August 18, 2015 davedorr

FATCA and CRS increase pressure

We have being talking for some time about the FATCA and CRS impacts on people’s lives and however as incredible as it seems most prefer to think that they won’t be hit (the syndrome of it will not happen with me) and shove their heads in a hole or worse are very badly advised by their consultants and lawyers who continue taking advantage of the trust of their customers to push the problem under the carpet. The world is changing and fiscal transparency is here to stay, as well as reduction of privacy. To stay protected it will be necessary to raise the sophistication of structures to remain in compliance with the rules. But let’s not spend much time just talking and let’s get it to the facts.

Below you can see a letter from a Luxemburg Bank to their clients. We highlighted the most important parts, so to see the whole document click here.


The first part references the number of jurisdictions that already committed in adopting the standards. Do you still believe there will be one jurisdiction staying out of the framework?


The second shows the period of which the exchange of information will be applied first. In 2017 will be exchanged information collected during 2016. Yep, not much time to adopt a pro-active stance.


This excerpt deals of which are reportable accounts and what kind of information is going to be exchanged. Translating, everything and every type of account, even those held by entities, trusts and foundations. There is no restriction on the entity formation, so no distinction between revocable or irrevocable structures. Anyone that is considered in control, even throuht nominees structures or power of attorneys will be considered ultimate beneficial owners (UBO) or in a simpler manner, the owner.


Aqui a carta relembra que na maior parte dos tratados bilaterais, embora não seja possivel a troca automatica de informações, ja está prevista a troca com base em pedidos de grupos, ou seja, sem a identificação de quais indivíduos ou entidades mas especificamente baseado em um determinado padrão de comportamento.


This is the Normative Instruction nº 1.580 from Brazilian Receita Federal, with details on terminated accounts at the end.

Till next time.

Tagged: , , , , ,