The Bahamas tax authority recently announced that it no longer plans to follow the narrow approach in CRS compliance. It will instead implement CRS by way of the Multilateral Convention on the Mutual Administrative Assistance in Tax Matters (the Convention) on a non-reciprocal basis. The biggest impact on Bahamas Financial Institutions (FIs) in the switch from narrow to wider approach is an expansion of CRS due diligence. [This is an update to my previous blog posts: January
There has been much discussion regarding the Common Reporting Standard’s (CRS) “wider approach” to due diligence and reporting but what does it mean when Hong Kong says it is taking the “optional approach” and Bahamas announces it is taking the “narrow approach”? Bilateral v Multilateral Implementation Under CRS, a Reporting Financial Institution (FI) must establish, maintain and apply due diligence procedures to identify Account Holders (and Controlling Persons for certain a
The Cayman Islands, India, Mauritius and the majority of other jurisdictions participating in the Standard for Automatic Exchange of Financial Account Information in Tax Matters (The Common Reporting Standard (CRS)) are taking the “wider approach” to CRS compliance. What is the wider approach and how does it impact your CRS due diligence and reporting? Global Expansion Under FATCA, due diligence and reporting focused on one set of reportable persons: Specified U.S. Persons.