The Organisation for Economic Cooperation and Development (OECD) today announced that under the common reporting standard (CRS) system, it was addressing attempts by “residence and citizenship by investment” (CBI/RBI) schemes (also referred to as “golden passports”) to hide assets held abroad from CRS reporting.
The OECD release includes results of analysis of over 100 CBI/RBI schemes offered by CRS-committed jurisdictions, and identifies schemes that potentially pose a high risk to the integrity of CRS. Specifically, the OECD found high-risk schemes currently operated by Antigua and Barbuda, Bahamas, Bahrain, Barbados, Colombia, Cyprus, Dominica, Grenada, Malaysia, Malta, Mauritius, Monaco, Montserrat, Panama, Qatar, Saint Kitts and Nevis, Saint Lucia, Seychelles, Turks and Caicos Islands, United Arab Emirate, and Vanuatu.
The OECD also issued practical guidance—as a set of “frequently asked questions”—to enable financial institutions to identify and prevent cases of CRS avoidance through the use of such schemes. When there are doubts regarding the tax residence(s) of a CBI/RBI user, the OECD has recommended questions that a financial institution may raise with the account holder.
Read an October 2018 blog post prepared by the KPMG member firm in Switzerland
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