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AEOI Health Check and Risk Framework

AEOI Health Check and Risk Framework

AEOI Health Check and Risk Framework

KPMG AEOI Services Health Check and Risk Framework

The KPMG AEOI Health Check is a detailed review of processes and procedures to help ensure compliance with both the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) and identify any gaps. The complementary KPMG Risk Framework helps to establish ongoing controls and compliance.

Why is there a need for the AEOI Health Check and Risk Framework?

Reporting information on ‘Financial Accounts’ to local tax authorities under AEOI has been required in the Wave 1 (early adopter) jurisdictions since 2017. AEOI is a challenging compliance obligation where the reporting process will highlight the accuracy and completeness of data and documentation obtained from all relevant account holders. While many organizations have implemented projects to meet the initial reporting deadline, it is important to consider that this is an on-going annual requirement which must be integrated into ‘business as usual’ (BAU) activities with appropriate controls and governance.

The initial legislation is likely to evolve in many jurisdictions making it challenging to stay aware and in control of these changing requirements without a robust governance and control mechanism.

KPMG member firms have developed two solutions to help financial institutions navigate this complex and changing environment:

  1. The AEOI Health Check — A detailed review of the current implementation and approach to identify gaps in existing AEOI processes (internal procedures and policies, processes, documents, data collection, reporting systems and reports, etc.).
  2. The AEOI Risk Framework — A review of an existing risk framework or assistance with implementing a new AEOI risk framework to identify gaps that may exist, help ensure that sufficient controls are in place, review effectiveness and completeness to help determine how compliance is evidenced.