The Common Reporting Standard (CRS) is a multilateral agreement that was signed by 50 jurisdictions in October last year in Berlin. The main aim of the agreement is the automatic exchange of financial information to prevent tax evasion and fraud. The signing jurisdictions will adopt the CRS from 1 January 2016.
The new regulations require the governments to collect detailed information about account holders and owners from all financial institutions, and share them with other states that signed the treaty. The transfer of information will occur automatically once a year, and not just upon request of a state, as it is now. This also means that the financial authorities will be able to closely monitor bank accounts, which is particularly interesting with regards to accounts in offshore countries (Caribbean, Monaco, Switzerland, etc), as these countries have also signed the agreement. Fiduciaries will not be able protect account holders and owners any longer as the banks are required to disclose the UBO (Ultimate Beneficial Owner), regardless of who is standing in as a trustee. This agreement is applicable for company and private accounts alike.
Dr Werner & Partner are endorsing and supporting this measure!
We have been advising our clients that this exchange of information has been and is always possible. None of our clients will need to be concerned about negative repercussions arising from the upcoming change.
Even before the CRS, we have gone the extra mile with our clients, and this will continue on. Some of our clients are realising now why we made such efforts, and many that were interested in the past will realise why we strongly advised them against establishing the company in Malta or an offshore country.
Future clients can be certain that we have been advising our clients about this for over 10 years, and we will do the same in the future to offer the best possible long-term service. You are welcome to contact us for a personal consultation regarding the CRS, company establishment in Malta or for a relocation to Malta.
