Financial institutions (FIs) should review updated CRA guidance for due diligence and information reporting obligations under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). This updated guidance, which was released on August 23, 2023, includes guidance on the interim treatment of First Home Savings Accounts (FHSAs), among other changes.
FIs should consider how the CRA’s updated guidance may affect their existing FATCA/CRS processes, particularly given the temporary nature of some of the changes. Written policies and procedures should be updated for any operational changes as a result of the new guidance. The CRA has stated that, on audit, they will request a copy of an FI’s written policies and procedures implementing FATCA and the CRS.
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