determine the impact of new FATCA and CRS legislation, FIs need to monitor local tax authority guidance and IRS updates. The due diligence requirements for the CRS and FATCA are the same for all types or sizes of FIs.
Given higher than normal employee turnover, FIs are advised to incorporate FATCA and CRS compliance information into all employee and stakeholder onboarding and training materials.
The first chapter looks at the initiatives related to education, service initiatives and the development of self-help tools. Many related activities will be more effective when carried out in cooperation with other agencies, industry associations and stakeholders.
The second chapter looks at the options for the identification of the FI population. These include registration requirements, the use of analytical tools, dialogue with industry associations and other stakeholders as well as risk-based compliance activities.
Is your Financial Institution ready? Who is your FATCA and CRS Expert Provider?