Monaco: Updated AEOI guidance under CRS regime
Monaco issued an updated version of the automatic exchange of information practical guidance.
Updated AEOI guidance under CRS regime
Monaco issued an updated version of the automatic exchange of information (AEOI) practical guidance (Version 7) for reporting Monegasque financial institution under the common reporting standard (CRS) regime. The updates are as follows:
Part 3, Section VI (Special Rules of Due Diligence):
- Section 1.1 (Knowledge criteria applicable to self-certifications) has been updated to provide requirements for self-certification forms for account holders with one or more jurisdiction(s) of residence for tax purposes.
- Section 1.2 (Knowledge criteria applicable to supporting documents) has been updated to note the following:
- Account holders with a financial institution status will not be required to submit a declaration. Generally, there are no issues when the regulated status can be verified through readily available public information (such as public lists of regulated entities having the status of bank, company of insurance, management company, collective investment organization, etc.).
In addition, financial institutions need to verify that the entity appears on public lists of foreign financial institutions (FFIs) maintained by various authorities, particularly the U.S. tax authority (IRS) under the FATCA regulations, and has been assigned a global intermediary identification number (GIIN). - For Active NFEs classification, financial institutions must provide that the entity satisfies any of the criteria outlined for active NFEs under paragraph D(9) of Section VIII of the CRS. Financial institutions must obtain additional supporting evidence to justify the classification, such as the entity’s financial statements, extracts from the commercial companies register, or any other relevant documentation justifying the classification.
- Account holders with a financial institution status will not be required to submit a declaration. Generally, there are no issues when the regulated status can be verified through readily available public information (such as public lists of regulated entities having the status of bank, company of insurance, management company, collective investment organization, etc.).
- Section 1.4 (Reinforced vigilance towards people claiming sole tax residence in a jurisdiction offering a Residence by CBI/RBI scheme) was added to note that individuals claiming tax residency solely in the Citizenship or Residence by investment scheme (CBI/RBI) jurisdictions pose an increased risk regarding accurate identification and reporting all tax residencies for CRS purposes.
- Section 2.2 (validity of self-certifications) under section V [Details of concepts used (Practical Sheet No.4)] has been updated to note that passive NFEs need to provide comprehensive details of all individuals with control over the account holding entity. This includes name, address, tax residency, tax identification number (TIN) and AEOI classification of the holding entity.
Part 4, Section I (Practical sheet 4: Information to be declared).
- Section 2.1 (Information relating to the identity of the account holder) has been updated to remind financial institutions to collect and report the TIN, or its functional equivalent, from account holders and controlling persons.
Read a July 2024 report prepared by the KPMG member firm in France
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