Financial institutions must comply with OECD rules
Dominican Republic, in January 2016. The Dominican Republic could soon be part of an initiative of the OECD would force financial institutions of the country to exchange information on the accounts of their customers in other countries that are part of this project.
The Organization for Economic Cooperation and Development (OECD) established the Common Reporting Standard (CRS for short) as a regulation that provides for automatic and annual exchange of financial information from more than 94 governments that are already part of the initiative . Thus, financial institutions would be required to report information such as balances, interest, dividends and sales of financial assets, and also accounts must report all of their physical clients to the home country of the customer, regardless of the funds they manage. Also accounts with more than $ 250,000 in the case of legal persons.
Dominican Republic is not yet part of this initiative, but it looks like it will join this global trend in the very short term, which is why it is prudent to that from financial institutions start to the process of preparation and implementation as soon as possible. Currently, there are over 94 countries that have joined the initiative of the OECD. Mexico, Costa Rica, El Salvador and almost half of the world’s countries have already committed to start with the report in the coming years.
FATCA (Foreign Account Tax Compliance Act) was the previous experience has forced financial institutions to issue reports of customer accounts, but due only to the US government accounts reports of American physicists customers who handled a balance more than $ 50,000. No embardo, in the case of CRS should be reported to the country of origin, all accounts of individuals regardless of the amount they handle.
Claudio Rodriguez, partner division of Deloitte Enterprise Risk Dominican Republic said that “the trend seen worldwide, according to which most countries are joining this initiative of the OECD, is likely to Dominican Republic it is not left behind and soon a party. For that reason, it is essential that financial institutions be subject to these regulations, initiate the processes to establish a solid structure that allows them to efficiently meet the requirements. For we must be clear that in addition to this legislation, financial institutions must also continue to comply with FATCA ”
Rodriguez also explained that both FATCA as the CRS are mechanisms by which governments derive income information from their taxpayers located in other countries in order to combat tax evasion.
Everything about the CRS and its implementation:
During the 2016 financial institutions around the world they are already working on implementing internal processes to meet these new regulations; so the professional services firm Deloitte, using its global network of experts who are working on the issue, prepares a specialized in Santo Domingo on January 20 seminar.
To do this, Deloitte Dominican Republic will bring the country to Andrea Garcia Castelao, Tax Manager at Deloitte Global Business Services New York, who taught the seminar “Common Standard Reporting: The hard step that follows FATCA” it will be held in Holiday Inn Hotel Santo Domingo
The lawyer Garcia Castelao is a recognized expert in implementing FATCA and common reporting standard, with extensive experience in managing FATCA compliance programs in several global financial institutions.
This training is intended for: responsible for compliance, risk, lawyers, boards of directors and managements of financial institutions would be subject to compliance with the CRS (banks, mutual funds, credit unions, companies managing investment funds, brokerage houses , insurance and securities issuers).
Agenda of the seminar:
– General CRS Analysis: What is it ?, differences with FATCA, schedule compliance and other relevant aspects.
– Tools used for the implementation of the regulations.
– Impact on financial institutions.
– Activities of the implementation phase, needed to be prepared for the implementation of CRS.
Those wishing to receive this training can make their inscriptions Carolina Araujo: caaraujo@deloitte.con. Phone: (809) 563-5151 ext 4746.
