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Regulations · Regulation explained

CRS / DAC2 — automatic exchange of account information

The common reporting standard made foreign accounts visible to home tax authorities years ago — and made helping clients circumvent it a hallmark under DAC6. For advisers the duty is situational awareness: know what is already exchanged.

InstrumentDirective 2014/107/EU (DAC2), implementing the OECD CRS; FATCA IGAs
Applies fromIn force since 2016; ongoing annual cycles
Who is coveredFinancial institutions report; advisers must understand what is visible about their clients and recognise circumvention schemes

The requirements, article by article

DAC2 art. 8(3a)

Annual automatic exchange

Account balances, interest, dividends and proceeds of reportable accounts are exchanged automatically between member states each year.

In Sceau — The CRS view shows per client what categories are exchanged and since when.

Due diligence rules

Residence determines reporting

Financial institutions determine account-holder tax residence via self-certification and indicia — errors and stale certifications are a compliance risk.

In Sceau — Self-certification status is tracked on the client file with staleness flags.

DAC6 hallmark D

Circumvention is itself reportable

Arrangements designed to undermine CRS reporting are a DAC6 hallmark — advising on them triggers the 30-day duty.

In Sceau — The hallmark assessment tests category D explicitly on every arrangement.

FATCA

The US layer

US persons trigger parallel FATCA reporting under intergovernmental agreements, with its own indicia and forms.

In Sceau — US-person indicia raise a dedicated flag on the file.

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A honest note

This page is a plain-language orientation, not legal advice. Article numbering follows the instrument as published in the Official Journal; where implementing technical standards are still in draft, we say so. The legal text always prevails.

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