What began as US initiative to recover lost tax revenue has become a global effort to combat tax evasion on income from foreign bank accounts and investments. The US enacted the Foreign Account Tax Compliance Act or FATCA in 2010 to empower the Internal Revenue Service (IRS) to track overseas financial accounts of US taxpayers. The Organization for Economic Cooperation and Development (OECD) followed suit in 2014 with the Common Reporting Standard or CRS, largely following the FATCA model on a global scale.Today, more than 100 jurisdictions have signed intergovernmental agreements (IGAs) with the US government, obligating foreign financial institutions (FFIs) in those jurisdictions to comply with FATCA reporting requirements. Outsourcing AEOI compliance work helps alleviate much of the burden on responsible officers and internal compliance teams, while increasing overall efficiency and transparency into this complex process, and reducing the institution’s risk of sanctions for non-compliance. Download our whitepaper to learn more.
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